75-2420 CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION N0.75-2420
RESOLUTION AUTHORIZING THE METRQPOLITAN
COUNCIL TO APPLY FOR HOUSING ASSISTANCE
FUNDS FOR IMPLEMENTATION WITHIN THE CITY
OF HOPKINS.
WHEREAS, the Metropolitan Council has been duly organized
pursuant to Minnesota Statutes Section 473. 06 , Subd. 3, Section
473B. 06 , Subd. 14 , and has all of the powers and duties of a
housing and redevelopment authority pursuant to Laws , 1974, Chapter
359 under the provisions of the Municipal Housing and Redevelopment
Act, Niinnesota Statutes, Sections 462. 411 to 462. 711, and acts
amendatory thereof; and
WHEREAS, the City of Hopkins and the Metropolitan Council
desire to assist lower income families and elderly to obtain adequate
housing in the City of Hopkins at a price they can afford, and to
accomplish this purpose desire to apply for federal funds to under-
take a program of subsidizing rent payments to landlords who provide
adequate housing to such individuals and families.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF HOPKINS,
that the Metropolitan Council is hereby authorized to include the
City of Hopkins in its application for federal funds to implement a
program of rental assistance to lower income families and elderly,
and that upon federal approval of such application, the City of
Hopkins and the Metropolitan Council will enter into an agreement for
operating the program within the City.
Passed and adopted by the Council of the City of Hopkins ,
Minnesota, at a regular meeting held the 18th day of March, 1975.
H. E, RICHARDSON, HENRY POKORNY, JR. ,
Clerk Mayor
JOSEPH C. VESELY,
City Attorney
,
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February 18, 1975
Report to the City Council
From: Housing and Redevelopment Authority
Subject: Metropolitan Housi.ng Authority
Rent Subsidy Proposal
Attached. is a copy of a report to the Corrnnissioners of the
Hopkins Housing and Redevelopment Authority regarding a
proposal by the Metropolitan Council Housing Authority to
provide rent subsidies in Hopkins, under provisions of the
Housing and Community Development Act of 1974, Section 8.
The Hopkins Housing and Redevelopment Authority approved
this proposal in concept since it would permit more lower
income families to obtain standard housing at a price they
could afford and would give the owners of the vacant units
a wider range of prospective tenants. The attached report
gives additional information including the maximwn rent
payments allowed.
A representative of the Metropolitan Council Housing Authority
will be at the City Council Meeting on Februa.ry 18, 1975, to
explain the proposal further and answer auestions.
Also attached is a form of resolution which must be adopted
in order for Hopkins to be included in this program with
the Metropolitan Council.
Robert Drew
Executive Director (Acting)
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RESOLUTTON AUT'HORIZING Tf-� ���TROPOLITAN COUNCIL
TO APPLY FOR HOUSING �SSISTANCE FIII'��S
FOR IMPL�tENTATION SVITHIN Tf-iE CITY OF �s-242a
WI-IEREAS, the Metropolitan Council has been duly organized pursuant to
P�Iinnesota Statutes Section 473.06, Subd. 3, Section 473B.06, Subd. 14, and
has ail of the powers and duties of a housing and redevelopment authority
pursua.nt to La.ws 1974, Chapter 359 under the provisions o� the Nlunicipal
Housing and Redevelopment Act, T�innesota Statutes, Sections 462.411 to 462.711,
and acts amendatory thereof; and
ti�REAS, the City of xoPxrNs and the Metropolitan Council desire to
assist lower income families and elaerly to obtain adequa.te housing in the
City of �sP� KIN� at a price they can a£ford, and to accamplish this
purpose desire to apply for federal funds to undertaks a program of subsidizing
rent payments to landlords tivho provide adeauate housing to such individuals and
families.
NOW, Tf�REFORE, BE IT RESOLVED BY T?-IE CITY OF xoPx.rN�, that the
Dletropolitan Council is hereby authorized to include the City of �KrNS _
in its application for federal funds to implement a program of xenta]. assist-
,:
ance to lower income families and elderly, and that upon federal appraval of
such application, the Gity of �,np�rNS and the Metropalitan Council will
enter into an agreement for operat�ng the program within the City.
