12-18-89 agenda
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 44
December 18, 1989, Agenda
Issue Statement:
Authorization to adjust Section 8 housing assistance pay
standards for the Richfield HRA Program, and to amend the Metro
HRA administrative services agreement for the Metro HRA program.
Background:
The Richfield HRA is administering simultaneously two Section 8
programs. An independent Voucher program assists approximately
200 clients. A Certificate program administered in cooperation
with Metro HRA serves approximately 110 clients. (As additional
HUD funding becomes available, these Metro HRA clients will be
shifted to the independent Richfield program).
For the Richfield program, a recent change in HUD's rent
standards and trends in the local rental market require
adjustments be made to the maximum rent schedule. This maximum
rent amount is called the pay standard. (Similar actions were
taken by the HRA in 1988 and 1989). HUD requires that:
1) Richfield's pay standard be consistent with HUD-standards
established for the Twin City Metro area.
• 2) The pay standard does not exceed the amount of funds
available from HUD for rent assistance payments.
3) The HRA authorize the pay standard by resolution.
The existing and proposed monthly per unit pay standards,
follow:
(Proposed)
1990 Standard 1989 Standard 1988 Standard
1 bedroom $445 $445 $424
2 bedroom 540 528 516
3 bedroom 675 660 645
4 bedroom 753 Not Applicable Not Applicable
The adjustment is small. However, it allows the standard to stay
current as a "maximum". It ensures that clients can receive the
maximum amount of assistance available to them and yet stay
within the allocation available from HUD. The standard matches
standards used by Metro HRA so that further program exchanges
from certificate to voucher occur smoothly. An allocation of
assistance received from HUD in November, 1989, allows assistance
to a four bedroom (typically single family) home for the first
time.
For the Metro HRA program, modifications to the standard
administrative services agreement under which the program is
• operated are being sought. A provision has been added which
provides the Richfield HRA a $45 fee every time clients who need
three or four bedroom units are housed. This is called a "hard-
to-house" fee. Under this provision Richfield is eligible to
received approximately $90 for service to two clients in 1989.
The agreement is retroactive to January 1, 1989. All other
elements of the agreement are unchanged from January 1, 1988.
Recommendation :
Adopt the attached resolution which authorizes:
1) A payment standard policy for 1990, as presented in HRA
Letter . The policy will be reflected by the Executive
Director in budget and requisition forms prepared for and
required by HUD.
2) Amendments to the Administrative Services Contract between
the Metropolitan Council HRA and Richfield HRA.
Basis of Recommendation:
1) HUD requires the HRA to authorize pay standards.
2) Staff has evaluated the standards and determined an
adjustment is needed for calendar year 1990.
3) The amendments to the service contract may provide
additional revenues to the Richfield HRA for
services performed for the Metro HRA.
• Alternative Recommendation:
1) Do not authorize an adjusted pay standard. However, Metro HRA
to Richfield HRA program client exchanges may not match and
clients may suffer a loss in benefits for which they are
eligible.
2) Do not authorize the amended Richfield HRA/Metro HRA
administrative services contract. However, potential revenues
available from Metro HRA would go unclaimed.
Discussion/Decision Mode:
To promote effective and sensitive program management, these
modifications should be made prior to January 1, 1990.
Respectf lly submitted
James X. Prosser
Executive Director
JDP:sae
n
U
HRA RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
RESOLUTION RELATING TO THE SECTION 8 VOUCHER PROGRAM;
ESTABLISHING PAYMENT STANDARDS, AND THE SECTION 8 CERTIFICATE
PROGRAM MODIFYING AGREEMENTS
WHEREAS, the Richfield HRA administers a Section 8 Voucher
Program in direct cooperation with HUD; and
WHEREAS, the Richfield HRA administers a Section 8
Certificate Program under an Agreement with the Metropolitan
Council HRA; and
WHEREAS, the Richfield HRA must determine a payment standard
policy for housing assistance payments under the Voucher program
and this has been devised for 1990 as outlined in HRA Letter No.
dated December 18, 1989; and
WHEREAS, the Metropolitan Council HRA provides
administrative fees for the Richfield HRA to administer the
Section 8 Certificate Program in Richfield; and
WHEREAS, amendments have been drafted to increase fees for
• certain services which the Richfield HRA provides.
NOW, THEREFORE BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,,
Minnesota as follows:
1. The Executive Director is authorized to initiate a payment
standard policy for 1990 as discussed in Letter No. of
the HRA Board meeting of December 18, 1989.
