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04-20-81 agendat~ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 12 Agenda April 20, 1981 Housing and Redevelopment Authority Commissioners City of Richfield Commissioners: Subject: NAHRO Conference on May 26-29, 1981 The North Central Region of NAHRO is holding their annual meeting on May 26 through 29 in Cincinnati, Ohio. The con- ference program appears to cover a wide variety of topics which would be of interest to HRA commissioners. For that reason, I would encourage you to consider sending at least one and possi- bly two representatives to the meeting. I will list this item on the April HRA agenda for consid- eration. Respectfully submitted, Karl Nollenberger Executive Director KN/jf cc: Director of Community Development • .,.wsas - .ayc..axanioGe L. '...""~'-a`"- - ^= f-s~~'~"rask m_tr.~;a'~Lr~ai+~°_. February 28, 1981 • Dear Delegate: Your North Central Regional NAHRO Planning Committee has put together a very interesting, informative and challenging program and has provided after hours entertainment for your rest and relaxation, We look forward to greeting you in the Queen City. The North Central Regional NAHRO Conference is scheduled for May 26 through 29, 1981, in Cincinnati, Ohio, with Conference headquarters at Stouffer's Cincinnati Towers, Hotel registration cards are enclosed for your convenience and the cards may be duplicated, Hotel registration cards must be returned directly to the hotel by May 1, 1981, The Conference registration fee for NAHRO members is $110,00 which includes a Community Development/Housing Mobile Workshop (see enclosed program description), several evenings of hospitality, Conference packet, one lunch and the banquet with entertainment, The entertainment provided is superb and is not included as a cost in the registration fee. Don`t miss the banquet! The registration fee for non-members is $130,00, The late registration fee for NAHRO members is $130,00, A student fee has been set at $25,00 which includes attendance at Conference sessions only. Pre-registration cards are enclosed for your convenience and may be duplicated, To avoid long waiting lines at the Conference, pre-register and return your card by May 1, 1981, Late registration fee applies after May 1, 1981. Additional Conference highlights include a golf tournament and Early Bird Reception (cash bar) on Tuesday, May 26th, a wonderful twilight Dinner Cruise on the Ohio River and a musical trio for your Listening and dancing pleasure throughout the cruise on Wednesday, May 27th, and a Spouses Tour of the Queen City on Thursday, May 28th, The Conference Work Program includes twenty-one topical sessions, This varied program is designed so that an increased number of Agency participants will be able to seek information commensurate with their interests (see sheet marked EXCURSION for program topics). As an added feature of the Conference participants are invited and encouraged to send pam- phlets and other public relations information about their agency for display and distribution in the Conference registration area, All postage and handling charges must be prepaid by the Agency sending material. Forward your material by May 8, 1981, to Cincinnati Metropolitan Housing Authority, 16 W. Central Parkway, Cincinnati, Ohio 45210, Attention: Mrs. Ruth McLendon. Please refer to the enclosed information sheets and cards for registering for various acti- vities and the Conference, "Zee You In Zinzinnati" as we chart the course for - STEAMING AHEAD IN THE EIGHTIES Very truly yours, ~~ Henry R. Ste anik Program Chairman NORTH CENTRAL REGIONAL COUNCIL OF • - ~ t 4a Cincinnati, Ohio .iZLi•;~i: i•?3V !:J-•~/-?i-L'3, ?731 S, 5. •~uaen City LocIcL~Tc: sTOIr~T~:n, s c ~_~~cTz;~~iTT ~c:aS PORTS OF CALL: i, 2, 3, 4, J. 5, %, J.C. Z a. . T ~ 1 .. 1 J . ., ~ ~.~ , :.6. 17. ~a• 79. nn GV, 2' . The ,econd ~ arty ~~sars Can+nunit~ Develepmenr_ i ~_=n~i r..t~ ~ar rublic Agencies ine Ago a~ ^ec~:~alcg,: ''n '•is~.n~:.cnance ~,Vi?3t ir7.CC SCClc3.~. JG"_"`IC°S'7 n •T xe:,onai ~ei~.c~.cns~:.~+:, and `:::,t~vaticn >C1~:.1SS1Cn;, rd ~r'C.:7~`_'=~r~' - _, .:L~J~ 1 ~??:i?"7 .`v"c'Yi7 i~~.:._':: i.^l ..,.'.ti' .. _ - - _he Co:^lni,sior.sr .~ ~_i~..y.~. ~.:~.(. 1.~ Y.....~4t__~~iJ _. .. ._ ._l _~~ ~........ 1_.s ~'~i?W i)1xeCLGRS ,' T7 l •+c:iii? i;~an ;~f"-^orir-a .~usinc~ss end ...r_~io`~'c':^.t'.ni. ~vJG*_'~...._+Ll ?:i vDell or~;n _'ax _~ acuci~~.*v ~i•~c~•LC•rs r+131^`~ .....iLC,_:.~:'.3!1 r~ _'iif3 '~.'_1~C-'-:.'~a_"i'.r.'CC1 !iii`./-`3 '.::~:'. ?I?~ .. }!''JOi'::1.;.~~n .._._ .. ~ _ ~ ~,....'J _'1 . ,~. V .~ PROGRAM BRIEFS 1. The Second Forty Years The 1940 public housing units can. be beautiful - or made so, What's the worth of rehabilitation over starting anew.. Prototypng, tenant input and responsibility, density reduction, public and private mix in old developments and cosmetic versus functional aesthetics - all are important factors for modernization consideration. Also, this session will include a discussion of the rehabilitation of current. housing inventories to take advantage of "in place housing". Discussion will include single house programs versus large complexes,. force account versus contract ' labor and the social values of utilizing this approach for producing housing. 