Loading...
HomeMy WebLinkAbout01/08/2002MAPLEWOOD HUMAN RELATIONS COMMISSION Tuesday, January 8, 2002 7:00 p.m. Maplewood City Hall Conference Room A AGENDA 7:00 I.CALL TO ORDER 7:05 II. APPROVAL OF MINUTES 7:10 III. APPROVAL OF AGENDA IV. OLD BUSINESS 7:15 A. Diversity Contests Review Materials 1. School Assignments B. Special Events/Education Session Planning 7:30 1. Town Meeting—Islamic—Joan 7:40 2. Affordable Housing—Gordie 7:50 3. "Change"Member Attendance, 2 pm & 7 pm performances 8:00 C. Annual Report—Review/Changes D. V. NEW BUSINESS A. B. VI. REPORTS A. B. VII. FEBRUARY AGENDA ITEMS: A. B. 8:30 VIII. ADJOURNMENT Human Relation Commission- Agenda January 8, 2002 Page 2 ASSIGNMENTS: 1. 2. 3. FUTURE TOPICS: 1. Maplewood In Motion—Assign Articles 2. Access Project 3. S:\CITY MGR\HRC\AGENDA Maplewood Human Relations Commission December 4, 2001 Minutes Members Present: Joan Wurdeman, Elmo Mattox, Carol Cude and Tammy Nadzieja Members Absent: Donna Brown, Rita Ander and Gordie Heininger Staff Present: Colleen Callahan Called to Order: The meeting was called to order at 7:07 p.m. II. Approval ofMinutes: Motion was made to approve minutes as written. It was seconded and it was passed III. Approval of Agenda: Motion was made to approve Agenda as written with the addition of Colleen under Reports: Concordia Arms. It was seconded and it was passed. IV. Old Business: A. Diversity Contest Material. We altered previous handouts and application forms. A discussion was held concerning who could participate in each contest. The rules for the Diversity Awareness Award were discussed. B. Special Events— 1.Joan—There was a forum with Muslims in November. Mort Ryweck would be glad to help find people such as: Sikh, Jewish, Japanese-American, and local clergy. Do co-sponsorship with a church on understanding other ethnic groups and cultures. Mort volunteered to moderate the panel, maybe with one of us too. We could host this at MCC. We discussed our part in this. March 14, 19, 20, 25, 26, 27, 28. Call it: "Community Forum." Focus on breaking cultural barriers. Ask Mort about becoming a"kinder, gentler" community. Joan will contact Mort about a date in March. 2. Gordie—Affordable Housing—discussion tabled—Gordie absent. C. Maplewood In Motion. Elmo met with City Manager, Richard Fursman regarding the Maplewood In Motion Business Resource Page. They decide a year ahead of time how many pages each month they would get, then send it out for a bid. They have been over budget quite a bit. Human Relations Commission December 4, 2001 —Meeting Minutes Page 2 V. New Business: A. Annual Report—Hold for next time B. Elections 1. Nominated and seconded for Chair: Rita Ander, voted yes, contingent on her acceptance. 2. Nominated and seconded for Co-Chair: Elmo Mattox. Nominations closed. Tammy declined due to possible move this spring. 3. Carol accepted nomination for secretary. Voted yes. VI. Reports: Colleen—Concordia Arms—A resident complained about maintenance fees and reasonable accommodations. Rita met with person and city attorney. The person was representing a group. They informed him about other resources and what was available to them. VII. Meeting adjourned at 9:02 p.m. ASSIGNMENTS: 1.Assign schools for contest. 2.Tammy will rewrite two letters for January—poster& diversity contests. 3.Tammy will rewrite the page listing and the diversity contest rules. 4.Change meeting date to January 8, not January 1. 5.Joan will call Mort Ryweck for dates in March. 6.Gordie—report on Affordable Housing. 7.Review annual report. 8.Maplewood In Motion assignments. To: Human Relations Commissio From: Colleen j. Callahan ti MEMORANDUM Subject: In-Service Opportunity Date: December 1 1 , 2001 met an individual at a coalition meeting who is interested in offering some training on mediation. He specializes in restorative justice, sensing circles --- conflict management techniques. I thought, as our commission has changed a bit, some training may be beneficial. Below is a copy of his business card. WILLIAM FUNARI 1PRESIDENT CONFLICT MANAGEMENT RESOURCES,INC. 937 FOURTH AVENUE SOUTH STILLWATER, MN 55082-5838 (651) 351-9158 funar002@tc.umn.edu 9. Together We Can November 27, 2001 Barbara Kuhlman Concordia Arms 2030 Lydia Avenue Maplewood, Minnesota 55109 Dear Barbara, Thank you for passing along the information I requested regarding Tom McGrath's concerns. The information was very helpful. Tom met again with myself and Rita Ander, the Vice Chair for our Human Relations commission Thursday, November 15. A copy of our correspondence is attached. The two items which we looked at, from a Human Relations Commission perspective, are: 1)reasonable accommodation, and 2) reasonable charges for maintenance. Our Human Relations Commission acts as a listening post for acts of bias or human relations concerns within the City. The Commission is not able to advocate on behalf ofindividuals, however when appropriate, can bring two individuals together to listen and help resolve differences. Some issues are too big and become legal matters which the Commission is also not able to review. We had a lot of good discussion about these two items and various ideas for solutions. I would like to pass these ideas on to you. Hopefully some of them are worth considering for implementation. 1) Incorporate information about reasonable accommodations and maintenance charges into leasing information. 2) Place timely reminders on"How to . . . "in the resident newsletter. There are policies in place to help residents, family or guests make improvements in the facility, resolve conflicts, and to have a voice within the Concordia Arms community. Reminders of how to access or begin the process would be helpful. 