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HomeMy WebLinkAbout06/11/1991I~PLE~OOD HOUSING ~ REDEVELOPHENT ~UTHOR~T¥ JUNE 11, 1991 7:00 P.M- CITY HALL I~PLEWOOD ROOM 0 Call to Order Roll Call Approval of Minutes a. April 9, 1991 Approval of Agenda Communications Unfinished Business a. Federal Housing (HUD) Program information and Ramsey County Comprehensive Housing Affordability Strategy New Business a. Discussion of Certificate of Occupancy Programs and the Inspection of Rental Properties (1) Jim Embertson, Fire Marshal, Maplewood (2) Robert Wenger, Environmental Health officer, Maplewood b. 1990 - 1991 Annual Report Date of Next Meeting a. July 9, 1991 Adjournment HRAAGEND · MEM MINUTES OF THE NAPLEWOOD HOUSING AND REDEVELOPMENT ~UTHORITY APRIL 9t 1991 CALL TO ORDER Chairperson Fischer called the meeting to order at 7:05 p.m. ROLL CALL HRA Commissioners: Lorraine Fischer, Tom Connelly, Larry Whitcomb, Lori Tauer City Staff: Ken Roberts APPROVAL OF AGENDA Commissioner Connelly moved to amend the agenda moving item 7. a. - Discussion of Certificate of Occupancy Programs ahead of item 3. Commissioner Whitcomb seconded Ayes--Fischer, Connelly, Whitcomb, Tauer NEW BUSINESS a. Discussion of Certificate of Occupancy Programs Joanne Velde, housing inspector in Minneapolis, explained the new licensing requirements for rental units in the City of Minneapolis which became effective on January 1, 1991. Ms. Velde said Minneapolis has approximately 100,000 rental units. Ms. Velde said Minneapolis is trying to go back to a routine inspection program instead of being complaint driven. Ms. Velde said there are several problems encountered with this program, including old age of buildings causing the deterioration of rental housing stock and landlord and tenant problems. Steve Zaccard, fire marshal of St. Paul, said St. Paul has 3,000 buildings with 3 or more rental units totaling approximately 31,000 units. St. Paul fire inspectors will be inspecting the rental buildings once every other year. The buildings must comply with state fire code, St. Paul housing maintenance code and trades codes. The fees collected for the inspections cover approximately 40% of the cost. Mr. Zaccard said St. Paul requires approximately two weeks notice prior to doing the inspection. The inspector must inspect at least 25% of the units. He also discussed the need for the inspectors to use discretion when inspecting an existing building. Mr. Zaccard and Ms. Velde both HRA Minutes 4-9-91 -2- Se agreed Ramsey County's housing court is very helpful in getting action for changes to troublesome properties. Mr. Zaccard explained that in 1985, St. Paul merged a total of eighteen housing, fire, and health inspectors into the fire marshal's office in preparation for the certificate of occupancy program. They also have offered training for inspectors on various trades, ordinances and rules. St. Paul does not address tenant behavior directly. Mr. Zaccard said it is important to certify a building for occupancy, rather than a "blanket" certificate of occupancy. He also stressed that public and owner information programs are helpful when starting a new program. The commission discussed this program. It was noted the Council should provide policy direction on this matter. The commission recommended scheduling a joint HRA-Council work session to discuss the program. The commission also would like to have an education program. The commission suggested a tour of rental properties showing the typical problems found in rental property and also, those which have had numerous complaints issued against them. APPROVAL OF MINUTES a. February 12, 1991 Commissioner Connelly moved approval of the minutes of February 12, 1991, amending item 7. b. - Group Home Presentation to include the following: "It was suggested that the city visually monitor group homes to observe any problems or possible violations of codes. The group home can then correct the problem and be brought into compliance with code before there is a negative affect on the neighborhood." Commissioner Whitcomb seconded Ayes--Fischer, Connelly, Whitcomb, Tauer COMMUNICATIONS There were no communications. ~ HRA Minutes 4-9-91 -3- UNFINISHED BUSINESS ae Definition of Objectives and Tasks from HRA Annual Report Secretary Roberts explained the staff report. Commissioner Fischer suggested that staff try to include an article pertaining to housing in each Maplewood in Motion, which is published six times a year, and possibly include pictures. Suggested topics were truth-in-housing, the housing maintenance code, and an explanation of what each commission does, along with a list and pictures of members. The commissioners decided to consider what items they would like to feature for future articles and discuss them at the next meeting. Commissioner Fischer suggested that sometime over the summer, updated articles on truth-in-housing be published in area papers. Commissioner Fischer suggested that building trade- union programs may exist to provide help in repairing deteriorating housing. The commissioners added the certificate of occupancy program and the review of the truth-in-housing ordinance as task goals for 1991. The commissioners requested Secretary Roberts get copies of St. Paul's certificate of occupancy ordinance and prepare questions for Council. They also suggested Mr. Roberts invite the building official, fire marshal, and health official to the next meeting. b. Federal Housing (HUD) Program Information This item was tabled until the next meeting. NEW BUSINESS b. Election of Officers Nominations at this time were accepted for chairperson. Commissioner Connelly moved Lorraine Fischer be re- elected as chairperson. HRA Minutes 4-9-91 -4- Ce Commissioner Whitcomb seconded Ayes--Connelly, Whitcomb, Tauer Abstentions--Fischer Nominations at this time were accepted for vice