11/17/1997 CONF MTG - 4801�
�
ClTY OF
FRIDLEIf
CITY COUNCIL CONFERENCE MEETING
November 17, 1997 - 7:00 P.M.
Conference Room A (Upper Level)
1, Discussion Regarding the Human Resources
Commission,
2, Preliminary Plans for the Lower Level of the
Fridley Community Center, and Update on
Donations and Expenditures,
3. Stipulations in Rezoning Actions by the City.
4. Update on the 1998 CDBG Allocation Process
and Metropolitan Housing Opportunities Program.
5. Other Business.
Adjourn.
.
MEMORANDUM
PLANNING DIVISION
DATE: November 13, 1997
TO: William Burns, City Manager �
�
FROM: Barbara Dacy, Community Development Director
Scott Hickok, Planning Coordinator
Kurt Jensen-Schneider, Planning Assistant
SUBJECT: Human Resources Commission Discussion
It is our understanding that the City Council wants to discuss potential projects for the
Human Resources Commission (HRC). To assist the Council, we reviewed Chapter 6
of the City Code, identified issues staff sees as possible work areas and identified an
immediate course of action for the Commission. The general purpose of the HRC as
defined in City Code 6.06 (see attached) is to:
1. Promote the communication of just and equitable human rights;
2. Promote racial and cultural harmony;
3. Promote understanding and equal opportunity in employment, housing, public
accommodations, and public, cultural and educational services, and full
participation in the affairs of the City of Fridley.
In reviewing and interpreting the general purpose of the HRC, staff brainstormed a list
of issues and/or areas of possible consideration:
1. Homelessness
2. Job training; connecting job training or "people" needs in the rehab and target
neighborhood programs
3. Review of ordinances that are not within the jurisdiction of others (example:
curfew, cigarette)
4. Serve as a volunteer service program resource
5. Senior and youth program review
6. Develop a closer relationship with the League of Minnesota Human Rights
Commissions
7. Review City policies, social issues (example: street corner begging)
8. Child care
9. Domestic violence
w
10. Neighborhood disputes
11. Review projects or requests from other jurisdictions (school board or County)
12. Review grant applications
The Commission could serve as a citizen review board "funnel" for programs, projects,
or policies involving human-related interests. Current projects involving the police
department's neighborhood programs, after-school opportunities, or Values 1 st efforts
could benefit from the Commission's involvement. Various grant applications may also
benefit from the Commission's human interest perspective. Requests or projects from
the School Board or County could also be reviewed by the Commission. The
Commission would review the items and make a recommendation to the City Council.
Staff has introduced these issues as a starting point for discussion. Please provide
specific direction on the programs, projects, or policies for the HRC to review should the
Council choose to pursue this matter.
KJS:Is
M-97-481
6.06 HUMA.*I RESOURCES COMMISSION
Purpose.
The purpose of the Human Resources Commission is to promote
intensified communication and protection of just and equitable rights
among all residents of the community; to promote harmonious
relationships among people of all races, religions, ethnic groups,
social/economic status, ages, gender, physical, mental and emotional
disabilities and diverse life styles; to promote understanding and
equal opportunity in employment, housing, public accommodations, and
public, cultural and educational services; and full participation in
the affairs of the City of Fridley.
2. Scope.
A. The Human Resources Commission shall act as an advisory
commission to the Planning Commission for continuous community
planning and development of the comprehensive City goals and
policies. Any change in related community planning and
comprehensive City goals and policies must be reviewed by the
Planning Commission who will then make recommendations to the City
Council.
B. The Human Resources Commission shall advise the City Council,
after a policy review by the Planning Commission, in the
development of programs to give increased effectiveness and
direction in implementing established City goals and policies and
recommend actions as needed to provide equal opportunity in the
community.