3) Encourage residents to create a`Wish List" of all ofthe things they would like to see added or changed (i.e., : parcel boxes, garbage collectors by the outdoor pet area). Utilize the internal network, the resident council, for support and assistance. 4) Investigate programs such as"Adopt a High Rise" or participate in fund raising opportunities for the funds to accomplish the wish list items. COMMUNITY ORIENTED SERVICES 651-770-4579 FAx: 651-770-4597 CITY OF MAPLEWOOD 1 830 EAST COUNTY ROAD B • MAPLEWOOD, MN 55109 Barbara Kuhlman Concordia Arms Page 2 Tom McGrath has a lot of energy and is motivated to act as a support network for individuals who need and want assistance. He is very interested in doing what he can to improve the quality of life for himself and those who reside at Concordia Arms. Hopefully, his energy and enthusiasm can be utilized to positively impact and add to the service and work you do every day that make Concordia Arms a wonderful place to Iive. The ideas he has shared seem to be worth investigating. I have suggested to Mr. McGrath that he, and those he is receiving input from work together to put their ideas in writing. I have asked that they list all of the suggested improvements, changes and accommodations they feel are important. Invite input from others and prioritize the items on the list. Also, I have asked that they add their ideas for reasonable and creative ways to accomplish the items on the list. Then approach the management, and or resident council to review these suggestions and work together, within the system to accomplish their goals. I would be happy to continue to support a collaborative effort to assist with connections in the community or assist in brainstorming solutions, if you are interested. I have enclosed a copy ofthe letter to Mr. McGrath. If you have any questions or concerns you can reach me at 651) 770-4579. Thank you for your assistance. I appreciate your time. Respectfully, 1 Colleen J. Callahan Community Oriented Services Coordinator enclosures ant ;y1 ¢ ,..'""'Y"E"X:. i a zs rx. z`riR'lei u7Jdva r3frh.}.. ..Si,i4..1• Together We Can November 27, 2001 Tom McGrath 2030 Lydia Avenue, #105 Maplewood, Minnesota 55109-1447 Dear Mr. McGrath, Thank you for taking the time to meet with Rita Ander, the Human Relations Commission Vice Chair, and myself, last week. It is thoughtful of you to take the time to convey the concerns of your neighbors. However, for the individuals experiencing frustration this frustration, it is important for them to engage in the process. The two items which the Human Relations Commission considered are: 1) reasonable accommodation, and 2) reasonable charges for maintenance. Our Human Relations Commission acts as a listening post for acts of bias or human relations concerns within the City. The Commission is not able to advocate on behalf of individuals, however when appropriate, can bring two individuals together to listen and help resolve differences. Some issues are too big and become legal matters which the Commission is also not able to review. Since Rita Ander works with the Public Housing Agency of St. Paul, she was able to share her insights into common practices for Section 8 Housing programs relevant to these two issues. She mentioned that in working with other housing owners the maintenance fee schedule for Concordia Arms appeared to be similar. We had a lot of good discussion about these two items and various other concerns. I hope you found it helpful. A number of suggestions came out of our discussions which I will share with the management at Concordia Arms. Some of those suggestions are: 1) Incorporate information about reasonable accommodations and maintenance charges into leasing information. 2) Place timely reminders on"How to . . . "in a resident newsletter. There are policies in place to help residents, family or guests make improvements in the facility, resolve conflicts, and to have a voice within the Concordia Arms community. Reminders of how to access or begin the process would be helpful. CITY OF MAPLEWOOD 1 830 EAST COUNTY ROAD B • MAPLEWOOD, MN 55109 Tom McGrath Concordia Arms Page 2 3) Have residents put together a"Wish List"of all of the things they would like to see added (i.e., : parcel boxes, garbage collectors by the outdoor pet area). Bring the list to the resident council for review and consideration. 4) Adopt a High Rise program or fundraise for dollars to accomplish wish list items. 5) Utilize Tom McGrath's energy and motivation to act as a support network for someone who would like to engage in the process but needs some assistance. These are good ideas and worth investigating. I am not sure of the logistics in implementing any of these ideas. The task will be up to you residents,the resident council and the management staff to determine. A good approach would be to put your ideas in writing. You could list all of the suggested improvements, changes and accommodations which have been suggested and invite others to add to your list. As a group you may want to prioritize your list. Think of reasonable and creative ways to accomplish the items on your wish list. When this is complete approach the management staff, through the system which is in place,to review these suggestions. Your energy and effortscan help build a better community and cann make a difference. Focusing on solutions, identifying potential resources and sharing your vision with others in a positive way will help build credibility and momentum. I would be happy to continue to support a collaborative effort to assist you and/or your resident council with connections in the community. The other concern you shared regarding the parking lot problem at the strip mall across Lydia from