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HomeMy WebLinkAbout2019-07-25 HRA Regular MinutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY JULY 25, 2019 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the HRA meeting to order at 7:30 a.m. II. ROLLCALL Answering rollcall were Commissioners Anderson, Brindle, Fischer, Staunton, and Chair Hovland. Absent: None. III. APPROVAL OF MEETING AGENDA — AS PRESENTED Motion made by Commissioner Brindle seconded by Commissioner Fischer approving the meeting agenda as presented. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried. IV. COMMUNITY COMMENT No one appeared. V. CONSENT AGENDA — AS PRESENTED Motion made by Commissioner Staunton seconded by Commissioner Brindle approving the consent agenda. V.A. Minutes: Draft Minutes of Regular Meeting of May 30, 2019, and Special Meeting of June 18, 2019 V.B. Approve Payment of Claims for HRA Check Register dated May 24-June 20, 2019, totaling $254,248.22. Ayes: Anderson, Brindle, Fikher, Staunton and Hovland Motion carried. VI. REPORTS/RECOMMENDATIONS VI.A. Proposed Pilot Program: Preserving Edina Homeownership Affordable Housing Development Manager Hawkinson said the HRA was asked to approve using $825,000 of the Affordable Housing Trust Funds to implement the Housing Preservation Pilot Program and enter into a grant agreement with the West Hennepin Affordable Housing Land Trust. The City of Edina in partnership with West Hennepin Affordable Housing Land Trust dba Homes Within Reach (HWR) was proposing the implementation of a pilot program designed to assist financially challenged low-to-moderate income Edina homeowners retain their home in time of financial hardship. She shared an affordability comparison and making Land Trust homes over time being more affordable then outlined program goals that made it possible for current homeowners to stay in their homes, address maintenance issues, retain community and homeowner wealth, enhance residential stability, and preserve long-term housing affordability. Ms. Hawkinson outlined the sources of funds and explained how a property could not be sold to a developer or demolished then outlined the need for such a program based on research with VEAP, senior community services, and Meals on Wheels. She said in partnership with funding from the Trust Fund and approval by Council, staff would market and conduct outreach but WHAHLT would do the majority of the work. The HRA asked about differences with the current model and potential risk as it was not the same payback at the end upon sale. Ms. Hawkinson said homes listed in land trusts on MLS have certain criteria and compete with everyone while this program would not. She stressed the importance of this being a voluntary program with clear communication on funding received upon sale as it would be less than market value at closing. Page I Minutes/HRA/July 25, 2019 The HRA spoke about the challenge of preserving single-family homes and this innovative program and asked about the percent differences and how it helped homeowners. Ms. Hawkinson said the standard with land trusts was to keep homes increasingly affordable over time and 35% of equity was standard. She said the program helps homeowners because they get to keep some appreciation of the home and have equity instead of renting. The Council suggested including budgeting and financial counseling requirements to the proposed application materials and asked about reasons for denial. Ms. Hawkinson said they would work with financial counseling if possible but denials would typically only occur because of rehab needs or the home was too expensive. The Council asked for details regarding balances and said while a creative approach, cautioned on criteria and trade-offs, how this fit into a broader scheme, and should be prioritized for better risk/reward. Ms. Hawkinson explained the funding source was the affordable housing trust fund from the affordable housing policy and the pledge made to Nolan Mains of $800,000 would be paid late fall but the fund had $375,000 remaining to be used for affordable housing activities. She noted flexibility of funds was important, there were strings attached to this funding, and a similar program had worked in other cities. Executive Director Neal said more specific direction would be given by the Affordable Housing Task Force but in the meantime, staff would like to find valid and effective uses for the funds on hand. The HRA asked questions about how many homes were in trust today and shared concerns with the equity formula when a mortgage was involved and cautioned about being unfair with the initial homeowner at the expense of a person most in trouble today. The HRA spoke about difficulties with land leases and conveying land titles in the future, taking a significant portion of the trust funds, and if we were getting enough for funds. The HRA requested case study results, if possible, and to explore other concepts such as a portion of funds set aside to help owners where the HRA had better control, held the assets, and other future opportunities. The HRA thanked Ms. Hawkinson for her creativity as this concept had potential and for her exceptional work. VI.B. Acquisition of Property at 7075-7079 Amundson Avenue Ms. Hawkinson said the Edina Housing Foundation was requesting that the Housing and Redevelopment Authority acquire 7075-7079 Amundson Avenue for $1,300,000 and honor its land sale write-down Resolution with MWF to sell the property for $600,000. She reviewed affordable financing tools and the preliminary source of funds then outlined the housing scoring process and tax credit awards. She shared how it would facilitate the creation of new affordable housing then outlined the risks of restricted use of land and loss of interest being generated by Southdale 2 TIF funds. The HRA asked how it could tap TIF resources which the Foundation could not and retain some funds to do other good work and maximize sources with no further risk to the HRA. The HRA also asked who maintained the property. Ms. Hawkinson explained the Foundation was currently maintained through Public Works then invoiced as partners in the work. The Foundation paid property taxes that far exceeded the price difference. She confirmed this would be the sum total of funding contribution of subsidy by the HRA or city with the possible exception of rising construction costs. Mr. Neal said staff felt this was a perfect project for HRAs as it would redevelop a problem property for a new use. He noted with the approved extension for TIF proceeds for the next 30 months the timeframe was limited to maximize the funds and asked for the HRA's support. Motion made by Commissioner Staunton seconded by Commissioner Fischer to authorize staff to draft legal documents for the Housing and Redevelopment Authority to acquire 7075-7079 Amundson Avenue from the Edina Housing Foundation to sell to MWF Properties, LLC with the simultaneous property closing in sequence and maintenance to be continued by the Housing Foundation until closed. Ayes: Anderson, Brindle, Fischer, Staunton and Hovland Motion carried VII. CORRESPONDENCE 2 Scott Neal, Executive Directo Minutes/HRA/July 25, 2019 VII.A. Correspondence — None. VIII. HRA COMMISSIONERS' COMMENTS IX. EXECUTIVE DIRECTOR'S COMMENTS IX.A. Pentagon Village Update Economic Development Manager Neuendorf shared a milestone had been reached with the issuance of three TIF notes to support the Pentagon South property. He said the infrastructure was in place with curb and gutter and a shared parking ramp and resulted in five shovel-ready pads. He said the pledge was issued but the City would not pay until construction begins later this summer on two hotel properties and one extended stay building on the I2-acre Pentagon South site located on the south side of West 77th Street at Computer Avenue. IX.B. Project Update Mr. Neuendorf shared an update on Nolan Mains move-in date of November I for the units and public spaces. He said they were pleased with the rental pace at 20% pre-leased of the 100 units. IX.C. Proposed 2020-2021 HRA Levy Mr. Neal said on September 12, the HRA would be asked to adopt a preliminary 2020 HRA Budget and Levy of $192,000 with an increase of $32,000 over the 2019 levy. For 2021, a levy of $230,400 was proposed to provide funding for both on-going and future economic development initiatives which had historically been paid using TIF funds. X ADJOURNMENT There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 8:46 a.m. Respectfully submitted, 3