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03-12-79 agendaHOUSING AND REDEVELOPMENT AUTF~ORITY Office of Executive Director HRA Letter i~1o . 1 4 Agenda March 12, 1979 Housing ~ai1d -Redevelopment Authority Commissioners City of Lichfield Dear Commissioners: Subject: Annual Housing Report and Rehabilitation Program Amendments In 1975, the HRA established and began operating the Richfield Housing Fund (Rehabilitation Program).. This program was established with the objective of upgrading and maintaining Richfield's existing housing stock, through loans and grants to low and moderate income homeowners. Since its conception, the program has provided rehabil- itation assistance through either grants or loans to 290 homeowners. When the Richfield Housing Fund was initiated, there were three rehabilitation programs. available to Richfield homeowners: The Minnesota Housing Finance Agency low interest loans; the Minnesota Housing Finance Agency low income grants; and the incentive home improvement grants. The MHFA low-interest loans provide rehabilitation loans of up to $15,000 with a varying interest rate of 1 percent to 8 percent, based on income. Since 1976, approximately $771,810 has been loaned to Richfield residents through this program. Originally three Rich- field lenders, Richfield Bank & Trust, Summit Bank, and First Feder- al Savings and Loan administered the rehabilitation loans. In the middle of last year, Richfield Bank & Trust dropped out of the program. The MHFA grants provide up to $5,000 to low income homeowners, to be used for energy and code-related repairs. Since 1976, approx- imately $95,607 has been awarded to 32 homeowners, through this program. The incentive home improvement grant program was established as a supplement to the MHFA low interest loan program. If a homeowner received a loan, they were eligible to receive an additional grant of up to $1,000. To date, 31 grants have been awarded through this program, totaling $17,828.50. In January, 1978, the HRA implemented an additional rehabilita- tion program, the YES for rehab program. Funds for this program were combined from the Comprehensive Employment Training Act (CETA) and the Community Development Block Grant, to provide rehabilitation assistance to low-income homeowners. The goal of the program was HRA Letter No. 14 -2- March 12, 1979 twofold: to upgrade the housing stock, and to provide valuable training to eligible youths. The YES for rehab program has provided rehabilitation assistance to 20 homeowners at a total cost of approx- imately $150,000. In March, 1978, the HRA also approved the concept of a Home Security Program, and certain community development block grant fun ds were allocated toward the program. Since that time, the HRA staff has received notice from the U.S. Department of Housing and Urban Development that such a program would not be eligible for community development block grant funding. However, the allocated block grant funds would be available for use in alternative rehabil- itation programs. Analysis of Housing Programs Attached to this letter is the annual housing report prepared by the HRA staff. This annual report is required by the resolution adopted by the HRA when the Richfield Housing Fund was originally established. Based on the information in this report, several observations may be made. The report indicates a decrease in low interest loan disbursement during 1977 and 1978. It is the feeling of the staff that this decrease in participation was due primarily to d~reased advertising efforts, rather than a diminished need for low interest rehabilitation loans.. According to a survey conducted last summer by the HRA, there are approximately 966 moderate income Richfield homeowners who would be eligible for low interest loans. Yet, since 1976, local lending institutions have made only about 200 such loans. In late 1978, the HRA authorized the staff to initiate limited additional advertising. The advertising program for the low interest loan and grant program is scheduled to be implemented this spring. In the meantime, the Richfield Bank and Trust did not participate in this program during the second half of 1978, and both Richfield Bank and Trust and First Federal Savings and Loan have declined to par- ticipate in the loan program during 1979. Because the bIHFA low in- terest loan program is administered by local lenders, the decision by these two lending institutions to not participate in the program will have a substantial impact on the future ability for such loans to be made in Richf field. The annual housing report also concludes that the HRA incentive grant program has not been as productive•as originally anticipated. The incentive grants fluctuate with the low interest loans. Although the grants increased somewhat during 1978, it is the feeling of the staff that changes in the incentive program should be studied to determine if there may be a means of increasing homeowner benefit and participation through this rehabilitation program. Both of the direct grant programs, the MHFA grants and the YES for rehab, have been very successful, and program disbursements have equaled alloca- tions. Nineteen homeowners are currently on the application waiting list for these low income grants. The survey undertaken last summer indicates that there would be an additional 232 Richfield homeowners who both would qualify for low income grants and have the interest in HRA Letter No. 14 -3- March 12, 1979 undertaking home improvement programs. Based on a review of the annual housing report, the ad hoc housing committee has recommended that the staff undertake a re- vision of the housing fund program guidelines to address some of the discrep ancies which appear in the report. The remainder of this letter will describe the recommendations for administrative changes which have been developed by the staff and the ad hoc housing committee. Recommended Rehabilitation Program-Guideline Amendments It is recommended that the community development block grant monies from years III and IV which were allocated to the incentive grants and ernergenc y grants, be transferred to the low income grant program. Because all of the current funds for this program have been allocated and there is a waiting list of 19 homeowners who are seeking a rehabilitation grant, the reallocation of these monies appears to be a means of addressing some of the apparent need. The total remaining funds which were allocated to the incentive and emergency giant programs equals $92,000. It is the recommendation of the staff that these funds be appropriated as follows: Low Income Home Improvement Grants $.52,000 Emergency Low Income Home Improve. Grants 25,000 Incentive Home Improvement Grants 15,000 The housing fund guidelines should be amended to reflect these changes. The staff is also recommending HRA approval of two additional amendments to t.'..~e Richfield housing fund guidelines. The statement on administrative procedures includes a statement regarding the responsibilities of each program administrator. This statement was included after there was some confusion regarding the purpose of the grant review committee. The proposed amendment would further clarify the grant process. The second amendment to the program guidelines would provide for emergency home improvement rehabilitation grants. This amendment would provide that the homeowner who is eligible for a grant, and in a situation of eminent danger, shall receive immediate assist- ance to repair the one item creating the eminent danger. This provision will allow the grant review committee to authorize and allocate emergency repairs in situations where the total necessary repairs do not receive sufficient points in the ranking system to warrant a grant for all the needed repairs. A copy of the proposed guidelines is attached. It is recommended that the H.R.A. adopt the attached resolution, adopting the amended Richfield Dousing Fund Guidelines. cc: Ping. & Redev. Director Public Works Director Environemental Health Dir. Respectfully submitted, J (JL. Wilde ting Executive Director HRA RESOLUTION WHEREAS, the Housing and Redevelopment Authority (HRA) has established the Richfield Housing Fund for rehabilitation of single family owner-occupied housing in Richfield, and tiVHEREAS, the Richfield Housing Fund consists of several rehabilitation programs including MHFA Low-Interest Loan Program, MHFA Grant Program, Incentive Grant Program, YES for Rehabilita- tion and Emergency Grant Program, and WHEREAS, the PIRA has established administrative guidelines for the disbursement of funds from the various rehabilitation programs, and WHEREAS, the HRA has from time to time amended these guide- lines, and WHEREAS, the HRA has received the Annual Housing Report and the recommendations of the Ad Hoc Housing Committee, and 1-VHEREAS, the HRA has identified several necessary changes in the guidelines and desire to change both the guidelines and the allocation of funds. NOW, THEREFORE, BE IT RESOLVED that the HRA: 1) Authorize the Executive Director to make changes to the Richfield Housing Fund Administrative Guidelines as amended; 2) Reallocate Year III and Year IV funds from the Incentive Grant Program to the Low Income Grant Program. Passed by the Housing and Redevelopment Authority of Richfield, Minnesota this 12th day of March, 1979. Loren L. Law, Clairman ATTEST: Ivan Lu eman, Secretary M N d' Ln .~ e Ct3 L O O SUMf1ARY AND EVALUATION OF THE ~ICNFIELD NOUSI~dG Fl)~;~ THE FIRST FOUR YEARS, AND THE PROORAf~1 PLAN FOR THE FIFTH YEAR ANNUAL STAFF REPORT FEBRUARY 14, 1979 telephone: 869-7521 (612) an equal opportunity employer tam EnUAI HOUStK OPPORTUN(77 z TAELE OF CONTEP~TS Pane I. Introduction .l II. General Summary. .3 III. Projected Needs for Year Five (1979) .4 IV. Recommended Program Changes for Year Five. .5 V. Summary of Program Years One and Two (1975-1976) .6 Table of Years One and Two . 7 VI. Summary of Program Year Three (1977) .8 Table of Year Three .9 VII. Summary of Year Four (1978). 10 i~HFA Loan Program 10 P4HFA Grant Program 10 Incentive Grant Program 10 Emergency Grant Program 10 YES for Rehab 11 Table of Year Four. 12 VIII. Summary Table 13 Introduction The Richfield Housing Fund Report as follows is beinc! presented to the Housing and Redevelopment Authority Commissioners for their review and comment. Background History Purpose Programs The Richfield Housing Fund Annual Report has been presented during ~-larch of each year since the Fund vas created in 1975. The Report is a summary of the Housing and Redeveloa- ment Authority's home rehabilitation programs for the pre- ceeding year. It also states any recommendations to improve the programs for the upcoming year. The Richfield Housing Fund was initiated by the Richfield Housing and Redevelopment Authority in 1975. The purpose of the Richfield Housing Fund is as follo~•as: 1. To increase the attractiveness of neighborhoods through- out the city. 2. To increase the inventory of sound, habitable dwelling units. 3. To prevent the spread of blight. 4. To promote homeownership. 5. To discourage abandonment of properties. 