Title
Approving the September 26, 2018 HRA Board meeting minutes
Body
ROLL CALL
Present 6 - Commissioners Bostrom, Brendmoen, Noecker, Prince, Thao and Chair Tolbert
Absent 1 - Commissioner Jalali Nelson
CONSENT AGENDA
1. Approving the September 12, 2018 HRA Board meeting minutes
Adopted as set forth in MIN 18-30
Moved by Commissioner Noecker, Consent Agenda is Adopted
VOTE: Yeas - 6 Nays - 0
FOR DISCUSSION
Commissioner Jalali Nelson Arrived
2. Resolution authorizing acceptance of a home ownership education, counseling, and training fund grant from the Minnesota Housing Finance Agency for the Mortgage Foreclosure Prevention Program, Citywide
Kristin Guild, Acting HRA Executive Director, stated that this item is accepting a grant of $17,000 from the Minnesota Housing Finance Agency that supports our staff work providing foreclosure prevention counseling. While the number of foreclosures has dwindled significantly in recent years, we find that there is still demand for foreclosure prevention counseling for our residents and we have a member of our staff team, Jen Bruntlett, spending part of her time on this work. In the past year, we have provided foreclosure prevention counseling services to 74 Saint Paul households from October 1, 2016 through Sept 30, 2017 and 33 households Oct 1, 2017 through today. This grant from MHFA helps to support the great staff work that Jen is doing to help Saint Paul residents who are going through a deeply challenging, traumatic, and confusing process. Staff recommends approval.
Commissioner Bostrom asked for results on how many homes have been saved from foreclosure as a result of this counseling. Ms. Guild said that would be a great topic for on outcome report and it will be added to the agenda.
Moved by Commissioner Brendmoen, Resolution Approved as set forth in RES 18-1616
VOTE: Yeas - 7 Nays - 0
3. Resolution approving an amendment to the project budget to allocate additional funds to the Willow Reserve project for the purpose of contamination cleanup, District 6, Ward 5
Ms. Guild stated that in the spring of 2017 Habitat for Humanity purchased vacant HRA redevelopment property adjacent to the Willow Reserve to construct 11 single family homes for homeownership. As part of that action, the HRA also authorized financing and grant dollars to support the development and the construction of necessary public infrastructure including a public alley. The financial support was a combination of flexible HRA dollars and CDBG dollars, with the CDBG dollars targeted toward a portion of the alley construction. In this case the construction of public infrastructure is an eligible use of CDBG dollars meeting a National Objective as defined by the program whereas, investment in the new construction housing in this case would not be eligible for CDBG because Habitat is not a designated Community Based Development Organization as defined by HUD.
As the construction got under way, unexpected soil contamination was discovered requiring $700,000 of cleanup. Habitat has committed $350,000 toward the cleanup and received $109,000 from the Ramsey County Environmental Response Fund. The balance needed to complete the contamination remediation is $241,000. We are proposing to invest an additional $241k of CDBG dollars into the alley construction, shifting an equivalent amount of HRA dollars that were previously allocated to the alley project to instead address the site contamination issues. These additional dollars to the project will be structured as a grant. Staff recommends approval.
Commissioner Brendmoen shared her support of this motion.
Commissioner Thao shared his support of this project.
Commissioner Prince asked if staff explored other sources of contamination cleanup funds. Ms. Guild said that staff explored all avenues and submitted a grant application to DEED that did not score well due to the density in the area. Commissioner Prince asked for the CDBG balance. Ms. Guild shared that the remaining balance would be $353,712.
Moved by Commissioner Brendmoen, Resolution Approved as set forth in RES 18-1632
VOTE: Yeas - 7 Nays - 0
4. Resolution of the Housing and Redevelopment Authority (HRA) Board of Commissioners approving a 2019 maximum property tax levy for the HRA.
John McCarthy, Office of Financial Services, presented the commissioners with a follow-up on the 2019 proposed PED/HRA budget presentation.
Commissioner Noecker shared her concerns about setting the levy at the max and that she has many questions yet to be answered. Ms. Guild stated that staff will respond to all of her questions at the next budget presentation.
Commissioner Brendmoen agreed with Commissioner Noeckers concerns but will support this resolution today.
Commissioner Jalali Nelson shared her support for setting the rate as a parameter; yet understands and empathizes with the discomfort and appreciates staffs willingness to answer all of their questions.
Commissioner Bostrom suggested that if the max levy is approved that will be in the final analysis before the commissioners in December.
Commissioner Prince shared her appreciation for Commissioners Noeckers statements but is inclined to vote for setting the max levy today with hopes they can bring in down by December.
Commissioners Brendmoen and Noecker and Chair Tolbert clarified that the HRA is not voting today to raise the max levy 100%. It is the percent of the levy rate allowed to tax under state law based on taxable market value.
Moved by Commissioner Brendmoen, Resolution Approved as set forth in RES 18-1477
VOTE: Yeas - 7 Nays - 0
ADJOURNMENT
Moved by Commissioner Thao, the HRA Board Meeting is Adjourned
VOTE: Yeas - 7 Nays - 0