HUMAN
RESOURCES
COMMISSION
City of Fridley
Recreation and
Natural Resource Department
emo
November 13, 1997
TO: William W. Burns ��
City Manager �
FR: Jack Kirk ��`'
Director
RE: CONFERENCE MEETING ITEMS FOR MONDAY. NOVEMBER 17TH
As we have discussed, John Litchy and I are planning on being in attendance at the City
Council Conference Meeting this coming Monday, November 17"' to look at the
preliminary lower level plans for the Fridley Community Center. We would like to gain
input from the Council on the direction we are heading with the design. Information
received from the focus groups is being incorporated as much as possible into this
preliminary design, but we would also like to see if there are any additional
considerations that council or yourself would like to see in the plan.
I also will be giving an update on the Fridley Community Center donations and
expenditures for the furnishings. With recent contributions of $500 from Fridley VFW,
$200 from H.B. Fuller and a pledge of $25,000 from Norwest Bank we have gone over
the top and exceeded our goal. Our total of donations and pledges to-date is $248,285
or 108% of our original goal of $229,000.
Bill, if there would happen to be any extra time, I would like to briefly look at some ideas
for a recognition plaque and get some input. I'll have some examples at the meeting
with some projected costs, and some feedback that we've had from the Fundraising
Committee. I would like to proceed with a recognition plaque as soon as that can be
arranged.
If you have any questions on any of these items or need any additional information prior
to Monday's meeting, please let me know.
JK:sj
s
MEMORANDUM
DEVELOPMENT DIRECTOR
DATE: November 13, 1997 �
TO: William Burns, City Manager�
FROM: Barbara Dacy, Community Development Director
SUBJECT: Legal Opinion Regarding Stipulations as Part of Rezoning
Cases
The City Council requested an opinion from the City Attorney regarding the City's
practice of establishing stipulations as part of a rezoning approval. The City Attorney
advises that this approach could be subject to legal challenge (see attached opinion).
He suggests an alternative method of approving a rezoning by approving a
development agreement in conjunction with the ordinance rezoning the property.
The City Attorney is preparing a model development agreement which, beginning in
1998, staff will use for rezoning cases. The City Council should expect to see the
development agreement on the same agenda when the City Council approves second
and final reading of an ordinance rezoning the property.
BD/dw
M-97-480
HOLSTAD AND LARSON, P.L.C.
Attorneys at Law
Wayne B. Holstad 3535 Vadnais Center Drive, Suite 130
Russeil L.C. Larson St. Paul, Minnesota 55110
John L. Lindell Telephone: (612) 490-9078
Karen Hill Fjeld � Facsimile: (612) 490-1580
�' Rea1 Property Law Specialist
October 9, 1997
Ms. Barbara Dacy
Director of Planning and
Community Development
City of Fridley
6431 University Ave. N.E.
Fridley, MN. 554�2
Of Counsel
Frederic W. Knaak*
* Also Licensedin
Wisconsin & Colorado
BY FACSIMILE AT 571-1287
8� U.S. MAIL
RE: Opinion Request: Stipulations in Rezoning Actions by the City
Dear Ms. Dacy:
Some time ago, you wrote me a memo in which you outlined an occasional practice by
the City by which the City Council enforced stipulations on developers and landowners
seeking to rezone parcels of land in the City.
Specifically, the practice involved the inclusion of language in any ordinance modifying
or establishing new zoning classifications for affected parcels that referenced
"stipulations adopted in the minutes". These stipulations would include the site-specific
requirements the City Council wanted to impose on the site for the proposed
development on that site that had triggered the rezoning request.
You indicated this practice had received the approval of legal counsel at the time.
One of two specific rezoning requests that triggered your more recent request for an
opinion from me involved a developer seeking to develop the City's old liquor store site.
Over the recommended approval by the Planning Commission, the Council turned
down the request, at least in part, because of the lack of any specific development
proposal by the developer. The develop wanted to rezone the parcel involved so that it
could market the site to several types of commercial users and not commit the site to
any one particular use. The Council, however, is understandably concerned about the
type of development that changing the zoning would encourage and create and wants
to exercise some control over the specific kinds of development that would occur on the
site.
What the Council was interested in knowing, and has now asked me through you, is
whether specific stipulations can be attached to concept plans presented to the City in
support of rezoning applications that can subsequently be enforced against developers
or related parties. More specifically, they are interested in knowing whether their
practice of attaching stipulations to the enacting ordinance can be extended to provide
for alternative types of development that would be conditions of the rezoning.
