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HomeMy WebLinkAbout2021-04-08 HRA Regular Meeting MinutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY APRIL 8, 2021 7:30 A.M. 1. CALL TO ORDER Chair Hovland called the meeting to order at 7:32 a.m. and noted the meeting was being held virtually to comply with the Governor's Stay at Home Order due to the COVID-19 pandemic then explained the processes created for public comment. It. ROLLCALL Answering rollcall were Commissioners Jackson, Pierce, Staunton, and Chair Hovland. Absent: Commissioner Anderson. 111. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED AS PRESENTED Member Jackson made a motion, seconded by Member Pierce, approving the consent agenda as presented: VI.A. Approve minutes of the Regular Meeting of March 25, 2021 Rollcall: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII. REPORTS/RECOMMENDATIONS VI►.A. HOME REHABILITATION PROGRAM - APPROVED Affordable Housing Manager Hawkinson shared that the Commission was asked to approve loan documents and service agreements with the Center for Energy and Environment (CEE), to administer and service the loans for the proposed homeowner rehabilitation program. On March I I the HRA approved the Homeowner Rehabilitation program and authorized staff to engage an attorney to prepare and review loan documents and service agreements for the administration of this program. This pilot program would serve three purposes: allow higher income borrowers with higher valued homes than the County sponsored CDBG program to borrow funds to rehabilitate their homes; allow borrowers to rehabilitate their homes with no adverse effect on their monthly cash flow; and provide a loan forgiveness provision if the house was sold to the HRA. She spoke about program partners that included CEE, resident and the West Hennepin Affordable Housing Land Trust and said the pilot program would be provide for eight loans in the amount of $250,000 each then spoke about CEE's roles and responsibilities for the program. She commented about reasons for interest deferral and the option to present a fully deferred program to make it more unique than other programs on the market. Page 1 Minutes/HRA/April 8, 2021 The Commission suggested revisiting the interest rate should they increase in the future and confirmed the HRA would be in a secondary position regarding the program. Ms. Hawkinson confirmed the priority would be similar to the Come Home to Edina Program and that it was conceivable the HRA could be in third position. The Commission suggested a special assessment provision be incorporated similar to another program and confirmed the right of first refusal was a contingent element of the lending and market price. Ms. Hawkinson explained the HRA would have right of first refusal and could purchase the property based on its appraised value. City Attorney Kendall explained the City could always opt out of any potential bidding war to avoid paying a premium for the home then suggested a structure change with an option to match an offer in addition to an appraisal. Ms. Hawkinson cautioned about the role of government paying more than appraised value as it could be unduly enriching with government funding and noted those in the program enrolled to ensure their home remained affordable and would not be torn down. The Commission noted an offer match could still be capped at the loan amount and said the homeowner had the choice to sell to the HRA then spoke about the variability of appraisals and the need to ensure the program was designed to encourage people to maintain the homes. Mr. Kendall suggested providing two appraisals as a way to confirm an appropriate purchase price, one paid for by the HRA and the other by the property owner then suggested program structure ensuring the City would be no further down then third position and that a special assessment was not a viable option. Discussion was held on program intent and the need to be transparent and as fair as possible with the borrower as the assumption was to acquire the home in order to ensure it was maintained in an affordable status. Mr. Neal explained the program was one a pilot strategy to help provide opportunities for future HRAs to ensure affordability of homes and while there was some risk it was to attempt to provide affordability. Motion by Commissioner Staunton, seconded by Commission Jackson, to approve loan documents and service agreements with Center for Energy and Environment to administer and service the loans for the homeowner rehabilitation program as modified to include second appraisals be obtained as directed. Mr. Kendall clarified the HRA could not be in second position and noted the HRA's equity position could be included in the program guidelines or addressed through equity guidelines. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII.B. TENANT PROTECTION ORDINANCE - APPROVED City Management Fellow Karim stated the HRA was asked to approve and authorize to engage the City Attorney to draft a proposed tenant protection ordinance. The city had set a goal to both promote and commit to preserving natural occurring affordable housing (NOAH), and in addition to that goal, protect tenants who reside in NOAH properties. The creation of a Tenant Protection Ordinance for the city would provide additional protection of renters' rights. She spoke about area median incomes and cost burdens of housing and how the proposed ordinance could reaffirm the City's goal to promote and facilitate a balanced and enduring housing tock that offered diverse life - Page 2 Minwtes/HU8, 2021 cycle housing choices. She shared about surrounding cities that had adopted similar ordinances then thanked the roundtable participants who brought the concept forward for possible consideration, The Commission inquired about possible rent increases allowed and suggested outreach to others not associated with affordable housing for their input as well as including elements from the Edina Neighborhoods for Affordable Housing association, Ms. Karim explained if new property owner needed to increase rent upon purchase of property they would be required to provide tenants n three-month protection period first then noted this ordinance would provide a layer of protection as rent stability programs associated with COVID- 19 would soon be expiring, The Commission requested the ordinance include opublic hearing element and further data on potential staffing for enforcement ifadopted then thanked staff for their good work. Motion by Commissioner Pierce, seconded by Commission Jackson, to approve and authorize to engage the City Attorney tmdraft aproposed tenant protection ordinance. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. V?/l. HRA COMMISS/ONERS"COMMENTS—Received IX EXECUTIVE DIRECTOR'S COMMENTS ~Received IXA. GRANDVIEW DISTRICT PEDESTRIAN BRIDGE —Received Mr. Neal stated staff had been exploring strategies to construct the pedestrian bridge that was envisioned to span between Arcadia Avenue and Jerry's Parking Ramp. While complementary to the senior cooperative housing currently under consideration for the vacant site, the bridge was not an essential element of this type of private project. Staff recommended the bridge be designed and funded in spring2V2| aothat infrastructure construction could becoordinated with the potential construction of the senior housing. In order to satisfy the 5-year rule that applied to the Grandview 2 TIF District, staff recommended that design engineers be retained and a Construction Management firm retained to establish agunranteed maximum pricm. He said this strategy was recommended to achieve cost efficiencies while meeting the deadlines in theT|F Statutes. The Commission said this project would be integral to the Grandview framework for connectivity and that they hoped a crosswalk would be included if warranted then spoke about the need for good design and materials with this project and inquired if the project included the lead -up tpthe bridge. Director ofEngineering Mi||nersaidthegoa|wmst000mp|etetheendreproject|nordortoprovide connection to businesses on the east side of Arcadia and alleviate parking issues and that this could be u standalone project if development project did not occur than added formal action of support would be presented otufuture meeting. X ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Staunton, to adjourn the meeting at 8:54 a.m. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. Respectfully submitted,