05-20-80 agenda
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HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 18
Agenda May 20, 1980
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Metropolitan Council Housing Allocation Plan
Funding for these programs is provided by the U.S. Depart-
ment of Housing and Urban Development (HUD). The Metropolitan
Council works with HUD to distribute the available funds in an
appropriate way by using the Housing Allocation Plan.
This allocation system was adopted by the Metropolitan
Council to accomplish the following objectives:
including
those in rural areas,
s
Metropolitan Council initiated a new
subsidized housing assistance to comm
Currently, two types of subsidized housing programs are
being utilized in Richfield. Section 8 "new construction" and
"existing" rental assistance, and FHA Section 235 home ownership.
Richfield Towers, and the five scattered site homes constructed
by the Ames Corporation are examples of Section 8 "new^construct-
and the Metropolitan Council proviaes money zcr uie ~
"existing" proclram. The Section 235 program to this
date, has
with sub-
been utilized for two housing rehabilitation projects
Sequent home ownership.
action.
HRA Letter No. 18 -2- Agenda May 20, 1980
r-
to distribute up to $24 million dollars. This is a very tenta-
tive projection of available federal funds. The Metropolitan
Council will divide the money so that 50 percent of all subsidy
funds go to families, 10 percent to large families, and 40 per-
cent to the elderly. Table 1, attached, shows the community
fair share goals based on the estimated $24 million. A commun-
ity's fair share percent is determined by a formula that evalu-
ates community factors such as number of households, forecasted
household growth, employment, employment growth, tax base, and
number of households needing assistance. Using the formula
results in a percentage figure which is applied to a particular
population group (family, large family, elderly). This fair
share percent results in an estimated dollar amount and an estim-
ated number of additional Section 8 subsidized rental units.
Of an estimated $24 million coming to the metropolitan area,
$12 million (or 50 percent) will go to family assistance. Using
the formula previously explained, Richfield's family fair share
7
per year) or
year) . Wh
Section 8
continues
subsidies.
g
tion", or "new co
1. This approximate amount of
a Section 8 "new construction"
amily units ($4,317 per unit
units ($3,563 per unit per
share applies directly to
/40 family to elderly split
of most federal and state
use
by low vacancy and high rental rates.
In evaluating the housing goals, it is important to remem-
ber that only the "fair share percentages" are firm valuations
ile the Allocation Plan fair
commitments, the ratio of 60
to apply to the distribution
The amount of total resources which should be committed by
The numbers in each column are intended to suggest where re-
sources can be most efficiently utilized. The program mix per-
centages indicate whether "existing", "substantial rehabilita-
HRA Letter No. 18 -3-
Agenda May 20, 1980
used to project Richfield's expected dollar allocation. All
other figures in the tables are suggestions based on the
Metropolitan Council's perception of housing need. Thus,
these figures should be used by residents, staff and policy
groups in reviewing development plans and in formulating the
Housing Assistance Plan (HAP) which is submitted as a part of
the Community Development Block Grant (CDBG) application.
When funds are distributed according to the fair share per-
centages, the Metropolitan Council will use the following prior-
ities:
-Applications evaluated should clearly reflect the
Metropolitan Council's Allocation Plan;
-Families will receive 60 percent of all available
subsidy funds; elderly will receive 40 percent of
the funds;
-Development projects which address the unmet needs
of low and moderate income families, particularly
large families, will receive funding over elderly
project;
-Drnion~c ~ocinnA~ to cAr~~A han~irannP~ nY hnl]SPhn~_
idized housing in communities that
ubstantial progress toward providing
Richfield and other communities will be permitted to ex-
ceed their share of subsidized dollars within any of the three
categories in Table 1 under these circumstances:
1. When the share of allocated resources to support
a family project must be exceeded;
2. When subsidy funds have been expended, but a
special housing need still exists for the.handi-
capped for instance;
3. If the family or large family goal is exceeded
by the transfer of resources from the elderly
share.
For Richfield, the percentage goals indicate the importance
of acquiring additional family assisted housing. The fair share
percentages indicated in the Allocation Plan for Richfield re-
quire approximately 65 percent of the funds to go to families
and 35 percent of the funds to go to elderly. This emphasis
displaced by public action will be funded as a re-
sponse to special housing needs;
-Projects that promote an economic mix within a de-
~`~ HRA Letter No. 18 -4- May 20, 1980
on family housing is the result of the emphasis placed on
providing elderly housing in the past (Richfield Towers, 150
units) .