2. The Executive Director may execute an amendment to the
administrative services agreement with the Metropolitan
Council HRA to secure additional fees for service provided.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota, this 18th day of December,
1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 43
December 18, 1989 Agenda
Issue Statement:
Attached is a letter from the Richfield Schools Credit Union. It
requests the purchase by the HRA or the City of 3 lots owned by
the Credit Union in New Ford Town.
Background:
The Credit •Union planned to locate their main office operation in
a new facility with a drive-up window feature at 2232-2236 East
66th Street (see attached map).
They purchased 2 vacant lots and one improved parcel. The
improved parcel contains a house. After the purchase was
consummated, they requested a rezoning to permit the construction
of the new facility. The rezoning was denied.
As the Credit Union letter suggests, a purchase by the HRA would
be a holding action. At the present time, the City has a broad
initiative underway to deal with the airport and surrounding land
use issues.
The Planning Commission and City Council have recently modified
the Comprehensive Plan. All of New Ford Town, including the
subject property, has been redesignated for mixed use (see
attached map).
The City has hired a consultant, Mr. Tom Martinson, to evaluate
alternatives for dealing with New Ford Town. These include the
full range of options from "do nothing" to redevelopment. That
study is currently underway.
The residents of New Ford Town hold a variety of opinions about
future directions. However, many are concerned about a piece-
meal approach to the purchase of property in this area. Those
persons provided the opportunity to sell first would benefit the
most. Those people who must wait until a purchase later would
likely experience a devaluation of their property. This is their
thinking. Thus, a purchase by the HRA at this time, may be
greeted by some as a negative response. Others would likely view
it as a positive step.
The parcels comprise approximately 21,840 square feet. The
Assessor's Market Value is $82,500 or $ 3.78 per square foot
including the house. The single family dwelling is occupied. A
purchase by the HRA would require a relocation payment totaling
approximately five to eight thousand dollars. They are tenants
as opposed to owner-occupants. It may be possible to rent the
dwelling to the current occupants.
0
• Recommendation:
Discuss the request from the Credit Union at the HRA meeting and
direct staff to formulate a response to their letter.
Basis of Recommendation:
The Credit Union initiated a request of the HRA.
Alternative Recommendation:
Refuse to discuss the request.
Discussion/Decision Mode:
The Credit Union indicated a response would be desirable by
year's end.
y submitted
Respectf-yX
James fP rosser
Execut Director
JDP:sae
•
0
RICHFIELD SCHOOLS CREDIT UNION
00,
7011 15TH Aver. Su. FJOIFIELD, MN 55423
869-1037
• November 16, 1989
Mr. James Prosser _
City Manager y
Richfield City Hall
6700 Portland Avenue South _ -"--
Richfield, MN 55423
Re: Credit Union Building
Dear Mr. Prosser:
As you are aware, our recent petition for the rezoning of the property which
the Credit Union owns on East 66th Street was determined to be invalid on the basis
that we had insufficient owners' signatures on the petition in order to proceed to the
City Council for consideration. Since that time, we have reviewed our options in regard
to the property and have decided that at this time it would not be prudent for the
Credit Union to request reconsideration of the zoning change or to repetition for such
change.
This decision unfortunately leaves the Credit Union in a position where it is the
• owner of three lots of limited or no value. It is our understanding that the two vacant
lots of our parcel cannot be used for residential purposes although they are so zoned.
We understand that in view of the airport noise consideration that it is unlikely we
would be issued a building permit to construct residential structures thereon. I also
can advise you that the Credit Union paid above market price for the third lot which
contains the house in the belief that the three lots together could be used for our
` purposes.
We understand that the City may be desirous of promulgating a long-range plan
to effectuate a commercial usage of all or a portion of the New Ford Town section of
the City. While such a plan would likely allow us to use the Credit Union property in
the manner in which we have proposed, the time frame in which this could be accomplished
would not be in keeping with our own goal of erecting a home office for the Credit
Union operations as soon as possible.
In view of this, I am here asking whether the City may be interested in obtaining
the three lots which the Credit Union owns in New Ford Town as part of its long-range
plan for that section of the city. We would further be interested in knowing whether
the City or the HRA would consider an exchange of our property for property which
the City or HRA now owns or may hereafter acquire which would be suitable for our
building.
NCUA
M AM:W?nw
MMlrr c..rN uw. A4 .m: _O..
0
Page Two
November 16, 1989
Re: Credit Union Building
Our membership consists of Richfield School and City employees and our priority
has been to locate our building in the City of Richfield. Obviously, if that is not
possible, we would be obligated to look elsewhere because a' new building is absolutely
necessary in order for the Credit Union to continue to prosper.
Please review this matter with the appropriate city officials and advise if there
is any possibility of considering our request.