6. To stimulate the use of private capital. for such rehab- ilitation purposes. Three methods were established to provide rehabilitation assistance: P~1HFA 1. The Minnesota Housing Finance Agency's low-income tyrants, Grants which are grants of up to $5,000 each awarded to home- owners ~vith adjusted annual incomes of less than $5,000. Approximately X32,000 have been allocated from ~1HFA to Richfield for each Funding Year. MH FA Loans 2. The Plinnesota Housing Finance Agency's lotiv-interest home improvement loans provide loans of up to X15,000 to homeowners who have an adjusted annual income of less thana16,000. The interest rate of these loans ._ varies from 3 percent to 3 percent. f•1HFA allocates funds directly to the banks and savings associations and the loans are processed by the participating banks. Approximately $365,000 have been allocated from PIHFA to Richfield residents for each Funding Year. Incentive 3. The Incentive Grant Program is funded 4•iith the Federal Grants Community Development Block Grant received by the city. Homeowners typo have received a ~IHFA home improvement loan or other type of ,loan may be eligible for up to ;1,000 as a bonus grant. The grant must be used for code-and-energy-related repairs or to reduce the principal amount of the loan. 2 Emergency In 1977 and again in 1978 an emergency grant program was Grants established. Grants of up to X5,000 were made available to low-and-moderate income homeo~~mers ~•~ho had suffered structural damare from the flooding in P,ugust of these years. The Incentive Grant Program and Emergency Grant Program have been used to provide approximately 12 grants in each Funding Year. YES for A fifth homeowner rehabilitation program t-~~as adopted in Rehab March, 1978. The YES for Rehab Pro cram (Youth Employed and Supervised for Rehabilitation) was funded with a combination of Community Development Block Grant Funds and a Comprehensive Employment Training Act (CETA) tyrant. According to CETA regulations, the program could not be extended beyond one year, so it was discontinued in January, 1979. These five programs comprise the Richfield Housing Fund. Grants are received from both the P•1innesota Housing Finance Agency and the United States Department of Housing and Urban Development to operate the Richfield Housing Fund. The annual housing report will show: 1. how the funds have been spent each year 2. how many homeowners have been assisted each year 3. the problems of each year 4. any trends that may have been set for future funding cycles 3 II. General The Richfield Housing Fund has provided assistance to Summary 289 homeowners since 1976. A total of $894,177.00 has been provided by the Minnesota Housing Finance Agency to Richfield Residents. Community Development funds have provided $52,860.50 towards single-family rehabilitation. Each of the Program Years have been successful. In Year Two, 49 percent of the total allocation was approved for disbursement. In Year Three, 55 percent of the total was approved for disbursement. And during Year Four, 73 percent of the total funds were approved for grants. and loans. During 1978, the largest amount of funds were approved for disbursement. The three main programs of the Richfield Housing Fund have had some variations in demand during the program years. Since 1975, the low-income grant program has had a high number of applicants. However, the low-interest loan program and the incentive grant program have been less stable. It appears that these programs fluctuate accord- ing to the advertising schedule done by the HRA. No advertising was done in 1977, and the number of appli- cations for incentive grants was quite low. There was some advertising done in the summer of 1978, which is when the number of applications for incentive grants, along with applications for loans started to increase. Another possible reason for the sudden increase would be the 1978 Housing Rehabilitation Survey. Approximately 458 homeowners were contacted for the survey. Many homeowners may have learned of these programs thro!!nh the interviewer. The survey probably served as additional advertising. According to the past three years and the housing survey, the demand for rehabilitation assistance is equally as high at the present time as it was at the initiation of the Richfield Housing Fund i-i i975. 4 III. Projected The need for rehabilitation assistance in 1979 has been Needs for based on both the past history and the results of the Year Five 1978 Housing Survey. The past history of this program has not shown any marked decrease in the number of appli- cations received for loans and grants. According to the Housing Survey conducted during the summer of 1978, there are 966 moderate-income homeowners who are eligible for low-interest rehabilitation loans and are planning to make repairs on their homes. In addition, there are 232 Richfield homeowners who are eligible for either a MHFA or CDBG grants and who would like to make home improvements. Even though many of these homeowners may not apply for assistance, there is still a large need for the Richfield Housing Fund. In addition to the survey information, there are currently 19 homeowners on the waiting list for low-income grants. As housing costs continue rising, and the housing stock in Richfield continues to age, the demand for rehab assistance will be present. IV. Recommended 1. Since the number of applications for low income grants Pro. ram is quite high, staff recommends that the excess Community Changes for Development funds which were allocated to the Incentive Year Five Grant Program and Emergency Grant Program for Years Two and Three be transferred to the low-income grant program. These funds should be sufficient to assist almost all of the eligible applicants already on the waiting list. 2. The Incentive Grant was designed to encourage homeowners to seek a low-interest loan. However, only 13 percent of the loan recipients also applied for an Incentive Grant. This proara~n should be studied during the spring of 1979. These funds could possibly be used more effec- tively if the program were restructured. 3. To date, there have been no rehab funds used to make homes accessible for the handicapped. Staff recommends that some Community Development funds for Year V be allocated to homeowners who need handicapped accessible homes. F V. Summary of Although the Richfield Housing Fund vas established in Program Years 1975, the lo~v-income orants and loans were not Generally One and Two available in Richfield until 1976. During the first prooram 1975 and year, 1975, a few Pichfield residents did receive low- 1976 interest hinnesota Housing Finance Anency loans from banks outside of Richfield. During 1976, or Program Year Tiro, the Minnesota Housing Finance Agency allocated $332,500 to Richfield for loans and grants. Richfield Bank and Trust, Summit State Bank and First Federal Savina_s and Loan ,Association received a total of $300,000 for lour-interest loans. Of this allocation, x231,000 (93.7 percent) were actually disbursed. Richfield Bank and Trust disbursed 97.4 percent of their allocation, Summit State Sank loaned 101.3 percent, and First Federal Savings and Loan Association disbursed 67.2 percent. ~1HFA had also allocated $32,500 to the Richfield HRA for lo~v- income grants. Thirty-two thousand eight hundred twenty- t~vo dollars (101 percent) ~•rere disbursed before the Year Three allocation in September, 1977. There were also Incentive Grants available in Program Year Two. Thirteen Incentive Grants were approved for funding. And t4velve grants, totaling $6,674, were a;varded during J 1976. 7 TABLE OF PROGRAE~1 YEAR T6d0 Dollar amount Do71ar amount approved for Dollar ar~ount Dollar amount allocated for disbursement disbursed disbursed number Program 1976/1977 in 1976/1977 in 1976 in 1977 approved MH FA Loan X300,000 $281,000 X281,000 -0- 62 h1H FA Grant X32,500 X32,822 -0- $32,822 9 Incentive Grant X25,000 X6,824 X6,674 5150 13 TOTAL X357,800 $320,646 $287,674 $32,972 84 a VI, Summary of The Richfield liousing Fund provided the same three rehab- Program Year ilitation programs during 1977, plus the Emergency Grant Three 1977 Program. The Richfield lending institutions requested 5450,000 from the P-1innesota Housing Finance Agency. They disbursed 5302,573 in low-interest loans. Of this amount, 5241,531.00 are re loaned to Richfield residents. The remaining loans were made to residents of surrounding communities. At the same time, it appears that approximately $40,000 were loaned to Richfield residents by other non-Richfield lending institu- tions. Therefore, approximately 5281,581.00 arere~received in ~1HFA loans by Richfield residents. None of the three Pichfield banks disbursed their total set- aside during 1976. Richfield Sank ~~ Trust lent 77 percent, Summit State Bank lent 69 percent, and First Federal Savings and Loan Association lent 35 percent of their totalMHFA allocation. It eras felt that this low disbursement rate could be due to one of several factors, such as a lack of advertisinn or a lack of actual need. Durinn the past year, a survey avas conducted to measure the homeowners' awareness of the Richfield Housing Fund. The results of this survey are discussed on page 4. During 1977, the average age of the borrowers aras 30 years, 4vhich is 8 years younger than the average ale in 1976. The average income for the borrowers in 1976 and 1977 aras 511,500. The Richfield HRA received an allocation of 531,733 from PiHFA for low-inooce grants in Funding Year 1977-1978. 0~= Luis amount 538,539 (13 grants) were approved for funding during 1977. However, the funds were not actually disbursed until 1978. Therefore, the HRA disbursed $38,539 from the ~~1HFA allocation they received in 1977, which.is 121 percent of the allocation. The demand for Incentive Grants during Year Three 4vas much less than that for Year Two. This decrease is in proportion to the decrease in log!-interest loans since the Incentive Grant Program is desiclned to complement the MHFA loan program. During 1977, four Incentive Grants were approved for a total of 52,413. However, the majority of these grants were no t_ disbursed until 1978. The total disbursement for 1977 eras 5342.00, which included one Year Three grant, plus one Year Taro grant arhi ch aras not disbursed until 1977. The Emergency Grant Program was also available in 1977. These grants are re available to low and moderate-inco!