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HomeMy WebLinkAboutSpecial HRA mtg Jan 13, 2014HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE SPECIAL MEETING OF January 13, 2014 Call to order – The meeting was called to order by Chair Diehm at 8:20 pm Roll Call – Members present: Bruce Nawrocki, Donna Schmitt, Gary Peterson, Rheta Nelson, Bobby Williams and Tammera Diehm. Staff Present: Executive Director-Walt Fehst, Community Development Director-Scott Clark, Assistant Community Development Director-Joe Hogeboom and Community Development Intern-Elizabeth Holmbeck. Pledge of Allegiance - Recited Business Item Approval of the Rental Assistance Demonstration Application (RAD) on Resolution 2014-01 MOTION: Move to approve the RAD Application on Resolution 2014-1. Chair Diehm introduced the business item and informed the HRA that staff will be explaining the Rental Assistance Demonstration (RAD) program. Director Clark explained that RAD is an alternate method of conversion of public housing, offered through the United States Department of Housing and Urban Development (HUD), which would enable the sale of the Parkview Villa property to Aeon. Clark explained that the method differs from conversion tools previously discussed by the HRA, in that RAD works with a collaboration of the public and private sectors. Director Clark explained that Aeon had previously attempted to facilitate the sale of Parkview Villa through HUD’s “Voluntary Conversion” process and also through HUD’s “Demolition and Disposition” process. In late 2013, City staff and Aeon staff spoke with United States Congressman Keith Ellison, who in turn spoke with HUD leadership. Clark explained that the conversations resulted in a special staff person from HUD being assigned as a liaison for the Parkview Villa conversion project. Director Clark stated that the HUD liaison advised Aeon to submit an application for participation in the RAD program. Clark explained that it appears that contract rent calculations will not align with RAD application requirements; however, it is still necessary to submit the application per HUD’s request. Clark stated that RAD applications are due in late January, and an executed resolution from the HRA is a necessary component of that application. Executive Director Fehst asked if HUD would consider a hybrid process in which RAD could be applied simultaneously with an alternate conversion process in order to facilitate the sale. Director Clark said that would be a possibility, and that staff will have further discuss the possibility with HUD. Clark explained that the “Voluntary Conversion” process is still valid to the project, and is still under consideration. Commissioner Nawrocki asked questioned the future status of the HRA, if the RAD process were to be implemented. Clark stated that, based on his understanding of the RAD program, he believes that the HRA would still technically exist, but its role would be minimal. Management of Parkview Villa would be the responsibility of Aeon. Executive Director Fehst announced that he has reached out to U.S. Congressman Ellison’s office in Washington D.C. to arrange a possible meeting between HUD and HRA staff. Commissioner Schmitt stated that she feels it important for Aeon to participate in the meeting. Commissioner Nawrocki questioned what the cost of the sale and acquisition process of Parkview Villa is to the City/HRA. Director Clark estimates that the total cost of the sale process to the City, so far, has been approximately $6,000. Clark pointed out that the cost to Aeon has been significantly more, estimating it to be around $250,000. Chair Diehm summarized the action step, and requested a motion to move forward. Motion by Peterson, seconded by Schmitt, to waive the reading of Resolution 2014-01 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Schmitt, to adopt Resolution 2014-01, approving Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) Approving Submission of a Rental Assistance Demonstration Application for Parkview Villa North. Roll Call: ayes-Peterson, Schmitt, Diehm, Nelson, Nawrocki, Williams MOTION PASSED. HRA RESOLUTION 2014-1 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING SUBMISSION OF A RENTAL ASSISTANCE DEMONSTRATION APPLICATION FOR PARKVIEW VILLA NORTH WHEREAS, the HRA owns and operates 101 units of public housing at Parkview Villa North (PVN), including one unit currently used for management; and WHEREAS, PVN has deferred maintenance, capital and resident service needs that appear not to be able to be met through continued insufficient funding under the public housing program; and WHEREAS, the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55, approved November 18, 2011) created the Rental Assistance Demonstration (RAD) Program, which allows Public Housing Authorities (PHAs) to convert public housing subsidies into long-term, project-based Section 8 rental assistance subsidies with the hope that this funding source will provide more stable and predictable annual funding and better facilitate leveraging of other resources such as low-income housing tax credits than public housing; and WHEREAS, HRA staff has prepared a RAD application for PVN and is following all required procedural steps to submit the application to the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, the HRA previously submitted an application to HUD for voluntary conversion of PVN to vouchers that would provide more sufficient resources for PVN than RAD, including for critical supportive services, but that application may not be approved or may be partially approved by HUD; NOW, THEREFORE BE IT RESOLVED, that the Board of Commissioners of the HRA (1) approves the attached Board Approval Form for a RAD application to HUD for the conversion of PVN from public housing to Section 8 project-based assistance, (2) otherwise authorizes the Executive Director to execute and submit the RAD application and any related documents to HUD, and (3) authorizes the Executive Director to take any necessary actions to comply with all requirements of the RAD program. ADOPTED THIS 13th Day of January, 2014 MOTION BY: SECONDED BY: ROLL CALL: HOUSING & REDEVELOPMENT AUTHORITY ________________________________________ Chair-Tammera Diehm ________________________________________ Executive Director-Walter Fehst Passed this 13th day of January 2014. Motion by: Peterson Second by: Schmitt Roll Call: ayes-Peterson, Schmitt, Diehm, Nelson, Nawrocki, Williams __________________________________ Tammera Diehm, Chair ____________________________ Shelley Hanson, Secretary Motion by Peterson, seconded by Schmitt to adjourn the meeting at 9:20 pm. Respectfully Submitted, Joe Hogeboom Acting Recording Secretary