I will await to hear from you. _
Very trulp ur
Hobert J. Li n
President
RJL/jh
•
0
i
L:o RICHFIELD EVANGELICAL FREE CHURCH
19th AVE. S.
VACANT COMMERCIAL BUILDING
0
s
A
2
D
A
m
N
O
O
r
A
O
c
?o
w
m
Qpc?p
r
rn "
O
Nm?
WAREHOUSE
20th AVE. S. -
N
15 UNIT APARTMENT
N
rn
SINGLE FAMILY RESIDENCE ¦
21st AVE. S.
Fob
16 UNIT APARTMENT
16 UNIT APARTMENT
i
22nd AVE. S.
VACANT
Q SINGLE FAMILY RESIDENCE
Q SINGLE FAMILY RESIDENCE
Q 4 UNIT APARTMENT
Q 4 UNIT APARTMENT
STANDISH AVE. S.
4 UNIT APARTMENT
4 UNIT APARTMENT
Z?
Mon"
23rd AVE. S.
im ST. ' -w _ T_9L
s
'64TH ST. ?.
T
66TH ST.
NMI
INN
60TH ST.
70TH ST.
1
72ND ST.
r
74TH ST.
76TH ST.
i
7TTH ST. /
t
cl?
PAUL-MINNEAPOLIS
SAINT
t
c ?.?.
A
V?3?I .
•
I
Ij •
•
? / i
0 RICH ACRES GOLF COURSE
SIVE PLAN
APPECT
ZONING
PROPERTIE
i
011/NEW FORD TOWN
-T-" U C? Y
COMMUNITY DEVELOPMENT DEPT.
CITY OF RICHFIELD, MINNESOTA
r
? TA
NOTE: IS IS A
COMPREKEN
REDESZGNATION AND
DOES NOT
EXISTING
? ION THESE
I
j
INTERNATIONAL AIRPORT /
/
®
A • WHOLESALE
• LIGHT INDUSTRIAL
• OFFICES
• SOME OFFICE-RELATED RETAIL
• RETAIL
' B • EATING ESTABLISHMENTS
"• ' • WHOLESALE
• LIGHT INDUSTRIAL
• OFFICES
• HOTEL 'MOTEL
• DINING 'ENTERTAINMENT
C • RETAIL
• WHOLESALE
• LIGHT INDUSTRIAL
• OFFICES
•••••••• STUDY AREA BOUNDARY
NEW MIXED LAND USE AREAS-
CONCEPT 6
FIGURE
SCALE IN FEET
.1 3B
0
1000 2000 NORTH
?1-4
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 42
December 18, 1989, Agenda
Issue Statement:
Adoption of resolution approving the issuance of a Certificate of
Completion, Copy Duplicating products (CDP).
Background:
A Contract For Private Development provided for the construction
of the CDP facility on Cedar Avenue near 66th Street. The
contract was dated March 9, 1988. Article IV provides for the
issuance by the HRA of a Certificate of Completion. The
appropriate city personnel have determined that the project has
been completed according to approved plans.
Recommendation:
Adopt the attached resolution approving the issuance of a
Certificate of Completion.
Alternative Recommendation:
Do not adopt the resolution.
Discussion/Decision Mode:
The development has been completed.
• Resp ly submitted,
Jame D. Prosser
Executive Director
JDP:sae
0
• RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
AUTHORIZING EXECUTION OF A CERTIFICATE OF
COMPLETION FOR CEDAR AVENUE BUSINESS AREA
WHEREAS, the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota (HRA) entered into an agreement
with The Lincoln Companies (Developer), dated March 9, 1988,
pursuant to and in furtherance of the Cedar Avenue Business Area
Redevelopment Project (CABA) heretofore adopted by the City and
the HRA; and
WHEREAS, the HRA subsequently entered into a Transfer
Agreement whereby the rights and obligations of the Developer
were transferred to Jon M. Malinski and Arlene Malinski; and
WHEREAS, the Agreement obligated the Developer to construct
certain improvements to property identified in that Agreement;
and
WHEREAS, Article IV of the Agreement required the HRA to
inspect the project and furnish the Developer with a Certificate
of Completion upon completion of the construction; and
• WHEREAS, the Agreement establishes the form for the
Certificate of Completion in Exhibit D; and
WHEREAS, City personnel have inspected the improvements and
found them to be in accordance with the terms of the Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment authority in and for the City of Richfield,
Minnesota,
That the Chairman and Executive Director are directed to
execute the Certificate of Completion and deliver same to
the Developer.