~e homeowners from the Community Development 31ock Grant. Three grants totalling 510,918.00 were approved in 1977. Of this amount, $3,107 aras disbursed during the 1977 Proc!ram Year. TABLE FOR PROGRAf~1 YEAR THREE (1977) Dollar amount Do17ar amount Dollar amount Dollar amount to be Number allocated for approved in disbursed disbursed approved Pro ram 1977/1978 1977/1978 in 1977 in 1978 in 1977 h1H FA Loan $450,000 $241,581 ;241,581 -0- 77 f1HFA Grant $31,733 $38,539 $32,822* $38,539 13 Incentive Grant $25,000 52,418 5342* $2,225 4 Emergency Grant 525,000 $10,918 53,107 57,811 3 TOTAL $531,733 $293,456 5277,852 548,576 97 *also includes disbursements from 1976 allocations 1 `J VII. Summary of The Program Plan for Year IV projected that 5450,000 Program would be available through Richfield lending institutions Year IV for MHFA low-interest loans. During 1978, there was a chance 1978 in participation. Because Richfield Bank & Trust chose not to participate during the second phase, 5350,000 was avail- able to low and moderate income Richfield homeowners. During Program Year Four, approximately the same number of MHFA loans were awarded as during Years T4V0 and Three. The lenders disbursed 71.2 percent of their total allocation. During the first six months of 1978, there Gras a marked decrease in the number of requests for MHFA loans. The partici- pating lenders only disbursed 61 percent of their allocation to homeowners. Loans increased to 35 percent during the second half of Program Year IV. Two hundred forty-nine thousand two hundred twenty-nine dollars were loaned by Richfield banks during 1978, and 61 homeowners were assisted. The average loan amount was $4,019.83, which compared to an average of 54,137.42 in 1977 and $4,532.26 in 1976. The city-wide average income for Frogram Year Four was 510,003.63. This marks a decrease from the Year Three (1977) amount of 511,500. The MHFA Grant Program was as successful in Year Four (1978) as during the preceeding years. Richfield HRA received an allocation of $31,734 and expects to receive additional bonus funds in August, 1979, at the end of this funding cycle. To date ten nrants have been approved by the Grant Revie~a~ Committee totaling 539,952. However, this work has not yet been completed, so the funds will not be actually disbursed until 1979. If all of these grants are a4~~arded by Hennepin County, the HRA will have exceeded its Year Four noal by 126 percent. The third Richfield Housing Fund Pronram, the Incentive ;rant Program, increased substantially durinc+ 197S. A total of 13 applications (58,536.50) were approved. Of this amount, $8,266.50 has already been disbursed. The average amount of an Incentive Grant in 1978 was 5613.32 as compared to $604.50 in 1977 and 5524.92 in 1976. The amount of the grant is computed according to the percent of the loan that the home- owners had spent on energy and code-related items. Since the loan amounts have decreased over the past three years, but the Incentive Grant amounts have increased, it would appear that the homeowners are investing a lamer nercentane of their loan into code-and energy-related repairs. The Emergency Grant Program for flood damage was made avail- able once anain in 1978. Three applications ~~iere approved for flood damage funding totalinn ;;6,651.00. Of this amount, 51,798.32 was also disbursed in Year Four. Two of the three applicants were among the three homeoti-~ners ~rdiio received an Emergency Flood Grant during 1977. 11 During 1978, the fifth P,ichfield Housing Fund Program eras adopted, YES for Rehab. Under this pronram,201ow-income homeowners received rehabilitation assistance. Seventeen thousand four hundred sixty-two dollars were disbursed from Co-nmunity Development .funds for materials and supplies, and a X91,000 grant from the Comprehensive Education Training Act (CETA) was used for labor. The YES for Rehab Program was terminated in January, 1979, since the CETA grant Gvas only available for one year. 12 TABLE OF PROGRAM YEAR FOUR {1978) Dollar amount Dollar amount Dollar amount Dollar amount to be Number allocated in approved in disbursed disbursed approved Program 1978/1979 1978/1979 in 1978 in 1979 in 1978 h1H FA Loan $350,000 $249,229.00 $249,229.00 -0- 62 ,~ ~1H FA Grant $31,734 $39,952.00 $32,538.00* $39,952 10 Incentive Grant $25,000 $8,586.50 $10,381.50* $431* 14 Emergency Grant $14,082 $6,651.00 $7,516.00* $6,946 3 YES for Rehab $17,064 $17,462.00 $17,462.00 -O- 20 TOTAL $437,880 $321,880.50 5317,126.50 x47,329 109 *also includes amounts allocated in 1977 to be disbursed in 1975 or 1979 • • • iili _. . ~_ i ~••:` - i C ~ a ~- ~ ~ ~ . 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EQUAI HOUSING OPPORTUNITY Table of Contents I. Administrati~~e Prccec~res A. Re sponsib~l_t~.es c= ~~•~____~t_ :'.ors l . F:CUS__ any;, _....~ e :°e! _ ..._.. ~ ::~~L: or_ 2 . E:~ec~at~ve D~.rec ~•cr o. t::e ~'i 3. Grant Review Com*nittee 4. •Com~unity Develotiment Specialist B. Re-application ar.d Appeal Prccec;,res • C. Minutes II. Organizational C:~art - III. Eligibility and Priorit;,~ Guidelines A. Hole Improvement Reabilitati o:: Grant 1. Fu..dinc Sourczs 2 . Eligib i l i •,~ Cr_ ter~~. 3. Priority Guidelir_es B. Incentive Her1e I: ;pro~.~=`:rent Grunt 1. Eligibility Criteria 2. Priority Guidel~n~s IV. Amriend:~ents A. E::~er~;enc' ~ 1000: .,~ ~.n r ?I"C~'~- " ~i;1 1. ~ll~jl:;lll._ l~~_ :~r' Pace ~' 1 3 3.~ S S a _:) ~.~ ,~ ~ICfI~ IELn f10!~Sl,''~r F~,fJD ,~D;~fIi~1ISTi=~r,TIVE CUIDELIr;~S v ~ ~ ~'~C~ bZ{ :L,2 (' N ~ r ,nd ~'~U.~ ,n ~ ,~^•.n0 i'i' 1 ~)7.i.-L.:! 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C(.'iluYC-LttCL' Ri'COi1311C?YlC1C(,t~C;ZS l;j~ori :7ev~uv a ~ ececlL ~(fJ;~t'.,~eat<,a)l, t;le Co;ratl%ttee iut,:z.~ dete•'ur.G;le ZUiLCCiZ i(t=~Y~.f'.'-LCCC~tLU:LS S~1d~(- ~(? CL1J~:),`LUV(?~, IL'i1.LC;I CC~J~Jt CCCCt(-U6~1S CLi,C L? ~cq.~u.C~ but ;1(lt aptJ.~coved, a;tci (L'11%ch a}J~JE%zcct,ti.o;LS CL,`1 ~', dept:~cd QCCC:'L~~C{lC{ :to t%Ze -%eV~LCIU ~C(,Lt:i(?(,C.;2(?-S CCILC{ C~LtCh~(.CL. T;le CLr?);).t~L- CCCt~(-UV1S LUrLf-ClZ Cv`LE? C~E'1Z-Ci,t~ 1U.(~C,L, Ji'_ .i)l~U-`U11C',l~ ,Lf1 (lt`L{.ttli~ C~ t~1L Ci!i)3)7-(~tC'_Q.+S i~~?C{.S-COII. , -~. C rii_' ~.L'!.';!IiLCiCi..t,(/ ..~:.L'~:i.::~~'.'1('{il. J~~r:. ^' 't' ^' r ~ l ' ~c ~ L~ir~:.,t~ ~~rt« ;_ ~;.,;'c;~s s C.itc ~[~~ ~L;~;~.~~~~C~c.u;' ~ ~ • G,f;L i[i'_C;'_ss~Z".'! C;I;ji'`..r.`;CG~LI";iL ~J C:":lrl'~~:.~~. :'CiC C"::~C,G.2i.C -i' - C;t. r CG-{.f~Z }J i~SLiLL LiLi'_ il':'~Cr_(.Cn.LL.,;LS ~'' ~r ' r:, n•, ~- n • ~ L UCr_ .%~~r,.{, t?VtZJ' l,G•r`.'1??.(,~~.'C? t', , ~ ~ C(.',Lt_r~ CL ~CCG'C.'f`iC;~Qwi t_v';C~ C.i{CQ i!,t-(.(_,L ~Ui.:.':!~-ail G'{2 .iiC:? ~i;i:.'Yll. `1-C~ r Lt~L' t~CC.~S.C_G'iC. j'tC CU,C.~i~ .S S L_";: , .; ! i;.%S QCCG'•`,.~(.itCt ~U ~rCC 'i~(, ~~i~(~i.i'.~ S Ci;'_Cr :?n. -LU -v :.~: l.v'!,'1"iC_;-L~.~ s _CL' ",t jfC ~ ~ "l' ,^ " ~e_-:. t .~'ti(~L _.-.~:•I"h}n r.;,, rid 'JLCs v~.,i' ~S •~:-nom. - > >i HC Ct'i.`-~ ,.I,.si, ,_ ~`-.___ ~- ~~,. .C;ir._Li.CL •%;CS-., ~~: - ~ "' - ~ RC i :Cnl :~., r~-~I F~j~j7E' LCCL{Lib Yr1QL/ ~'L2CCj~)?..c Q:~-i.~`. g(,' ~iQli•S Q{:(< '•1',CCt/ f~. ;, , a : ,.'~ Q;~~ •t~CrTlt. C{L ,L.t2 E7CLS,c.S (.' ~ yiL2:C CtJ-C.L,.r_iLCC. 1~j~j^C `n•.,vs ~ ~G't'7 . ~?_CUrn}';2iC.r'~ ~- • ti.CUrL5 U~ •tiLC G~CL{2~ Cl%fr}1~L.f ~CCr?7CLS-% ~C -SU~;lil~i~`CCi i~: 1' ' 'C vti`;.CCLL'•t ;LU .'•(.C,C. Ct)-~i..lu•~li .LL ~ t ~;~:: l I .~ . ~Li, ~L„Z, ~ 1.1 ~, •~1,L::-S-C..G~i7'~. `..J . TftC Cli Fl.irv~s-s-l_Ci';LC'~s S'~CV ~..v •L'~VC L•Lil~i.t. C~Gt~LG'{t V;~ .ti i~l Ct(.i `~'C.. C, ~Ir~u~~~ (v},~[.,~L~l. ~~.; t m C.i :~..i. 1.CS s ; CL~ ' ~' ~ ,-i..~ De.. ~ 4' L ' C `C.n..; ~ , l Cl. .;,L :~ L Ili2i.~L-GrC ^'J ' ° 1 - ,Lr~a. ~ ,., ~' L'~ar L r ,~ ~'~L'-L . ., : TrtC[I S:Ic,.~-~ .,~ C„r.,..,,.~LC~. [Uti~ri,(.;l ,~._,`` . ~ . ,~ , Y11CL~o(.iLJC C~wl.` Cvt~ .S~lC\,;;;' UC s~CG'i.C.'1i. CCi w~L 'iQU,`:. }11~";per "' { - -r,-..L , UlLl4l.V ~trlCit Cc~., ~G~'LC'cZ`„C~C':i ~ ,.. .. -C.rC lip ~ ~~' ,,.` ., ~s s.~G'iLC.~s ' i~ieti :: ~mes. ~ O Housing and I;rban De~;elor;~~:eni i _, _.._: !-i_?a Cc~~:i~s~ oi:°rC ' I ~enre:~~n ~o:._.- - I ' I -- ~.. '-_.,e Director; -------------------- r~_~ecu ~ ~ -- I t ~ I t ! :, . t I t I III Cy.nn~ rye: 'le:t,~ i s I i 1 I I ~ ~ I L I ~ ' I i Co>T~::unit~; D`~,elonc~enr. I____-- ~ ~,~eci~tilist ' i , r i. i i ~ TT ~~~ cJ""O~~''la.r~r.. I ~.~t` i ~. applicant' ~ In~,~~~~:c~, _. II. ELr';'BT~ I jar tlrm ~njnnTT~~ ~~!i;Fl i~i~~ t 1, ,. T,'le CL Cu-CbC.i_C,~~( CZi1LI %~~CL•.",(,~_U yCLCd~'~C eS ~2%;_ L;iC~Cli<i'.C~ ,iC' i ,'_CiC;I a ~ .`;t2 e.L'(,S.~.Cil~ F1G'LLS-C;Zg ~LL'Zd P•~L'C~-icZL'1S. Tlie ~:,C:"r.C~.(~,C.~(/ ~{C(,i_(;'~LCil~.$ •+0 ~ C':i'~ V1 .' y n a. 7 1 . / I) (~ 1 r..~ .-/ ~ ~.~ _. v .. 1:, J ~ `~ ~ r 1 7 _. 1- ' J... 1;. ... ~OG:~~J!1 Cv~` .~U U~. CC';LS•C...::~._u. .5~;__,.~.,,,~~ aiid '' e C^;C 1 ~C' Y~:~ac(.~CUIIS. r`~VZ(( ~:~al~L Cis?ti_'LC:~_^„~CC;Z '!'•%.~(~. L" .~~.~, '~i!•o '~~n`r~C;iG -L.: Gi.l.l_c: ~.Ca ~-S.IC ii-C,LS Ii'~~.CL 'C1.~ .i ii'i~ ,t ~'~/.`_CU-;, -C.li (!,'i' , ~'n i ~~~ HO"_ Ii~.to~~~/c?,,~nJT R~~~~i1 1-~T~ ~" r~-iiT ~. f~~'n'.iCi~L, ~ ~~~'`L i1~ ..i,.'i _i_ I '~, •i,nn"C,l• ~ ^ ~ ` .` ..rr~ ., rr~ ... , Tilv~e •s %iCL'u' be ail ail;i~~w -s Q.L-C~LS -Ci,t~ a s"5, OV0 -i.i: LrvV '~(,~'; i~.;,• _ be L<.S,~,Q S("I.CPX;1-,.ilU~...."mG.~y2;iCf,g,~CtZ~S._'_....-.-.~,.._....~.w,......~..,.._,_.._.,„....,,..s.,.."w„~ 2. AppLLCa;l~s ~U~`C a UC'tae-iill~~`,C''C"le1L~ ~e;ZCLS S•":.Ct:~% 1iCL5.~ r„evf- ~'., h,~i.Cj,i.O.(,t~G~l/ gwC ~^~c~.CiZCS .c~. i,S.i 'CCU C~.-~CCC: ` •~,_`. a. Ocustiens h,Lp App.ei.earlt~s mu~s~ be an ~.vld~.v~.dua,~ fee aw~.etc ah a Cai'L~ZQC~ {}Oh deed pwccha~eh o~ the phapet(~y ~a be ~imphoved. 4'c%vu.mum occu- pavicey o ~ v-,%ne~y (90) days ~joh {gee ownet(,s and ~iue,Q.ve (12) moi~ll.s fah eavL~trcac~ doh deed purcel'ia~se~ .is hegw%~ced. b. Phap~y The app2,i.eawt mws~ be a~. acuvleh aeeupan~ a~ ~Gr.e ~~rc.ue~urce. T6ie prcope~y ~o be .i.rnphaved ~sha2Q. be cased pfu_man,i.2y {yah he~stideititt:a~. purc.pU~s Pis . C. Age U~j Phopeh~y Phapen t~i.e~s m(LS~ be a-t ~ea~s~ {~,~~y,teevc (1 S) yQ.a1t~S G ~ age Uh ,~Vl need a~ I~.epa.trc ~a cotvLeet :i..tem~5 ghat arse hazarcdows ~o health atc sa~e.ty. d. Income avid A~s~se~s The ~am,i.2y ccd~ws ted gha~5~ ~.iieome mws~ ~.a~ exceed $5, 000 aKiiua,~ey ayld ~t'ce as.s ens o ~ tLie app.P~Leaiat, a th~~. ~;la~i tl2e va,2cce o ~ the Name be~.llg ~.mphoved, mws.t vlo~ exceed $25, 000. e. Amocu'Lt o ~ Ghawt Tdle arlloultit o{y ~Gie -ta~ete ghaitit'tnay v>.a.t exceed $5,000 per(. hawsello.~d. ~. Zoluil Phopeh.~~e's mws.t covi{~v'un ~o app2,%cab.~e zaluilg ahd,~.ilailce oh o.theh ~alld case gw~d~s. Tlu:s hegw<hemeeL-t may be iva,%ved by -the ~XC.CCL~CVe Dti~ecto' a 6 the IRA. n'CS•i_CiLl~.i.:.:.i ~'tC>.i2Z~~;_S t„~i'_ ~l.(,' LiJ -i!!;t_'.i.~"~ e ~ ~U ... ~._~ ~;~ ~..,.":~~~!.- CIIiCC CC.L~.;C ."CUL(.GL'.t'_C ~iea.c'.~;1, L;.l.~;i,C:iG ~C-`~'_ ^~"~,;?rL'' ;?f ~,,,~ r i. i. ' 1- 11 i _ tl(.t .. ~.S~~./.~ ,~~wL, L:_a~.l .:..; t`.. Lv~~VS Wit; ~~.t.i l~,t•t% ~il•~:~:-, i~.i ut..'~. ~_ ~~'~,. :_.. t.L Sl.l..~il. r.~/t a~~~_L, :. ~._~.:L~ L:. !i.~C:,S,~_J .,:,i..C. ~., ..~i%~~(.i, a.. a.. .. ~~t~t __.~(_ rC~.':i ~J '!'A: h. Ine2,ig~.b2e I~em3 Re~~.nancc:ng a~ ex-i~s~.i_ng debts ojr_ max~gage,S, paymevL~s fan dub-ec:c ,un~navemevLt a~5~se~~5ment~5, {~~.nanec:ng a~ 2uxcvcy .items an ~.mpnavemer'tt~S (d-i~shcua~shens, pati-ass, ~y,ueep2aee~s, ewe.) w.~22 nab be a,2~awed. ~.. ' Securu~y ~~iNFA Gna~~,ts cu.~2~. be ~eecvc.ed by a ae2~-eanee2.2,c:ng men a~ de~etcnuned by ,bt~.nne~sa~a Haus~.ng Ftina;ieing Agency ~.n ~heitr. eujrtcevLt Pnaeedu~a,~ Gu,%de.P.%ne~. Th-i~s ~se62edu,ee fan ti.e~aymertit ~i~S ass ~ya2~2aw.s: Pe~r,%ad any dime w~th,in w(~,i.eh ~a2e, .than~S~yeJt, earlveyance an ee,S~at%~n a{y ne~s~.dency aeewL,s Pe~ceent ~n~m ~,ime ~n ~ceeei.