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07-19-93 agendaCITY OF RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, JULY 19, 1993 7:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER APPROVAL OF MINUTES OF HRA MEETING OF JUNE 21, 1993 1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON THE AGENDA 2. REVIEW OF HRA/VO-TECH NEW HOME PROGRAM PARTNERSHIP HRA LETTER NO. 29 3. EXECUTIVE DIRECTOR REPORT 4. CLAIMS AND PAYROLL ADJOURNMENT AUXILIARY AIDS FOR INDIVIDUALS WITH DISABILITIES ARE AVAILABLE UPON REQUEST. REQUESTS MUST BE MADE AT LEAST 96 HOURS IN ADVANCE TO THE ADMINISTRATIVE SERVICES DIRECTOR AT .861-9702. HOUSING AND REDEVELOPMENT AUTHORITY HRA Letter No. 29 Agenda July 19, 1993 Issue Statement: Review of HRA/Vo-Tech New Home Program partnership. Background: The HRA last discussed and continued the ongoing working relationship with Vo-Tech in May 1992. Since that time, staff has initiated four projects and completed three projects. Vo-Tech projects achieve the following objectives: • Voluntarily remove substandard/blighted/economically obsolete housing with CDBG funds. • Provide well constructed, new, three and four bedroom single family homes at a more modest cost than private builders. • Sell these homes to first time buyers with incomes at 60 to 80 percent of the Metropolitan Area median income, thereby fulfilling CDBG requirements to benefit lower income persons. Two recent projects were unique and did not utilize CDBG funds. Vo-Tech rehabilitated 6318 Nicollet to resolve the problem of a deteriorating house and transient occupancy. A market rate home will soon be finished by Vo-Tech on a Richfield Rediscovered vacant lot at 6538 Bloomington Avenue which was not actively sought by builders/buyers. HUD regulations now dictate that the City purchase the project sites that are CDBG funded and sell them to the HRA for development. As each project has been considered and approved by the HRA and City Council in the last year, members of both policy boards have discussed the merits of the HRA/Vo-Tech partnership. On an ongoing. basis, staff has been developing programs that complement and may modify this 15 year partnership the HRA has with Vo-Tech. Attached is a staff housing program planning document entitled "Housing Program Continuum." This spreadsheet summarizes housing program responses at various house values. The objective is to design programs which provide a diverse housing stock in good repair. Vo-Tech has traditionally filled a market niche of removing substandard housing and providing modest cost, three to four bedroom homes valued in the $70,000 to $100,000 range. New construction has been the primary emphasis in recent years. The HRA's new construction partnership with Vo-Tech has provided the program foundation for the successful Richfield Rediscovered program, Habitat (6225-14th Avenue, 6310-15th Avenue) and nonprofit (Affordable Suburban Housing, 7021 Nicollet Avenue) projects being developed. It is likely that Vo-Tech's new construction initiative may diminish over time as these other new construction initiatives successfully proceed. A greater community need is apparent to make value added investments and "transform" some of the approximately 2,000 one, two, and three bedroom existing single family homes valued at $60,000 to $80,000. QSA is developing a transformation concept at 6500 James Avenue. However, it appears QSA will want to limit their services to specific neighborhoods and properties that support a completion value in excess of $140,000. As demonstrated by the recently completed 6318 Nicollet Avenue renovation, Vo=Tech has the potential for providing a unique service: modest cost transformation. Homes. valued at $60,000 could become larger $85,000 to $90,000 homes, complement the neighborhood, and continue to be affordable to moderate income first time home buying families. This concept will be refined through the remainder of 1993 by staff and Vo-Tech. As always, Vo-Tech would also be available to respond to a unique rehabilitation or new construction project of the HRA as the need arises. zt is envisioned that Vo-Tech transformations would be used on an ongoing basis as examples to homeowners of good design, value added investments, and construction/remodeling technique. Recommended Motion: Authorize staff to continue development of a continuum of housing programs that promote a diverse housing stock and utilize Vo-Tech in programmatic ways which meet HRA identified housing needs. Basis of Recommendation: 1. Many of the 23 Vo-Tech projects completed or underway have solved unique housing problems for the community; removed substandard homes and developed larger family housing, relocated and rehabilitated homes from property acquired for park land purposes, built new. homes that the market place determined were located on less desirable sites near commercial areas and busy streets, and rehabilitated troublesome and abandoned homes. 2. Projects developed by Vo-Tech are cost effective and provide a high level of quality. 3. With projects underway and planned, additional Vo-Tech services are not needed until 1994 when new HRA programs presently being developed will have become further refined. 4. An evaluation of community needs would suggest a greater emphasis being placed in housing rehabilitation, remodeling, and transformation. The Vo-Tech role in new construction would diminish as present projects are completed. 5. The HRA has developed at least three (Richfield Rediscovered, Habitat, non profit) new construction program alternatives so that the HRA's role with Vo-Tech can be adjusted to meet these other community needs. 6. Vo-Tech provides an exclusive construction service to Richfield that is admired and sought by other communities. A quality, cost saving partnership with a vocational school is a respected program initiative. Vo-Tech's availability remains a program asset to the HRA. Alternative Recommendation: Notify Vo-Tech that the partnership with the HRA will cease after the completion of the new construction project at 7112 First Avenue. Discussion/Decision Mode: Further discussion by the City Council is anticipated at a City Council meeting scheduled for July 26, 1993. Resp ully submitted, Ja a D. 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