Passed by the Housing and Redevelopment Authority of
Richfield this 18th day of December, 1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
40 EXHIBIT D
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Jon M. Malinski and Arlene
Malinski, have fully and completely complied with obligations
under Article IV of that document entitled "Contract for Private
Redevelopment", dated March 9, 1988, between the HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD (HRA),
the City of Richfield (City) and Jon M. Malinski and Arlene
Malinski (Redeveloper) with respect to construction of the
Improvements located on property described in the attached
Exhibit A in accordance with the approved Project Plans and are
• released and forever discharged from their obligations to
construct the Improvements under such above-referenced Article.
DATED:
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
By
Its Chairperson
By
Its Executive Director
?t1r,
HOUSING AND REDEVELOPMENT AUTHORITY
•
HRA Letter No. 41
December 18, 1989
Issue Statement:
Adoption of a resolution approving the Penn Avenue and Sixty-
Sixth Street (PASSS) redevelopment and tax increment financing
(TIF) plans (Plans) and authorizing their transmittal to the City
Council for a public hearing and requesting them to approve the
Plans.
Background:
On November 20, 1989, the HRA authorized staff to present the
Plans to the Planning Commission. At their November 28th
meeting, the Planning Commission adopted resolution number 72 in
which the Plans were found to be in conformance with the
Comprehensive Plan. It is now appropriate for the HRA to
consider the attached resolution.
In 1988, the HRA authorized and directed staff to undertake a
planning study of the area identified as PASSS. The Plans
incorporate the results of the planning study into a format
required by state law and precedent. Neither the redevelopment
plan nor the TIF plan propose redevelopment or a bond sale at
this time. Establishing a project now is, however, appropriate.
Since July, staff has met informally with thirteen different
• development groups interested in PASSS. Two major property
owners have also expressed an interest in upgrading their
property. Establishing a project now will provide a direction
for staff and it will also indicate to the developers that the
city is committed to upgrading the area. Business and property
owners will also have a clearer sense of the future direction of
the city.
At this time, the plans contemplate administration very similar
to existing redevelopment projects. The following outlines some
of the significant items. The single document is divided into
three parts, Part I Redevelopment Plan, Part II Tax Increment
Financing Plan, and, the Appendices. The redevelopment plan
boundary coincides with the study area boundary described on page
3 and on the map in Appendix A, page A-1. The goals and
objectives as adopted by the PASSS Advisory Committee appear on
pages 3-5. It is anticipated that the upgrading of the area
would include both redevelopment and renovation. Office, retail
and residential uses would be encouraged. North of 66th Street
the emphasis would be on redevelopment while South of 66th
Street renovation, "in-fill", facade treatments, and parking
improvements would be the focus. A streetscape of trees would
help tie the entire area together. Section E, beginning on page
10, lists the activities anticipated to be undertaken by the
HRA/City and developers.
• The tax increment plan, Part II, begins on page 10. The boundary
of the TIF varies somewhat from that of the redevelopment project
in that it is smaller. See Appendix A, page A-1. Excluded from
the TIF are Fraser-Whitbeck, all the single family homes and most
of the apartment buildings. The sites excluded at this time seem
unlikely candidates for redevelopment. However, because they
remain in the redevelopment project, TIF funds could be utilized
for streetscape improvements, buffering and a rehabilitation
program if deemed appropriate in the future.
Apartment buildings which remain in the TIF include one at 6445
Queen Avenue and those north of 63rd Street between Penn and
Oliver Avenues.
The project would be a 25 year Redevelopment District. During
the planning study, data analysis indicated that if bonds were
issued for redevelopment purposes, the amortization period would
need to be fifteen to twenty years. However, on page 13 under L.
Duration of District, it is noted that the district duration may
be reduced in the future.
The Plans would need to be amended when a specific redevelopment
proposal was selected for implementation. However, to conform
with the legal requirements of a plan document, it was necessary
to prepare financial projections which appear in Appendix C, D
and E on pages A-4 through A-7. The numbers are accurate
projections based on reasonable assumptions for a potential
development site within PASSS.
• Recommendation:
The HRA adopt the attached resolution which approves the Plans
and requests the City Council to hold a public hearing on January
8, 1990 and approve the Plans.
Basis of Recommendation:
1. The Plans are the result of the recently completed planning
study in which a broad cross-section of the community
participated.
2. In the opinion of legal counsel, the Plans conform with
statutory requirements.
3. Developers and some existing property owners have expressed
interest in undertaking projects.
4. With the establishment of PASSS as a redevelopment project,
all the major retail areas of the city will be programmed
for upgrading.
5. The city will be pressing forward on a significant long
range goal of tax base diversification.
?a
6. The Planning Commission found the Plans to be in conformance
• with the Comprehensive Plan.