chairperson. Commissioner Connelly moved Larry Whitcomb be elected as vice-chairperson. Commissioner Fischer seconded Ayes--Connelly, Fischer, Tauer, Whitcomb Nominations at this time were accepted for secretary. Commissioner Connelly moved Lori Tauer be elected as secretary. Commissioner Whitcomb seconded Ayes--Fischer, Connelly, Whitcomb Abstentions--Tauer Code Change: Sideyard Setbacks Staff explained they have revised this proposed code change, adding another alternative, and are submitting it at this time to the HRA for consideration. The commission discussed the history of this proposal. Commissioner Fischer moved the HRA recommend no change in the Sideyard Setbacks Ordinance. Commissioner Connelly seconded Ayes--Fischer, Connelly, Whitcomb, Tauer DATE OF NEXT MEETING a. May 14, 1991 ADJOURNMENT Meeting adjourned at 10:15 p.m. TO: FROM: SUBJECT: DATE: City Manager Ken Roberts, Associate Planner Ramsey County Comprehensive Housing Affordability Strategy June 6, 1991 INTRODUCTION Ramsey County has started preparing a Comprehensive Housing Affordability Strategy (CHAS). This is so the County will conform with the requirements of the 1990 National Affordable Housing Act. The CHAS will be a plan of action for all future housing projects in Ramsey County using Federal money. All housing projects using Federal funds, including community development block grants (CDBG), will have to be consistent with this plan. It will set general evaluation standards and priorities for these housing projects. (See the attached article from Plannina for more information.) The County is asking housing agencies and cities for suggestions, by June 28, on developing the CHAS. After the County staff is done preparing the CHAS, the County Board will hold a public hearing and consider adopting the CHAS. DISCUSSION The CHAS must have five parts. This includes the needs of the homeless, local housing trends, housing priorities, resources to implement a strategy and implementation plans. Maplewood's comments should be about these five subjects. The City should advise the County of our needs so the County will include them in the CHAS. This may help the City if we apply for Federal funding through the County, such as a Community Development Block Grant. RECOMMENDATION Prepare a list of suggestions for the County to include in their Comprehensive Housing Affordability Strategy (CHAS). This list should include affordable housing for seniors and low-to-moderate income persons, housing rehabilitation loans and grants, money to purchase and demolish substandard homes, and the construction of three and four bedroom rental units. kr/memol6.mem (4.6) Attachment: Article from June 1991 Planninq. 32 Planning June 1991 P L A N N I N G N E W HUD Requirements Stir Complaints Public interest groups are unhappy about a set of interim regulations enacted in March by the U.S. Department of Hous- ing and Urban Development. The regula- tions are intended to guide local governments in preparing the Compre- hensive Housing Affordability Strategies {CHAS) required by the Cranston- Gonzalez National Affordable Housing Act, which President Bush signed into law in November. According to the housing act, state and local governments seeking funds from HUD's community development block grant program, the McKinney Homeless Assistance Act, and other federal programs must submit a strategy report by October housing officials prepare a strategy re- port. (Contact the center, 1000 Wisconsin Ave., N.W., Washington, DC 20007; 202- 342-0519.) Another complaint was that the regula- tions require communities to document their housing problems, but do not re- quire them to spend funds to resolve the problems. As state and local governments rush to prepare their reports, a HUD official says the agency will be 'very flexible' in its re- view. 'We realize time is short, ~ that a lot of census data are not ready, and that many smaller communities don't yet have the planning capacity needed to put to- gether a CHAS,' says a staff member 31. The reports must include five compo- in the Office of Community Planning and nen~s: the needs ot the homeless, local Development, who asked not to be iden-I ~usin~---~i'~k-~t trends-~, hous~-':----~$ invest- tiffed. ment priorities, res~8 imp_lement-a Karen Finucan -Strhtegy, and i~-~T~m~lans. - ~h · .. ~.~ r,. 7 . . -- . Finucan is APA's public inlormation director./ tn ~vtay, ~u puouc ~nterest groups, ~n- cluding APA, submitted their comments ~,.r777--7--. -- on the interim regulations. Many of the Mississippi Delta Towns comments criticized the regulations be- t Wel'tm~me Prisons cause they did not ~andate extensive I Three tow'hs...in the lo),,r6r Missisisippi citizen participation. These regul,ations / Delta will be the-"s~a~..ot~50 million federal deny the very nature of planning, says ] prisons, ifeackea~ns'acleanbillofhealth Edward Gramlish, a federalprograms spe- } followi~g~ronmen~al-i.mpact studies cialist with the Center for Community I about~l~get under way. Co-"nstruction of Change in Washington. The center has I the t~ree~>risons would begin in"l:9O..3 and published a guide to help planners a~] be completed by 1996. YazooCity, Mi'ssi& Houston's Metropolitan Transit Authority voted bt March to build tire nation's first urban monorail system. Metro expects to sign a contract next month with the Transportation Group, Inc., of Orlando, which will supply the cars, and with the Kiewit Construction Group of Omaha, which will build the structure. Tire 24-mile, $1.09 billion project will be built bt three segme, ts, all originating downtown. Houston's system is the urban version of the monorail at Disney World itt Orlando. sippi, and Forrest City, ~il', the first federal prisons in theirgtates. The third facility will be built in Pollack, Loui. he state already has/a federal ~Oakdale. ff~g for the prisons b.