~~ a ~ gtcan~ Repaymen t Pfc,%a~ ~a end a {y 3G~h ~i u2,e ma rtitl2 10 0 0 A~.te1c end a ~ 3G~h ~Cr2e martitl2 ur2ti~ end a {~ 4~~(ti ~yu.P.e month ~S o A~y~ea end o~ 48,th ~u.P~ month ur~,t,%Q. end a{~ GO~h ~u22 man~h. ,Oa A~y~e~c end any GO.th ~u,22 mav~th un~i..2 end a~ 72nd ~u.P~ moytith 2~0 A~.ten end a(~ 72nd ~uP~ mc,ttit(t Na ner~ayment j. Cam}~e~~~%ve B,ida A~.e wa}c.(~ unden a cif-%nne~o-ta Nous-%ng Finance Ageriey G~'carLt mub~ _ have a m-c:ru.murn a~ ~;ua com~et~tLve b,id~. An exce~tic:an may be made -ta :~lti~s pa,2~ey ~.~, due ~ta -t(ie nCLtUlte a~ ~lre ne~a,ia., ,c:.t mus ti be darie ~,mrnedLa~e~y anc~ -t(~etc.e ,%s nv.t ~u~~,te%ertit ,tune ,ta ~seeu~e ~u,~a b-i.cGs. Haeueven, .a~.2'-ttid.iv-%duae tc,er~cr.itea oven $300 must be accompan-red b y a rn.c:n.i.rnum a ~ .two b.%ds , I2. SweCLt EC~CLt~tLf Pc:~~o:7mar2ce U J he(1ab-(,~(,tCLtCGr'1 wG,`C(Z b(/ an -Lnd.CV-LduLf,~' UwrlUl-UCCU~?arLt, w(iU ,LS tC(?ce-CV-(,rCg an iNFA G,~arLt, ~5ha,~e be ~~Ch.rli-(,ttCd tJ.~.UV.Ld{_Vig L,r~ aj~p.~~ccuLt care ahacv ab,~e~ty .tct ~eh~c•~trn wa.7(~ .ui cornr~.~iartce tvtit(i ~,.c.e ap~~.~icccb.ee ccdeS. .~. .^~}~~~.L Li._::.r L.LS ~~C,'-~ fi _ \ .. _.~rCI.S ._ (~l_~ :ii a~. i:,S ~•i. ~. :~C~ _'G' ..r ~~.~ .. ~:.~: U i~;~ ~. 'J ' ~ L/ / , /CLCiit!,i.i_;Ct,S CfL L.L'~ ~L'i ~_'.Ci_i:Ct J ;S. I rL''_ -1.:,' _~i, .._..`:rJ:' .. ~" _.. _r ~_ ~i'.CC_l.'._C1 S~L_LC..L~ ..~. CCS_.~ Li: li~•~~..-.._r.~ lr:i~.. .~~`_.r_y~S ,~~;__ _~~ wS•S~ Jiio~~~'... 1_i~.....~5 ~(_ ;!;L=:. ~.~~ ~ __ _r_..... _ .. _.,___v r_i~.._ `__ _ _~~..r;,~... ~ .- 9;) ) '. r~C11LCSt~'Lti 71iC~':!1'~ . 0 - $999 ;' ;~c.~;~~s a,. , ~ _ .. .. .~ L ~ -t,:i:v - J7 ~V., i r .. ~.,.~ b . ~:"~ it 0 'n G' CC S b%. :1 L' ~'~'. 19.7 Y ~..~'-C.i~ LS 19T~ - , 9~~ ., ,. ~,_..S °~~~ - lug' ~ "., N~u,LC'~._~,~LS ai~C:..~i'_- ;,1!i~~,i,~ l,'~ . ~ .i.S _ - C•~ :~'?_.~..`.,S .., _.Li:ri ~i,:.~ .. ~ v ... ..~. ,(Dili L',(,SC.~C~ _i~: ~w....,:i:.l'_ . v_... ;~ ~ _- , `~ :C~i, ,.ii~~'i. .l~i.i.~ .. . ~.~..:.'.'~ 1 (.l'~. ~:i; C;L i S . Tr.'. C' _ .,.'l'~,':I`r.'S i.';. ;( i.ii~., _..; ... .. ._ _~, ,.~ ._ LC!!1( ia''_u. :, V', ~.,i~. ~i'~_C. ,. .~i_r ~ i;_~ir Ji .~~1. ~._... ~ ..~.~._.r . li C'C/U, ,..iLIC ~i i.'_.. C-ti,~t.r.- ~'.. _.. ~.r... 5~..,~5. d . ~yL~'cg y-n~ecr~ed ne~u.ilUs Patil~ w,iX~ be a~s!s~.gvLed ~ {~a.P.,Qocu~s, cceeotcd~.l2y to ~62e amaultit .t~ bel ~ pewt av~ enetcg y-~ee~crted ~ce~a,uL,s w~~>. It'iN~A vuncls Amauwt $5, 000 - $3, 500 3 pa~.ltit~s $1, 500 - $3, 499 2 r~a~.vitS $-0- - $1, X99 l pa-~~~,t ;Vcs. I5~ i ,~cL,~_ _ ll. UG2'L~N~Z[.'LQ'J-eQ. NCCLSe r~lt~l ii~'CLS'C Q2C!)?CQ LV C'(.'. CC:L ~c.1~, vvi2:i~C~ .i_;I:;.~ ! S . `.'_',: _~ •u:C / to .` CL'-5-~ C~ ;:2CC~~C ".C`~CL<.`,..5, iti;i2;2 CCl'1;='C.,;.2•~c .L,O ~,:~°. C';,i.S...',:C~ Cii~ ~?,~'%i.L`,.C VCLt:.,.~ C'~ ,iIL .iC'CLS= , .LS ,iC'i j-Lit..,a :....1 _ __.~.~,-- J/?. Ca.i..^ ~C L(C.Vt~,it :.~. ~..../.J vl.l.'-l.'~.L:~ i~t~ .. ,_ ;,L'~L._,. I c~';ICL !)?C<Il 0~. L'~C;'vi_~'_C~ CC:;:_ ..C;VCC'_ ~C'%~ ~ ,. ;,i.iiCr. i r ~ s. r1~7;~;_,[.C~ii-~S -`LC~'CC:JS.i~i_ity ^i?!; `'`~-i=~~L~ :C,.L~~. ~L'C'~ ,~~ ". .. t;~~, ul~ ._r CLL.. C J -~ t,::,~ -i,•~~.i??. G..~ _ ~~S ~' ~~ .i ..:..... .. ...:.L~,_ _....:5.. CC .S-(.L.LCL ;.CU;I c~ .i_71!111!i,'~it (_ l<<CilClwi. !l'l,'::.Ll~ JC: i..:_'' ~~.~..~` ~.~... ., -~n..CC~~(_il~ `:.i1U ~ ;ICS: ~,`,.~ i;'CCS i:~C'_C~.`i.i.C:.... St/S ~c.i'iS ~ _ .. ,_.~_., _.~..:5 J { r VCL%ilCi~i'.. r1i11_/ :~~~'_'(~,LC-'.:~i:.t_ i.C'_ CCC'_.S %i.i:Ci ~'_!??~ Ui'_!?`!% ,.,~5 .....:,(..;_ ii ,~2CCi.VC SiC~;~.(_CC:'iL~ ijCCi'C~S -~0 'i.C!XCi..`.. ~~Crr. C:.,...~..~. :,~'~.'.':. -~ ~, , LUULL ~i ,i.,ICit U~, iCS S LC~i;CQ ~:;1•CiL~S iCC~ ~' i.ili,i;.i ~~ ,' i-S ~i.J?.'^wi.,[ i.i:.~ ..., ~.. LL;ICi UC ~;tiiC`Cl ;,'it t;i,? .CCLL~tit;"f ~irS.~. - IHI Grant 8 ~~ INCENTIVE HOME IMPROVEMENT GRANT 1. App2,~.eawts fan an Ineen~i.ve Grant must meet the ~ya2eacu~.ng eQ~g~,b,L,~,ty c1c,i~telc,~.a a. Uwnetr~s 6up App.P.{.cant~s must be an ~nd.tv~.dua.e fee awnetc on a eant~tae~ fan deed ptutchcLSen a~ .the property to be ~mpnaved. P:(~.wf.mum aeeupancy a vu:.nety (90) days fan Uee awnens and tcue.eve (12) manth~s /an ecr~taet {pan deed punehcosetc~s .c:.s nequ,ur.ed. _.,..~..Y~_-- ,.~ _ ~ b. Ub~a~.wir~g a Loar1 The app.P,~.cant must be an awneh occupant o~ the ~5t~c.uctune and be abta,%YUng a ,'~f~.nne~ata Haus.Lng J=~.nance Agency (~~~iHJ=A) Name Im,v~.~ove- ment Laan. Pnapetrty to be ~.mpnaved ~hae.~ be used p/r.%.man,%,ey gar nes~.de~u%~z% punpU~S Pis . C. Age a~j phapPtLty Pnapent,~.~s must be at .eea~t {y~.{yteen (J5) years any age on ,in need o~ nepuut to ealvicect damage ne~,u,~ti,ng nom a Y2atUlta,e d.{,scLSte't alt tG ea,~,~.ect titern~5 that one hazcutdaus to hea,2t6z and ~5a~~,,ety. d. I Hearne and fed eta The {yam,i2y adjusted gna~s~ ~.neame mc.~ t Hat exceed $16, 000 are-riua~ey ana' the a~s~et~s o~ the app.P,i.earLt atheh than the Name beting timpnaved, must Hat exceed $25,000. ~, Amount obi Grant - The Grant ~sha.~e be on 20 pP~c.ceYtit a~ .tl~e ca-st a~ the e~tg~.6~'e nepa,i.jr~s up to a mawi.mum a ~ ~ J , 000 petc lcacc,s eho ed. 5. Zan,Lng PnapelUti.P~ rnwst canUa.~rn to ctpp.~Lcab.Le zgYU.rig andt.naiice an otl2en hand ceps e gu,c.des . Tltii~S eh~ten~La may be wcu.ved b y the Exeecc,~ti,ve D-%~ec-ton a ~ tl2e HP,A. -- g. E~2,i.g-%62e Irnpnavemev~ts ~Zes~i.deYti~~ae pnapeFct,~e-s cute to be ~%mpnaved to att~~,Ln cornp.~%arccc wuth YYIUrtiLCC.pLft hP.CLe-tll, bLl,LedLVLg, ~j~'LC pn(?VCfL~C(71l aYtd halls-Cllg maCn-tCria{lCe codes and/an. meet env-utarunevvta,2 ~s.taYCda~ds app.~,c~cabee to hacls.ircg. r=~~ee CUYnp(~Caf1Ce w,(~t11 at'e CUd(?,S GULQ.e ria.t be ,~cegc~%~c.ed pan gnclfLt e.e~g.tb.tt;~-y, Tlce gnarc.t may be cc-sed orc.ey ,jar add~.t%urca.e cads- euLted -unp~7.avemen.ts on to be app.C.c:ed .tocua,~c.ds payrnert.t o~ .the eUan. IHI Grant 9 h. TYIe,P,i_g~.b.2e I,tem~ Re~~.v~avre,zv~g a{~ ex,i~s~%vrg debts an. matctgage~s, a~hetc ~hav~ the ~~:iNFA .2oai1, paymerlt~s {yatc. pub.~%e timpnavemewt a~s~5e~s~5mevrt~, ~~.vranc%ng any 2uxuny titemb on ,tmptcovement~s (clc~shwCLSIlPJvs, pa~`,%a~s, ~,ucep.~aees, eke. ) w.i~ r1a.t be a.~Cacued. ,c. Secwc,ity Gnarls w~,~2 be ~ecuned by a ~~.x-years ~se2~-earlee2P.i~r1g .~i,e~.. I! the haws~.ng u~,it ~i~s ~so.2d o-~ gna,2tee d,L,sea~zt,~.nue~s occupancy w~tll.i.nJt~~.x yeas ~jnam date a{~ gnavrt, a.22 on pa,~.t any the gnarlt mws~ be nepa~.d ~o the HRA .LY1 aceandaylce w.L,tl1 the ~a,?2a~u%ng: Petc,t.ad o ~ Tame w,L,thi.~. which ' pna peaty .ins ~ o.2d 3G~h marlth 3G~11 ~a 4811. mar~,th 4 8~h ~o G O.th ma r1,th G0~61. ~a 72~.d mavtith 72v~d month ~. Campe~tit~i.ve B,%d~s Pe~ceer~,t Repayrnev~t 1000 750 500 25% Na Repaymerl~ A22 watch mws-t have a rntirlimeun o ~ diva (2) eamp~t~i~tve b-~cLs . h. Sweat Fqu,~ty Pen{~anrnaylee a~ nellab.if'.itati.an wonf~ by art ~,v~d.tv~.duaC pnapehty OGU11PJl.- occuparlt (",scuea~ equ,i.ty") ~sha,?2 be p~`un.L,tted pnovtidi~r2g the at?j?~LCar'1~ eavr ~sh.aw ab-L~t~ty ,ta pc'c~anm e.vanh ,i.v~ comp.~i.arzce cu%tli a.P.e app.~%eab.ee cadet . (Nomeacurle,`cs app~J+rr1g pan a Gtcarrt t,1ra.~C tceeetve ,tlie gnarLt based an ,the ~ec~ ec:s~ a {~ nepai,~ nathe~c ~har1 arL2y rnatetr.i.a~ ec~s,ts . ) 2. Tllefc.e evice r1a p~~,i.otriJty ge~i.de.2%ne~s (~a.~..tlus pnag-~.arn. G-`ccutits cvice acea`r.ded by: a. Date ar/d dune a ~ cepp~%ea,~~ar1; b. Scale a~ need ccs de~trred by -i.rrcarne acrd nepa.~.`~s rrec~ssc~y. Flood Gzant 10 III , L~f~!`1EP~IDMEPJTS TO R I CNF I ELD NODS I NG FUND n: EMERGENCY GRANT PROGRAM 1. An Emehgeney ~.evad Gtcartit pnagnam may be made avai,eab.ee ~y,~.am ~c'me ~o ~.c:me, by a jc.e~sa.2uti.or2 pa~s~sed by the Nau~s~.{2g and Redeve2.apmewt Autha-'rity o~ R;iel2~~.e.ed. The ~a-P2ow~.rtig e2,igtib~ty e~utefcia app.~y ~a any app.P.%ea~ia{i ~jatc, an em~~geney ~2aad Gna~,t: a. Owri~~,slup . ~w.:,.,... _... . . App.?.%.ear~s mu~5~ be an ,indiv.idua.e ~yee ownetc on a can~tJcae~ {pan deed pcuccha~etc. o~ the pnapetuty ~a be .imprcoved. M~.{2%mum accu- paney a ~ n-ine~y (90) days {pan Uee ocune~ and ~cve.eve (12) mor~,t~zs ion ca~act ion deed pwccha~s~,~,s ~.~ rcequ.viced. b. Pncpe~~ty Use The app.P,t.ear2t mws.t be an awnetc. eooupancy a (y ~Gce ~5~tcuetune. Pnapenty ~o be ~xnpnoved ~sha.2e be used pnimaruJey {pan ne~s.iden~;%a.e punpo~5 es . e. Ineame and A~s~ ens T(2e ~yam.%ey ad jcus~ed gna~s~ .incame must nab exceed $ l G, 000 anua~ey and ~1tie asa ems a ~ the ccpp~iear~.t, a~heh ,than ~lie value a ~y .t;te Name beir2g tinrptc.oved, mu~5 t no-t exceed $25, 000. d. Amaurtit o ; Gnar~,t T12e amourtit a/ the ~a.ta2 gna{tit may nab exceed $5,000 petc hausehaed. e. Zq~u{2~ P}cape~ie~s must egn~o.~rn ,t~ app.~~cab.ee zgru_ng andi_nccrlee on a~t{ce•~. ~eand use guides. Ti.c.s. hec{u,vr.ernent may be eua.~ve,d by,.tlic ~.xeeec.tive ~U,vc.e~tan o ~ the NRA. ~. E.Q,ig.ib2e Imp~'eovemer~s Re:s~,devr.tia2 ptr.apeh~ies a~.e .ta be .irnpnoved .ta a~tacri eomp.ec.a{ice wtitlc rnurucipae lcea.Pth, buied~ng, ~,%'c.e pnevcrtitio{c a{cd hau,s.Lng - mai{c.tertarice cades and/an meet evvcorunerLtae ,s-tarcdct~~ds app.P~icabCe -to lcacLS~.{ig. Fu.~e camp2ictnce w-nth aee codes w~i~e r~a-t be ~cequi,ted ~/atc. gran-t ee~.g.ib.~it j. g. Irtet,icr~b~'e Lterns Re j ~rranci.rrg a j exi~s~tL{rg debits o,7 ma,~.tgages, ~?ar/merr~s ,yon pubE,ic .irnpn.averne{tt a.sse~-srncrr~s, ~uta{cctirtg a~ ~uxr~~cy ,~tcros a~'~ .imp}r.avcm~rtts (d~s;uvaslce,`~s, pa~iores, ~.~;~cep.eaccs, etc. J cvt~~,e {ea.t be a.~eowed. h. Comrx~.t~vc~ ~.~ds Abe cvon(z rnus-t !rave a {nircirncun a ~ .twa campe,~~tive bids . An excep- -~LaYi -tU -til,LS pa.~i.ey may be made wGren, due ,ta the rtatune os .the -'cepa,i,~3, .t;te eti'a-'ch mu6.t be dane -immedictte2y. Hattreveh, ate ~.ndivtidua~ nepa,i,~ ave.z $300 rnus,t have a mirwnurn ofl .twa bids. Flood Grant I1 .:'~ _~ ,. TM. HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director~P! ~..~~~~"" "'t" HRA Letter No. 13 ~~ ~ ~ Agenda March 12, 1979 _ ~ s~x_~ "~ i~ A c-r ~ o,y 3 : ~ ~~~. a..~~-... ~ - ~~e. sd cam, ~..~ oar Housing and Redevelopment ,,.. 0 ~ _ 01 ~1e, 2~~.~ Authority Commissioners ~~ z _ ~~~~~u~ City of Richfield _ ~d ~_ Dear Commissioners : -.