Alternative Recommendations:
1. Reject the Plans.
2. Direct staff to modify the Plans.
3. Delay action on the Plans until a future date.
Discussion/Decision Mode:
The contemplated time schedule for processing these Plans is as
follows:
December 18th, HRA action to approve or reject the Plan.
If action is to approve,
January 8th, City Council public hearing and acceptance
or rejection of Plan.
Respeliv?e y submitted,
James osser
Execu ire ctor
JDP:sae
•
0
[HRA-PASSS 12/18/89]
HRA RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION APPROVING A REDEVELOPMENT PLAN
AND TAX INCREMENT FINANCING PLAN FOR THE
PENN AVENUE AND SIXTY-SIXTH STREET AREA
REDEVELOPMENT PROJECT; REQUESTING THE RICHFIELD
CITY COUNCIL TO CONDUCT A PUBLIC HEARING THEREON;
RECOMMENDING APPROVAL OF THE PLANS
BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the
City of Richfield, Minnesota (HRA) has identified the
area surrounding Penn Avenue and Sixty-Sixth Street
(Project Area) as being in need of redevelopment in order
to increase the tax base of the City and to provide a
fuller range of goods and services to residents of the
City.
• 1.02. The HRA has conducted a study of physical conditions
within the Project Area and has considered the need for
public assistance in order to encourage redevelopment.
1.03. The HRA has cause to be prepared a redevelopment plan
(Redevelopment Plan) and tax increment financing plan
(TIF Plan) for the Project Area entitled "Redevelopment
Plan for the Penn Avenue and Sixty-Sixth Street Area
Redevelopment Project and Tax Increment Financing Plan
for the Tax Increment Financing Redevelopment District"
dated December 18, 1989, and on file with the HRA
(collectively, Plans).
1.04. The Richfield planning commission has reviewed the Plans
and on the 28th day of November, 1989, concluded that the
Plans are consistent with the plans for development of
the City as a whole.
Section 2. HRA Approval.
2.01. The HRA finds that the objective of encouraging
redevelopment within the Project Area will be advanced
by adoption of the Plans.
0 2.02. The Plans are hereby approved and adopted by the HRA.
Section 3. Further Proceedincr.
• 3.01. The executive director of the HRA is hereby authorized
and directed to transmit copies of the Plans to the
school boards of Independent School District No. 280,
Intermediate School District No. 287, the board
of commissioners of Hennepin County for
review and comment and to notify said public bodies of
the public hearing to be held on the Plans by the City.
3.02. The HRA requests the City to hold
the Plans required by Minn. Stat.
Stat. Section 469.175, subd. 3 at
of January 8, 1990, and recommends
be approved by the City.
Section 4. Financing.
the public hearing on
Section 469.028 and Minn.
the City Council meeting
that the modified Plans
4.01. The HRA intends to request that the City assist from time
to time in financing the public redevelopment costs
identified in the TIF Plan by issuance of its general
obligation bonds payable from the tax increments of the
TIF District.
4.02. The HRA also intends to request that the City from time
to time consider various other actions necessary to the
• implementation of the Plans and pledges its cooperation
with the City in achieving the objectives of the Plans.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 18th day of December,
1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
?.J
y
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 40
Agenda, December 18, 1989
Issue Statement:
Authorization to acquire a substandard property at 7021 1st
Avenue South.
Background:
The HRA has utilized the Voluntary Acquisition Program since 1980
to acquire substandard properties for redevelopment. The Vo-Tech
or private developers have developed these sites with new housing
units for moderate income families.
The above property has been offered to the HRA by HUD, as a
result of an FHA foreclosure. The structure is a non-conforming
duplex in a single family neighborhood. It is substandard as to
location at the rear of the lot. It requires significant repairs
due to age, poor construction, and deferred maintenance.
Conversations with HUD appraisers and site inspections with the
Richfield building official have resulted in the determination
that the house is not suitable for rehabilitation. The lot size
is 75' x 135.
The HRA is provided a first option to buy any property available
through HUD. Typically, foreclosed properties are in the
• $60,000-$70,000 range, which exceeds available funds. However,
because this property is a non-conforming use in substandard
condition, its resale value is lower. The property has a 1989
assessed value of $59,300 and an outstanding FHA mortgage in
excess of $70,000. A sale price of $35,910 has been negotiated
with HUD. Sufficient CDBG funds are budgeted in 1990 to cover
the cost of acquisition.
The HRA would be responsible for clearing the house from the site
as well as property maintenance following acquisition. The 1990
budget provides sufficient CDBG funds for these activities. It
includes $8,000 to clear the site, $600 for legal work and
$1,200 for property maintenance and insurance. The property
would be tax exempt until new development is completed. It is
anticipated that the Vo-Tech will construct a new house on campus
beginning in fall, 1990, relocate the structure to the site in
spring, 1991, with completion and sale in fall, 1991.