~gan in the mid- 1980s, when a bipa/rtisan group '~ of congressio,~al represen. tatives froth the area in. troduced/legislation to establigh the Lower M~ss~s~pp~ Delta De. velolJment Commis. sio.r/' to study the regqon. The commis. sion concluded that pri:~on construction co~ld stimulate the delta'.s lagging economy. In 1985,/the average annual income in the delta~as $8 224 compared to $12 466 for the/entire'U.S'.; in 1988, unemployment in/the delta reached 8.5 percent, compared to 5.5 percent nation- wide. Last year, tile Senate Committee on Appropriations direCted the Federal Bu. reau of Prisons to evaluate the region f0r~ prison siting ds a way to alleviate ' area's persistent poverty. The Yazoo City project had strong com. munity backirlg, according~ to Robert Priest, a member o'f the to~n s~ planning and zoning comlflission. I neyer heard of a single oppodent,~ he says. "yWe even had buttons prifited.~ Daniel Dunne, a spokesman for the federal bt~eau of prisons, sfiys that atti- tude is no! uncommon. "We h'ave numer- ous examples of communities ~pplauding our deci~fion to build a prison'xthere be. cause of/the ccononuc bencfr{s, says Dunnc. tSometimes a communit~ comes to us t%~'equest a facility." \ A m~jor reason for the enthusiasm is tile prisons' economic bcncfits. Sod~c 300 constrlaction workerswill be hired to, build each qfthe three new facilities, according to the~ Yazoo County Chamber of Com- merce. Each will employ about 250 people, with about 60 percent of tile staff coming from the surrounding community, the prison bureau estimates. Another 80 jobs will be created in each community as a result of payroll expenditures, according to the bureau. Nationwide, growth in the prison p lation is expected to continue and wit. similar opportunities for other communi. ties. Today, 67 overcrowded federal pris- ons house 61,000 inmates, with 98,000 inmates expected by 1995. TO: FROM: SUBJECT: DATE: City Manager Ken Roberts, Associate Planner Rental Property Licensinq and Inspection June 7, 1991 INTRODUCTION The City Council asked staff and the HRA to investigate a licensing and inspection program for rental properties in Maplewood. The Council thought this might be an alternative to truth-in-housing inspections and compliance for rental properties. BACKGROUND The City does not require a license to operate a rental property. Inspections of rental properties are done by City Staff only if someone makes a complaint about a property. The City Fire Marshal, however, inspects each rental building of three or more units once a year for life and safety compliance. This is a department policy, not a code or State law requirement. If the Health Officer finds a code violation in a rental property now, he can write orders to the owner to have the problems corrected. If the owner does not make the necessary corrections, the Courts handle the matter. If the City determines there is a life or health safety problem, the City can declare a unit or entire building unfit for human habitation. ~LTERNATIVES Do not require the licensing and inspection of rental properties. Staff would continue to inspect rental properties only from complaintse Require a City license without a mandatory inspection to operate a property with rental housing. The only purpose for licensing rental properties is to collect fees to cover the City for the costs of inspections. Staff feels that licensing rental properties would not help with the enforcement of ordinances. The rental housing code gives maintenance standards and provides for the enforcement of these standards. The City declare units unfit for human habitation if there is a threat to health or safety, regardless of licensing. Requiring the licensing of rental properties would require more staff time. This would be for staff to be sure that each rental property has a City license and for the work in issuing them. Property owners would probably pass on any increased costs (such as license fees) to the tenants through rent increases. the buildings. Licensing alone would not improve ® Require rental building licensing subject to the structure passing an inspection by the Health Officer and Fire Marshal. This would be a system to try to stay ahead of problems and code violations in rental properties. This is similar to the programs that Saint Paul and Minneapolis use. (See the reference section on page 4 for more information.) DZBCUBBZON A difficulty for staff in the inspection of rental properties is the rental housing maintenance code. The City Council adopted the rental housing maintenance code on June 5, 1980. There are several items not covered by the code that staff feels should be. Much of the language in the code is out-dated by Maplewood's standards. If the City strengthened and up-dated the code, it would help staff and the City in dealings with rental housing problems. Some areas of concern with this code are about the maintenance of landscaping and yards, driveways and parking areas, fences and lighting. The maintenance requirements for the interior areas are also incomplete. This includes graffiti, the repair of the provided appliances, clarifying about rubbish and garbage disposal and window locks and screens. I feel the code should be re-written so it is easier to read. It should also clearly define what the responsibilities of the property owner and the tenants are. If the Council adopts an improved rental housing maintenance code, it will benefit the tenants and the City. Making no change about the inspection of rental properties requires no additional City staff. The current system does have problems, however. It limits staff in what staff they can require a property owner to fix or repair. This is because the rental housing code has limits. Thus, the City has had limited success with some rental property owners. Staff feels that if the City improved the rental housing code it would