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Memo- Hopkins Village ApartmentsMemo To: Honorable Mayor and City Council From: Karen Skepper, Public Housing Manager Date: 04 /09/98 Re: Hopkins Village Apartments Page 1 Hopkins HRA Residents of the Hopkins Village Apartments have requested they be permitted to make a short presentation to the Hopkins City Council at the April 14, 1998 Work Session. Attached you will find a chronology of events related to the decision of the owner to opt out of the 236 low income mortgage and section 8 project based programs. The tenants desire to bring the Council up to date and discuss problems they are currently experiencing. A August 27, 1997 August 29, 1997 September 10. 1997 September 24, 1997 October 9, 1997 October 16, 1997 October 21, 1997 October 27, 1997 October 31, 1997 0 November 13, 1997 November 14, 1997 November 20, 1997 December 18, 1997 January 23, 1998 January 28, 1998 February 26, 1998 Chronology of Events at Hopkins Village Hopkins Village owners, Don and Jeff Hagen held meeting with Betty Ann Murphy, John Voller and Regis Yunker. Told us about canceling HUD contract. The Hagens gave letters to 64 residents informing them of one year notice to end Section 8 in building. Hagens held informational meeting with all residents. Resident meeting held at Hopkins City Hall with Home Line. Formed Hopkins Village Planning Committee (HVPC) to work on keeping Hopkins Village affordable. Betty Ann and Regis held meeting at Hagen's office. Purpose was to ask Hagens if they would be interested in selling the building to a non - profit. HVPC met with Joe Errigo of CommonBond, a local non profit developer. Betty Ann, Regis, and Joe Errigo met at Hagen's office. Joe Errigo explained CommonBond to Hagens. Joe asked for up to six months to present a purchase figure and that nothing else be done during this time. Hagens said they would have to contact other partners for approval. Residents meeting held in building by HVPC. All 161 apartments received letters from Hagen's office telling of future pre - payment of mortgage and cancellation of the HUD contract. Information received from CommonBond that the Hagens partners said it is okay to proceed with negotiations with CommonBond and sale as long as the owners came out with some cash. Telephone conversation between Joe Errigo and Jeff Hagen. Joe was told he could pick up information regarding building next week. Representative Betty Folliard held meeting in our building. 115 people attended. Main topic was low income housing prepayment, and how this is happening everywhere. Representatives of Federal, State, and local government were present to hear about the problem. Karen Skepper, from the city of Hopkins housing came to building with applications for portable Section 8 vouchers so residents could be on waiting list if it came to that need. Had meeting with Joe Errigo. Hagen's office is not returning calls to CommonBond. CommonBond does not have the materials needed to proceed with negotiations. Joe Errigo has been calling Hagen's office repeatedly. Finally got Don Hagen today. Joe was told it would take about two weeks for materials requested. Hagens will call Joe when materials are ready. Don also stated that "partners don't want to sell." HVPC met and a letter was formulated and sent the same day to Don Hagen requesting meeting either March 4 or March 11th. March 3, 1998 March 4, 1998 March 10, 1998 March 13, 1998 March 25, 1998 March 27, 1998 March 31, 1998 Betty Ann called Don Hagen to verify which date for meeting. Don said he would meet with committee at 2 pm on March 12. He also stated that they had applied to the state of Minnesota for 4 -D Property Tax Classification Program. Don said his son Jeff had talked to Joe Errigo and given him this information. He also said he had never agreed to negotiate 6 months with Common Bond for a sale of Hopkins Village. Betty Ann called Joe Errigo. Joe had not heard form Jeff Hagen nor had any of his staff. Betty Ann called Don Hagen to tell him meeting on March 12th would be held in Apt 611 instead of community room, because the community room was being used for tax preparers. Betty asked Don to bring copy of 4 -D application. He said he would. Half an hour later, Don called Betty Ann and canceled the meeting. He said he had a meeting with his partners that day. Regis called Don Hagen and was told Don needed input from one of the partners, Iry Appel, and another representative from the other partner. Don will call Betty Ann on Friday, March 13th to reschedule a future meeting. Betty Ann called and spoke to Jeff and Don Hagen. Hagens said the owners involved in the March 12th meeting decided not to sell building. He said that they would accept vouchers when they ended the HUD contract. He said he did not know what the rents would be or any other information. Hagen said he would call Joe Errigo about this decision. Regis called Don Hagen. Said they don't have enough information at the present time. No idea how much rents would be. Needs new mortgage figures first. Regis suggested they look into Senate File 3367 legislation which could give monetary incentives to stay in present program. Also up asked that a letter be sent to residents giving them information on the present situation. Regis received call from Beth Kodluboy of HOME Line regarding possible amendments to the 4d Property Tax Program. Regis called Senator Kelly's office, Representative Folliard, Jim Rhodes and Ann Rest requesting their support of a moratorium of one year regarding owners who have pre -paid or are planning to pre - prepay mortgages. Committee held general meeting of residents to bring them up to date. A letter was read by one of the residents which had been given to her from management. The first paragraph of the letter stated as follows: " Those residents who are currently receiving a Section 8 subsidy here at Hopkins Village will automatically receive a permanent Voucher or Certificate to be used either here or anywhere else that accepts them. This will enable you to stay in your current apartment for as long as you so desire. " This paragraph is misleading. It encourages residents by promising them something it can not give. Betty Ann and Regis met with Karen Skepper, Steve Mielke, and Jim Kerrigan discussed most all phases of our housing problem as well as how the future looks regarding our building. x