� ,
j w
Ms. Barbara Dacy
October 9, 1997
Page Two
ANAL YS/S
Under Minnesota law, the act of zoning is legislative in character, meaning that the
action of zoning itself is intended, through legislation, to be general in nature.
Because of that fundamental status, courts grant exceptionally broad deference to the
actions taken by cities, and city councils in particular, in making rezoning decisions.
The fact the zoning decisions are general and legislative in character does not mean
that site-specific provisions cannot be included. It does mean, though, that site-
specific Q;-ov�sions �re m�r.e �ef�r.sibls if they are in a forrn �n �Nhich gen�ral rules are
being applied to a specific site.
There is a strong line of cases that suggests that in instances where cities use rezoning
decisions as a defacto means of dealing with specific development proposals, the
rezoning decision will, for purposes of judicial review, lose its legislative character and
the usual deference and protections afforded to cities in these decisions by the Courts.
Courts would, rather, view the decision as quasi judicial in character and apply the
same standards of review as they would a variance or other site-specific proposal.
A decision by the City to rezone a particular parcel is, of course, the kind of legislative
enactment affecting a specific parcel that is fully defensible and accorded broad
deference. It is my opinion, however, that any /egis/ative action taken by the City to
impose additional, specific conditions as part of the enacting ordinance for the
rezoning of a specific parcel falls outside the purview of those protections and runs a
significant risk of a successful challenge of those conditions by a developer on equal
protection grounds, as well as the more usual "arbitrary and capricious" standard of
review imposed by the Courts.
It is not at all difficult to imagine, for example, a situation in which conditions are
imposed in the enacting resolution that would not be codified. Years pass without
development and, finally, another purchaser and developer buy the site and seek to
build under the "new" rezoning. Conditions contained in the minutes and enacting
ordinances would not be the sort of matters normally found in the title record or the
official City Code and such a developer could properly argue that he had no legal
knowledge of the conditions and the City should be estopped (equitably prevented)
from enforcing them. Such an argument would have a fair likelihood of success.
It is in view of precisely these kinds of issues that the accepted practice has developed
in this State of conditioning passage of a rezoning ordinance on the execution between
the developer and the City of a complete and recordable
Development Agreement. The express terms of the agreement are not part of the
legislative act of rezoning, but are, nevertheless enforceable covenants against the
owners and whomever would be subsequent owners. The consideration for such an
agreement has been upheld judicially as the act of rezoning of the parcel by the City.
_ . �
Ms. Barbara Dacy
October 9, 1997
Page Three
There is no reason that multiple potential uses could not be outlined in such an
agreement.
A Development Agreement has the specific benefit in these cases of being a
recognized and enforceable document of record that would be in the usual and ordinary
chain of title and established public record for real estate. It's existence in all such
cases would effectively insulate the City from subsequent challenges to conditions
imposed in presumptively arms-length negotiations with developers and prior owners.
CONCLUSION
Based on my analysis, I have concluded that the City's practice, as outlined by you, of
providing conditions for development in the same enactment as a rezoning ordinance
does not represent the best practice for the City and could leave the City's actions in
such cases open to legal challenge.
It is my opinion and recommendation that in all cases in which the Council has reason
to limit specific types of development in an area proposed for rezoning, the best
practice is to enter a Development Agreement with the owner or developer prior to the
enactment of the rezoning ordinance. The Agreement should be fully recordable and
specifically provide for a continuing covenant against fhe parcel enforceable against all
transferees and subsequent owners and interested persons. All conditions should be
reduced to writing and openly agreed to by the signatories.
I am aware that the City already follows this practice in many, if not most cases.
Following this practice in cases of multiple proposed uses is also, in my opinion, the
best and most defensible alternative.
As always, I appreciate being of service to the City. If you should have any questions
concerning this opinion, or believe it needs clarification or expansion on any point, do
not hesitate to contact me at your earliest convenience.