°_"y'-~~'` 3 k"t".t.w ~a "` Subject: Lyndale/Hub/Nicoll ~ RfO~ ec~e-ve1D p nt Plante ~~ Boundary and Land Use Amendments 1 On November 16, 1978, the Housing and Redevelopment Authority transmitted to the Planning Commission several proposed amendments to the Lyndale/Hub/Nicollet redevelopment plan. The planning commission took action in November, recommending to the HRA and city council a boundary change to include four lots alone Lake Shore Drive. On December 28, 1979, the city council referred the land use portion of the Lyndale/Hub/Nicollet redeveloprent plan amendments and the boundary change back to the planning commission for additional study. The planning commission held two meetings in February to receive public testimony, study the proposal, and for~:lulate a final recommendation to the HRA and city council re - garding the proposed boundary and land use amendments. The following plan provisions are recommended to be adopted: 1. Rehabilitation of the existing commercial uses on the west side of Lyndale Avenue, south of 66th Street, and development of multi-unit housing to the west of this rehabilitated commercial area. This recommenda- tion includes a boundary change to allow such develop- ment; 2. Public involvement in redevelopment of the area bounded by 66th and 65th Streets between Lyndale and Graham Avenues, in which commercial or multi-family resident- ial uses, or a combination of the two uses, would be permitted; 3. Rehabilitation and expansion of the Lyndale Garden Center commercial use at its present location, north of 65th Street, west of Lyndale Avenue. The following items are attached to this letter: .. A. Amendments to the Lyndale/Hub/Nicollet Commercial Improvement Program; HF2A Letter No. 13 -2- March 12, 1979 B.. Resolution Regarding Land Use and Boundary Change C. Planning Commission Resolution D. Planning Commission Minutes E. November 17, 1978 HRA Minutes F. List of Meetings and Notice of Public Meetings G. Map of Notice Area H. Verification Feasibility-Letters from Evenson-Dodge, Inc. I. Verification Marketability (a) Market analysis summary (b) Letter from Huntoon-Paige (c) Letter from Knutson (d) Letter from Eberhardt (e) Letter from P.J. Gaughan, Inc. J. Relocation Report K. Memo from Public Safety Department L. Memo frosnPark and Recreation Department Pi. Memo from Public Works Department D1. Memo from BRW Traffic Engineer O. Soil Boring Summary-North area/southwest area The HRA's consideration and action on the proposed redevelop- ment plan amendments is the next to the last step before final ad- option of the amendments. If the HRA approves the proposed amend- ments entirely or in part, the amendments with the HRA recommendations should be transmitted to the city council. The city council will be requested to schedule a public hearing on the proposed amendments at its regular meeting on March 26, 1979. If the council approves the proposed amendments or any part of the amendments, the amendments can be adopted at the close of that public hearing. Only after the city council has held a public hearing and approved the proposed amendments, or any part of the proposed amendments, can the HRA begin implementing the amendments. The action before the HRA on Diarch 12, 1979 requires that the HRA receive testimony and adopt resolutions to transmit the proposed amendments or portions of the proposed amendments to the city council for the public hearing. These resolutions contain certain findings which are addressed in the attached plan, and summarized in this letter. Although both the Residential Impact Neighborhood Group and Comrercial Improvement Committee had discussed the proposed land use and boundary changes, the city council specifically requested that these groups participate in the planning commission delibera- tions on the proposed amendments. The council also asked that all residents and businesses in the area affected, and the residents living within 350 feet of the proposed boundary extension be in- vited to the planning commission meeting. In addition to the Sun newspaper articles announcing the February 13 and 27, 1979 planning commission meetings, the staff also sent letters to members of the ~:esidential Impact Neighborhood Group and Commercial Improvement Committee, as well as the area residents and businesses, notifying them of the February 13, 1979 planning conunission meeting. Both the RING and CIC met on February 5, 1979 to discuss possible alternative plan amendments, although neither group took final action concerning the alternatives. HRA Letter No. 13 -3- March 12, 1979 Summary of Project Goals and Im act The proposed amendments include: Land use changes which relate to the city's land use goals and the redevelopment area goals previously adopted by RING, CIC, planning commission and the city council. The proposed change is related to the means of accomplishing the goals, but it must be emphasized that the goals are essentially the same as those originally approved. The significant differences between the proposed land use amendments and the original land use plan provisions are as follows: A. Acquisition of 66th Str~ .acquisition on the west four single Shore Drive of the Lyndale Avenue businesses south yet is excluded from the plan, and of the properties north of 66th Street side of Lyndale Avenue is added. The family residential properties on Lake are also added to the acquisition plan. v. The original plan provided that multi-family uses would be developed on both sides of north Lyndale Avenue adjacent to single family areas. The amend- ment provides that this multi-family development would instead be located on either side of ti•?cst 66th Street. C. Rather than business development changes south of 66th Street as provided for in the original plan, business development changes would occur north of 66th Street. The opportunity for rehabilitation of existing uses would be increased by this amendment. D. The project area boundary would be expanded to in- clude four additional residential lots along Lake Shore Drive. The specific commercial uses along Lyndale Avenue, south of 66th Street, are proposed to be eliminated from the plan and changed to a general commercial designation. The redevelopment plan is intended to promote the revitalization of the Lyndale/I-Iub/Nicollet are a, which represents one-twelfth of the total area of Richfield. When completed, the project will have the following positive benefits to the Lyndale/Hub/Nicollet area and the city as a whole: A. The net increase in total retail floor area will be 228,000 square feet; 3. Employment opportunity will increase by 610 new jobs; C. Retail trade sale will increase from $19,000,000 per year to $36,000,000 per year; D. 530 additional middle and upper income families will have housing opportunities in the area; HRA Letter No. 13 -4- March 12, 1979 E. Opportunity for existing older residents to retain Richfield residency will be expanded by addition of multi-family housing; F. Decrease in traffic accidents and hazards resulting from improvements to Lyndale Avenue and 66th Street; G. Addition of new buildings-and elimination of some old buildings will reduce fire and health hazards in the area; H. The single family neighborhood adjacent to the commer- cial area will be maintained. The HRA and City of Richfield have implemented the Lyndale/Hub/ Nicollet redevelopment plan in the following manner: A. The major department store will start construction in April, 1979. B. The Hub/Summit/Penny superblock ~ ea will start con- struction in the spring, 1979. C. The first phase of the public improvements will be completed during summer, 1979. D. -The Woodlake condominium project is scheduled to start construction in 1979. E. Major property purchases have been completed and other property on West 66th Street dedicated for street im- provements. The city has entered into a contract with Hennepin County to participate in the re-construction of part of West 66th Street. F. Federal and state funds have been approved for r econ- struction of Lyndale Avenue. G. Preliminary engineering plans have been approved and final plans and specifications will be completed in March for Lyndale Avenue and 66th Street improvements. Housing and Redevelo ment Authority Res onsibilities Minnesota Statutes, section 462 provides that the Housing and Redevelopment Authority consider the following factors when devel- oping its recommendation regarding the plan amendments: A. The project area is deteriorated or deteriorating within the meaning of Minnesota Statutes 462.421, subdivision 11 and subdivision 13. Among other things, findings must be made of excessive lot cov- erage or deleterious land uses or obsolete layout HRA Letter No. 13 -5- March 12, 1979 or dilapidation, obsolescence, over-crowding, faulty arrangement or design or lack of ventilation, light and sanitary facilities, and other deteriorating in- fluences. The urban renewal project as the amended plan provides is necessary to eliminate the spread of such deterioration. B. There are conditions in the redevelopment project area preventing private development,. which make it necessary for the governmental assistance and financial aid proposed by the plan. C. The redevelopment plan affords maximum opportunity for redevelopment of the project area by private en- terprise consistend with the needs of Richfield as a whole. D. The amendments, when taken in conjunction with the originally adopted plan, are sufficiently complete to indicate the relationship to the city's comprehensive plan, including comprehensive plan objectives. E. There is a feasible method for the relocation of families and that there are available, or will be provided in the project area or other areas, decent, safe and sanitary dwellings at least equal to the number of families which may be displaced by implem- entation of the amended plan. Staff Findings The staff findings are based on consultation with city attorney and staff, Bather-Ringrose-Wolsfeld, Inc. (planning consultants), Evensen-Dodge, Inc., (bond consultant), Federal-State Relocation Consulting Services, Eberhardt Real Estate, Huntoon-Paige Associates, Ltd. (mortgage bankers), P. J. Gaughan, Inc. (developer), and the Technical Assistance Service (tax increment specialists). The following discussion on findings relates first to the legal findings which the HRA must make, and secondly to the financing and marketing findings. Summarizing the proposed plan amendments, the staff has reached the following conclusions which relate to the required HRA findings: A. Deterioration or deteriorating conditions of the area have been addressed in the amendments to the redevel- opment plan. Deterioration in the redevelopment project area is essentially caused by blighting in- fluences such as poor soils, over-congestion of public streets, fragmented land uses, under utilization of land in some areas, over-utilization of land in other areas, land use conflicts between multi-family, commercial and residential properties, and obsolescence. The proposed amendments to the plan are necessary to prevent the spread of such deterioration, which is exhibited by the blighting influences with the Lyndale/Hub/Nicollet redevelopment project area. HRA Letter No. 13 -6- March 12, 1979 B. The area proposed for HRA site assembly consists of an area immediately southwest of the 66th Street Lyndale Avenue intersection and immediately northwest of the 66th Street-Lyndale Avenue intersection. Both areas exhibit fragmented land ownership. The north- west area and garden center area exhibit poor soils. These conditions make it necessary for governmental assistance or financial aid to accomplish the goals of the Lyndale/Hub/Nicollet redevelopment project and the goals of the City of Richfield. C. The area north of 66th Street is an area of previous attempts to promote private development without direct HRA involvement. This area is the most deteriorated one in the Lyndale/Hub/Nicollet redevelopment project area. It consists of a vacant establishment, industrial and construction type uses, mixed with retail uses, cormnercialy converted single family homes, and a restaurant which has a high turnover histor1~. Because of the diverse ownership and the cost of needed re- development, governmental assistance and financial aid is necessary in this particular area. D. The plan as a whole affords maximum opportunity for redevelopment