Concordia Arms has been passed on to our Community Development Staff They will be in contact with the management there to make necessary improvements. I have enclosed a copy of the letter to Concordia Arms management, the St. Paul PHA's schedule of Service Charges and Pet Policy. If you have any questions or concerns, you can reach me at 651) 770-4579. Respectfully, Colleen J. Callahan Community Oriented Services Coordinator enclosures SAINT PAUL PUBLIC HOUSING AGENCY SCHEDULE OF STANDARD SERVICE CHARGES effective date May 1, 1996) This is a schedule of charges to be used when the resident is found to be responsible for damages or losses to the unit or its equipment. It is for work that must be done by the PHA but is the resident's responsibility (including charges for disposal of appliances and other large items from dwelling units). The PHA Housing Manager will determine whether the resident is responsible for damages or losses based upon the facts in each situation. Prices listed on page 2 reflect actual or lower than actual cost and include shipping, handling, and purchasing cost 1. LABOR AND MATERIALS: Charges for some specific items, maintenance services and repairs are listed on page 2. All other maintenance services and repairs are billed at the rates shown here in A. and B. A. Repairs Performed By A Contractor. The resident will reimburse the PHA for the full cost of repairs performed by a Contractor. B. Repairs Performed By PHA Maintenance Staff: The resident will pay the PHA for the full cost of materials and the following labor and equipment charges: Labor during business hours 5.00 per 1/2 hour($5.00 minimum) Labor after business hours 7.50 per 1/2 hour($30.00 minimum) Equipment Charge: If PHA staff use a truck or special equipment to perform the work, an additional $5.00 per 1/2 hour will be charged. Examples: If a Maintenance person drives a PHA truck to an apartment, makes a repair and returns to the Maintenance Shop in less than 1/2 hour, the charge is $10.00 ($5.00 labor + $5.00 equipment) plus any materials costs. After business hours, the charge for the same service call would be $35.00 ($30.00 labor+ $5.00 equipment) plus any materials costs. If the repair, including travel, takes more than 1/2 hour but not more than one hour, during business hours, the charge is $20.00 ($10.00 labor+ $10.00 equipment) plus material(s). Because service charges are referenced in your Dwelling Lease, Federal regulations require that residents have'a 30-day written notice prior to the effective date of any changes Residents may submit written comments regarding service charges to ...:their PHA Management Office by April 30, 1996. Over- Page 2 Specific;'Item;Charges Item Charge Item Charge Bathroom Keys,Apartment/HouselAccess Card Soap Dish 1.00 Access Card (hi-rise) 7.00 Toilet Ballcock 10.00 Key 2.00 Toilet Bowl 30.00 Locks Toilet Flapper 2.00 Lock Change (cylinder only) 9.00 Toilet Paper Holder 2.00 Lock, Interior Door(passage) 7.00 Toilet Seat 6.00 Windows/Screens Toilet Tank Cover 10.00 *Glass Block(basement or Toilet Tank with Cover 37.00 bathroom)per block 15.00 Towel Bar 4.00 *Screen 7.00 Cabinets Kitchen/Bathroom Screen with Frame 17.00 Cabinet Door Repair 25.00 *Security Screen per 1/2 side 100.00 Cabinet Door Replace 35.00 *Window, Exterior 10.00 Cabinet Drawer Repair 25.00 *Window, Exterior with Frame 20.00 Cabinet Drawer Replace 35.00 *Window, Interior(in unit) 20.00 Doors Window, Interior with Frame 50.00 Door,Exterior(steel) 100.00 Miscellaneous Door, Exterior(wood) 75.00 Curtain Rod (not traverse)per foot 1.00 Door,Interior 35.00 Dryer Vent 3.00 Door,Overhead Garage Door 7.00 Electrical Outlet or Switch Plate 25 Handle Door Stop 50 Globe,Light(small) 7.00 Door,Storm Closer 5.00 Globe,Light(medium) 11.00 Door,Storm 100.00 Globe,Light(large) 16.00 Door, Storm Door Handle 7.00 Paint(per gallon)9.00 Heating Smoke Detector 5.00 Heat Register(small) 5.00 Trash Can 10.00 Heat Register(large) 10.00 Trash Can Cover 3.00 Thermostat 16.00 Stove,Drip Pan 5.00 Kitchen Bread Board,Replace Missing 20.00 Ice Cube Tray 50 Trash Removal Trash Removal (left curbside or left in vacated unit) per load 100.00 Trash Removal (requested by resident) per load 50.00 Trash Removal (per large item) 10.00 Price includes labor. Collection costs for Unpaid Rent and Other Charges Court Cost for an Unlawful Detainer Filing 132.00 Process Serving Fees (delivery service provided by Legal Courier Service) : Pick up &delivery 16.00 Service attempts repeated; affidavit posted, mailed, and refiled if person on whom service is attempted is not found 59.00 Writ of Restitution issuance fee 10.00 Sheriff service fee (plus time and travel charges) 25.00 Sheriff filing fee after service 10.00 4s HAPUICREG2DINGM1 'i sM SS t; qxca", "r''€x. 'unfg.tcagt 4'`,wsFse ',y.TCEIJ k-r.z ,$.3 f- vz ., i',,lrft-V .f ,4 A. PERMITTED PETS PHA hi-rise residents shall be permitted to have common household pets, which are domesticated and traditionally kept in the home for pleasure, rather than for commercial purposes. These are: a dog, cat, small caged birds, small caged mammals, turtles and aquarium fish. In any event, only one (1) dog or one (1) cat may be kept in each apartment, except that an animal which is trained and certified to assist the handicapped or disabled (for example, a seeing eye dog) shall be exempted from this rule. Reptiles (except turtles) are not permitted. B. PROHIBITED PETS Wild, undomesticated, vicious, destructive or uncontrollable animals of any type shall not be permitted to be kept as pets. Ferrets, rabbits and snakes are not permitted to be kept as pets in hi-rises. With the exception of an animal which is trained and certified to assist the handicapped or disabled (for example, a seeing-eye dog), a pet belonging to a non-resident shall not be permitted within any hi-rise. C. HI-RISES OFF LIMITS TO DOGS Due to the lack of adequate on-site, outside space for animal exercise areas, no dogs shall be permitted to be kept as pets at the hi-rises located at 10 West Exchange and 545 North Wabasha. Neither shall dogs be permitted to be kept as pets at the hi-rises located at 200 East Arch and 469 Ada, due to the location of these hi-rises within higher density family housing developments. D. HI-RISE AREAS OFF LIMITS TO PETS AND ELEVATOR USE With the exception of an animal which is trained and certified to assist the handicapped or disabled (for example, a seeing-eye dog), no dog, cat or other pet shall be allowed to be taken into the hi-rise community room, community room kitchen, laundry, meeting rooms, game room, beauty-barber shop, convenience store,mini-clinic, or offices. An escorted dog or cat shall be allowed in the hi-rise corridors and lobby only for the purpose of passing through. One (1) elevator in each hi-rise shall be designated for use by dogs and cats. Only one (1) dog or one (1) cat at a time shall be allowed in the designated elevator. A pet owner shall not take a pet into the apartment of another resident without the explicit permission of that resident. E. LICENSE,INOCULATION &IDENTIFICATION REQUIREMENTS FOR DOGS A dog owned by a resident shall wear at all times a valid rabies inoculation tag and an identification tag bearing the owner's name, address and telephone number. HD-730 Rev. 12/96 Page 1 of 1 Each dog owner shall be required to have his/her dog re-inoculated against rabies no less than every three years. F. INOCULATION AND IDENTIFICATION REQUIREMENTS FOR CATS A cat owned by a resident shall wear at all times a valid rabies inoculation tag and an identification tag bearing the owner's name, address and telephone number. Each cat owner shall be required to have his/her cat re-inoculated against rabies no less than every twelve (12) months. G. SPAYING OR NEUTERING REQUIREMENTS Each female dog and cat over six (6) months of age shall be spayed and each male dog or cat over eight (8)months of age shall be neutered. H. PET DEPOSITS FOR PET-RELATED PHA PROPERTY DAMAGE Residents who own cats and dogs shall be liable for the cost of repairing any and all damage caused by their pets. Each resident who owns a dog or a cat shall be required to pay to the PHA a pet deposit in the amount of one hundred dollars ($100.00). The pet deposit may be accumulated at the rate of an initial payment of fifty dollars ($50.00) and the payment of Ten Dollars ($10.00) or more per month thereafter until the deposit is paid in full. A new resident who owns a dog or a cat at the time of moving into a hi-rise shall pay the initial pet deposit at the time of lease signing. A resident who acquires a dog or a cat after having moved into a hi-rise shall pay the initial pet deposit before bringing the dog or cat into hi-rise. The pet deposit shall be held by the PHA until the resident moves out or no longer owns or keeps a pet in the hi-rise. The pet deposit will be fully refunded, with interest, according to State law, provided that no pet damage has been done to the premises. Amounts necessary to repair such damage shall be deducted from the pet deposit. I. PET-RELATED LIABILITY INSURANCE (RENTER'S INSURANCE) A pet owner may be liable for any injury or damage his/her pet causes to the person or property of another neighbor, a hi-rise visitor, a PHA employee or an agent of the PHA. Therefore, it is strongly recommended that residents who own a dog or cat purchase a personal liability insurance policy (renter's insurance) from an insurance carrier of their choice. J. PET REGISTRATION REQUIREMENTS At the time that a pet owner is admitted to a hi-rise as a new resident, or at such time that a resident acquires a pet, said pet owner shall register his/her pet with PHA Management. At the time of initial registration, each pet owner shall provide PHA Management with: a) The names, addresses and telephone numbers of no less than two (2) people who shall be responsible for housing and caring for the owner's pet during vacations or in the event of emergencies, hospitalization or the death of the pet owner. The names, addresses and HD-730 Rev. 12/96 Page 2 of 2 To: Human Relations Commissio From: Colleen j. Callahan MEMORANDUM Subject: In-Service Opportunity Date: December I I , 2001 met an individual at a coalition meeting who is interested in offering some training on mediation. He specializes in restorative justice, sensing circles -- conflict management techniques. I thought, as our commission has changed a bit, some training may be beneficial. Below is a copy of his business card. WILLIAM FUNARI PRESIDENT CONFLICT MANAGEMENT RESOURCES,INC. 937 FOURTH AVENUE SOUTH STILLWATER, MN 55082-5838 (651) 351-9158 funar002@tc.umn.edu Coalitiongv[innesota for .the Some less Working to ensure that everyone has a s , decent, affordabplace to call hosafe, me oferad Evan visits his Grandma who is Vowel homeless fr Photo by losof Arnold Erwin LET'S BRING MINNESOTA HOME! November 19, 2001 Dear Friend:. Do you believe that homelessness should be ended? Are you committed to the idea that it does not need to be a part of Minnesota's or America's future? The Minnesota Coalition for the Homeless is confident that we should, we can, and we will BRING MINNESOTA HOME! Such commitment is needed now more than ever. Why? Homeless children today outnumber Minnesota's entire homeless population in 1991. 