Title
Approval of the October 27, 2010 meeting minutes.
Body
ROLL CALL
Present: Commissioners Bostrom, Carter, Harris, Helgen, Lantry, Stark, Thune
CONSENT
1. Approval of the October 13, 2010 meeting minutes.
Commissioner Lantry moved approval.
VOTE: Yeas - 7 Nays - 0
2. Final Resolution Authorizing the Issuance of Health Care Revenue Bonds and Authorizing the Execution of Necessary Documents (Gillette Project), District 17.
Commissioner Lantry moved approval. Approved as set forth in Resolution No. RES 10-1105.
VOTE: Yeas - 7 Nays - 0
PUBLIC HEARING
3. Resolution Authorizing Conveyance of Property at 729, 733 and 745 Clark Street to Michael and Sherry Charpentier, Railroad Island, Payne-Phalen District 5
Chair Thune announced the public hearing. There being no testimony, Commissioner Bostrom moved to close the public hearing and approve the resolution. Approved as set forth in Resolution No. RES 10-1097.
VOTE: Yeas - 7 Nays - 0
DISCUSSION
4. Approval to Enter into a Memorandum of Understanding with Twin Cities Community Land Bank LLC to Participate in the National Community Stabilization Trust Reo Acquisition Program, Zip Codes 55103 and 55104.
Ms. Cecile Bedor, Executive Director for the HRA, stated that the National Community Stabilization Trust (NCST) REO Program is a national acquisition program that was piloted and started here in Saint Paul/Minneapolis to allow cities and other responsible purchasers to acquire REO property at a discount price before they are put on the open market, essentially giving cities a first look.
The Twin Cities Community Land Bank (the Land Bank) was formed by the Family Housing Fund in 2009 as a strategic tool for government, nonprofits, neighborhood organizations, and certain for-profit developers to further community based economic development goals. The Land Bank now operates in the seven county metropolitan area, providing market rate loans for acquisition and rehabilitation for both single family and multifamily properties. Due to the anticipated Living Cities Award, which includes significant funding for the Land Bank to make additional funding available along transit corridors, particularly Central Corridor, and as it complements Mayor Coleman’s and Commissioner Carter’s Promise Neighbor Initiative, staff is proposing that the Land Bank assume the NCST REO acquisition process in Zip Codes 55103 and 55104. Dayton’s Bluff has consented to this change, and will continue to serve as the City’s REO agent for the rest of the City through NCST.
Commissioner Lantry asked why staff is proposing to use a new entity; other commissioners expressed concern about new competition for CDCs. Commissioner Carter and Ms. Bedor noted the desire to take full advantage of the additional financial resources the Land Bank will bring to Central Corrdior via the Living Cities grant. Ms. Bedor also noted that the Land Bank is not a developer and thus does not compete with other CDC’s; the Land Bank is a NCST intermediary and a lender.
Ms. Rebecca Rom, President of the Land Bank, the twin cities region is one of five cities/regions who will receive a portion of the $80 million in funds being awarded by Living Cities. She noted that of the $13 million programmatic money, $1 million will be managed by NDC and MCCD for small business loans along Central Corridor. The remaining $12 million will be managed by the Land Bank for affordable housing, both for preservation and new projects along the three light rail transit corridors - Central Corridor, Hiawatha Corridor, and Southwest Corridor. With respect to the Central Corridor, the plan submitted to Living Cities has a special focus on the Promise Neighborhoods initiative.
Chair Thune stated that he doesn’t want to see other entities bidding against the same properties with the local CDC’s or cornering the market on rehabs, and stated that he wants the Land Bank’s work to take place on in the commercial corridor unless otherwise decided by the HRA Board. Commissioner Carter noted that the work will be done in the residential neighborhoods along the three corridors.
Commissioner Carter moved approval. Approved as set forth in RESOLUTION NO.
RES 10-1103
VOTE: Yeas - 7 Nays - 0
5. Reservation of 2011 Low Income Housing Tax Credits for St. Philip’s Garden and PPL West 7th Street Housing, District 8 and 15.
Ms. Bedor stated that the 1986 Federal Tax Reform Act created Low Income Housing Tax Credit program as a tool create affordable housing. On April 28, 2010, the HRA Board recommended revisions to the Low Income Housing Tax Credit Procedural Manual and the Qualified Allocation Plan to the Minneapolis/ Saint Paul Housing Finance Board, which approved all of the proposed amendments.
Ms. Bedor explained staff scored the five proposals that were received in June according to the scoring criteria previously approved by the Board as follows: Twin Cities Housing Development Corporation, St. Philips Garden, 55 units, 228 points; PPL, West 7th Housing Project, 44 units, 199 points; LaSalle Developments, Lewis Park Apartments, 103 units, 149 points; Saint Paul-RH Developer LLC, Rolling Hills Apartments, 108 units, 142 points; Rayette Apartments Limited Partnership purposed by Sherman Associates, Rayette Apartments, 78 units, 138 points.
Based on the scoring, staff recommends that the tax credits be allocated as follows: $861,024 to PPL for the West 7th project, and $76,343 to TCHC, St. Philip’s Garden. Staff and the developers are hopeful that the action Minnesota Housing will take on October 28th will fill the remaining gap in both projects.
Ms. Bedor stated that as has been the case in most years, all of the proposed projects are great and it is unfortunate that City doesn’t have more tax credits to award.
Commissioner Helgen stated he was disappointed that the Lewis Park and Rolling Hills projects did not score higher, given the criteria, and when looking at reestablishing the scoring criteria (after January HRA Board work sessions on this topic), these projects are a good example of efforts to maintain and preserve affordable housing.
Commissioner Harris moved approval. Approved as set forth in RESOLUTION NO.
RES 10-1093
VOTE: Yeas - 7 Nays - 0
ADJOURNMENT
Commissioner Bostrom moved adjournment. The HRA meeting was adjourned.