be better for the City and the tenants. Maplewood can now declare a unit or a building unfit for human habitation if staff determines there is a life or safety hazard. A rental housing inspection program like Saint Paul's should help to promote the public health, safety and welfare. It will also help assure the preservation of the existing housing supply and help to maintain property values. Such a program should help to improve the condition of the rental housing. Requiring an inspection for a license to operate a rental property will not change what the City can do about life safety concerns. Maplewood now has the power to declare housing units unfit for human habitation if necessary. An active inspection program in Maplewood would require additional staff time. This is because of the need for regular inspections, the required record keeping and possibly additional training for staff. The City would have to develop and carry out an education program for the property owners and tenants. This is to get the most effect from such a program. This would require additional staff time. I estimate that Maplewood would need an additional one-half time housing inspector and an additional one-half time clerical person for a proactive inspection program. It is unlikely that the City would hire the additional staff necessary to make the program work with the current budget difficulties. If the City feels that an active inspection program for rental properties is necessary, then the Council will have to approve the hiring of additional staff. Without this additional staff, I fear that an active inspection program would be difficult for the City to run. Staff does not believe that requiring an inspection of a rental property will improve their quality without an improved maintenance code. If the City wishes to require the inspection of rental properties, the Council must consider several matters. This includes the staffing, which buildings to require inspection of, which department will be responsible for the program and the necessary education to make the program work. These will take time and money on the City's part. RECOMMENDATION Direct staff to revise the Rental Housing Maintenance Code. REFERENCE Saint Paul uses a certificate of occupancy program for buildings with three or more rental housing units. Saint Paul has a provision in their City Code requiring rental properties to meet all Code requirements or they may revoke the certificate of occupancy. This includes the Fire, Zoning, Housing and Building Codes before the City will renew a certificate of occupancy. Saint Paul must approve a building's certificate of occupancy once every two years. This is done by having an inspector from the Fire Marshal's office do an inspection of the property. This inspection is done at least one time every two years. In Minneapolis, every rental dwelling (including single dwellings and rental units in duplexes) must have a rental license issued by the City. Minneapolis began their program on January 1, 1991 so they are just getting it under way. Minneapolis issued all rental properties a temporary license until the City can make an inspection of each property. In Saint Paul, if the City revokes a building's certificate of occupancy, the property owner cannot legally operate the building as a rental property. This system motivates the owners of rental property to correct the problems without displacing tenants. That is, the rental property owners know that they must meet the codes or the City may revoke their certificate of occupancy. If the City does revoke a certificate of occupancy and the owner does not correct the problems, Saint Paul may condemn the violating units or the entire building. In Minneapolis, rental properties must pass an inspection by a City inspector to keep their rental license. A point system from the Housing Maintenance Code is the basis for this. If a property in Minneapolis does not have a rental housing license, the owner cannot legally use it as a rental property. kr/memolS.mem Attachments 1. Maplewood Rental Housing Maintenance Code 2. Saint Paul Building and Housing Ordinance Section 33.05 (Certificate of Occupancy) 4 June 6, 1991 City Council Maplewood City Hall 1830 E. County Road B Maplewood, MN 55109 HI~ ~B~UAL REPORT - I~%RCH 1990-FEBRUARY ~99X Following is the Maplewood Housing and Redevelopment Authority's (HRA) Annual Report for March, 1990 through February, 1991. This year the HRA had seven meetings. The HRA spent much of this meeting time discussing and reviewing the Truth-in-Housing Ordinance. Commissioner Carlson resigned from the HRA in December ~990 to concentrate on his City Council duties. A list of the members and their attendance is on page 5. PROGRAM PARTICIPATION During the year the City participated in three programs run by the Metro HRA. The City also participated in four programs run by local lenders. (See Exhibits B and C, pages 6 through 9.) Through these programs, 215 housing units received aid in 1990. For information on loans, see Exhibit B. The number of Section aided households decreased from 189 last year to 173 this year. HOUSING AND PLANNING ITEMS CONSIDERED The ~RA spent many hours working on the Truth-in-Housing (T-I-H) Ordinance and the inspection forms for the program. The HRA also reviewed amendments to the T-I-H ordinance and program as were necessary. In addition, the HRAworked on the Housing Plan Update as part of the Comprehensive Plan Update. The City Council appointed Commissioners Fischer and Carlson to the Maplewood Seniors and Others With Special Living Needs advisory committee. Commissioners Carlson and Fischer have also served on the Home Share Task Force Commission. Page 12 shows 1990-1991 HRA Annual Report Page 2 the Share-A-Home statistics. The Share-A-Home budget for 1991 is $22,974. Funding includes $9,987 from the Minnesota