05-20-1980HOUSING AND REDEVELOPMENT AUTHORITY ,
OF RICHFIELD, MINNESOTA
Regular Meeting of May 20, 1980
The Housing and. Redevelopment Authority of the City of Richfield met in
regular session in the council chambers of the city hall on May 20, 1980, at
7:00 p.m.
The meeting was called to order by Chairman Thomas Harms, at 7:15 p.m.
Present: Commissioners Helmberger, Ludeman, Harms
Absent; Freeman, Luettinger
1. Minutes
Motion by Helmberger, seconded by Ludeman that the minutes of the April 21,
1980 HRA meeting be approved with the following correction:
Page 1, second motion, "Motion by Freeman --"
All ayes - Carried. Absent - Freeman, Luettinger
2. Section 8 Housing Assistance Payments Program Contract Between the
Metropolitan Council and the Richfield Housing and Redevelopment Authority
Karl Nollenberger, Executive Director, explained the contract that the
HRA has with the Metropolitan Council whereby the HRA is provided a reimbursement
for services performed in locating eligible families in rental units under the
Section 8 Existing Housing Program. The Metropolitan Council has been paying up
to $8.50 per month for HRA services performed. Under the new contract recently
received from the Metropolitan Council effective January 1, 1980, the repayment
method will pay costs of $10.00 per unit per month. The Executive Director
recommended that the HRA authorize execution of this new contract.
Motion by Ludeman, seconded by Helmberger to authorize the Chairman and the
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Executive Director to execute the Section 8 Housing Assistance Payments Program
contract with the Metropolitan Council.
All ayes - Carried. Absent - Freeman, Luettinger.
HRA Meeting Minutes -2- May 20, 1980
3. Lyndale/Hub/Nicollet Project Urban Design Elements
The Executive Director recommended deferral of this item until the June
meeting. The HRA concurred.
4. Request for Authorization to Submit Application for Community Development
Block Grant Bonus Funds
Bruce Palmborg, Housing and Redevelopment Specialist, advised the HRA that
the U. S. Department of Housing and Urban Development (HUD) has approved the
release of approximately $600,000 of Community Development Block Grant (CDBG)
funds to the Metropolitan Council. These monies being released are Bonus Funds
to our area, which must be used to increase housing opportunities for low and
moderate income families. Application for these funds must be submitted to
the Metropolitan Council and the HUD Area Office by June 9, 7_9800
There are two alternatives for utilizing these Bonus Funds. One application
would be for the HRA tq acquire substandard houses, relocate occupants, demolish
the structure, sell the parcels and a private developer would build, own and
manage five scattered site homes as rental units. The second alternative would
encompass the same responsibilities of the HRA and the developer, however, the
scattered site homes would be owner occupied, financed with HUD Section 235
mortgage assistance program.
Messrs Freeman and Luettinger arrived at 7:30 p.m.
Mr. Palmborg recommended that the HRA adopt a resolution authorizing appli-
cation for these CDBG Bonus Funds, direct the Executive Director to request the
city council to authorize the application to HUD and the Metropolitan Council,
and authorize seeking proposals from developers upon city council approval of
the application.
HRA.Meeting Minutes -3- May 20, 1980
Motion by Ludeman, seconded by Freeman that the following resolution be
adopted; that it be spread in the resolution book and that it be made a part of
these minutes:
HRA RESOLUTION N0. 141
APPROVING COMMUNITY DEVELOPMENT
BLOCK GRANT BONUS GRANT PROPOSAL
Poll of votes: Ayes - Freeman, Harms, Helmberger, Luettinger, Ludeman. Nays-
None. Carried. This resolution appears as Resolution No. 14I in Resolution
Book No. 2.
5. Discussion of House_Bill_that Would Authorize New Multifamily Housinz
Subsidy Program
Karl Nollenberger, Executive Director, described the status of congressional
deliberations regarding subsidized housing programs. He encouraged the HRA to
go on record supporting the need for continuation of housing programs. He
also suggested that the efforts to expand housing assistance programs to
encompass moderate income persons, with no increase in funding, would have the
effect of diverting dollars from lower income persons needing housing assistance.
The HRA requested specific information regarding the number of low and
moderate income families in Richfield which would be benefited or hurt by the
change proposed.
Motion by Freeman, seconded by Luettinger to reiterate the importance of
sustaining housing assistance programs; to meet the needs of low-income families;
to support the concept of expanding program funding and benefits to benefit
middle-income persons, and authorize the Executive Director to convey this
position to our elected officials.
All ayes - Carried.
6. 1980 HRA Budget Discussion
HRA Meeting Minutes -4- May 20, 1980
Joyce Wilde, Administrative Services Director, presented a summary of the
HRA budget. The HRA indicated interest in holding a workshop on July 15, on
the budget, to discuss and define priorities for 1981.
7. Housing Report and Metropolitan Council Housing Allocation Plan
Bruce Palmborg, Housing and Redevelopment Specialist, presented the Housing
Report and discussed the Metropolitan Council Housing Allocation Plan, a new
system initiated in March, 1980, for distributing subsidized housing assistance
to communities.
8. Claims and Payrolls
Motion by Ludeman, seconded by Luettinger that the following claims and
payrolls be approved:
SUMMIT STATE BANK
Checks 3187/3318
$243,848.07
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All ayes - Carried.
9. Discussion - Not on Agenda
The Executive Director apprised the HRA of the status of several areas of
the Lyndale/Hub/Nicollet Redevelopment area.
The improvements for Lyndale Avenue from 64th Street to Lake Shore Drive
have been delayed to 1981 due to the President's recent freeze on FAU funds
and that the city council will be considering contracts to continue plans for
66th Street improvements to be undertaken in 1981.
Betty Croker Pie Shop will go out of business the end of this month.
K: Mart has requested an approximate reduction of one million dollars on
their assessed market valuation.
Old 65th Street will be vacated this summer.
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HRA Meeting Minutes -5- May 20, 1980
The Executive Director gave a status report on other issues pending in
Date Ap roved• June 16, 1980 r
omas E. Harms Chairman
__ V.- L.Lue-tti r Secretary .
the project area.
10. Ad3ournment
The meeting adjourned at 10:20 p.m.
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