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75-9
�ehruary 10, 1975
Report to the Commissioners
From: Robert Drew
Subject: 1'�etropolitan Council Proposal to Provide Section 8,
Housing Assistance for Existing Units
I met recently �vith a staff representative of the Twin Cities Metropolitan
Council Housing Authority, at their request, regarding that agency's
possible function in Hopkins. The Minnesota State Legislature provided
the Metropolitan Council with powers similar to a Housing and Redevelop-
ment Authority in the 1974 session and they are now visiting the various
comm�.uiities in the Metropolitan area to offer their services.
The Housing and Community Development Act of 1974 provided for Section 8,
Housing Assistance, which in effect takes the place of all other sub-
sidized housing programs. One of the provisions of Section 8 is to
utilize exi� sting housing resources; t'hat is, to provide rental assistance
for existing units in lieu of new construction. This is the program the
Metropolitan Housing Authority is prontoting at this time. They are
visiti.ng various �nall communities in the Metropolitan area to inquire
whether these communities are interested in having the Metropolitan
Housing Authority include them in an application to HUI3 for a reservation
of these units.
I�fy understanding of the way it would work if the Hopkins Housing Authority
approves and the City Council adopts the attached Resolution is as fol�ows:
l. The Metxopolitan Housing and Redevelopment Authority applie5 -
to HtID for a reservation of units based. an the need of the
participating communities.
2. Hopkins would be allocated a number of units according to
its need, as substantiated by the Community Development
Housing Assistance Plan.
3. The Hopkins Housing and Redevelopment Authorit� would intervie�r
applicants, certify their el.igibility and issue them a "certi-
ficate of eligibilityr,.
4. The tenant would then find his own unit in Hopkins, within
the approved rental range. The tenant would pay the landlard
his portion of the rent (250 of income) and the landlord .
ti•rould bill the Hopkins Housing and Redevelopment Authority
for the difference up to the maximi.mi for that unit.
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S. The unit would have to be inspected by the City or
Housing and RedeveJ.opment Authority prior to the :
tenant moving in to determine if the unit is standard.
The attached "Housing Bulletin" from the PRetropolitan Council provides
additional detail on this program, as well as the Seetion 8 program in
general.
I reconunend the Housing Authority approve this program in concept since
it provides more and a wider va.riety of housing choices for lower income
residents of Hopkins and that the information be sent on to the City
Council for their consideration.
Robert I1rew
Executive Director (Acting)
RD:aj .
Attachment
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'`r. � �,�e� News f�om the Gouncil's Hous+ng Program
`'F� s�` 300 Metro Square 81dg., St. Paui� Minn. 55101 6t2/22T-9421
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IN THIS ISSUE; January I0, 1975
Section 8: Housing Assistance Payments Pragram
* * *
Tt�e Area Office of the U.S . Department of Housing and Urban D�velopment will be soliciting
applications for Section 8 low incort�e rental assistance funds in early 1975. Section 8 is
similar to the old Section 23 leased-housing program. It is vi.rtually the only lower income
f2deral housing program in operation now.
_.�e following are details about eligible applicants for the pragram, eligible recipients of
assistance, and the aPplication procedure .
Form of Housing Assistance
Section 8 is a rental assistance program. An eligible recipient of rental assistance v,�aczld
- pay 15 to 25 �er cent of income for rent, and HUD �Nould pay the difference between this
amount and the fair market rent the �roperty o�,�mer �rvould narmally receive for the rental unit.
�tirho A�i�lies to HU'� for Housing �ssistance F�:yments ?
Eligible applicants include:
l . Local housing authorities
2 . Private developers or owners , who may be non-�rofit or limited-profit
corparations, as well as profit-making entities .
3 . A combination of a housing authority and a private deuelQper, In this
case, the hausing authority acts as the agent for f.ederal rent assistance
payments , while the private developer owns anci man�e��s the building. :
Eligible Housing Types
People receiving rental assistance may live in almost any type of rental housing, including
detached s ingle-family homes , duPlex2s, townhouses , ap�.rtments , congregate housing�
and mobile homes . Eligible housing may be newly constructed, substantially rehabilitated,
or existinc� housing stock.
Fair �;�tari�2t Rents
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ramilies eligible to receive assistance under t�e Section 8 program must live in units renting
�or no more than the federally-established fair mark�t rent timits , which are set for.the
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• Minneapolis-St. Paul Metropolitan Area. The rent limits are considerably lawer for existing
units than for newly-constructed or rehabili.tated units . They are design�d to reflect the
"going rate" for standard, but modest, rental units. Revisions in the fair market rents for
isting housing are expected soon, and are likely to involve increases in the faix market rents.
