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HRAM 12/07/2017 CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION December 7, 2017 Chairperson Gabel called the Housing and Redevelopment Authority Meeting to order at 7:00 p.m. MEMBERS PRESENT: Pat Gabel William Holm Stephen Eggert Kyle Mulrooney MEMBERS ABSENT: Gordon Backlund OTHERS PRESENT: Paul Bolin, HRA Assistant Executive Director Wally Wysopal, City Manager Jim Casserly, Development Consultant Shelly Peterson, Finance Director Julie Jones, Planning Manager Action Items: 1.Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures. Seconded by Commissioner Eggert. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 2.Approval of November 2, 2017 Meeting Minutes Chairperson Gabel asked for the following corrections to be made: th Page 6, 4 paragraph from bottom, change “Mr. Bolin stated that the agreement that was singed signed” thth Page 7, 4 paragraph, 4 sentence, change “There are more jobs that than” MOTION by Commissioner Eggert to approve the minutes as amended. Seconded by Commissioner Holm. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY 3.Approval of Final 2018 HRA Budget Housing and Redevelopment Authority Meeting of December 7, 2017 2 nd Shelly Peterson, Finance Director, stated that on November 2 staff presented the 2018 proposed budget general fund and housing loan program fund. No revisions were recommended by the Authority. Staff has reviewed current projections and does not recommend any modifications. MOTION by Commissioner Eggert to approve the 2018 HRA Final Budget. Seconded by Commissioner Mulrooney. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY Informational Items: 1.Metropolitan Council Affordable Housing Allocation Tara Beard , Housing Analyst, stated that the housing element requirements provide adequate housing opportunities to meet existing and projected local and regional housing needs. It also provides tools to implement land use plan housing elements that will meet the local unit’s share of the metropolitan area need for low and moderate-income housing. The allocation for affordable housing need for 2021-2030 for low and moderate-income housing takes into consideration the forecasted growth, existing affordable housing and ratio of low wage jobs to low wage workers. The local need for affordable housing by band, below 30% AMI, 31-50% of AMI and 51-80% of AMI. Fridley’s allocation of affordable housing need for 2021-2030 is 258. Affordable housing is needed due to income-restricted vs. naturally occurring affordable housing, existing residents are cost burdened and more low-income households are coming. Fridley’s share of future affordable housing need is less than a quarter of its expected growth. Cities must only guide enough high-density land such that their share could be built. Commissioner Holm asked what that would translate to monthly payments for housing of the median income affordable housing. Ms. Beard replied $65,700 annual income, affordable home ownership price of $238,500 or rent of $1,100. Commissioner Holm asked how many persons were in the household. Ms. Beard replied that she could run the numbers, but it gets complex. The focus needs to be on the median income. Right now, it isn’t known how many households are coming but we do know they will come and space needs to be set aside to build when they come. Commissioner Holm agreed that Fridley has a large number of financially stressed people in the community. Low income people will need the type of housing that will need government assistance. He asked for the definition of housing affordability verses housing assistance. Housing and Redevelopment Authority Meeting of December 7, 2017 3 Ms. Beard replied that housing assistance comes with other services. The comprehensive plan will talk about those that would represent projects that require services, but it is hard to build housing to fit those guidelines. Commissioner Holm asked what kind of role the Met Council had in enforcing this information. Ms. Beard replied that when the comprehensive plan comes in and it doesn’t meet the criteria, the plan would be inconsistent with the policy plan. Chair Gabel asked if there were communities that don’t participate in the manner prescribed. Ms. Beard replied yes, 120 of 181 cities are eligible and 90 participate in the livable community’s act. Chair Gabel asked if distressed households are taken into account for the livable community’s act. Ms. Beard replied that there are different kinds of programs within the livable community’s act and they are based on the housing performance score. Wally Wysopal, City Manager, asked if the city’s base number of affordable units are factored into the calculation. Ms. Beard replied no, the allocation number is tied to the projected growth and only addresses the people who don’t live here today. Mr. Wysopal noted that the number of cost burden households keeps increasing over the years. It doesn’t seem like Fridley’s housing value is growing like the other metro areas. Ms. Beard replied that they can track and run that data. Julie Jones , Planning Manager, stated that Fridley does have an ample amount of land set aside to build the homes. Commissioner Eggert was interested in seeing the history of median income as homeowners are becoming more financially stressed. 