A finding was made by the Planning Commission on December 12,
1989. Acquisition and disposition of the property for single
family purposes was found to be in conformance with the
comprehensive plan.
Staff has pursued additional analysis because the house was built
• in the early 19001s. The original farmstead dated to the 1850's.
The Minnesota Historical Society was contacted to confirm that
the house is not on the National Registry of Historical
;4/ </-
• Structures. It is not on the Registry. However, HUD must comply
with the Federal preservation regulations. Because of the age of
the structure, HUD must request the MN Historical Society to
examine it. The examination would determine whether it is
significant historically and feasible for retention. The
Richfield Historical Society was contacted as well. They have
previously concluded that it was not feasible to retain the
structure and rehabilitate it for preservation.
Recommended Motion:
It is recommended that the HRA adopt the attached resolution
which authorizes the Chairperson and Executive Director to enter
into a purchase agreement and take other action necessary for the
acquisition and clearance of 7021 1st Avenue South for $35,910,
subject to the MN Historical Society determining that the
structure need not be retained.
Basis for Recommendation:
1. HUD has offered the HRA first option to buy the property
at a discounted price.
2. The property qualifies for acquisition in accordance with the
Voluntary Acquisition Program Guidelines.
3. CDBG funds have been budgeted and are available for
acquisition, clearance, and maintenance.
• 4. The property is the best candidate for the Voluntary
Acquisition Program at this time.
5. The MN Historical Society is the appropriate organization
to make the historical significance and retention
determination.
Alternative Recommendation:
The HRA can choose not to acquire the property. However, this
property is likely to remain vacant indefinitely as it cannot be
sold for use as a duplex. To renovate the home to become a
single dwelling and meet minimum housing standards is cost
prohibitive.
Discussion/Decision Mode:
The HRA must enter into a purchase agreement prior to the end of
December to secure the option. Closing could occur by the end of
January, 1990 or as soon as the Historical Society makes its
determination.
Respectf ly submitted,
4
• James . Prosser
Execu ive Director
JDP:Sae
RESOLUTION NO.
I?'1
LJ
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING THE'ACQUISITION OF
7021 1ST AVENUE SOUTH
WHEREAS, the Housing and Redevelopment Authority (HRA) in
and for the City of Richfield, acquires property, relocates
occupants, and builds and rehabilitates structures for
residential purposes; and
WHEREAS, the HRA desires to acquire the real property at 7021
1st Avenue South, legally described as:
Section 34, Township 028, Range 24 S. 75 ft. of N. 330
35/100 ft. of W. 1/2 of E. 1/2 of NW 1/4 of NW 1/4 of N.E.
1/4 Ex St; and
WHEREAS, the Department of Housing and Urban Development
(HUD) has offered the HRA the first option to purchase the
property; and
and
WHEREAS, a purchase price of $35,910 has been negotiated;
WHEREAS, Community Development Block Grant (CDBG) funds will
finance the acquisition of this parcel and the demolition of the
structure; and
WHEREAS, the Planning Commission has determined that the
acquisition and disposition of this property for residential
purposes conforms to the Comprehensive Plan; and
WHEREAS, the MN Historical Society will make a determination
as to the significance of the structure and feasibility for its
retention.
NOW, THEREFORE, be it resolved by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota:
That with a finding by the MN Historical Society that the
structure is not suitable for retention, the HRA Chairperson and
Executive Director are authorized to take necessary action to
purchase the property located at 7021 1st Avenue South for
$35,910.
a
Passed by the Housing and Redevelopment Authority in and for
the City of Richfield this 18th day of December, 1989.
ATTEST:
Thomas E. Harms, Chairperson
John Helmberger, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
.
HRA Letter No.39
December 18, 1989
Issue Statement:
Adoption of resolution approving modifications to the Richfield
Voluntary Acquisition Program.
Background:
Since 1980, the HRA's Voluntary Acquisition Program has
facilitated the purchase of substandard property for single-
family redevelopment. Blighted, substandard houses are
demolished. New single-family houses are developed for moderate
income, first time homebuying families. The houses are either
"new construction" or "substantial rehabilitation" by Hennepin
Vo-Tech or private developers.
By enabling the development of approximately two homes each year,
the program provides for removing poor housing and helps to
alleviate the shortage of standard housing for moderate income
families. Funds for acquisition and demolition are provided
through CDBG.
The Voluntary Acquisition Program is administered in accordance
with the Richfield Voluntary Acquisition Program Guidelines.
