Title
Approval of the April 24, 2013 HRA meeting minutes.
Body
ROLL CALL
Present: Commissioners Bostrom, Brendmoen, Carter, Stark, Thune, Tolbert
Excused: Commissioner Lantry
CONSENT
1. Approval of the April 10, 2013 HRA meeting minutes.
Commissioner Carter moved approval.
VOTE: Yeas - 6 Nays - 0
PUBLIC HEARING
2. Resolution Approving the Sale of Land and Conveyance of Parcel 747 Jessamine Avenue E under the ISP/NSP Program, Payne-Phalen, District 5, Ward 6
Ms. Cecile Bedor, Executive Director of the HRA, stated that the HRA purchased this property on December 14, 2010 for $25,640 representing a discount of 27%. This is a two-story, 1,600 square foot home with four-bedrooms, and two-bathrooms; it was built in 1914. The property is being sold for $159,900 and the total gap assistance is approximately $74,000.
Chair Thune announced the public hearing. There being no testimony Commissioner Bostrom moved to close the public hearing. The public hearing was closed.
VOTE: Yeas - 6 Nays - 0
Commissioner Bostrom noted that he had attended the open house at this property last week, and stated that this is a remarkable rehabilitation. When this property went on the market they had three offers within three days. The rehabilitated home is in a location where it's noticeable that there is exciting work being done, by the City, in this neighborhood.
Commissioner Bostrom moved approval. Approved as set forth in resolution RES PH 13-85
VOTE: Yeas - 6 Nays - 0
DISCUSSION
3. Resolution Endorsing and Approving the Proposed Changes to the Minneapolis/Saint Paul Housing Finance Board's Low Income Housing Tax Credit Procedural Manual for 2014 and Qualified Allocation Plan for 2014, Citywide
Ms. Bedor stated that PED staff, Mr. Joe Collins and PED Housing Director, Mr. Al Carlson had prepared the Procedural Manual and Qualified Allocation Plan ("QAP") for Low Income Housing Tax Credits for 2014, and asked that they give a presentation.
Mr. Carlson summarized the content of the board report, including background on the formation and mechanics of the Low Income Housing Tax Credits ("Credits") program. He noted that Council President Kathy Lantry, Councilmember Dan Bostrom, and Councilmember Dave Thune represent Saint Paul on the Minneapolis/Saint Paul Housing Finance Board (HFB) which adopts the timeline, process, and criteria by which the Housing Finance Board selects projects to receive Credits. The HFB considers recommendations by the HRA in making their decisions. This year the estimated amount of Credit is $1,019,320 which would generate approximately $9 to 9.2 million in investor equity for approximately 50 units of affordable housing development.
Mr. Carlson stated that staff is recommending changes to the QAP in order to reflect what staff believes are the priorities of the HRA Board based on a previous work session on this topic. Mr. Carlson invited Mr. Collins to explain the proposed changes which were detailed in the board report.
Commissioner Bostrom stated that every year the Board gets into a debate whether to preserve existing housing, or support new housing, noting a considerable shift from rehabilitation to new construction this year. Commissioner Bostrom stated that he did not support this shift.
Chair Thune asked who uses this type of Credit, and if there were a number of participants.
Ms. Bedor stated that this action today does shift the priority for this year from preservation to new construction; and that staff believed this reflected the board's previously stated priorities. She noted staff is aware of some new construction projects that would apply for these Credits, and there may be others that staff is not aware of at this time. Ms. Bedor also noted that staff is not aware of any rehab projects that are ready to apply/move forward at this time.
Commissioner Stark stated that the Board has been explicit in how it adjusts the point system. As long as we're in this system of giving clear indication of where our priorities are for that year, then this change makes sense for this year. In the future, the Board could decide to not be so explicit, and have points be more balanced. He noted that the Board has not yet decided to do this, and has not done so in the past. Mr. Collins stated that developers want certainty, and scoring that clearly reflects priorities is important to developers. He also noted that it costs nearly $15,000 to put together an application; clarity helps a developer decide whether or not to pursue an application.
Commission Carter asked for a list of projects that may be eligible for Credits this round; Commissioner Bostrom suggested a two-week lay over to get a better understanding of the potential projects, and to further consider the proposed changes.
Commissioner Brendmoen stated that she appreciated the briefing from staff on the recommendations, but didn't feel she was ever part of the policy decision, and would like to see a change in the decision process. She also noted she would be support the proposed changes this year, and didn't see value to a lay-over; she asked what would be done in the next two weeks. Commissioner Bostrom stated that further discussion could determine that there are rehabilitation projects that might fit the current criteria.
Commissioner Stark stated that he'd like to see the Board move forward with the recommended changes soon, and then set up a process by which the Board can make more of a policy decision by the time this process starts next year.
Commissioner Bostrom made the motion for a two week lay over. This item was laid over to the May 8, 2013 HRA meeting.
VOTE: Yeas - 6 Nays - 0
Ms. Bedor asked that the Commissioners give staff specific ideas on what would help them in making the criteria decisions for the score card.
Commissioner Stark stated that knowing which financing tools would fit best with each project would be one helpful overview.
ADJOURNMENT
Commissioner Bostrom moved adjournment. The HRA meeting was adjourned.