This is a summary of the recently implemented Housing
Allocation Plan which will be utilized to formulate and evalu-
ate future housing programs.
Respectfully submitted,
:~
Karl Nollenberger
Executive Director
KN/eja
cc: Council Members
Director of Community Development
~,
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Tile 2
HOLSING T~~ GOALS Ft~:t CCi ~•tUNITILS
Percent of Total
Needs For
Renters
Anoka County
Andover
Anoka
Blaine
Circle Pines
Columbia Heights
Coon Rapids
Fridley
Hilltop
Lexington
Spring Lake Park
50.0
73.1
39.4
0
67.9
65.6
87.6
100.0
100.0
65.5
Percent of Total
Needs For
CWners
50.0$
26.9
60.6
100.0
32.1
34.4
12.4
0
0
34.5
Carver County
Chanhassen
Chaska
Victoria
Waconia
82.9$
84.5
20.0
88.6
17.1
15.5
80.0
11.4
Dakota County
Apple Valley
Burnsville
Eagan
Farmington
Hastings
Inver Grove Heights
Lakeville
Lilydale
Mendota
Mendota Heights
Rosemount
South St. Paul
Sunfish Lake
West St, Paul
80.3 19.7
84.1 15.9
85.3 14.7
88.3 11.7 ,,
63.5 36.5
72.9 27.1
49.5 50.5
0 0
77.8 22.2
48.5 51.5
74.2 25.8
65.0 35.0
0 0
82.3 17.7
Table 2 (cont.)
HCUSLtiG T~~LRE OJALS FCZ CC~rL~7ITIES
Percent of Total Percent of Total
Needs Fes' Needs For
Renters Comers
Hennepin County
Bloomington 90.5 9.5
Brooklyn Center 85.0 15.0
Brooklyn Par k 90.4 9.6
Champlin 79.5 20.5
Crystal 80.2 19.8
Deephaven 27.0 73.0
Eden Prarie 81.8 18.2
Edina 94.8 5.2
Excelsior 96.0 4.0
Golden Valley 89.4 10.6
Greenwood 70.0 30.0
Hopkins 94.2 5.8
Long Lake 85.0 15.0
Maple Grove 64.8 35.2
Medicine Lake 83.3 16.7
Minneapolis 89.2 10.8
Minnetonka 79.8 20.2
Minnetonka Beach 33.3 66.7
Minnetrista 37.5 62.5
Mound 76.8 23.2
Nea Hope 90.5 9,5
Orono 63.0 37.0$
Osseo 84.4 15.6
Plymouth 89.2 10.8
Richfield 88.8 11.2
Rotbinsdale 79.4 20.6
St. Anthony 89.6 10.4
St. Louis Park 95.2 4.8
Shorewood 65.9 34.1
Spring Park 95.0 5.0
Tonka Bay 58.3 41.7
Wayzata 90.1 9.9
Woodland 0 100.0
%~
IA
i::;:.:: ~ :. .
Ramsey County
Arden Hills 56.0 44.0
FalCOn Heights 76.2 23.8
Gin Lake 50.0 50.0
Lauderdale 84.5 15.5
Little Canada 89.2 10.8
Maplewood 82.3 17.7
Mounds View 73.2 26.8
New Brighton 86.6 13.4
North Oaks 33.3 66.7
North St. Paul 73.5 26.5
Roseville 90.0 10.0
St. Paul 83.4 16.6
Stbreview 68.3 31.7
Vadnais-Heights 83.0 17.0
White Bear Lake 76.1 23.9
White Bear tap. 47.4 52.6
Scott County
Belle Plain 82.7 17.3
Jordan 80.3 19.7
Prior Lake 75.3 24.7
Savage 41.6 58.4
Shakopee 83.4 16.6
.. : '~ .