Sin�hely;
f�r�deric U'
Fridley City Attorney
c;c: W. Surns
..�
MEMOR.ANDUM
DEVELOPMENT DIRECTOR
DATE: November 13, 1997
�
TO: William Burns, City Manager �
FROM: Barbara Dacy, Community Development Director
Grant Fernelius, Housing Coordinator
SUBJECT: Update on the 1998 CDBG Allocation Process and
Metropolitan Housing Opportunities Program
..; �: • . . - .
Since September, staff has attended several meetings held by the Anoka County
HRA Technical Advisory Committee concerning changes to the 1998 Community
Development Block Grant (CDBG) program. The purpose of this memo is to
outline the issues that have been discussed and what can be expected for the
CDBG allocation process.
:_ • � •
According to County staff, HUD officials have complained for a number of years
about how the CDBG program is administered. HUD has cited a number of
concerns, but focused attention in finro areas:
Too many small projects.
The County's practice of passing through CDBG dollars to cities
rather than requiring open competition is inefficient. Some cities have
struggled to spend their funds (but continue to receive funds each year),
while others use their money very quickly.
This year, HUD increased the pressure on the County HRA to make changes for
the 1998 funding cycle. County staff have spent this summer working on a
4 �
CDBG / MHOP Memo
November 13, 1997
Page 2
number of different proposals to meet both the needs of HUD and participating
cities. On November 12, 1997 the County distributed its latest funding allocation
proposal which attempts to strike a balance befinreen the old system and
wholesale change.
Old Allocation Svstem
Under the old system, the County received the funds directly, deducted a certain
portion for county-wide rehab, economic development, and administration, and
then allocated the remaining funds to the cities. Each city received an allocation
of funds based on their population, percentage of low income residents, and
several other criteria. The attached chart shows the funding levels since 1995
and the amount of funds received by the County and the portion allocated to
Fridley. For the most part, the funding levels have been fairly constant.
New Allocation �.ystem
The process of moving to a new allocation system will begin slowly. In 1998,
County staff is proposing to create a new Priority Project Fund equal to 10%
($186,800) of the net budget after the County's portion is deducted. The balance
of the funds would continue to be awarded to the cities on a pass-through basis.
The Priority Project Fund would be available on a competitive basis to fund
priority activities (housing rehab, senior housing, and MHOP). Each year the
fund would grow by 5°/a (e.g. 15°/a in 1999, 20% in 2000, etc.) and eventually
comprise the entire CDBG allocation. At that point, cities would no longer
receive a regular allocation of CDBG funds, but would have to compete for the
dollars.
County staff have also prepared general guidelines for both the Priority Project
Fund and the regular allocation. A copy of the guidelines are attached.
Net Impact on Fridlev
Under the latest proposal, Fridley will receive $128,177 in 1998 which is $18,671
or 13% less than we received in 1997. Over time this amount will continue to
decrease as the funds are shifted into the Priority Project Fund. We can still
allocate funds for housing rehab and public service activities, although there is
some question on the minimum threshold for individual public service awards.
CDBG / MHOP Memo
November 13, 1997
Page 3
The other important issue to mention is that cities will no longer be able to
reallocate unused CDBG funds. In the past, CDBG dollars (typically public
service projects) could be reallocated for another CDBG-eligible activity. The
City would simply adopt a resolution authorizing the change. Under the new
system, those funds would revert to the Priority Project Fund.
�[���:7
The Anoka County HRA Intergovernmental Committee will review the new
proposal on November 19, 1997. After that meeting, the County HRA's
Management Committee will discuss the proposal in early December.
The full HRA board will likely act on the proposal at their December 9, 1997
meeting.
Applications for the regular allocation of funds will be due by February 13, 1998.
We do not know when the Priority Project Fund applications will be due.
Additional information on the 1998 CDBG program should be available by mid-
December.
Although the 1998 impact is not significant, the City will need to start evaluating
other sources of funding for the housing rehab grant program. This issue will be
discussed with the HRA during its 1998 budget process.