41% of homeless adults in this state are working—a percentage that has more than doubled in the past ten years. Because of the lack of supply of affordable housing, a minimum wage worker would need to work 109 hours per week to afford a fair market rent for an average two-bedroom apartment in Minnesota. As working individuals and families fill Minnesota's shelters, some of our most vulnerable community members—individuals with severe mental illness and/or chemical addictions—are forced to fend for themselves on the streets. For seventeen years, the Minnesota Coalition for the Homeless has been working with people who have experienced homelessness, service providers, and caring members of the community to put an end to such terrible circumstances. Your support is vital. Continued on other side) 122 West Franklin Avenue, Suite 306Minneapolis, MN 55404 Tel/TDD: 612-870-7073 Fax: 612-870-9085 e-mail: home01@isd.net www.mnhomelesscoalition.org Your financial support will ensure that we can continue to educate and activate communities and policy-makers on solutions that stabilize the lives of individuals, families, and communities. We will strengthen our communities when we provide affordable housing to all of our workers and people on fixed incomes. We will build a strong foundation for our future by ensuring that the needs.of our children and youth aremet in their formative years. And we will assure that our community includes all its members when our most vulnerable citizens receive the supports they need. The Minnesota Coalition for the Homeless has been fighting=tirelessly to accomplish these goals.: With your support we have and will continue to: Create local, state, 'and federal policies that bring us closer to our goal and better serve the. needs of individuals and families who experience homelessness. Participate in regional planning to expand successful programs, assess gaps in services, and coordinate a statewide response to homelessness and the affordable housing crisis: Inform the public and raise community awareness of the impact of homelessness and the needtoendit Sponsor trainings to strengthen andlor improve programs for individuals and families experiencing homelessness. ` • Ending homelessness will take commitment,`collaboration, and courage. But it is a goal well within ourability to accomplish. With your help we can end homelessness! Sincerely; ts Michael Daht Executive Director; P SWe should, we can, and we will.BRING Mll\1NESOTA HOME! A tax-deductible contribution of$35, $50, $100,. $150, or whatever you can afford brings us closer fo making the:dream of a home a reality for everyone in Minnesota , study of the Relationship tween Affordable Family ental Housing and Home Values in the Twin Cities Final Report Prepared for: Family Housing Fund Minneapolis, Minnesota September 2000 A afield Research Inc. r510 Marquette Avenue Suite 300 Minneapolis, MN 55402 612.338.0012 V SUMMARY OF FINDINGS Specific Findings The homes that were sold in the subject areas around the 12 tax-credit developments in our study, in general, displayed similar or stronger market performance in the period after the tax-credit properties were built, as well as similar or stronger performance to comparable homes sales from a control group. We identified generally upward price trends, declining market times and stable or improving sales-to-list price percentages in most submarkets, over the six-year study period. Some subject areas displayed poorer market performance after construction of the tax- credit development in question as compared to before it, or poorer performance as compared to a comparable control group. However, such poorer performance was almost always limited to one year, or isolated among one group ofhomes in a subject area;there was little to suggest that there was a sustained, negative, post-construction trend in any given neighborhood surrounding a tax-credit development in this study. As a group, the subject areas had far higher average annual per-square-foot price appreciation after the tax-credit developments were built than before: 5.9%versus .9%. Housing style did not make a difference, as significantly superior growth in the post- construction period occurred among both townhomes and single-family homes in the subject areas, collectively. The ability for sellers to gain the prices they asked for was not impeded in the years after the construction of the tax-credit developments under study, as sales-to-list price percentages among homes sold in the subject areas were generally higher in the post- construction period than in the pre-construction period. Market times for homes sold in the collective subject areas were shorter in the post- construction years than in the pre-construction years, with the exception of single-family homes in period post-2, which showed a 24-day jump over the previous year. In this case, the jump in market time did not exceed the low point from the pre-construction period. This suggests that the market, in terms ofselling time, varied in similarfashion before and after tax-credit housing construction. We found that the subject areas, as a group, exhibited slower average sales price growth in the pre-construction years than the Twin Cities Metro Area overall (2.95% versus 4.23%). However, after construction, the gap in performance between the subject areas and the Twin Cities narrowed by a halfpercentage point. This indicates that, rather than weakening after construction, the markets surrounding the tax-credit developments became stronger as a group, relative to the Twin Cities overall. The subject areas performed similar to their respective control markets, as revealed in the subject-control comparison. Of the roughly 1,400 market-performance measurements we completed in the subject areas in the post-construction years, 96%fell within the range of values ofsimilar