2.Comprehensive Plan – Future Land Use Chapter Julie Jones, City Planner, presented the draft 2040 Comprehensive Plan future land use chapter. She reviewed what’s changed in the last 10 years. Many potential redevelopment areas rd improved (Northern Stacks & Central/53), Construction of Northstar Train Station, Housing changes (New senior housing options - Landmark & White Pines), New market rate apartments (Cielo) and Locke Park Pointe. The following Plans were Adopted Since 2009:  2012 East River Road Corridor Study  2013 Active Transportation Plan Housing and Redevelopment Authority Meeting of December 7, 2017 4  2013 North Park SRTS Plan  2014 Northstar TOD Master Plan  2016 Osborne Road Study  2017 ISD 14 SRTS Plan  Locke Park Pointe Development Plans Ms. Jones stated that the anticipated future impacts include traffic increases, population increases, and diversity increase. The affordable housing needs include Urban classification by Met Council, Climate Change, Focus on Equity, and Safer Roads & Services for All Users. The BRT is scheduled for 2021 and will include 22 Proposed Redevelopment Areas. These areas are selected due to anticipated change in use or zoning. Land use actions steps will be to study parking requirements at the University Ave Corridor Study & an East/West Corridor Study and will require 2 trees/R-1 new construction. EV stations will be encouraged along with solar gardens in industrial zoning by SUP, considering community gardens/orchards, monitoring the impacts of AVs and autonomous vehicles. Chair Gabel said that this is great material and will help the HRA with planning. Commissioner Holm asked about the proposed central line bus rapid transit if it is only one example of what it may look like. Ms. Jones clarified that this is University avenue. There are several bus transit routes slated to be put in place and this is the only bus rapid transit line that is scheduled at this time on their list and they are building as they get funding. The prediction is to have enough funding by 2021 to build this one. 3.Housing Improvement Areas Paul Bolin , HRA Assistant Executive Director, stated that the 1996 Legislature adopted Statutes 428A.11-428A.21 which defined a housing improvement area as a designated portion of the City in which housing improvements are financed with public funds. Funds are recovered through fees imposed against the befitting housing units, that get paid early with their taxes. This process is similar to collecting special assessments. Mr. Bolin noted that a petition must be received from at least 50% of the affected property owners and given to the City Clerk to create a HIA. City Council must hold a Public Hearing to discuss improvements, affected housing units, and costs. Affected home owners may testify at the Public Hearing or may object in writing, and if the city agrees, may be excluded from the area or fee imposed. The ordinance must be adopted within six months of the hearing. If 45% of the residents file an objection, the HIA will not be established. Mr. Bolin said that improvements can be financed by advancing funds available to the HRA/City and recover costs by charging the property owner fees or issuing bonds and then imposing fees to repay the bonds. The homeowner has 60 days after legislation is passed to pay the amount in full and there is no option to pay in full after the resolution is in effect. Is there a need for HIA’s in Fridley? There are 18 homeowners’ associations, 626 townhome units, and Housing and Redevelopment Authority Meeting of December 7, 2017 5 360 condominium units. A large percentage of units were built in the 70s and 80s. There are limited options for homeowner associations to make necessary improvements without an HIA. Staff anticipates seeing requests in the coming hears. This program is truly meant to be a “last resort” if no private financing is available. Jim Casserly, Development Consultant, noted that once you are into this it will require discipline as enough funding needs to be set aside for capital replacement. They are creating a program for capital replacement in addition to setting up a finance plan to ensure enough capital investment is in the project going forward for replacement reserves. The Council has to authorize this as they are imposing what amounts to a fee which is a special assessment. Only elected bodies can impose fees like this. They would ask Authority to manage the program because this is what you do with all the housing programs. 4.Locke Park Pointe Paul Bolin, HRA Executive Assistant Director,provided abrief update on Locke Park Pointe. nd The patio home RFP went out November 22 to 12 parties. Responses due back a week from tomorrow. Staff is expecting 3-4 proposals. Last month the Authority also talked about the next round of RFP for phase 2. This will go out mid-January. 5.CEE Housing Programs Update Paul Bolin, HRA Executive Assistant Director, reported that year to date there are 15 total loans, 5 remodel advisor visits and 43 home energy squad visits. Mr. Bolin said that the Home and Garden Show is Saturday, January 27 form 9am-3pm at the Schwan’s Center. Adjournment: MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Mulrooney. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON GABEL DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 9:07 P.M. Respectfully submitted, Krista Peterson Recording Secretary