2. Metropolitan Housing O�portunities Program
The Metropolitan Housing Opportunities Program was created as a result of the
Hollman Consent Decree that was ordered in 1995. The case involved a lawsuit
between the City of Minneapolis, the Minneapolis Public Housing Authority, the
Met Council and HUD and a group of individuals who had claimed that the
defendants had historically discriminated against lower income people by
locating public housing in certain areas of Minneapolis and creating
concentrations of poverty.
As part of the out-of:court settlement HUD committed $100 million to both
demolish existing public housing in the inner city and help construct
replacement units on a scattered site basis (no more than 10 units in one
location) throughout the metro area. Approximately 780 units will be demolished,
80 of which must be built in Minneapolis, and 690 in suburban locations. The
purpose of the program is to provide lower-income families with greater housing
choice and access to jobs in the suburbs.
CDBG / MHOP Memo
November 13, 1997
Page 4
In terms of how the program is implemented, the program is strictly voluntary at
this point. Funds are provided for both the construction or rehabilitation of
existing housing and on-going operating subsidies. Once constructed, at least
70% of the units must be available to Minneapolis residents who are on the
waiting list. The remaining units can be made available for local families. The
replacement units must be maintained as rental property for up to 40 years. To
be eligible for a unit, a family's income must fall within the income guidelines
(generally 50% of inedian income) and meet the tenant screening requirements
established by the local HRA. The tenant would then pay rent equal to 30% of
their monthly income, with the remaining portion to be paid through the MHOP.
There are a number of ownership formats that are allowed under the program
including a local HRA, a county HRA or even private developers.
At a minimum, however, a local HRA must be involved in the project to ensure
that it is properly managed and to distribute the operating sub-sidies. The local
HRA would enter into an agreement with the Minneapolis Public Housing
Authority for both the construction/rehab dollars and the operating subsidies.
Attached is a fact sheet on the MHOP program.
The County has indicated that MHOP will be a priority in 1998. As out-lined
earlier in this memo some of the CDBG funds will be set aside for this program.
The City, as it develops its policies on apartment rehab projects, may want to
evaluate cooperating with the County on a project or completing one in
conjunction with a private developer.
There are already several suburban communities which have agreed to develop
MHOP units and all of the units must be completed by 2002. Common Bond
Communities, a St. Paul non-profit which developed the Norwood Square senior
housing project here in Fridley and has worked on MHOP projects in Plymouth
and Minnetonka, has expressed interest to work on a project in Fridley.
Unless otherwise directed staff plans to continue to research the MHOP
program. We will also visit with some of the other cities to learn more about their
MHOP projects and report back to the Council and HRA in February or March
1998.
GF/
M-97-482
Year
1995
1996
1997
1998*
Community Development Block Grant Program
Funding Summary
Total County's
Allocation Portion
$1,933,000 $463,819
$1,886,000 $416,819
$1,868,000 $464,000
$1,868,000 $464,000
Fridley's
Portion
$155,210
$155,223
$146,848
$128,177
% of
Total
8%
8.2%
7.8%
6.8%
Notes:
* Projections for 1998. County used 1997 figures as baseline.
%
Change
N/A
NIL
-6%
-13%
1998
REVISED DISTRIBUTION OF CDBG FUNDING
(Based on 1997 funding amounts)
Grant Amount
Priority Project Fund
10% of grant
County portion
(Admin, Rehab, Economic Development)
Cities
Area I
Blaine
Columbia Hts.
Fridley
Anoka
Coon Rapids
Area II
East Bethel
Lino Lakes
Spring Lake Park
Andover
Ham Lake
Area III
Ramsey
Oak Grove
Linwood
Circle Pines
Burns
Columbus
Are N
Hilltop
Lexington
Bethel
S� Francis
Centerville
$1,868,000
186,800 In 1998, priorities are housing rehab,
senior housing, MHOP(Hollman)
related activities.