age and size control group peers from the respective larger market.Just I MAXFIELD RESEARCH INC. 2 F INTRODUCTION, PURPOSE AND METHODOLOGY Background and Purpose of Research This report explores the relationship between affordable, family rental developments and the values of the owner-occupied homes that are located near them. Many in the Twin Cities community are keenly interested in understanding this relationship, and for good reasons. Apartment vacancy rates overall in the Twin Cities are well below 2%, presenting great difficulty to many prospective renters. Very little construction of new apartments has occurred in the past 10 years in the Twin Cities, with the bulk of the scarce, new supply serving the relatively small, upper-income market. Rental rates, stimulated by a strong economy, strong growth in the base of households and little increase in housing supply, have increased dramatically in recent years. Finally, there is a growing consensus, that, without a significant increase in the supply of affordable rental housing for working households, the Twin Cities will not achieve the level of economic growth that policy makers are planning for. Since the late 1980s, the main vehicle for providing new, affordable rental housing in the Twin Cities has been the Federal Section 42 Tax-Credit program. Housing built through the tax-credit program typically targets moderate-income working households with family incomes between roughly $20,000 and $30,000. Low-income households with Section 8 certificates or vouchers may also rent in these developments, but the majority of occupants are moderate-income working households. More than 60 tax-credit family rental developments have been constructed throughout the Twin Cities since 1990, often in the face of strong opposition. A consistent claim by the opposition is that tax-credit rental housing in a neighborhood causes a decline in the value of the surrounding owner-occupied properties. Determining the accuracy of this claim, then, is the central purpose of this report: 3 Is there any evidence to support the claim that tax-credit,family rental developments stimulate a decline in nearby housing values? Overview of Assignment and General Outline Maxfield Research was hired for this assignment by the Family Housing Fund, a Minneapolis- based non-profit agency that supports the development of affordable housing throughout the Twin 1 Cities. The Family Housing Fund initiated this research to help policymakers, housing developers and other interested parties understand the impact of affordable housing on communities. This research focuses on residential areas in the Twin Cities suburbs that surround recent(mid- 1990s), affordable, family rental housing developments that received tax-credit funding through an application to the Minnesota Housing Finance Agency (MHFA). The research analyzes key market-performance measures to determine whether there are any meaningful, measurable MAXFIELD RESEARCH INC. 7 3 INTRODUCTION, PURPOSE AND METHODOLOGY Identify Affordable Family Rental Sites in the Twin Cities Suburbs Built Between 1993-1997 Identify the "Subject" Area Around Each Development the area in which an impact would most likely occur) Assess Market Trends: a) Pre- and Post-Construction Start of Affordable Development, and b) As Compared to a Control Set of Sales Calculate Key Measures to Determine Impact" on Owner-Occupied Housing Market: Sales Price Per Square Foot Percent Sales Price to Asking Price Number of Days on the Market Research Considerations: Other Neighborhood or Adjacent Property Characteristics That Could Impact Home Values MAXFIELD RESEARCH INC. 9 INTRODUCTION, PURPOSE AND METHODOLOGY three years before and after a given development was built, the period for construction start for developments is limited to 1993 through the first quarter of 19972. Construction Start" as the Critical Event We focused on the construction start date for developments as the critical event determining the point at which negative impact on the market(if any) would begin to occur. We compared this event to other development milestones including the date of planning approval,the date of initial occupancy or the date offull occupancy. Construction start signals the first significant change to the physical landscape and is the only event that we can safely assume potential buyers would surely note. Conversely, the other events could pass with little or no knowledge to buyers and/or sellers. Seeing a tax-credit development under construction in a neighborhood they are considering allows buyers to factor their concern into the purchase decision; they can decide not to purchase leading to longer market times for the buyer) or they can offer sellers a discounted price. Screening of Tax-Credit Developments for Analysis We considered 31 family rental developments located in the Twin Cities suburbs that received new construction, tax-credit funding between 1991 and 1996; they were taken from a list provided to us by the Minnesota Housing Finance Agency. We then completed one or more visits to each site, including in our analysis those developments that were located in or adjacent to areas of dense owner-occupied housing. Conversely, we eliminated from further analysis those developments located in areas where owner-occupied housing did not occur on adjacent sites, or was present in such low amounts that resulting home sales were infrequent and/or low in number. We also eliminated developments due to their seniors-only status or, in the case of one site, its lack of existence. Table 1 on the next page shows all of the sites initially considered for analysis, broken out by those ultimately used in the study and those eliminated