by private enterprise. The Housing and Redevelopment Authority's role is to acquire selected parcels of land to resell the property to private enterprise. This HRA activity will allow private con- struction of a new 74,000 square foot department store, a large addition to the Lyndale Garden Center, offices or commercial and multi-family development at the north- west site, rehabilitation of existing commercial activities by the private sector, and development of multi-family housing at the southwest site. Other private enterprise commitment to redevelopment is illustrated by the following possib?lities: a) Development of an additional 81, 000 square feet in the Hub/Summit/Penny area; b) Office space and retail commercial development in the southeast quadrant of the 66th Street Lyndale Avenue area; c) Rehabilitation of existing commercial establishments north and east of 65th Street along Lyndale Avenue; d) Remodeling of the area north of 66th Street and east of Nicollet Avenue, as well as the addition of a restaurant north of 65th Street and west of Nicollet; E. If the proposed plan amendments are adopted, it would be necessary to relocate residents in 12 owner-occupied houses and 6 renter-occupied houses, as well as 15 businesses. It is anticipated that any displacements would occur during 1980. The HRA's operating policies and procedures regarding relocation services are based on applicable state and federal laws and regulations. The Housing and Redevelopment Authority has previously adopted the residential relocation manual and commercial relocaticn manual. These booklets would be distrib- uted and explained to persons in advance of being relocated. Relocation of families and businesses from the promotional de- T-TRA Letter No. 13 -~° :'••iarch 12, 1979 partment store site in the project area has been completed. Relocation for that site incluc~~d 8 owners and 2 renters of single family homes and 17 businesses. The relocation study completed for the HRA indicates that there are sufficient two, three, four, and more bedroom homes in the housing marke~c area to relocate all the families which would be affected by the proposed plan amend- meizts, as well as sufficient alternate sites for all the businesses included in the proposed acquisition site. f) The p1.Gnning commission has found that the proposed ame ~dme_"'.ts conform to the city's comprehensive plan. The sta~f report to the commission pointed out that the residential lc~t-s on Lake Shore Drive are described in the comprehensive plan a5 CAD mixed land use in- cluding multi-family develop~._enc. The c~arc~eiZ center area is described as multi-family land use. In addition to these findings, the staff has worked with various consultants and city departments to confirm financing reasibility, marketability and the effects of implementing the proposed amendment on city services. The primary method of financing the proposed plan amendmen~s is tax increment financing. This method is the same as approved ~ ~~ by the HRA when the original plan was adopted. Of course, the private sector provides all the new development and rehabilitation. The HRA uses tax increment funds. to assemble the site and relocate the existing businesses and families. Marketability and feasibility of a project are two different things. P~Tarketability assumes than an econo~aic demand exists for the redevelopment, and that willing buyers, renters and mortgage investors would be willing to purchase or rent the development. Feasibility, as used here, assumes the financial ability of the HRA to assemble the proposed sites without creating a tax burden on property outside the L/H/N project area.. That is, a new devel- opment must pay its own way. Marketability of a site is established by the following: A. The size of site and its holding capacity. That is, only certain size developments will fit a particular site; B. The minimum real estate value needed to create feasibility; C. The general demand in the market area for specified types of development; D. Alternatives considered. Site Holding Capacity Factors which determine a development site's holding capacity include zoning ordinance, type of development which would occur HRA Letter No. 13 -8- March 12, 1979 on the sites, and the goals and policies of the city. For ex- ample, the northwest site (north of 66th Street) contains 6.3 acres. The site could contain one of the following developments: A. 75,170 square feet commercial without ramp parking; B. 144,000 square feet commercial with ramp parking; C. 268,527 square feet mixed commercial and multi- family housing without ramp parking. The southwest site (without the Lake Shore Drive lots) contains 4.27 acres. With the Lake Shore Drive lots, the site contains 5.68 acres. These sites would hold one of the following developments: A. 75,000 square feet B. 147,000 square feet C. 203,090 square feet D. 238,527 square feet of commercial without ramp parking; of commercial with ramp parking; housing; mixed commercial and housing. Warranted Market Demand The second variable in determining marketability is the gen- eral demand for various uses in the redevelopment area. Last fall, the city commissioned Mr. Ronald Bussy., Metro-Economics, Inc. to update his 1974 market analysis for the Lyndale/Hub/Nicollet area. The conclusions of this analysis were used to develop the redevelop- ment land use plan now being studied. Mr. Bussy concluded that the area could support the following increases in land uses: Business Type Comparison retail: Department store Hub expansion •Other retail Convenience shopping Speciality retail and entertainment Off ice space Multi-family Feasibility Warranted Increases In Square Feet 68,300 72,200 160,000 70,000 50,000 80,000 675,000 Once each site`s holding capacity has been determined and t::c; potential market demand identified, several development hypotheses were tested to identify HRA feasibility. The findings of these hypotheses are as follows: Northwest Site: A 75,170 square foot shopping center on this site would require a cooperative site assembly with a major existing property owner. A 75,170 square foot shopping center without the cooperation of the major property owner is not feasible on this site. Mixed land use development containing 208,527 square feet of housing and office space is feasible. HRA Letter No. 13 -9- Southwest Site: March 12, 1979 147,000 square feet of new commercial space with ramp parking, without removal of Lyndale Hardware and without the Lake Shore Drive lots, is not feasible on this site. Similarly, 60,000 square feet of new commercial and multi-family space, without the Lake Shore Drive lots and without removal of Lyndale Hardware is not feasible. Additional parking provided by the HRA, rehabilitation of the existing commercial along Lyndale. Avenue and rnulti- farnily high-rise development without the Lake Sliore Drive lots is feasible. The RING proposal with limited public parking and small multi-family development along 5th Street wherein all other uses remain the same, is not feasible. Garden Center Site: , Expansion of the existing retail use with a market value of $ is feasible. Multi-family housing develop- ment in this area is not feasible unless the existing .garden center is relocated out of Richfield. This type of relocation would be catastrophic to the business. Combinations of the above development hypotheses were also tested. Each test was found to be unfeasible when one or more of the non-feasible variables was combined with one or more of the feasible variables. Eased on the market analysis, holding capacity and HRA feasi- bility analysis, the following developments were selected for further marketability testing: A. Northwest Site Mixed land use multi-family/office Commercial cooperative n. Southwest Site Rehabilitation of existing commercial, multi-family Lake Shore Drive lots. Rehabilitation of existing commercial, multi-family Lake Shore Drive lots. Lyndale Avenue highrise, without Lyndale Avenue lowrise, with The responses received from the development specialists are attached. In summary, they concluded the following: Huntoon Paige Associates Limited This mortgage banking organization felt that the northwest site could support a well-designed medium income, semi- luxury multi-family rental housing complex. The southwest site was perceived to be more desirable than the northwest site. This site would support an upper middle-income luxury multi-family development if the Lake Shore Drive frontage were made available. HRA Letter No. 13 -10- March 12, 1979 Knutson Mortgage and Finance Corporation Mr. Robert Liebig, vice president, felt that the south west site would support a semi-luxury to luxury apart- ment complex. The rents which could be generated would be $575 to $600 per month. Fh~rl-~arr~t Mr. William Davis, vice president, suggested that mixed land use, general office and multi-family development on the northwest site would either not generate enough tax return or would meet with some market resistance. However, he felt that special office uses, such as med- ical or single tenant office, and multi-family develop- ment affiliated with a fraternal or religious .type organ- ization would be marketable on the site. The southwest site with exposure to Lake Shore Drive would be marketable as a luxury multi-family condominum. Metro Economics, Inc. Based on their updated economic analysis, Mr. Bussy found a short-term need for 33,000 square feet of general office space, a long-term need of 47,000 square feet of general office space and a need for 25,000 square feet of specialized office space. Single tenant space was not considered. Mr. Bussy felt that the north site location was appropriate for office space. Multi-family needs are apparent. He felt that both the northwest site and the southwest site were appropriate for semi-luxury multi- family development. The southwest site had the greatest appeal and marketability. Marketability Conclusions Using the market analysis and the marketability reviews supplied by Hantoon Paige, Knutson, and Eberhardt, it is the conclusion of the city staff that the following land uses are justified: Northwest Site: Land use should consist of commercial or the option for commercial/multi-family land use. Keeping this option open for a commercial shopping center, or multi- family/office development provides the most favorable land marketing position to either the HRA or private landowner. This proposal assumes an integrated development for the entire site rather than spot- development of small tracts in a piecemeal fashion. Southwest Site: Land use should include new development consisting of semi-luxury or luxury condominiums. The Lake Shore Drive lots are necessary to market this site. The existing conunercial area along Lyndale Avenue south of 66th Street can be retained and rehabilitated. Impact of Proposed Amendment on City Services The primary demand for city services in the project area would be in public safety and public works. Park and recreation services ~~ ' ` ItF2A Letter No. 13 -1 1 - March 1 2 , 1 979 r~~,.: the school district, Hennepin County, and the city's finance ~-.