Housing Finance Agency (MHFA), $11,487 from a Community Development Block Grant (CDBG) from the County and from the fees collected. This program usually requires that the participating communities provide some of the funding. Maplewood had no funding cost in 1991 because of extra CDBG funding that the program received. Maplewood's share of this cost in 1992 will be about $3,000. This is because the program will no longer receive CDBG funding. EMERGING CONCERNS The Truth-in-Housing Ordinance became effective on January 1, 1991 and sunsets in June of 1992. The HRA will be reviewing and making recommendations about the Truth-in-Housing Ordinance before the sunset of the ordinance. Another area of concern is the poor condition of some rental properties in the City. Related to this is whether the City should have more control over rental properties. This might be through a licensing program, requiring regular inspections or having a certificate of occupancy program for rental properties. The HRA and City Council will be reviewing this matter in 1991 and 1992. After years of looking at senior housing needs, the HRA believes that support services are a necessary part of housing for seniors. There are a wide variety of services available from an equally wide variety of sources. These include government agencies, quasi-public organizations and private groups. Information on what services are available and how to get help may not always be readily available to those in need. What is the role of the City in the resolution of these problems or the distribution of such information? Another more traditional area of concern to an HRA is that of neighborhoods with deteriorating housing. Maplewood has some areas of older housing which could deteriorate if the owners do not care for them. As appropriate, the HRA will review the issue and consider possible solutions to lessen the problem. Exhibit G (page 14) notes the possible changes in the housing market. The City should prepare for them. The numbers of people aged 25 to 34 in the region and country will be dropping. A possible effect from this population decrease may be a drop in demand for the modestly-priced single-family houses in Maplewood. This drop in demand for starter single-family homes may lower their selling prices. This would put more of them in a price range so more people could afford to buy them. 1990-1991 HRA Annual Report Page 3 1991-1992 WORK PROGRAM General Objectives Continue to participate in Metropolitan Council and MHFA programs. Continue to review ordinances and policies that may affect housing. Monitor subsidized housing plans for consistency with the City housing plan and the guidelines for tax-exempt, tax- increment and Community Development Block Grant financing. Keep informed on happenings and changes that will influence the availability of low-to-moderate cost housing. This includes following the development of the Ramsey County Comprehensive Housing Affordability Strategy plan. Use various media including Maplewood in Motion, the Maplewood Review, the St. Paul paper and sewer bill inserts, to improve public awareness of housing issues. This should include information about housing programs and developments in the City. The Maplewood in Motion could have stories about truth-in-housing, housing maintenance codes, and one that explains what each City commission does. Encourage and aid in the provision of life-cycle housing, including alternative housing for older adults. These efforts should include the City's continued participation in the Older-Adult Home-Share program. Task Goals Sponsor or review any necessary code or law revisions to address the problem areas in housing for City residents. This will include reviewing the Truth-in-Housing Ordinance and any changes about the inspection of rental properties or a certificate of occupancy program. Review and make recommendations to the City Council about the Ramsey County Comprehensive Housing Affordability Strategy (CHAS). Determine how suburban cities such as Maplewood can fund various support services for elderly persons. These services may include the home-share program. This program helps to keep elderly persons in their homes rather than sending them prematurely to a nursing home or apartment. 1990-1991 HRA Annual Report Page 4 Work with the seniors committee to determine how Maplewood can maintain an information and a referral service to aid older adults in finding available services. Sponsor or aid in any necessary code, law, or policy revisions to make this information readily available to Maplewood residents. Se Have a tour for HRA, Council and interested Planning Commission members of areas of interest or concern in the City. Classify each of the task-specific goals as high, medium, or low priority. WORKING WITH THE COUNCIL If the HRA feels that additional input or guidance from the Council is desirable, we will make a request for a shirt-sleeve work session. The HRA could also make a presentation under the "visitor Presentation" item on your agenda. Also included with this report, as Exhibit F, is an item we thought might be of interest to you. This is a summary of rental housing developed with tax-exempt financing. This includes number of units, amount of the bond issue, fees paid to the City, and federal financing restrictions. LORRAINE B. FISCHERv CHAIRPERSON Maplewood Housing and Redevelopment Authority kr\hrarpt90.mem Name Dale Carlson 1890 Barclay St. (55109) (Resigned) Thomas Connelly 1193 E. County Road B (55109) Lorraine Fischer 1812 N. Furness St. (55109) Gary Pearson 1209 Antelope Way (55119) Larry Whitcomb 518 E. County Road B (55117) EXHIBIT & HRA COMMISSIONERS Appointed 1/84, 3/88 1/84, 3/85, 7/90 4/75, 3/81, 3/86, 3/91 11/89 11/89 Term Expires 3/93 7/95 3/96 3/94 3/92 Meeting ATTENDANCE Carlson Connelly Fischer Pearson Whitcomb 3-13-90 x x x x x 4-10-90 