2. Community Development Funding for Public Agencies Where does the money come from and how is it dispersed. How do you get your fair share. Who is eligible. What are the constraints for fund use. What is the accountability. Time frames for use. What is anticipated for 1981. What is left in the program. 3. The Aye of Technology In Maintenance A session designed to discuss new ways for doing old routines. Use of quality materials for long life. What's new in tools. and equipment. Utilizing the work force. Securing employment market for personnel. Master energy controls. Cost reduction through programming for large and .small.Authorities.. Solar energy potential. Adapting computers. Satellite versus centralized maintenance. ~'± 4. What Price Social Services? This session will include a discussion of how the-worth of services can be measured. How professional should the staff become. Must workers be certified. What is Social Service. How about Legal entanglements. How do you establish acceptance and cooperation from all organizational staff. Utilizing community agencies. 5. Section 8 - New Directions? Are we at the crossroads? Prognosis for new directions under a new administration. Do we get a new .name? Law and policy changes affecting the programs of the Housing Authority. What place rent certificates? Securing a broad market approach. How effective has the program been? Private or public domination. 6. Personal Relationships and Motivation One of the greatest needs for improving production and motivating employees is to understand the work force. How is one motivated? How does motivation affect productivity. How is it sustained. Does the physical work environment affect interpersonal relationships. 7. Human Concerns in Urban Rebirth The process involving urban renewal and rehabilitation related to moving people has come a long way to recognize the human aspects of displacement, The word "gentrification" has now been added to our vocabulary of terms. Legislation now protects or perhaps over protects the displaced persons. What's involved in buildings vs. people. The future for suburbia. Do we-want or can we check the suburban exodus. Community development involvement and funding. . 8. Admissions and Occupancy - Establishing a New Clientele This session. will reflect past, present and future practices and theories of low ~~ rent public housing programs. How can economic integration be achieved in housing developments and within the community at large. Are we still housing the poor? To what extent verification of income. Broad range. of income advisability.. Legal obstructions and regulations. r 9:.Legal Confrontations in Public Agencies Contract vs. consulting legal service..` HUD's position in Authority Litigation. Changes in policy and procedures affecting Housing Authority operations.. Status of "landmark" decisions. The effect of one state's legal decision on another in public housing and other programs. Personal liability insurance for the Board and staff. 10. The Commissioner's Dilemma The duties and responsibilities of the "professional" Commissioner. The responsi- bility of the Chairman to the taxpayer, Authority staff and HUD. The level of tenant input. How and when? Indoctrinating new members. Keeping the community informed. Using the media. Defining administrative-and policy-level functions. Expanding jurisdictions. Vulnerability of the Authority Board and staff. 11. Maintaining a Viable Community What is Management's role in maintaining a viable community. Scattered site housing .versus housing developmentso Is the small Authority creating problems for tomorrow in developing large complexes. Security - where does the responsibility belong - private, tenant, City police. The role of the Security Officer in the Housing Authority. Problem signs which indicate trouble growth. Security by physical design. 12. Public Relations for.Public Agencies Low key - high key PR. Information the public should: share. The open Board :meeting. Timely news stories. Establishing creditability. Continuing communications.` At what level public relations. Is it worth the cost? 13. Working in a Computerized Environment The value of leasing or owning: computer equipment. What can be computerized in agency and Housing Authority. operations. How do you know if computer system will be cost effective. Writing the program. Buying the service. .Computer terminology. Staffing. Obsolescence! 14. The Rx For Good Management This session will include ways and means for improving the marketing of housing .stock, improving rent. collection, reducing vacancy loss, encouraging resident participation for increased housing satisfaction, utilizing the. resident body as a labor source, managing with a high degree of visibility,-the need for communicating with residents,-agencies and the general public, and utilizing. and encouraging Resident Councils. . , .. ~: ~, • 15. Women In Housing Increasing numbers of women are:assuming positions of leadership in both community activities and. in the.bu~sness world. How do you utilize women in all levels of the agency work force. Equal pay for equal work. Establishing standards. Myths about women in business and industry. What's your problem? What are your fears? Gain abetter understanding about women in housing. 