464,000
156,353
196,809
128,177
143,123
243,440
37,661
31,878
25,781
47,178
35,137
28,713
25,277
15,741
8,817
9,153
17,019
11,140
17,930
7,088
24,271
6,498
Rules for Priori Project Fund
1. Each year the Anoka County HRA will determine the priorities.
2. Applications must be for at least $50,000.
3. An application form will be developed by the Anoka County HRA to save time for cities.
4. Applicants not funded will be looked upon favorably the next year.
5. Starting with the second year, the priority project fund will increase each year by 5% of the
grant amount after the deduction of 10% and the County portion.
6. Remaining or unallocated city funds go into the next year fund.
Rules for city allocations of grant
1. Public service funding will remain the same as before. Public services can be 15% of the
total County grant amount.
2. Each project done must be at least 25% of the allocation and at least $10,000.
3. Program income generated by the cities will be returned to the city for their use.
4. No reallocations will be allowed. All remaining funds will go into the Priority Project Fund.
The Metropolitan Housing Oppo�tunities Program
ousing developments in
th� works: Evergreen Pointe, in
Savage, is ready for occupancy. Five public
housing units are part of a 48 unit
townhome development on McColl Drive.
The pubiic housing units were developed on
a iurnkey basis by Evergreen
Development for the Scott County HRA.
Four homes are leased by families from the
Minneapolis priority list, and one from Scott
County's waiting list.
.
Minnetonka Mills, a 30 unit townhome
development by the Comerstone Group,
has three public housino units and will be
ready for occupancy in October.
Crown Ridge, part of a large, exciting
mixed-income residential and commercial
development in Minnetonka is expected to
be completed in December. Developed by
CSM Corporation, the 64 apartments at
Crown Ridge will inclucJe 6 public housing
�
September, 1997
dwellings. The Economic Development
Authority of Minnetonka is the local
s�c;���� �i th� Nub��c ��u��� �y ai b�i i Crow�
Ridge and Minnetonka Mills.' _
r � '
A fourth suburban multifamily development,
East Creek Carriage Homes in Chaska,
started construction in June. This project by
Duffy Devslopment, with the Carver
County HRA, will have five public housin�
units in the mix with homes financed
through tax credits. East Creek
Carriage Homes, in Chaska, borders on a
City park near Chaska Creek.
n the proposal stage: At Silver
Lake Commons, in Mounds View, by
MSP Real Estate; up to 10 MHOP units
will be part of the rehab of an older 40-unit
building and 16 new townhomes.
(Continued on page Z)
(Connnued from page /�
Developments in Eden Prairie and Plymouth
are scheduled to begin construction by
November 30. In Eden Prairie, 5 two- and
three-bedroom MHOP homes will be among
32 new townhomes. The Plymouth develop-
ment includes 6 MHOP homes among 64
new units.
�,
n the scattered-site front:
The Washington County HRA has
been approved for 60 scattered-site MHOP
units. Development on these homes is
anticipated to begin later this autumn.
The Carver County HRA is preparing to
begin development of 50 scattered site
MHOP dwellings, the County having
approved this project in June.
Anoka County is considering a commitment
to develop 80 MHOP units on a scattered-
site basis, and is considering a partnership
with Anoka County Community Action
Program to develop or operate the homes.
��There is a Iot af room
here for my ch�ldren .
to play and graw �_ �
--New resicient of ar� MHOF ` �
` home. I
�I
n other news related-to MHOP
r .
. . .The Metropolitan Council's Community
Development Committee has asked the-
Metro HRA Advisory Committee to draft the
specifics of a recommendation for the
Metropolitan Council to take an administra-
tive role in implementing MHOP. The Met
Council would fulfll this role on behalf of lo-
cal governments that do not have public
housing management capacity but would like
to participate in MHOP. These recommenda-
tions will go back to the CD Committee later
this year, after which they may
be recommended to the full Met
Council.
;. :�
he Metropolitan Housing Opportunity Program (MHOP) is a fina�cing program for development of new public
housing in communities all around the metropolitan area. MHOP was created in response to the Hollman Con-
sent Decree, the purpose of which was to provide low-income Mi�neapolis families with greater housing choice and
economic opportunity. For more infortnation about MHOP, please contact Dave E�gstrom, at the Minneapolis
Public Housing Authority; (612) 342.1478.