These guidelines are based on criteria established by the HRA in
cooperation with Hennepin County, and HUD. Recently, the County
• has modified criteria at HUD's request. It is now appropriate
for the changes to become part of the Richfield Program. The
changes are summarized below:
1. The fair market value/purchase price will be determined by
an independent appraisal and/or the County Assessor, for
each property acquired.
2. Prior to signing the purchase agreement, the seller will be
provided the following information in writing:
- amount of purchase price (HRA offer).
- how the purchase price was determined.
- that the HRA will not acquire the property if negotiations
fail.
- information which clearly describes the relocation
benefits which the seller has agreed to waive.
3. Prior to demolition of a structure, the fair market rent
for that structure will be determined. If the rent is
estimated to be below the Richfield Section 8 Fair Market
Rent Schedule, then information must be provided to Hennepin
County which indicates that a low/moderate housing unit will
be provided to replace the unit demolished.. The HRA must
publish a notification to this affect in the Sun-Current.
• Modifications #1 and #2 formalize procedures already practiced by
the HRA in acquiring property under the Voluntary Acquisition
. Program. Modification #3 outlines a procedure required to comply
with the County's new Anti-displacement and Relocation Assistance
Policy which is in response to federal regulations which took
affect during 1989. It appears that the homes constructed by Vo-
Tech and sold by the HRA would qualify as the replacement
dwelling.
The modified guidelines prepared by staff have been discussed
with the County, no significant alterations are anticipated as a
result of their review.
Recommendation:
It is recommended that the HRA adopt the attached resolution
which authorizes the modifications to the Richfield Voluntary
Acquisition Program Guidelines.
•
Basis of Recommendation:
1. Changes in Hennepin County and HUD policies require
these modifications.
2. The Voluntary Acquisition Program can no longer operate
using the existing guidelines.
Alternative Recommendation:
Not authorize modifications to the Richfield Voluntary
Acquisition Program. Operating the program under the existing
guidelines would be in violation of Hennepin County and HUD
requirements.
Discussion/Decision Mode:
If the HRA concurs, the recommended modifications will become
effective immediately. The pending acquisition on 1st Avenue has
been processed with Hennepin County and HUD requirements in mind.
Respect lly submitted,
Jame D. Prosser
Exec tive Director
JDP:sae
0
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION AUTHORIZING MODIFICATIONS TO THE
RICHFIELD VOLUNTARY ACQUISITION PROGRAM GUIDELINES
WHEREAS, the Richfield Housing and Redevelopment Authority
(HRA) provides a Voluntary Acquisition Program which utilizes
CDBG funds to purchase and clear substandard dwellings; and
WHEREAS, the program is administered in accordance with the
Richfield Voluntary Acquisition Procedural Guidelines; and
WHEREAS, these guidelines are based on criteria established
by Hennepin County and HUD; and
WHEREAS, the program guidelines are modified periodically to
reflect program needs and changes in Hennepin County and HUD
criteria; and
WHEREAS, Hennepin County and HUD have recommended
modifications to the procedural guidelines and those
modifications have been prepared by staff and reviewed by the
HRA.
1. The fair market value/purchase price will be determined by
an independent appraisal and/or the County Assessor.
• 2. Prior to signing the purchase agreement, the seller will
be informed in writing of the purchase price, determination
of the purchase price, that the HRA will not acquire the
property if negotiations fail, and information clearly
describing the relocation benefits which the seller has
agreed to waive.
3. Prior to demolition, the fair market rent for each property
will be determined and required information provided to
Hennepin County if that rent is estimated below the Richfield
Section 8 Fair Market Rent Schedule.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota, that the Executive Director is authorized to modify
the Richfield Voluntary Acquisition Guidelines as described
herein.
Passed by the Housing and Redevelopment Authority of
Richfield, Minnesota this 18th day of December, 1989.
Thomas E. Harms, Chairperson
0 ATTEST:
Joan Helmberger, Secretary
/t1-1-
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 38
December 18, 1989 Agenda
Issue Statement:
A public hearing and sale of 6840 Humboldt Avenue South.
Background:
The new construction project at 6840 Humboldt Avenue South was
authorized by the HRA in September, 1988, as a cooperative
project with Vo-Tech. The project is nearing completion and a
sale is anticipated in January, 1990.
The four member Taylor family is an income qualified family.
They meet the requirements stated in Attachment A. HRA
authorization to sell the property is required prior to final
processing. The home is being sold for an estimated market value
of $95,000.