The newly-revised faix market rents for new construction and sulastantiai rehabilitation are
listed below:
Number of Bedrooms
Structure T�pe_ 0 1 2 3 4 or more
Detached - - 348 420 471
Semi-detached/raw - 2S8 344 397 420
Walkup 216 246 289 394 -
Elevator 225 258 319 - -
The fair market rents for existing housing, not yet revised, are as follows:����t$�
Size of Unit Fair Market Rent �k_ �����
..._,-..--
0 - Bedroam $ 126 t 4 4 ��y
1 - Bedroom 143 I �.4 14 (
2 - Bedroom 168 t �!4 .���
3 - Bedroom 193 ��"�` �.�o
4 - Bedroom 21� �'�
Eligible Recipients of Assistance (Moderate) (Low)
Lower Income Very Low Income
Familv Size 80% of Median 50% of Med'zan
1 $ 7,800 $ 4,T04
2 10,000 6,250 :
3 11 ,250 �.���
4 12 ,500 7,800
5 13 ,250 8,450
6 14,050 9,050
� 14,850 9,700
8 or more 15 , 600 1C�,300
Both families and the elderly are eligible for assistance.
This program may be able to serve up to 40 per cent of the Area's population� including
�ersons ineligible because of income under previous subsidi�ed hausing progra�tts .
An example of rental assistance follows:
Adjusted gross income $200/month
Amount to be spent by tenant on rent
(25% of income) 5C�/month
Normal fair market rent of unit 15�fmonth
HUD rent assistance payment 10+�/month
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Th,e Sectian 8 Application Process
A iocal housing authority, interested in providing a rental assistance program for use
with existing rental units, would prepare an application form to HUD, giving the
following types of information:
1 . Need for assistance in the community;
2 . Current rental rates and vacancy information; '
3 . Description of the proposed proqram:
a, number of households to be served;
b. number of units of each size;
c. number of elderly to be served.
4. Estimate of administrative costs;
5. Estimate of average monthly tenant contribution toward gross rent.
B. A housing authority application for Section 8 new construction or substantial
rehabilitation would contain additional information pertaining to s ite selectfon �
criteria and the per cent of units to be assisted in the newl�-constructed or
rehabilitated buildings . Such a proposal would also be reviewed for feasibflity
by the agency or financial institution providing the martgaqe and mortgage insurance.
.ien to Apply:
Appiications will be solicited by the Ar�a Office of HUD early in 19.75 . Frivate owners
and housing authorities will be applying during the same a�plication period. It is anticipat�d
that the first round of applications will be approved (or rejected} before july 1 , 1975.
Applications for Section 8 housing will be reviewed by HUD during a different time period
than applications for Community Development funds .
Program Operations:
� Once a Section 8 application has been approved, the following requirements and operating
procedures should be implemented:
A. HUD requires that several documents be prepared and used, including:
1 . Affirmative Marketing Plan (Equal Opportunity Housing Plan).
2 . Occupancy plan, including eligibility standards and priorities .
3 . Mode1 lease to be used by landlords participating in the program.
4. Other forms that must be prepared, including an agplicatiQn form and a
Certificate of Family Participation.
B. The Equal Opportunity Housing Plan must be implemented to secure eliqible
landlords and tenants for participation in the praqram.
1 . A list of availabl� rental units must be prepared and on display.
2 . The program must be publicized through mailings, meetinqs, and the media,
and other other means available.
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� +�.���C . �� Acc�ounting proced�ures� mus� be established �and maintainec�. � ` , s ��`' ' � '
I . HUD procedures must be followed on a regular basis.
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D. When the program goes into operation, there should be a regular place and time set
up to receive and process applications #rom tenants .
1 . Applicatians are checked for income eligibility.
2 . A waiting list must be maintained in accordance with the occupancy plan.
3 . Someone must be available to provide telephone information far tenants and
aPAlicants.
4. Tenants must be re-certified periodically for continu�d eligibility.
E. Ins pection of units.
1 . Housing Quality Standards and Performance Requirements must be met before
a unit can be occupied:
2 . Specific Acceptability Criteria must be established by the Housing Authority
for use in the inspection process .
3 . All units must bs reinspected annually.
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300 Metro Square 8uilding
7th and Robert
St. Paul, Minnesota 55101
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