.-~ ,~~~_I--
.~
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Table 3 (cont. )
SUBSIDIZED HOUSIi~IG PF~f2Ai9 MIX GOALS FC7R OJ?fi'IJNITIES
Substantial
E:cisting Rehabilitation New Construction
Hennepin County
Continued
Edina 66~ 1$ 33~
Excelsior 76 18 6
Golden Valley 51 4 45
Greenwood 51 18 31
Hopkins 72 8 20
Long Lake 42 17 41
Maple Grove 6 1 93
Medicine Lake 33 58 9
Minneapolis* 11 23 66
Minnetonka* 20 0 80
Minnetonka Beach 50 0 50
Minnetrista 6 13 81
Mound 72 15 13
New Hope 80 0 20
Orono 10 18 72
Osseo 75 6 19
Plymouth 23 1 76
Richfield 92 2 6
Rotbinsdale 69 12 19
St. Anthony 68 2 30
St. Louis Park 68 2 30
Shorewood 11 6 83
Spring Park 83 3 14
Tonka Bay 7 21 72
Wayzata 77 9 14
Woodland 0 0 100
Ramsey County
Arden Hills 12 1 87
Falcon Heights 79 5 16 -,
Gem Lake
6
0 ^
94
Lauderdale 89 4 7
Little Canada 44 9 56
Maplewood 32 2 66
Mounds View 53 0 47
New Brighton 61 1 38
North Oaks 1 2 97
North St. Paul 67 6 27
Rcsevill~ 82 2 16
St. Paul` 50 20 30
Shoreview 31 1 68
Vadnais Heights 20 1 79
White Bear Lake 50 10 40
White Bear Twp. 11 7 82
*Indicates local review and change of preliminary program mix goals,
(
Table 3 (cont.)
SUBSIDIZID fIOUSING PF~fJGRAbI MIX GOALS FC)R OJrrAJNITIF~
Substantial
Existing Rehabilitation New Construction
Scott Ccxinty
Belle Plaine 36~ 18~ 46~
Jordan 24 27 49
Prior Lake 18 5 77
Savage ? 2 91
Shakopee 25 5 70
Washington County
Birchwood 15 18 67
Cottage Grove 3 1 96
F~est Lake 50 6 44
Landfall 0 0 10 0
Mahtomedi 11 13 76
Newport 55 9 36
Oakdale 22 1 77
Pine Springs 15 0 85
St. Paul Park 50 19 31
Stillwater 42 25 33
Willernie 46 46 8
Woodbury 12 1 87
.~
v~
f
9~
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 17
Agenda May 20, 1980
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Housing Report
A discussion of the 1980 Housing Report has been sched-
uled for the May 20, 1980 HRA meeting. HRA Commissioners
have been provided with a copy of this report previously,
and it is suggested that you bring this copy with you to the
May 20, 1980 HRA meeting.
Respectfully submitted,
Karl Nollenberger
Executive Director
KN/ e j a
O
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 16
Agenda May 20, 1980
Housing and Redevelopment
authority Commissioners ~,~
C ity of Richf field ~~~
Dear Commissioners:
Subject: 1980 HRA Budget Discussion
A discussion of the 1980 HRA budget has been scheduled
for the May 20, 1980 HRA meeting. HRA Commissioners have
previously been provided with a copy of this document, and
it is suggested that you bring this copy with you to the
HRA meeting on May 20, 1980.
Respectfully submitted,
Karl Nollenberger
Executive Director
KN/eja
HOUSING AND REDEVELOPMENT AUTHORITY
Office of Executive Director
HRA Letter No. 14
Agenda May 20, 1980
Housing and Redevelopment
Authority Commissioners a ~
City of Richfield `' ~^,
~~
Commissioners:
Subject: Request for Authorization to Submit Application
for Community Development Block Grant Bonus Funds
The HRA has recently been notified that the U.S. Department of
Housing and Urban Development (HUD) has approved the release of ap-
proxirnately $600,000 of Community Development Block Grant (CDBG)
funds to the Metropolitan Council. The monies being released are
Bonus funds to our metropolitan area. They are unspent monies
originally allocated to communities for use in 1978. The Bonus money
must be used in a timely manner to increase housing opportunities
for low and moderate income families. Applications for the Bonus
funds must be submitted to the Metropolitan Council and the Hud Area
Office on or before Monday, June 9, 1980.