2
June, 1997
Metropolitan Housing Opportunities Program
MHOP FACT SHEET
What is MHOP?
N�-IOP is a rental housing prog-am that was created as a result of a legal settlement, the
h=o['i�nan Conser.t i3ecree. As }�e of the detendants in the iawsuit, the Minneapolis
Public Housing Authority (MPi:t,� a�eed t� expand afifordaoie housing opportunities for
lower income residents in azeas where there has traditionally not been a supply of public
housing, in both the City of Minneapolis and in suburban lacations. The MPHA will
develop and operate the Hollman replacement units in the City, but a new kind of
agpro�ch was need�d for the I�:-r•A to p. �v��de � Iollmar� ��n� ior the devetopment oi
public housing in the suburbs. MHOP is this tooL
Who can live in MHOP housing?
Families (a household comprised of two or more people) whose income when they move
in does not exceed 50 percent of the metropolitan area median income. Allowable
income limits range from $21,850 for a two person family to $36,050 for eight or more
family members.
How are families se/ected for MHOP?
For 30% of the units, families can be selected from a local waiting list without respect to
Hollman priorities. For the remaining 70%, the consent decree requires that prospective
residents are invited to apply in the following order:
1. Those displaced by demolition of public housing.
2. Families on the MPHA waiting list who live in minority or poverty
concentrated areas.
3. Any other famities on the MPH.A waiting list.
Are there standards for selecting families�
Only eligible and suitable families will be selected for NII-iOP housing, regardless of
whether they are on a Hollman priority list. Stringent admission and eligibility standards
will be applied to all applicants. For example, families in which any member has a
criminal or drug use history can be.rejected for admission. Selection standards for MHOP
MHOP Fact Sheet
page 2
housing will be the same as those used by private companies: credit histories, landlord
history, criminal and drug background, and any other relevant data will be checked.
T'he local housing agency will determine the screening criteria and manage the seleGtion
process.
How do suburban families get on the Minneapolis public housing waiting
list?
The MPHA will automatically place all families who appty from suburbs whn are
participating in ivII-(pt' on its waiting list, thus making Minneapolis and sub�rban residents
equally eligible for the third priority listed above. As of this writing, the 11�cIr•,'s waiting
list includes over 220 suburban families. -
r
How much rent will families pay?
Thirty percent of their income or $25.00, whichever is greater.
Who pays the rest of the �enf?
The U. S. Department of Housing and Urban Development (HUD). HLJD will provide
operating subsidies for MHOP units for forty years, subject to Congressional
appropriation. The subsidy is the difference between operating costs and rent.
Do families have to move if their income goes up?
No, but they must continue to pay 30% of their income.
Where can MHOP deve%pments take place?
MHOP-funded new construction homes can be built anywhere outside Minneapolis and
Saint Paul, but within the MIISA (metropolitan services) line. Rehabilitation of existing
homes with 11�-IOP can be done anywhere in the seven-county area, outside of
Minneapolis and Saint Paul. Sites will be selected which meet public housing site and
neighborhood standards, and the MPHA wil] strongly encourage the development of
MHOP units in places that aze accessible to jobs, transportation, and other amenities
important to families with children.
What kind of homes wil! be built?
MHOP housing can be single family homes, duplexes, townhouses, smaller rental
MHOP Fact Sheet
page 3
buildings, or buildings which aze constructed as part of a larger mixed income
development. 1fie housing can be newly constructed or existing houses can be acquired
and rehabilitated. All developments must comply with (ocal building standards.
When will they be built?
Anytime between now and April l, 2002.
Who will own the units?
The units can be owne� 1 by a private developer, the suburb or its Housing and
Redevelopment Authority, or the MPHA and the suburb agreeing to own the property
jointly. >
Who wiil maintain the units?
A management company will be hired to manage and maintain the property. This
company can be a private property management firm; a non-profit housing management
organization; or a local public housing authority, l�ce a Housing and Redevelopment
Authority.
Why did the Hollman consent decree encourage creating public housing in
the suburbs?