16. Barrier Free Housing Defining the problems. Establishing criteria for the mentally and physically impaired as single individuals and as members of a family, Concentrated or scattered site housing. What is mainstreaming? Income inequities for admission to subsidized housing programs, Meeting physical .limitation through proper design. 17. New Directions From Washington Can we do the job with less money - administration budget cuts.. What direction programs and subsidy. What's new for the Eighties in CD grants and public housing. The Washington response, 18. Minority Business and Emplovment Opportunities Who are the minorities. Meeting HUD goals for an equal opportunity. Establishing an equal opportunity plan. Monitoring the plan. Understanding .the legal aspects of equal opportunity at all levels. Title VI of the Civil Rights Act of 1964. covering subjecting persons to discrimination in employment practices including recruitment, employment, layoff, upgrading, pay rates and other forms of compensation will be discussed. 19. Open Forum For Executive Directors Present your questions and views to an open forum. Hear responses and comments from Directors of large and small Housing Authorities. Learn from the opinions of the other housing echelons and related agencies. Dare to be "open" in an unstructured session. All are invited to attend and participate, 20, Housing Ombudsman. In 1970 Cincinnati was one of the 15 cities selected for "Project Rehab", an incen- tive program designed to encourage profit and non-profit sponsors to rehabilitate approximately 5,500 deteriorating multifamily buildings. Rent subsidies were pro- vided by the Federal government either in the form of interest. reductions or as direct rent payments on behalf of low or moderate income tenants. Because the goals of the 1968 Housing Act were primarily social, traditional mortgage underwriting criteria were relaxed which led to corner-cutting practices by developers who were seeking a level of compensation that this program ultimately failed to provide. The failure of many of these projects was rapid and predictable. This session will include a full discussion of potential remedies. How to save the home owner from default. Assisting programs in distress. 21. The Neighborhood Development Corporation Learn more about the inter workings of this organization. What place has it achieved in the community. What are its accomplishments. A team approach to solving the development problems of a community -revitalization of the neighborhood. ~, ,. .. c Y , u'4,:~ itir~ :. ~ , • ~~ ,3R .; `~~, NORTHCENTRAL REGIONAL CONFERENCE -NAHRO . ,~-~ ~ ~~~~ ~ COMN~TPTITY DEVELOPMENT/HOUSING I~DBILE WORKSHOP Thursday, May 28, 1981 - 1:30 - 4:OO,PM :; ,4 .}, _ .. _ ,;. ,,, ,. , a5-'~' ~ _ ~.= j ~ ~~~° ~- '- ':; Come see why Cincinnati has been voted one of the ten most ~,~~,~:~ ~ pr,~ ;.. livable cities in the United States. Community development, 5~~,~t.r~ .. ~ neighborhood and housing leaders will be your tour guides as you see .viable projects focusing. on housing rehabilitation s ,~ , =~"'~ and new construction; recreation, street scapes, commercial `development and other neighborhood and community wide develop- ,v.~.,,,, meat efforts. See thriving UDAG and'Neghborhood Strategy Areas. Share your ideas and take home some others.. Witness (~ `.the exciting changes taking place in both the public and private \ jF sectors. Talk to the people who are making the Cincinaati ,:..housing and development experience another jewel in the Queen City's Crown.. _ This workshop is a part.of your Conference fee. Buses will ' depart from the Elm Street side of the hotel promptly at _ 1:30 PM. To assure your space on the bus please fill out ~:: the enclosed registration card and return it by .May 1, 1981. ~"' '"~ ,~ ,~ '.'Pre-registration for .this activity will assure you a seat on ~~~. ~~~z~ the bus . ,', \~ HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 11 Agenda April 20, 1981 Housing and Redevelopment Authority Commissioners City of Richf field Dear Commissioners: Subject: Authorization to Advertise for Buyers for Vo-Tech House, 6500 Standish The Suburban Hennepin County Vocational Technical School, in cooperation with the HRA, has been rehabilitating the house located at 6500 Standish Avenue. The HRA approved the contract for the project on October 20, 1980 and it is anticipated that the rehabilitation work will be completed in June, 1981. It would be appropriate at this time to initiate advertising of the house for sale so that a qualified buyer can be found. It has been the intention that the rehabilitated house be sold to a moderate income family utilizing the FHA Section 235 • . program guidelines. An FHA mortgage was conditionally committed to the project on February 27, 1981 and once a purchaser is found, this commitment can be made firm. The maximum allowable resale amount under the Section 235 program is $52,800 gnu it is antici- pated the house will be sold for that amount. If the city is to receive credit toward its housing goals, the qualified purchaser must be a Section 8 eligible person. The mortgage subsidy that the FHA Section 235 program