The approval of the HRA to submit an application
t.
tures, and sell the cleared parcels. A private developer would con-
struct, own and manage five scattered site, three and four bedroom
rental housing units for low and moderate income families. The oc-
cupants would be participants in the HUD Section 8 rental assistance
program. This alternative would be similar to the soon to be com-
pleted project involving the Ames Corporation. The second alterna-
tive requires the same responsibilities of the HRA and the private
developer, however, the five scattered site, three and four bedroom
homes would be owner occupied. Owner occupied housing would be fi- ,
nanced with the HUD Section 235 mortgage assistance program.
one application to ensure
he assistance programs.
an count toward achieving
assistance to large fam-
HRA Letter No. 14 -2- May 20, 1980
The supporting information for developing this type of project
in in the "Housing Program Activities" report Part II, prepared by
the HRA in February, 1980. The Metropolitan Council and HUD are
responsible for the approval of Richfield's annual CDBG application.
Projects funded through CDBG have included housing programs, park
improvements, and modifications to the community center. One of the
criteria they evaluate is the distribution of rental assistance
payments to families and the elderly. The policy goal of the D4et-
ropolitan council is to distribute assistance 60 percent for families
and 40 percent for the elderly. Within the last three years, Rich-
field has provided assistance in reverse of this goal; 62.6 percent
to elderly, 36 percent to families and 1.4 percent to large families.
These figures reflect the 150 units at Richfield Towers. Thus, 45.5
percent of the needs of the elderly and 18.5 percent of the needs of
families have been met. As indicated in the housing report, Richfield
must better meet the needs of families before additional subsidized
housing for the elderly will be funded.
A significant step to increase rental assistance to families
was taken in 1979. In January, the then active Ad Hoc Housing Com-
mittee appointed by the city council made recommendations for de-
veloping family housing. The committee supported the addition of
five new Section 8 family rental units to the housing supply. Sub-
sequently CDBG Bonus Grant funds were applied for and received.
Proposals for new construction were solicited. The Ames Corporation
was selected as the developer.
The time available prior to June 9, to prepare and submit an
application for bonus funds was not sufficient to organize and con-
vene the housing committee. The former chairperson, Joe Ertman, and
members were invited to attend the HRA meeting on May 20, to discuss
this application if they desired. Also, an advertisement was placed
in the Richfield Sun indicating public testimony would be received
on this proposal.
by the HRA in providing five scattered sites last year.
the new project involves developer selection, developer
selection and purchase. ~,
osts incurred
Scheduling
funding, site
pleted by the end of May to permit advertising early in June. Sites
will be acquired through voluntary sale after funding of the applica-
tion by HUD and Metropolitan council. If the funds are provided,
the HRA Board will be involved in several actions to permit the im-
plementation of the project.
HRA Letter No. 14
-3-
Following is the tentative schedule and budget.
Project Activity Amount
Bonus Fund Application $194,560
Construction
Administration and
Property Maintenance
(Advertising, title in-
surance, Appraisals,
legal assistance)
Implmentation
Date
May 20, 1980
Completion
Date
August, 1980
(fund approval )
6,300 During execution May, 1981
The total estimated cost of the project is $235,300 The
4,560 bonus Grant would be combined with a fund balance of $39,162
t remains from the previous bonus Grant and a minimum of $2,000 of
ected proceeds from the sale of the acquired parcels to a private
eloper.
It is recommended that the HRA adopt the attached resolution:
Respectfully submitted,
1
Karl Nollenberger
Executive Director
KN/jf
cc: City Council Members
Director of Community Development
HRA RESOLUTION NO.
APPROVING COMMUNITY DEVELOPMENT
BLOCK GRANT BONUS GRANT PROPOSAL
WHEREAS, the Metropolitan Council and the United States
Department of Housing and Urban Development have Community Develop-
ment Block Grant Bonus Funds available, and;
WHEREAS, these funds are to be utilized to provide housing
assistance to low and moderate income families, and;
WHEREAS, the City has a need to provide additional housing
opportunities for low and moderate income families, and;
WHEREAS, there are, within the city, certain substandard
properties in need of redevelopment, and;
WHEREAS, these monies if obtained by Richfield would be
utilized to provide the needed housing opportunities by acquiring
substandard property to build new housing units, and;
WHEREAS, the application for funds must be submitted on
or before June 9, 1980, and;
WHEREAS, proposals from developers must be solicited in a
timely manner;
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelop-
ment Authority of Richfield, Minnesota:
1. That authorization to make applications for Community
Development Block Grant Bonus Funds is approved.
2. The Executive Director is authorized and directed to
request the City Council to authorize the submission of
an application at their meeting on May 27, 1980, to
permit submission prior to June 9, 1980.