To create more choice in affordable housing across the metro azea, particularly where jobs
aze being created. Lower income families who already live in the suburb will have an
opportunity to apply for at least 30% of the MHOP units being developed. Studies twelve
years after the Gautreaux decision in Chicago find that families who moved to the suburbs
have had much greater economic and educational success, both for parents and the
children.
More questions about MHOP? Please contact Dave Engstrom, Minneapolis Public Housing
Authority, at 342-1478.
fsmhop
September, 1997
Who's Moving?
A Profile of Families Who Wil1 Have
Housing Choice Under the Hollman Consent Decree
As a resul: of the :�fo.!„-�ay1 �o;�s��t decrez, �eve:al hur,d.re�' ucli�s ai pablic housing on the
Neaz North Side of Minneapolis will be demolished and will be replaced with new aud
rehabiiitated public housing units in other locations in Minneapolis and the suburbs. �he
families who had been living in the North Side public housing that is being demolished will
have first priority to move to these new homes throughout the Twin Cities area. •
� profiie oi tne famiiies who will be moving:
• 519 families, including 1297 children and 42 full-time college students.
• Average family size is four people, with an average income of $11,118.
• Southeast Asian families make up 56%, African-American families 38%, and white
families 5%. Less than 1% of the families are Native American, and less than 1% also
identified themselves as Hispanic.
• Of the 259 families who have already moved, 33 have bought homes in Minneapolis
and the suburbs. Many of these famiiies took advantage of first-time homebuyer
counseling offered through the Minneapolis Public Housing Authority.
• IV'ot all these families will choose to Iook for a home in the suburbs, but those who
have decided to do so most often explain that their reason is to have a great place to
raise their children. In selecting a specific location, families often look for places that
are close to other friends, extended family members, their workplace, or a church or
community organization where they already have relationships.
These families will be tooking for good neighborhoods, where there is a spirit of
welcome and a commitment to a hi g h quality of life for the children.
The Metropolitan Housing Opportunities Program
Minneapolis Public Housing Authority, 1001 North Washington Avenue
Minneapolis, Minnesota 55401; (612) 342-1478
June, 1997
The Hollman Decision and Housing Choice in
the Twin Cities region: What Difference Does It Make?
In three words, the most important difference: the childrens' future. A follow-up study was done
in the Chicago area of children in families who had moved to both city and suburban communities
as a result of the Gautreaux decision. (The 1976 Gautreau.r decision provided low-income,
mostly black families &om Chicago with housing vouchers that they could use to move out of
traditionally low-income areas of Chicago. The purpose of the lawsuit was similar to that of the
1995 Hollman decree in Minneapolis.) �
The study, thirteen years after the lawsuit, compared the experience of children whose f�nilies
had moved to suburban communities as opposed to those who had used their vouchers to �nove to
Chicago neighborhoods. The findings tell the story about the personal and economic value of
housing choice:
.�,'inety-five per cent of suburban youth completed high school, compazed with an 80% rate for
city children.
. After the move, 40% of the youth who had moved to suburban schools were in a"college
track" in their high school, compared with only 24% among the youth who had remained in
the city.
. Twice as many suburban youth attended college, compared with their counterparts in the city,
and six times as many attended four-yeaz colleges.
. Of the suburban youth who did not attend college, 75% were employed full-time, compazed
with only 41% of the young people who had remained in the city.
. Four times as many suburban youth were earning over $6.50 per hour. Nearly half the young
people working in the city were earning less than $3.50 per hour, compared to only 9% of the
suburban youth. Twice as many of the suburban youth (55%) had jobs with benefits.
Housing choice resulted in economic improvement for adults as well: a significantly higher
percentage of the parents who moved to suburban communities and who had been unemployed
before their move became employed, compared to their counterparts who remained in the city.
Chicago's experience is not unique. Similar results are being observed in other metro regions
where housing mobility efforts are in place, including Tucson and Seattle.
The Metropolitan Housing Opportunities Program
Minneapolis Public Housing Authority, 1001 North Washington Avenue
Minneapolis, Minnesota 55401; (612) 342-1478