The Taylors are making a downpayment of $5,000. They have
applied for a VA mortgage in the amount of $70,000. The
difference between the initial purchase price and the estimated
market value, $20,000, is provided by the HRA as a second
mortgage. Project costs are covered by the down payment and
first mortgage. The second mortgage accomplishes the following:
• 1) Makes the initial purchase affordable.
2) Prevents a speculative purchase in which the buyer might
benefit from selling the home quickly.
3) Provides new housing at an initial cost significantly below
the average sale price of an existing Richfield home which
approximates $79,000.
Funds received when the second mortgage is repaid are returned to
the New Home Program for financing housing activities of the HRA.
The HRA will pay up to 4 points for mortgage discounting
(approximately $2,800) and the cost of title insurance
(approximately $200), at closing. After closing, the Vo-Tech
contract of $56,501 will be paid. These costs have been
anticipated in the 1989/90 budget and will be paid by the
proceeds of sale.
An information manual for new homeowners developed by staff, will
be provided and reviewed with the buyer at closing. The
information provides an orientation to the city, housing, and
property maintenance requirements and tips.
If during final processing the family is found ineligible by the
lender, the purchase agreement is void and earnest money
released. At this time however, the lender has qualified the
Taylors through the preliminary processing.
Prior to sale, the HRA will have an opportunity to inspect the
work during an "open house". January 16th is the anticipated
open house date.
Recommendation:
It is recommended that following the public hearing, the HRA
adopt the attached resolution which authorizes the disposition of
the HRA owned property at 6840 Humboldt Avenue South.
Basis of Recommendation:
1. A purchaser, the Taylor family, has been identified and meets
program requirements.
2. A purchase agreement cannot be processed further by the
lender without HRA authorization of sale.
3. A purchase agreement is necessary to obtain a firm financing
commitment.
4. A public hearing notice has been published in the Sun-Current
which allows the HRA to consider the sale at the December
meeting.
5. The Planning Commission has determined that the sale for
residential purposes is consistent with the Comprehensive
• Plan.
6. The home is nearing completion.
Alternative Recommendation:
Do not adopt the resolution. However, this would cause a delay
in the sale of the property, increase HRA holding costs, and be
very disturbing for the identified family.
Discussion/Decision Mode:
Authorization of the sale is required at the December 18th
meeting so that the buyers can secure mortgage financing for a
January, 1990 closing.
Resp my submitted,
Jam D. Prosser
Executive Director
JDP:sae
0
'/ J,'
•
NEW HOME PROGRAM
ELIGIBILITY REQUIREMENTS
FOR
HOME BUYERS
ATTACHMENT A
- have a 3-6 member family (a family is defined as persons
related by blood, marriage or operation of law)
- be a first time home buyer; (or have not owned in 3 years)
- have the following maximum annual income depending upon
family size:
Family Size Maximum Income
3 $30,450
• 4 $33,850
5 $35,950
6 $38,100
This income is 80% of the metropolitan area median income - an
accepted CDBG program income level.
- have the ability to make monthly payments on a $70,000
mortgage, pay $5,000 down, and pay buyer required closing
costs.
- agree to be subject to a second lien by the
HRA for the difference between the initial sales price and
the actual value.
C89-HRAltrl2/18/6840 Humboldt
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF PROPERTY AT
6840 HUMBOLDT AVENUE SOUTH
WHEREAS, the Housing and Redevelopment Authority (HRA), owns
certain real property located at 6840 Humboldt Avenue South,
legally described as:
Lot 9, Block 2
Wood Lake Highlands, Hennepin County
WHEREAS, the HRA acquired the property so that the South
Hennepin Vocational Technical College (Vo-Tech) could construct a
new single family home at 6840 Humboldt Avenue South, to be sold
by the HRA to a moderate income family; and
WHEREAS, construction work is nearing completion; and
WHEREAS, the Ewing and Carol Taylor family has been
identified as qualified purchasers for 6840 Humboldt Avenue
South; and
WHEREAS, the conditions of sale include a total sales price
of $95,000, a first mortgage of $70,000 payable to the lender, a
second lien of $20,000 payable to the HRA, and a $5,000
• downpayment; and
WHEREAS, the sale of 6840 Humboldt Avenue South may be
authorized by the HRA following a public hearing which considers
the disposition of the property; and
WHEREAS, that hearing has been held following proper
publication of notice.
NOW, THEREFORE BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota that the HRA Chairperson and Executive Director are
authorized to execute the purchase agreement and other required
documents so that the disposition of HRA owned property at 6840
Humboldt Avenue South occurs as presented herein.
Passed by the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota this 18th day of December, 1989.
Thomas E. Harms, Chair
ATTEST:
• Joan Helmberger, Secretary
C89-HRAltrll/18/6840 Humboldt
CJ:dkh