x x x x x 5-8-90 x x x x 6-12-90 x x x x x 11-14-90 x x x x x 12-11-90 Resigned x x x x 2-12-91 x x x x kr/anrepexA.mem EXHIB'rT B ACTIVE HOUSING PROGRAMS IN MAPLEWOOD Managed by the Metropolitan Council HRA ae Rehabilitation Loan Program - owner-occupied (funded by MHFA): Three deferred loans: Total of program was $16,535. Maximum loan amount per application: $9000. Households with an adjusted income of $8500 or less are eligible for this aid. This program offers deferred payment loans. The loan payment may deferred unless the borrower transfers the property within ten years of the loan date. If this occurs, the loan amount must be repaid to the MHFA, but without interest. The purpose of this loan program is to help eligible applicants repair their homes to correct deficiencies directly affecting safety, habitability, energy use or handicap accessibility. The maximum loan amount per applicant is $9000. The State's data privacy act protects the locations of the loan recipients. Revolving Loan Program - Owner-occupied (funded by MHFA): One revolving loan: Total of program was $6236.24 Maximum loan amount per application: $9000. Households with an adjusted income of $15,000 or less are eligible for this aid. The program offers low- interest (3%) loans to eligible applicants that are unable to get rehabilitation funding aid from other sources. The purpose of this loan program is to help eligible applicants repair their homes to correct deficiencies directly affecting safety, habitability, energy use and handicap accessibility. The maximum loan amount available per applicant is $9000. The State's data privacy act protects the locations of the loan recipients. Ce Section 8 Rental Subsidy Program (funded by HUD): Eligible tenants pay a maximum of thirty percent of their gross income toward the monthly rent payment. The difference between the rent that the tenant can afford and the total rent is the Section 8 paid to the landlord by HUD. In December 1990, 173 Maplewood households (35 senior and 138 family) were receiving rental help. See Exhibit C for income and rent ceilings for this program. 2. Managed by Local Lenders a. Home Improvement Loan Program (funded by MHFA): The MHFA made 5 loans for a total of $37,319 in 1990. Households with an adjusted annual income of $27,000 or less may be eligible for home improvement loans of up to $15,000. The MHFA determines the loan interest rates by the borrower's income. The rates are between 3 and 9 percent. b. Home Energy Loan Program (funded by MHFA): The MHFA made 19 loans for a total of $62,806 in 1990. Homeowners may be eligible for loans at 8 7/8 percent interest rate. Under this program, loans of $1,000 to $5,000 are available for energy efficiency related improvements only. Ce MHFA Single Family Mortgage Loan Program (funded by MHFA): The MHFA made 8 loans totalling $569,936 in 1990. This program is first-time home buyers (FTHB). To qualify, an applicant's adjusted gross household income cannot exceed $37,500 for a new dwelling unit or $33,000 for an existing dwelling unit. The below- market interest rate mortgage money is available for the purchase of single-family units, townhomes, condominiums or existing duplexes. d. Homeownership Assistance Fund (HAF) (funded by MHFA): The MHFA made 8 HAF loans in 1990. Through this program, qualifying lower-income MHFA home mortgage recipients could receive downpayments and help with their monthly payments. kr\anrepexB.mem EXHIBIT C RENTAL ASSISTANCE PROGRAMS Existing Units - Section Household Types Family Elderly Totals One Bedroom 29 14 43 Two Bedroom 83 21 104 Three Bedroom 26 0 26 Four Bedroom 0 0 0 138 35 173 Of these 173 units, 149 are in multiple dwellings, 15 are in double dwellings and 9 are in single dwellings. Section S and Section Z36 Family Units Archer Heights* Lundgren Maple Knolls Totals One Bedroom 30 - 3 33 Two Bedroom 55** 13 32 100 Three Bedroom 4*** 16 20 26 Handicapped - __- 2 2 89 29 57 175 Elderly Units Archer Heights(l) Concordia Cottages(2) Totals Arms of Maplewood One Bedroom 64**** 124 20 208 Two Bedroom 40 40 (1) Archer Heights has 121 Section 8 units, 33 Section 236 units and 14 market rate units. Section $ and 236 rent and income guidelines are the same. (2) The Cottages of Maplewood has 31 lower and moderate income units (including 12 Section 8 Units). **There are also $ market rate units. ***There are also 2 market rate units. ****There are also 4 market rate units. Section S &nd 236 Income and Rent Ceilings Household Size CPersons) 1 2 3 4 5 6 7 8 Maximum Annual Gross Family Income $15,750 $18,000 $20,250 $22,500 $24,300 $26,100 $27,000 $29,700 Unit Type One Bedroom Two Bedroom Three Bedroom Maximum Allowable Rent (Includes gas and electricity) $464/month $550/month $688/month In the metropolitan area, the Section $ program is available only to the very low income - 50% or less of the median income for the metropolitan area. kr/rental.mem 9 EXH~'B'rT D HOUSING AND PLANNING PROPOSALS CONSIDERED Meetinq Date 3-13-90 4-10-90 5-8-90 Item 1. Truth-in-housing Code and inspection forms 2. Housing plan update Truth-in-housing Code and inspection forms 2. Housing plan update Truth-in-housing Code and inspection forms 2. Housing plan update Tax-exempt financing for Maplewood Rental Townhouses Action Taken Recommended changes Recommended changes Recommended changes Recommended changes Recommended changes Recommended changes Recommended approval 6-12-90 1. Housing Plan Update 2. HRA status report Commissioner Connelly reappointment Recommended approval Recommended keeping HRA Recommended approval 11-14-90 Revisions to the T-I-H Ordinance 2. HRAAnnual Report Two Houses on one lot ordinance amendment R-IS and R-2 zoning ordinance changes Recommended approval Recommended adoption Recommended approval Discussed and tabled l0 12-11-90 Minneapolis Housing Evaluators in Maplewood Inspection