from further consideration for any reason. Demarcating Areas for Analysis Around Subject Sites (Determining"Subject Areas") A common approach for selecting an "impact" area (where negative impact is likely to occur) is to draw a radius, say one-quarter or one-half mile, around the subject site. We chose not to follow Expecting a construction lag of one year or more past MHFA funding approval,we selected for initial screening only those developments funded between 1991 and 1996,according to MHFA documents.Park Side Townhomes in Burnsville, funded in 1990 and constructed in 1991,is the lone exception. We completed significant data collection on Park Side before discovering its relatively older date,and thus decided to keep it in the group of subject sites. AAA n Rru rUr 11 INTRODUCTION, PURPOSE AND METHODOLOGY this method because it ignores the impact of manmade and natural features in determining a neighborhood (a housing market area). Instead, we selected subject areas by considering the constraints posed by natural and built features, especially major roadways, retail or commercial properties, city parks, railroad tracks, lakes, rivers and significant changes in topography. All of these features can segregate an area in the minds of residents and buyers, and therefore are vital to consider in selecting a subject area. In general, the subject areas in this study include all owner-occupied homes within a 2-3 block area surrounding the tax-credit development, given that they are not separated from the subject site by one of the features mentioned above. In some cases, subject sites are oblong shaped,with the tax-credit development at one boundary edge(near a commercial center, highway, etc.),while the subject area surrounds it on two or three sides. In most cases, the number of homes included in the subject areas ranges from 100 to 200 homes. Housing Submarkets Within Subject Areas and the Difficulty They Create for Pre-and Post- Construction Analysis Many of the subject areas analyzed in this report display a wide variation in their housing stock. Several areas around the affordable developments under study contain a mix of single-family homes and townhomes that also vary in size by as much as 2,500 square feet, and in age by as many as 35 to 40 years.This variation in housing styles, ages and sizes illustrates the existence of submarkets within subject areas, each subject to different supply and demand forces. The presence of housing submarkets within subject areas presents difficulty to comparing data from year to year. This research encountered several instances where the housing sold in one period within a subject area was so unique that it could not be reasonably compared to housing sold in any other year,thus completely disrupting any attempt at time-series analysis. Variability in housing age, in particular, presented a unique challenge to ensuring comparability across years. Ten of the 12 subject areas in this report experienced the development of new housing during their respective 6-year periods; new homes, in general tend to sell for strong prices, near or above 100%of asking price and often, in a very short period oftime. In some subject areas, units that sold as"new"during the early years of the study period came up for resale in the latter years of the study period, further complicating the analysis. To keep sales records comparable across years for time-series analysis, to recognize the existence of narrow submarkets in subject areas, and to eliminate possible price-inflating influences of newer sales, we segregated sales records into two housing-style categories and three age categories: MAXFIELD RESEARCH INC. 13 INTRODUCTION, PURPOSE AND METHODOLOGY Using Sales Price as the Measure of Home "Value" The "value"of a home can be expressed in several ways. Cities assess homes for value based on a formula and the subjective opinion of a city employee. Insurance companies assign value for replacement or repair. Homeowners derive value, albeit intangible and subjective, in the pleasure of owning a home that fits their lifestyle and from the sense of security they experience by being part of a neighborhood. All of the above measures are important, but disputable, depending on perspective. Conversely, a home's open market dollar value-the price a seller can obtain on the open market- is indisputable. As well, dollar value is easily transferable between parties and universally understood. It is this measure of value on which we concentrate most in this study. Secondary measures that are important to property owners (and that we measure in this study)are the speed at which a home sells (days on the market)and the degree to which an owner can obtain a price that appears fair in the larger market scheme (sales to list price percentage). Both have implicit economic value, but relate more directly to the emotional satisfaction that a seller receives at the time of sale. Specific Notes on the Exclusion of Property Assessors' Data Many studies of housing value utilize data from government assessors' offices. We chose not to use this data for the following reasons: Most importantly, assessed values are the opinion ofgovernment officials, not the open market. Assessed values in price-increasing markets (much of the Twin Cities during the 1990s) generally lag true market values by a considerable percentage.The magnitude of this lag varies depending on the community and the specific property, and is difficult to measure. Many city assessor's offices do not maintain historical records on assessed value, but instead keep values from only the past two to three years. This clearly presents an overwhelming obstacle to a six-year time series analysis of changes