provides as well as a minimum of 4 3/4 percent interest rate depending upon income, allows a fam- ily with a Section 8 level income to purchase the house. Other criteria that will be utilized in qualifying the purchaser of the house include: the family must have at least five, but not more thin eight members, they must have the required down payment of $8,800; if points on the purchase exceed 6, they must pay the additional amount; they must be a first time home buyer or have not owned a home in the last three years; their assets cannot exceed $25,500 excluding the down payment; they must be willing to return a portion of the difference between the program sale price of $52,800 and the FHA appraised value, $70,000, if they resell; and they must be able to afford a monthly payment in- cluding principal, interest, taxes and insurance of approximately $320.00. The difference between the program sale price of $52,800 and the appraised value of $70,000 is $17,200. Because=our program costs do not exceed $52,800, none of this $17,200 is needed to cover costs, nor would it be available because of the $52,800 HRA Letter No. 11 -2- April 20, 1981 maximum imposed by the 235 program. However, if a portion of the $17,200 was returned to the HRA by the first purchaser when they sell the house, it would help prevent a resale for speculative purposes and the funds returned can be used to write down the cost of this house to make it available to mod- erate income families in successive resales, or could be utilized to continue to assist homeowners in purchasing affordable housing. The agreement identifying the terms and conditions under which these monies would be returned to the HRA would be executed at the time of the closing as a second mortgage or repayment agree- ment. We are examining this shared eugity arrangement for sale of the home and an agreement will be brought to the HRA for their review when formulated in detail. The families submitting proposals to purchase the property will be evaluated according to the above criteria. The eligible family will be selected by a lottery process after which the HRA will bey requested to make final approval of the purchaser. It is recommended that the HRA authorize the city staff to advertise the property at 6500 Standish Avenue for sale in the amount of $52,800. It is also recommended that the HRA authorize the city staff to solicit and review applications from those in- terested and qualified to purchase the property. ~ .~ CAP ~~ ~~ ° ~~ ~ ~~ KN/ej a cc: Community Development Director Housing and Redevelopment Coordinator ~r; Respectfully submitted, ,~ Karl Nollenberger Executive Director HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 10 Agenda April 20, 1981 Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: ~~~ ~ i J ..~ ~ ~. ~ti N ,~ J ~ > s ~~.. ~ ~ `~~, ,' o~ ,(~' ~ ~J Subject: Selection of Contractor for Construction of FHA 235 Homes On March 19, 1981, the City of Richfield received notifi- cation from the Department of Housing and Urban Development (HUD) that we are authorized to utilize the $37,210 of Community De- velopment Block Grant Bonus Funds remaining from the scattered site Section 8 project to initiate a FHA Section 235 homeowner- ship program. The funds would be used to acquire land for de- velopment. The original bonus fund program acquired vacant or substand- • and residential property after which the sites were used for construction of Section 8 new construction rental units (David Ames houses). HUD has now authorized the use of the bonus grant balance to acquire vacant lots and/or substandard property to provide for the construction of FHA 235 homeownership units. If the eligible buyers have incomes within the Section 8 program limits, Richfield will be credited with providing housing for low moderate income families. This appears to be the only feasible way to utilize the remaining funds. The HRA is being requested at this and future meetings to select a developer; set just compensation for lots to be acquired; and enter into a de- veloper's agreement. The bonus fund project was initiated in 1979 when the city received a grant totaling $162,500, after the project was approved by both the HRA and the city council. The application mentioned two program alternatives which depended on availability of fund- ing; to provide Section 8 rental housing or Section 235 ownership housing. Funding for Section 8 housing was found to be available, and five scattered site lots were acquired, and five units were built and rented by David Ames. During the summer of 1980, HUD allowed the city to submit a program for utilizing the bonus fund balance by combining it with new bonus funds that were to be made available from the Metropolitan Council. The HRA submitted a preliminary proposal for Section 8 or Section 235 housing and selected a developer, however, the proposal was not selected for funding. HRA Letter No. 10 -2- April 20, 1981 Section 8 new construction funds for a small scattered site project are not now available. Instead of allowing HUD to recap- ture the unused balance of bonus funds, the FHA 235 program is a practical alternative with which HUD is agreeable. From October, 1980 to February, 1981, the Section 235 program