of Multiple Unit buildings Recommended no change Recommended all units 2-12-91 R-1S and R-2 zoning ordinance changes Presentation about Ramsey County Block Grants 3. Group Home presentation 4. Applicant interviews Recommended approval Recommended one person kr\anrepexD.mem 12 Exhibit E I 13 Exhibit F SUMMARY A REGIONAL HOUSING STRATEGY FOR THE '90s Proposed by Steve Keefe, Metropolitan Council Chair at the State of the Region Event March 7, 1990 ~ACKGROUND Although many of the housing problems we're used to will still be with us in the '90s, housing market conditions are expected to change dramatically. A decline of almost 22 percent in the number of people in the Twin Cities between the ages of 25 and 34 is likely to weaken the market substantially for modest-priced single-family homes, typically purchased as first homes by people in this age bracket. We've already seen this decline in the population aged 20-24, and it has led to record vacancy rates in apartments. If this decline occurs, it is also likely to have a chilling effect on the rest of the housing market since the sale of most more-expensive houses usually depends, sooner or later, on someone selling a modest-priced, single-family house in order to be able to purchase it. Neighborhood preservation problems associated with housing abandonment and the blight that causes it have traditionally been limited to older neighborhoods in the center cities. These problems are not likely to be so limited in the future. Over 40 percent of the housing in the first-ring suburbs was built in the 1940s and '50s and is now over 30 years old, an age at which major improvements frequently need to be made. At the same time, the region continues to experience a scrious chronic shortage of affordable housing for low- income people, particularly larger housing units with three or more bedrooms suitable for families with children. The poor continue to be concentrated in limited ncighborhoods in .the center cities, increasing the concentration of the social problems with which they are faced and the burden of those social problems on the cities in which they reside. If similar concentrations arise in smaller, less diversified suburbs as a result of these trends, those suburbs are likely to have even more difficulty in coping with problems that will accompany these concentrations. NEED FOR A REGIONAL STRATEGY Although many communities in the region are aware of these trends and are aggressively planning programs to deal with them, there is an urgent need for a regional housing strategy. The most appropriate local approach to the problem of declining older neighborhoods--aggressive investment and marketing--will not work for all neighborhoods simultaneously in a declining market. Such. strategies, if they are applied by all cities, will more likely mean that abandonments and vacancies will be spread throughout the cities and their blighting impact will exist in many neighborhoods. In such a situation, the market as a whole, and all communities in the region, will benefit from efforts by individual cities to clear obsolete dwellings and remove some of the excess supply or to divert those dwellings to other uses. As a result, there ought to be regional support for cities that undertake such efforts. Furthermore, an excess supply of modestly sized and priced housing is a resource that can be applied to accomplishing two other important regional objectives: 1) providing affordable housing for low-income families with children; and 2) giving a greater choice of where to live to low-income families, to reduce concentrations and increase the diversity of Twin Cities communities. Finally, the housing market in the Twin Cities includes a large number of important players. To the extent all can agree on a concerted strategy to deal with these problems, public and private resources can be much more efficiently used to accomplish public and private goals. No city or metropolitan, state or federal agency can alone deal with a problem of this magnitude. The solution requires an agreed-upon strategy being pursued by all EXHIBIT G actors, publ/c and private, in the housing market. Many clements of th/s strategy are being developed and pursued by entities other than the Metropolitan Council. The Council's role should not be to implement a regional housing strategy, but rather to propose strategies for others to implement, and to create a forum for developing a regional consensus on those strategies. PROPOSED STRATEGY A five-part regional strategy is needed to address these issues. I. Increase the availability of home-ownership opportunities to lower-income people and increase the market for modest-cost single*family housing. A. First-homebuyer mortgage assistance should be targeted to existing housing. Examples: Set tight limits to encourage bargain hunting and target assistance to lower-income people who could not otherwise afford home ownership. Provide help with down payments to families that could afford to own a home on the basis of income but do not have sufficient capital to afford the down payment. Do this by combining a savings program for the family with matching public subsidies. During the saving-plan period, provide training in the demands--both financial and maintenance--of home ownership. B. Increase the information available to lower-income people about housing opportunities throughout the Twin Cities rather than just in neighborhoods near their own. Examples: Enlist realtors in an effort to provide special information about bargain housing opportunities throughout the Twin Cities to clients eligible for subsidized mortgages. 