in value. Many city offices maintain records in non-digital, paper formats that are time-consuming to work with. Discounting of Home Prices During the Plannine Stages of Developments (Prior to Start) We do not believe that, in general, mere knowledge of an upcoming tax-credit development during the years before it is built would lead to price discounting by sellers or buyers in the immediate area. This assumption is particularly important in period pre-I (the last year prior to MAXFIELD RESEARCH INC. 15 INTRODUCTION, PURPOSE AND METHODOLOGY Size also provides the benefit of serving as good a proxy for a wide range of features that are a function ofsize, and often considered as unique variables in their own right in a regression analysis. For example, some research measures the number of rooms in a home, especially bedrooms and bathrooms, believing that more rooms (or the presence of certain rooms) correlates to a higher price. However, homes usually become larger to accommodate these features. It is the larger size that most closely correlates to a higher sales price, not necessarily more rooms of one type or another.6 Subsequent sections of this report,those that present the pre-and post-analyses of market performance in the subject areas, compare groups of homes based on their median finished square feet, as well as their median age. For example,a four-bedroom house with the same square footage as a three-bedroom house must compromise some space(relative to the three-bedroom house)to accommodate the additional bedroom.Thc bedrooms themselves may be smaller,or the extra bedroom may be in lieu of a family room,breakfast nook or other desirable feature found in the three-bedroom house. In this example,both houses could sell for the same price-depending on the desires of the buyer- regardless of the number of bedrooms. MAXFIELD RESEARCH INC. 17 CONCLUSIONS the larger community. In this section, we compared subject and control sales in 68 submarkets spread across all 12 subject areas. General Conclusions This report documents little or no evidence to support the claim that tax-credit rental housing for families has a negative impact on the market for owner-occupied housing in the surrounding area. The homes that were sold in the subject areas around the 12 tax-credit developments in our study, in general, displayed similar or stronger performance in the period after the tax-credit properties were built, as well as similar or stronger performance to comparable homes sales from a control group. Certainly, there were some exceptions, and some areas displayed poorer performance as compared to a pre-construction period or to a control group. However, such poorer performance was isolated in time or limited to one submarket, and did not suggest that there was an overall negative trend in any given neighborhood surrounding a tax-credit development in this study. Some areas experienced a negative decline in market performance for one year after construction, or one submarket displayed comparative difficulty, but in no instance did any subject area consistently show poorer performance among all its constituent submarkets, on all performance measures, in all post-construction years. Rather than negative impact, the evidence suggests to us that the various housing submarkets surrounding the tax-credit properties in our study performed normally, exhibiting similar levels of variability before and after tax-credit construction, and responding to supply and_demand forces in similar fashion as the larger market. Conclusions: Pre and Post Construction Comparison Our research found that, as a group, the subject areas had far higher average annual price appreciation after the tax-credit developments were built than before, 5.9% versus .9%. Housing style did not make a difference; significantly superior growth in the post-construction period occurred among both townhomes and single-family homes in the subject areas, collectively. In addition, the ability for sellers to gain the prices they asked for was not impeded in the years after the construction of the tax-credit developments under study, as sales-to-list price percentages were generally higher in the post-construction period than in the pre-construction period.This was clearly true for single-family homes and generally true for townhomes. The exception for the latter group was the first year after construction, in which existing townhomes • displayed a decline in sales to asking price percentage from 98.1% the previous year to 97.6%. However, this slight tail-off still fell within the range of values from the pre-construction period, for which 97.0% in the third year before construction was the low point. MAXFIELD RESEARCH INC. 102 CONCLUSIONS Critics of this methodology can claim that we compared subject area prices to a larger number of control area values, and that is why subject area values so rarely were at the bottom end of the rank. However, we would expect that, subject area performance measures, as evidence of negative impact by tax-credit housing,would be predominantly found at the low,end of the rank, regardless of the number of control area values they are compared to. One subject area,Arlington Ridge merits further research. Existing townhomes around Arlington Ridge took significantly longer to sell than their control area peers in the second and third years after construction of the development. However, this submarket is just one among 68 we analyzed. This indicates to us that negative impact by the 12 tax-credit developments in our study, at worst, was limited to relatively longer market times among one submarket of units, in one subject area, over two years. I k 1 I I MAXFIELD RESEARCH INC. 104 r