was suspended. However, this program is again available for spring 1981 and will remain available until Section 235 funds run out. It is anticipated that the remaining funds will be committed by the end of May, 1981. In addition to this timing problem, it will be difficult to receive final commitments for the Section 235 mortgage because-HUD is adding new, unspecified program regulations. In order for the development proposal to proceed within timing and program constraints, the HRA would need to select a developer now. The staff's criteria for locating possible developers in- cluded: -experience building Section 235 housing; -agreeable to being hired as a general contractor and ex- _ ecuting a construction agreement; -willing to post $5,000 security to demonstrate their good faith in participating in this project with the HRA; -able to construct two four bedroom single family homes; -ability to construct these homes, in a professional manner within Section 235 program requirements: i.e., a maximum resale of $52,800; -providing _a "ready to move" end product; -ability to carry construction financing, until project is .completed; -experience working with FHA and having previously approved plans for Section 235 houses already available. To locate a developer, the qualifications of the competitors participating in the summer 1980 Bonus Grant competition were re- viewed and a HUD published list of Section 235 buildings was eval- uated. This evaluation process provided six builders in the metropolitan area that were still actively building and/or willing to build, Section 235 housing. However, only one .construction company, Lida Construction Incorporated of Anoka, could construct four-bedroom houses for under $49,000. This cost level was util- ized to allow the HRA to cover its anticipated expenses (points, advertising, survey costs, etc.) with the remaining $3,800 with a maximum sale price of $52,800. Linda Construction has been in business in Minneapolis and Anoka since 1967. In recent years much of their new housing con- struction has occurred in the Anoka and Coon Rapids area. Presently, they are constructing two Section 235 houses in Minneapolis on land purchased from the Minneapolis HRA. They are also building an 8 unit condominium in Coon Rapids. Lida Construction meets our criteria because they have built 12 Section 235 houses, are willing to be a general contractor, post security, carry financing and negotiate a construction agreement. The most favorable part HRA Letter No. 10 -3- April 20, 1981 of their house package is their ability to provide a "bricks, sticks and mortar" cost of approximately $44,500 to $46,000 per house. This is low enough to allow the addition of such items as appliances, sod, and driveway, to provide a "ready to move in" home for approximately $49,000. In addition, their profit margin is approximately 5% rather than the 10-12-or 15% required by other builders. Also, Lida Construction has indicated a willingness to utilize local suppliers and contractors where possible. The product they have indicated they can provide would have a split entry design, approximately 1200 square feet of finished floor area, one and one three-quarter bath, four bedrooms, oak woodwork, custom constructed cabinets, a patio door and patio area, slide-by windows, and masonite lap siding. Program cost limits prevent adding a garage to the package. A representative of Lida Con- struction will be available to answer questions at the April 20, 1981 HRA meeting. The sites that will be utilized for construction are presently owned and for sale by the State Department of Transportation and are located at 6216 Pillsbury Avenue and 6225 Harriet Avenue. The state has indicated their willingness to sell the sites to the city once appraisals of value have been completed. Each of the lots has been evaluated by the FHA and found acceptable for construction. Setting just compensation for the_.lot purchases can occur at a future HRA meeting, perhaps as early as May, 1981. Final cost estimates and a construction agreement could be acted on by the HRA as early as June, 1981, if the required Section 235 commitments can be received when plans are submitted. The agreement will include the total cost of construction, re- quirements of construction, the developer's proof of financining for the site, and the method of releasing the construction company from their responsibility at the completion of work. The houses could be completed within 90 days after a developer's agreement is executed. Construction contract payments, an estimated $98,000 for two houses, will be made from the sale proceeds. To initiate this process, and to utilize the FHA 235 program, within the narrow time limits, it would be desirable to select a developer on April 20, 1981. Lida Construction has met the criteria outlined above and selection at this time will permit the staff to seek conditional mortgage approval. It is recommended that the HRA approve Lida Construction as the general contractor for the development of this scattered site Section 235 housing project. Respectfully submitted, Karl Nollenberger Executive Director KN/eja cc: Community pevelopment Director Housing and Redevelopment Coordinator ~~~ d J~ JJ`n ~ ~/`~f