2. Use the Council's planning capacity to supplement housing information with information about transportation services, jobs, and other health and social services in various parts of the Twin Cities, and access to them. Make information about low-cost housing in nearby suburbs available to suburban employers, to help them in their efforts to recruit workers in a period of increased likelihood of labor shortages, particularly of entry-level workers. II. increase thc supply of low-cost rental ho~ing,iind increase the market for modest-priced singie.family housing for rental purposes. A. Provide subsidies and incentives to private management firms to purchase and make available detached singie-family housing for rental purposes throughout the Twin Cities. Examples: Dedicate federal Section 8 or voucher rental assistance to management firms that will purchase and make available modest-cost singie-family houses for rental purposes in dispersed locations throughout the suburbs. 2. Provide homestead-like property tax treatment for modest-cost, detached, single-family rental property. Require recipients of aid to have plans that provide for wide dispersion of housing and limit subsidies, to encourage bargain hunting in a buyers' market. IlL Encourage reinvestment in existing strong neighborhoods. Examples: Encourage loans for major remodeling or addition to existing housing at terms comparable to new mortgages, i.e., 10-20-year terms and comparable interest rates. Delay property tax assessment increases for major remodeling of existing housing for some period of time, i.e., such as three to five years. Encourage increased government and private-sector mortgage insurance for major improvement and remodeling projects. Encourage cities to examine local codes to encourage and permit reinvestment in existing housing. Encourage communities to invest in facilities and services most important to long-term neighborhood preservation, as identified in the Metropolitan Council's 1990 study on neighborhood strengths and weaknesses. IV. Provide assistance to cities to prevent abandonment of housing and the blight assodated with it, to divert housing in danger of abandonment to productive uses, and to assemble and clear hnd for major redevelopment projects. 15 A. Rcgional funding should be provided through thc Council's Metropolitan Housing and Redevelopment Auihority. Examples: Develop a regional infrastructure fund currently being considered by the Council. It would be financed by a regional sales tax of anywhere from one-quarter percent to one percent, to provide funding for housing programs in addition to light rail transit, parks, airport acquisition and highway right-of-way acquisition. One percent of regional sales tax would raise almost $200 million a year for these purposes. Adopt a housing transfer tax. Because housing prices overall are likely to suffer seriously if these problems are not addressed, it seems appropriate to attach a small deed transfer tax to sales of existing and new housing, to fund clearance programs for obsolete housing. A one-percent housing transfer tax would raise over $50 million per year in the region. B. City planning is needed, to rededicale land currently committed to declining markets, and divert land to current needs and growing markets. Examples: Land use dedicated to modest-cost single-family housing could be identified as land use likely to decline. Land use needs could include increasing the jobs base, parks, or residential use for increasing market groups, such as empty nesters. City plans should describe how to apply a wide range of city resources, including services and infrastructure as well as regional, state and federal housing funds, to accomplishing the city's overall land use strategies. C. Providc regional grants, to projects consistent with city housing plans, approved by the Council as meeting regional goals, which provide for acquisition, maximum utilization, and ultimate clearance and redevelopment of obsolete housing. Examples: Plans could provide for a 'making a market of last resort' for owners of housing having difficulty finding a market for that housing at willing-seller prices rather than condemnation prices. Grants should require that grant recipients have a plan for making maximum use of the housing during the period of land assembly: First, for low- cost market-rate rental housing and, finally, in the 16 event of vacancies, for temporary emergency shelter for special targeted recipients--such as abused spouses with children reluctant to go to larger shelters or people on Section 8 waiting lists paying more than 50 percent of their income in rent. The program could provide incentives for the residents of housing on land targeted for assembly and clearance for redevelopment in the form of priority eligibility for subsidized mortgages for homeowners and priority eligibility for Section 8, voucher, or other kinds of rental assistance for renters. Integrate housing programs into efforts to help low- income peOple become more economically independent and self-sufficient. Examples: Dedicate a certain proportion of housing subsidies to provide additional assistance to clients in job training or self- sufficiency programs. Target housing subsidies to locations with easy access to job training opportunities, health and social services, and public transportation throughout the Twin Cities. Undertake a major Metropolitan Council study on how housing subsidies can best be used to support anti-poverty programs and assist recipients to become more self- sufficient. DEVELOPING A REGIONAL CONSENSUS The Metropolitan Council should establish a task force representing the most important factors in the public and private housing field. That task force should seek additional ideas and forge them, along with these recommendations, into an agreed-upon regional housing strategy that makes the best use of public and private resources and market opportunities to accomplish regional housing goals. METROPOLITAN COUNCIL 230 East Fifth Street St. Paul, Minnesota 55101 March 1990 Publication No. 100-90-088