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HRA 01/09/1993 JOINT - 29638BIIMMARY MINQTEB OF JANOARY 9, 1993� �"� JOINT CITY COIINCIL/80IISIN(,� & REDTVELOPMENT AIITHORITY MEETIN� Attending the meeting were Larry Commers, John Meyer, Virginia Schnabel (11:30 a.m.), Jim McFarland, William Nee, Nancy Jorgenson, Dennis Schneider, Steve Billings, William Burns, and Barbara Dacy. 1. 8ousinq Proqram overview Barbara Dacy and William Burns presented the overview of the Housing Program etements and reviewed the proposed budget. 2. sinqle Familp Rehabilitation Proqrams Barbara Dacy reviewed the program details of the Community Development Block Grant (CDBG) Program, the Minnesota Housing Finance Agency (MHFA) Fix-up Fund Program, and the Fannie Mae and Moderate Income Rehab components of the Low and Moderate Income Program. The City Council and the HRA identified the following issues about the Single Family Rehabilitation Program: A. CDBG �.-� (1) Why doesn't the Housing Coordinator run the Community Development Block Grant Program? (2) Does CDBG cover painting? (3) The HRA and the City Council questioned the first-come/first-serve distribution policy. (4) Does our CDBG money supplant existing ACCAP efforts in Fridley? (5) Can we get CDBG money back if we have a revolving loan program? B. MHFA Fix-up Fund (1) The HRA and City Council wanted to enforce a home ownership requirement for gap funding on the N�iFA program. (2) There was concern about the use of gap financing to add additional living space instead of code improvements. � JOINT CITY COIINCIL/ ''� HOIIBING & RLDEVELOPMENT AIITHORITY MEETING, JAN. 9, 1993 - PAGE 2 C. Low and Moderate Income Program (1) (2) There was concern e�ressed over the income limits of up to $76,500. Is the 5�s assistance on the Fannie Mae program adequate? (3) Can we prescreen the applications instead of enforcing a first-come/first-serve distribution policy? � (4) On the Moderate Income Program, the City Council and HRA expressed the following concerns. a. Income limit of $76,500 is too high. b. Questioned the first-come/first-serve policy. c. Review Implementation steps ,� Barbara Dacy then reviewed the implementation steps necessary to implement the Single Family Rehabilitation Program. They included the following: (1) Hire a housing coordinator. ( 2) Draft RFP to local banks and Fannie Mae lenders to solicit participation in programs (require 1�iFA certification as a condition for participation). (3) Select banks and negotiate contracts. (4) (5) Prepare and execute contract with ACCAP for CDBG program. HRA approval of manual and resolution initiating housing programs. The HRA and City Council were in agreement with implementation steps #2-#5 and then discussed the issue of hiring a housing coordinator. The HRA and City Council reviewed a proposed job description prepared by Barbara Dacy. The City Council ^ and HRA agreed that an employee would be hired. The HRA would be responsible for payment of the salary and '"1 ,'"� ,� JOINT CITY COIINCIL/ HOIIBIN� & REDEVELOPMENI' AIITHORITY MEETINa. JAN. 9. 1993 - PAaE 3 3. 4. benefits as part of the administrative budget of the housing program. Further, the HRA and City Council discussed the job responsibilities of the housing coordinator. Because of the extent of the list of responsibilities and because of the time necessary to initiate the proposed programs, it was agreed that the housing coordinator would not administer the CDBG program but would evaluate doing so next year. Rental Rehabilitation Proqrams Barbara Dacy reviewed the major elements of the Rental Rehabilitation Loan Program as proposed by NIIiFA. The HRA assistance is proposed to pay for the "gap" between the costs of needed improvements in the building and the amount of the loan for the owner. The HRA and City Council identified the following issues with the Rental Rehab Loan Program: A. B. Are aesthetic improvements eligible improvements� under the program such as painting or siding? Also, are land- scaping and parking lot improvements included? Should monies from the scattered site acquisition budget be used to add on to the monies in the Rental Rehabilitation Loan Program? C. The HRA would consider assisting multiple family owners with application fees if it is determined that the application fees can be returned if the application is not funded. Review Sinqle Family Rehab Issues and Achieve Consenaus A. The HRA and City Council agreed that ACCAP would administer the CDBG program for the first year. B. The City should not pursue a first-come/first-serve application basis. Instead, the City should develop a program to target rehab monies for specific properties and to prioritize applications that provide for the best return on the investment. C. Staff is to follow up on the other CDBG related questions. JOINT CITY COIINCIL/ �� 80IISIN(� � REDEVSLOPMENT AIITHORITY MEETINC3, JAN. 9, 1993 - PAGE 4 D. Staff is to follow up on the NgiFA related Fix-up Fund program questions, but the HRA and City Council did agree to the priority of eligible improvements as distributed in the handout prepared by Barbara Dacy. E. The City Council and HRA determined that the income limits of the single family rehab programs would not exceed $55,000 or 150� of the City of Fridley median income. F. The 5o assistance on the Fannie Mae program would be implemented and then reviewed after six months of experience. G. The Moderate Income Rehab Only project would not be funded and would remain in name only. The program would be re-evaluated after six months of experience. H. Authorization was given to hire a housing coordinator. 5. Review Multiple Family Rehab issues and Achieve Consensus A. It was determined that the proposed budget for rental ^ rehab was adequate. B. The scattered site aaquisition budget, as well as all allocations, will be evaluated after the first six months of experience. C. Staff was to follow up on eligible improvements questions for rental properties. 6. Review Proposal on Rental L3censinq Inspection Proqram and Aahieve Consensus Barbara Dacy presented the following proposal on the Rental Inspection Program: A. The housing coordinator would develop a strategy for rental inspection program with the following parameters: (1) Inspections to be completed by a contract inspector. (2) Clerical work to be completed by part-time contract employee. (3) Cost not to exceed $55,000. (4) Inspect up to 1,000 units per year. i"� JOINT CITY COIINCIL/ �''� HOIIBIN(�1 & REDEVELOPMENT AIITHORITY MEETIN(�, JAN. 9, 1993 - PAGE 5 B. Housing coordinator will prepare ordinance amendments to: (1} Raise rental licensing fees to cover contract employee costs and costs for repeat inspections. (2) Amend Chapter 220 to adopt HUD Housing Quality Standards or other requirements. The HRA and City Council agreed to the housing coordinator preparing a strategy on the rental inspection program as presented, by Barbara Dacy. Stressed, however, was the necessity to amend the Rental Licensing ordinance to adopt code standards that would improve the appearance and the livability of the units. Barbara Dacy suggested that other communities' ordinances be reviewed, and the best of the ordinances be used to make amendments. Further, she agreed to research whether it would be legal to require owners to mandate draperies or other appropriate window treatments inside the units. Also discussed was the necessity to raise the licensing fees to offset the costs for the inspection program. John Meyer suggested that the City investigate the alternative of ,� crediting the rental license fee if owners actively use an agency to check potential tenants' credit and rental history. � The HRA and City Council directed staff to investigate this issue further. Councilmember Billings also suggested that the City investigate the St. Paul model of certificate of occupancy inspections, as well as the rental licensing fees. �. A�journ The meeting was adjourned at 3:00 p.m. �