3. The Executive Director is authorized and directed to
seek proposals from developers if the City Council
authorizes and approves the making of the application.
Passed by the Housing and Redevelopment Authority of Richfield
this 20th day of May, 1980.
ATTEST:
om E. Harms, Chairman
~~~~,~G ~
Vern Luettinger, ecre ary
HOUSING AND REDEVELOPMENT AUTHORITY
Off ice of Executive Director
HRA Letter No. 13
Agenda May 20, 1980
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Lyndale/Hub/Nicollet Project Urban
Design Elements
One of the important objectives of
redevelopment project is to promote a po
ject area by identifying and enhancing t:
in the area and by setting appropriate d
development. The attached Urban Design
standards which the city council and the
ginning of the project.
The Urban Design Elements include
lighting, landscaping, building materi
present.,
the Lyndale/Hub/Nicollet
sitive image in the pro-
ne distinctive qualities
sign standards for future
Elements are the design
HRA adopted at the be-
It is important that the HRA continue to use the Urban De-
sign Elements in their review of projects in the L/H/1V area. The
design elements have set the tone for building and site design in
the L/H/N area. It is important that future projects continue to
be developed within the design framework established by the Urban
Design Elements so that new development is compatible with the
development which has occurred to date and so that all developments
present a positive unified image. This positive unified image
will not only present a pleasant visual appearance, but will also
wil
Another important function of the Urban Design Elements is
to help reduce residential/commercial conflicts. The design ele-
ments set guidelines for buffering and screening where commercial
areas are adjacent to residential areas. This buffering and
encourage them to shop throughout the commercial area.
HRA Letter No. 13
-2-
May 20, 1980
screening is important in protecting residences from the noise,
lights, and litter which are present in the adjacent commercial
area. Buffering helps protect property values and the condition
and desirability of the adjacent residential areas.
In summary, the Urban Design Elements were established to
enhance the image and desirability of the L/H/N commercial area
and to help protect surrounding residential areas. Continued
t to insure
rt.
We will plan to discuss these design elements at the May 20,
1980 HRA meeting in order to make sure that everyone is clear on
their application.
Respectfully submitted,
~~ r
Karl Nollenberger
City Manager
KN/eja
cc: Community Development Director
Council Members
HOUSING AND REDEVELOPMENT AUTHORITY
Off ice of Executive Director
HRA Letter No. 12
Agenda May 20, 1980
Housing and Redevelopment
Authority Commissioners
City of Richfield
Dear Commissioners:
Subject: Section 8 Housing Assistance Payments
Program Contract between the Metropol-
itan Council and the Richfield Housing
and Redevelopment Authority
Since 1975, the Richfi
ity (HRA) has had a contrac
Council for providing housi
Existing Housing Program.
in participants pav no more
ection 8 tenant.
Under the contract, the Metro
HRA have certain responsibilities.
Lovick and the public safety depart
The HRA's lease agent,
The Metropolitan Council performs several services. They
reimburse the HRA for eligible costs under the contract, select
final program participants, and provide general administrative
support in areas of publicity, staff training and assessments of
needs for subsidized housing.
is requested. The new contract alters the method the Metropolitan
Council follows in paying the HRA for its services. Under the old
contract, the amount of funds available to the HRA was based on
a maximum dollar amount per inspection plus up to $8.50 per unit
d Housing and Redevelopment Author-
termines their share of rent and provides assistance in finding
a rental unit. At the appropriate time, Ms. Lovick requests
the public safety department inspectors to inspect housing units
to establish that they are decent, safe and sanitary.
HRA Letter No. 12 -2- May 20, 1980
The new contract recently received from the Metropolitan
Council effective January 1, 1980, simplifies the repayment
formula. The HRA would be paid the actual costs of providing
services under the contract not to exceed $10.00 per unit per
month. Although the number of units changes from month to month,
210 is a reasonable average to assume. If there are 210 units
in the program each month, the monthly income could be $2,100,
or $25,200 for the year 1980. This would be $1,440 more than
previously anticipated.
It is recommended that the HRA authorize the Chairman and
the Executive Director to execute the Section 8 Housing Assist-
ance Payments Program Contract with the Metropolitan Council.
Respectfully submitted,
1
Karl Nollenberger
Executive Director
KN/ej a
cc: Council Members
Community Development Director