~.-_: ~`_` department would all also be affected by such development. In- creased population drawn into the project area and, thus, the city, has a positive affect on the state aids to the city and school district, and condominiums would increase homestead credit revenues to the city. School district population would not be significantly impacted by the proposed multi-family development, since approxi- mately one student per four dwelling units could be expected from the proposed plan amendments. I~ennepin County would not be affect- ed by this development any more than any development in the county. Population .growth in southwest Hennepin County has been planned and county services are being developed to satisfy the existing and anticipated service demand. Without the development, the public safety department feels that fire and crime incidents in the project area might be expected to increase~_in future years. Development of semi-luxury .apartments would not significantly increase police service demands, since occupants of semi-luxury housing are not usually heavy users of police services. Remodeling of old structures and construction of new structures which incorporate fire and crime prevention design will reduce the area's potential fire and crime. hazards. The roadway design improvements and improved pedestrian design in the area should offset any corresponding traffic safety problems associated with increased use of the street system, and should reduce the probability of motor vehicle and pedestrian. accidents. Public works maintenance will increase slightly after the construction is completed on 66th Street, 65th Street and Lyndale Avenue. These responsibilities will be associated with maintaining the landscape areas, pedestrian plazas and additional sidewalk areas. However, elimination of these improvements would have a detrimental effect on the redevelopment project, and the safety of people using the area. New stoplight equipment will reduce short term mainten- ance costs. Decreases in public works costs will also _csult, since three streets presently maintained by the city ~~~il_1 be vacated and main- tained by private businesses for parking lot c~ ~.c~,~:~.o~;~:`.::nt purposes. Portions of Pillsbury, Grand and Graham Ave~iues Piave been, or are proposed to be, vacated. Projected total traffic volurles with the prof>ose~ pl. an amend- ments are the same as those in the adopted plan. I-To~~~~wer, the traffic volumes in the 66th Street and Lyndale Avenue ~.rea will likely be reduced from the original plan if tine proposea amend- ments are implemented. Besides reductions in traffic volumes, the proposed amendments provide the opportunity to improve access to various land uses. The effects of multi-family development on park and recreation facilities was a itiajor concern. After reviewing the proposed plan amendments, it is the conclusion of the staff that multi-family housing designed to complement rather than detract from the HRA Letter No. 13 -12- March 12, 1979 Wood Lalce Nature Center, will complement the center. The park and recreation department feels that the proposed plan amend- ments would not significantly affect park and recreation facilities, including the Wood Lake Nature Center. Planning Commission Recommendation The planning commission has thoroughly studied the proposed amendments to the redevelopment plan. The commission has trans- mitted a resolution to the HRA which finds that the proposed amend- ments to the redevelopment plan conform to the city's comprehensive plan, are necessary to prevent the spread of existing deterioration, provide the opportunity for private development, and require govern- mental assistance. The commission's resolution supporting the plan amendments provides that the owner-occupied residential lots on Lake Shore Drive (the area included in the boundary amendrlent) be acquired only by negotiation. Staff Recommendation It is recommended that the HRA adopt the attached resolution approving the plan amendments, and approving each separate compon- ent of the land use changes and boundary change. Respectfully submitted, o ~ W i 1 d'e~~-~~~ ting Executive Director JLW/ e j a cc: Planning and Redevelopment Director HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director HRA Letter No. 12 Agenda March 12, 1979 ~,b,~ed, S-d Housing and Redevelopment Authority Commissioners City of Richfield Dear Commissioners: Subject: Resolutions Establishing Just Compensation, New Home Program On January 22, 1979, the Housing and Redevelopment Authority reviewed the report and recommendation of the Ad Hoc Housing Committee. The committee's report encouraged the HRA to initiate new programs to develop additional housing resources for large, low income families. The specific program recommended by the committee is one wherein new housing is constructed and owned by a private developer, who receives a write-down for land costs from the HRA and constructs the housing using either Minnesota Housing Finance Agency monies or direct financing from the fed- eral government. These homes then provide housing for low income renters through the Section 8 rental assistance program. The HRA endorsed the committee's recommendation and on February 12, 1979 authorized the staff to begin advertising for development proposals and to identify possible substandard hous- ing which may be purchased through this program. Once purchased, these substandard homes will be demolished so that the lots may be used for the new "scattered site" program construction. The staff has identified 37 substandard or dilapidated homes, within the city. These homeowners were contacted to de- termine if any would be interested in selling to the HRA. From the initial contact, eight property owners have expressed an in- terest in considering sale of their property. Appraisals of these properties have been completed by Janski & Associates; and the city assessor, Vern Anderson. Copies of these appraisals are attached. Before the staff can begin the actual negotiations for pur- chase of these properties, it is necessary that the HRA establish just compensation for the properties. Even though the HRA will be purchasing only five homes for the scattered site program, it is recommended that just compensation be established for all eight properties. Once a negotiated purchase is formulated, the HRA will be asked to purchase the property. HRA authority to purchase the property will occur at the time a developer is selected. HRA Letter No. 12 -2- rZarch 12, 1979 The additional three houses, if agreeable purchase prices were established, would be sold to developers for new con- struction and subsequent resale to low and moderate income fam- ilies under the HRA's on-going New Home Program. It is recommended that the HRA adopt the resolutions estab- lishing just compensation and authorizing the commencement of negotiations for purchase of the following eight properties: 1. 6916 Queen Avenue, owned by H. L. Petrofska: This property has one bedroom, 600 square feet of living space, and was built in 1928. Recommended just compensation is $23,000. 2. 7200 Third Avenue, owned by Donald Butterfass: This house has two small bedrooms, 684 square feet of living space, and was built in 1927. The lot size is 49' x 128'. Recommended just compensation is $27,000. 3. 7504 Colfax Avenue, owned by Ray Callstrom: This house has one bedroom, .and 329 square feet of living space. This house was built in 1941 on a lot sized 50' x 130'. Recommended just compensation is $20,000. 4. 6310 15th Avenue,, owned by Victor Schliess: This two bedroom house built in 1931, has 732 square feet of living space. The lot size is 50' x 135'. Recommended just compensation is $27,000. 5. 11 East 68th Street, owned by Les Boucher: This house has one bedroom and 535 square feet of living space. It was built in 1947 on a lot sized 50' x 192'. Recommended just compensation is $26,500. G. 6744 Blaisdell Avenue, owned by Fred Habegger: This house has one bedroom and 384 square feet of living space. It was built in 1929, and the lot size is 47' x 1~8'. Recommended just compensation is $20,000. 7. 6530 Bloomington Avenue, owned by Homer Tanner: This property has one bedroom and 496 square feet of liv- ing space. It was built in 1926 on a lot sized 51' x 134'. Recommended just compensation is $27,500. 8. 7520 Portland Avenue, owned by Alois Litfin: This one bedroom house was built in 1937, with 430 square feet of living space. The lot size is 75~ x i3.3'. Recommended just compensation is $24,500. Respectfully submitted, yc L. Wilde cting Executive Director JLW/ e j a Address 6916 Queen Avenue South 7200 Third Avenue South 7504 Colfax Avenue South 6310 15th Avenue South 11 East 68th Street 6744 Blaisdell Avenue South 6530 Bloomington Avenue South 7520 Portland Avenue South Janski's Appraisal $23,000 $27,000 $20,000 $27,000 $26,500 $20,000 $27,500 $24,500 Vern~'s Appraisal $30,000 $28,000 $20,000 $33,600 $25,600 $19,200 $27,800 $25,000 RESOLUTION ESTABLISHING FAIR MARKET VAULE AND AUTHORIZING THE COlIn2ENCED--LENT OF NEGOTIATIONS FOR THE PURHCASE OF REAL PF~OPERTY jVHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the•New Home Program heretofore adopted by the City of Richfield (the "City") and the HRA; said real property being described as follows: 6916 Queen Avenue So.; Lot 5, Block 15, "Tingdale Brothers Lincoln Hills Third Addition", Hennepin Co., MN, Plat 46793, Parcel 8200 WrIEREAS, the HRA has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser was performed in a competent manner and in accordance with applicable law; and WHEREAS, the Housing and Redevelopment Authority is authorized by D4innesota Statutes Section 462.445 to purchase real property; NO4V, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOP`.IE?~TT AUTHORITY OF RICHFIELD, MINNESOTA: 1. That $23,000 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney are authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mutually agreeable sales price. The Executive Director shall include with such noti- fication a statement which complies with the requirements o:f regu- lations of the Department of Housing and Urban Development, 24 C.F.R. X42.135. 4. That upon the completion of the negotiations, the Executive Director shall report back to •the HRA with a proposal for the purchase of said real property which is acceptable to the owner(s), and shall report his recommendation relating to said proposal. this Passed by the Ilousin and Redevelopment Authority of Richfield ATTEST: Loren L. Lan• Chairman V. L. Luttinger Secretary RESOLUTION ESTABLISHING FAIR ~tARF~ET VALTLE AND AUTHORIZING T?-IE CO.~IIIENCE~tENT OF NEGOTIATIONS FOR THE PURHCASE OF REAL PROPERTY jVHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the Nesv Home Program heretofore adopted by the City of Richfield (the "City") and the HRA; said real property being described as follows: 7200 Third Avenue So., Lot 1, Block 6, Wooddale Second Addition, Hennepin County, MN; Plat 46931, Parcel 4800 NrIEREAS, the HRA has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser vas performed in a competent manner and in accordance with applicable law; and tiVHEREAS, the Housing and Redevelopment Authority is authorized by Rlinnesota Statutes Section 462.445 to purchase real property; NOtiV, THEREFORE, BE IT RESOLVED BY THE HOUSING A_ND REDEVELOP'IE\T AUTHORITY OF RICHFIELD, ;MINNESOTA: 1. That $27,000 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney are authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mutually agreeable sales price. The Executive Director shall include with such noti- fication a statement which complies with the requirements of regu- lations of the Department of Housing and Urban Development, 24 C.F,R, X42.135. 4. That upon the completion of the ne;~otiations, the Executive Director shall report bacl: to .the HRA with a proposal for the purchase of said real property ~.vhich is acceptable to the owner(s), and shall report his recommendation relatin to said proposal. Passed by the Housin7 and Redevelopment :luthorit~- of Richfield this ATTEST: Loren L. Law C'ltlirman V. L. Luttinger Secretar~~ RESOLUTION ESTABLISHING FAIR 2~1ARKET VAULE AND AUTHORIZING TIIE CO~.I111ENCE1,tENT OF NEGOTIATIO\TS FOR THE PURHCASE OF REAL PROPERTY ~YHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the NeGV Home Program heretofore adopted by the City of Richfield (the "City") and the HRA; said real property being described as follows: 7504 Colfax Avenue 50., Lot 2, Block 22, Irwin Shores Addition, Hennepin County, MN; Plat 45605, Parcel 4220 ZYiIEREAS, the HRA has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser was performed in a competent manner and in accordance with applicable law; and tiYHEREAS, the Housing and Redevelopment Authority is authorized by Minnesota Statutes Section 462.445 to purchase real property; NOti4', THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOP`.IENT AUTHORITY OF RICHFIELD, i~1INNESOTA: 1. That $20,000 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney are authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mutually agreeable sales price. The Executive Director shall include with such noti- fication a statement which complies with the requirements of regu- lations of the Department of Housing and Urban Development, 24 C.F.R. X42.135. 4. That upon the completion of the negotiations, the Executive Director shall report back to the HRA with a proposal for the purchase of said real property which is acceptable to the owner(s), and shall report his recommendation relating to said proposal. this Passed by the Housint; and itiedevelopment :authority of Richfield ATTEST: Loren L. Law Chairman V. L. Luttinger Secretary RESOLUTION ESTABLISHING FAIR i+tARKET VAULE AND AUTHORIZING TIIE C0~.114ENCE~-LENT OF NEGOTIATIONS FOR THE PURHCASE OF ;-TEAL PROPERTY tVHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the New Home Program heretofore adopted by the City of Richfield (the "City") and the HRA; said real property being described as follows: 6310 15th Avenue So., Lot 3, Block 2, Nokomis Gardens Rearrange- ment of Blocks 1, 2, 3, 4, and 5. Girard Parkview, Hennepin Co., MN; Plat 45940, Parcel 0950 ~VrIEREAS, the HRA has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser was performed in a competent manner and in accordance with applicable la~v; and tiVHEREAS, the Housing and Redevelopment Authority is authorized by 11linnesota Statutes Section 462.445 to purchase real property; N0~1', THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOP~.IENT AUTHORITY OF RICHFIELD, i+1INNESOTA: 1. That $27,000 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney ac•C authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mutually agreeable sales price. Tlie Executive Director shall inclucie with such noti- fication a statement which complies with the requirements oaf re~u- lations of the Department of Iiousing and Urban Development, 24 C.F.R. X42.135. 4. That upon the completion of the negotiations, the Executi~-e Director shall report back to l;he HRA with a proposal for the purchase of said real property which is acceptable to the owner(s), and small report his recommendation relating to said proposal. this Passed by the IIousing and Redevelopment Authority of Richfield ATTEST: Loren L. Lalti' Chairman V. L. Luttinger Secretary RESOLUTION ESTABLISHING FAIR `~t9RKET VAULE AND AUTHORIZING THE C0~.411ENCE?~dENT OF NEGOTIATIONS FOR THE PURHCASE OF REAL PROPERTY WHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the New Home Program heretofore adopted by the City of Richfield (the "City") and the HRA; said real property being described as follows: 11 East 68th St., Lots 83 and 84, Western Surety & Adjustment Company's Addition "The Pines", Hennepin Co., MN; Plat 46905, Parcel 8350 ZVrIEREAS, the HRA has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser was performed in a competent manner and in accordance with applicable law; and WHEREAS, the Housing and Redevelopment Authority is authorized by D7innesota Statutes Section 462.445 to purchase real property; NOjt', THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOP`.IENT AUTHORITY OF RICHFIELD, %IINNESOTA: 1. That $26,500 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney ar•c authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mutually agreeable sales price. The Executive Director shall include with such noti- fication a statement which complies with the requirements of regu- lations of the Department of housing and Urban Development, 24 C.F.R. X42.135. 4. That upon the completion of the negotiations, the Executive Director shall report bacl: to the HP~A with a proposal for the purchase of said real property which is acceptable to the owner(s), and shall report his recommendation relating to said proposal. this Passed by the housing and Redevelopment Authority of Richfield ATTEST: Loren L. Law Chairman V. L. Luttinger Secretary RESOLUTION ESTABLISHING FAIR MARKET VAULE AND AUTHORIZING TIIE COI~IAtENCED-LENT OF NEGOTIATIONS FOR THE PURHCASE OF REAL PP~OPERTY ~VHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the New Home Program heretofore adopted by the City of Richfield (the "City") and the HRA; said real property being described as follows: 6744 Blaisdell Avenue So., Lot 3, Block 2, Oaklane Addition, Hennepin Co., MN; Plat 45960, Parcel 4500 ZVrIEREAS, the HR.A has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser was performed in a competent manner and in accordance with applicable law; and tiVHEREAS, the Housing and Redevelopment Authority is authorized by 1Sinnesota Statutes Section 462.445 to purchase real property; NO~V, THEREFORE, BE IT RESOLVED BY THE HOUSING P_ND REDEVELOP:.IENT AUTHORITY OF RICHFIELD, MINNESOTA: 1. That $20,000 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney are authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mtttttally agreeable sales price. The Executive Director shall include with such noti- fication a statement which complies with the requirements of regu- lations of the Department of Housing and Urban Development, 24 C,F,R. X42.135. 4. That upon the completion of the negotiations, the Executive Director shall report back to the HI'~A with a proposal for the purchase of said real property which is acceptable to the owner(s), and shall report his recommendation relating to said proposal. this Passed by the IIousins and Redevelopment Authority of P~ichfield ATTEST: Loren L. Law Chairman V. L. Luttinger Secretary RESOLUTION ESTABLISHING FAIR i~tARKET VAULE AND AUTHORIZING THE CO'In~tENCE1tENT OF NEGOTIATIONS FOR THE PURHCASE OF REAL PROPERTY tVHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the New Home Program heretofore adopted by the City of Richfield (the "City") and the HRA; said real property being described as follows: 6530 Bloomington Avenue So., Lot 6, Block 5, Nokomis Gardens Rearrangement of Blocks 1, 2, 3, 4, and 5. Girard Parkview Addition, Plat 45940, Parcel 4700 tiVI-IEREAS, the HRA has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser was performed in a competent manner and in accordance with applicable law; and tiVHEREAS, the Housing and Redevelopment Authority is authorized by I~4innesota Statutes Section 462.445 to purchase real property; NOLV, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOP%1ENT AUTHORITY OF RICHFIELD, i~iINNESOTA: 1. That $27,500 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney are authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mutually agreeable sales price. The Executive Director shall include with such noti- fication a statement which complies with the requirements of regu- lations of the Department of housing and Urban Development, 24 C.F,R. X42.135. 4. That upon the completion of the negotiations, the Executive Director shall report baclc to the HRA with a proposal .For the purchase of said real property which is acceptable to the owner(s), and shall report his recommendation relating to said proposal. this Passed by the Iiousin and Redevelop~;tent Authority of Richfield ATTEST: Loren L. Law Chairman V. L. Luttinger Secretary ti RESOLUTION ESTABLISHING FAIR ~19RKET VAULE AND AUTHORIZING THE CO111~tENCE:~tENT OF NEGOTIATIONS FOR THE PURHCASE OF REAL PP~OPERTY WHEREAS, the Richfield Housing and Redevelopment Authority (HRA) desires to purchase certain real properties pursuant to and in furtherance of the New Home Program heretofore adopted b.y the City of Richfield (the "City") and the HRA; said real property being described as follows: 7520 Portland Avenue So., E 165.8' of the S 75' of the N 342.8' of the E 2 of the SE a of the NE a of the SE 4 exc . rd . Sec . 3 4 , T 28, R 24; Plat 44834, Parcel 4520 tiVrIEREAS, the HRA has caused appraisals of the subject property to be made, has carefully considered such appraisals, and believes the work of such appraiser was performed in a competent manner and in accordance with applicable law; and tiVHEREAS, the Housing and Redevelopment Authority is authorized by D~innesota Statutes Section 462.445 to purchase real property; NOLV, THEREFORE, BE IT RESOLVED BY THE HOUSING AND REDEVELOP?IE?~TT AUTHORITY OF RICHFIELD, i~ZINNESOTA: 1. That $24,500 is determined to be fair market value for the subject real property. 2. That the Executive Director and the HRA's attorney a~•c authorized and directed to commence negotiations for the purchase of the real property described above. 3. That the Executive Director is hereby directed to notify, in writing, the owner of the subject property, as soon as possible, that the HRA presently intends to acquire his property provided negotiations result in the determination of a mutually agreeable sales price. The Executive Director shall include with such noti- fication a statement which complies with the requirements of rePu- lations of the Department of Housing and Urban Development, 24 C,F,^. X42.135. _ 4. That upon the completion o:f the negotiations, the Executi~-e Director shall report back to the HRA with a proposal .for the purcha:,e of said real property which is acceptable to the owner(s), and shah report his recommendation relating to said proposal. this Passed by the llousin~; and Redevelopment Authority of Richfield ATTEST: Loren L. Law Chairman V. L. Luttinger Secretary