Resolution 81-2946- Authorization to Metro Council to Implement Sec. 8 Moderate Rehab Program within HpksCITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 81 -2946
RESOLUTION AUTHORIZING THE METROPOLITAN COUNCIL
TO IMPLEMENT THE SECTION 8 MODERATE REHABILITATION
PROGRAM WITHIN THE CITY OF HOPKINS.
WHEREAS, the Metropolitan Council has been duly organized pur-
suant to Minnesota Statutes 473.06, subd. 3 and Minnesota Laws 1975, Chapter
13, Section 6, Subd. 3; Section 21, Subd.1; and Section 24, and has all of
the powers and duties of a housing and redevelopment authority pursuant to
Laws 1975, Chapter 13, Section 24 under the provisions of the Municipal
Housing and Redevelopment Act, Minnesota Statutes Section 462.411 to 462.711,
and acts amendatory thereof;
WHEREAS, the City of Hopkins and the Metropolitan Council desire
to assist lower income families and individuals to obtain adequate housing
in the City of Hopkins at a price they can afford, and to accomplish this
purpose desire to undertake a program of subsidizing rent payments to land-
lords who provide adequate housing to such individuals and families.
WHEREAS, the City of Hopkins and the Metropolitan Council desire
to encourage the stabilization, revitalization and rehabilitation of the
rental property in the City of Hopkins so that it may continue to provide
adequate housing. and
WHEREAS, the City of Hopkins has determined that a program to en-
courage the rehabilitation of rental units is consistent with the housing
goals of the City;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF HOPKINS that the
Metropolitan Council is hereby authorized to implement a Section 8 Moderate
Rehabilitation Program to encourage rehabilitation of private rental housing
units and to provide rent assistance to lower income families within the
City of Hopkins, and that the City Manager is hereby authorized to enter
into an agreement with the Metropolitan Council for operating the program
within the City.
Passed and adopted by the Counciliof the City of Hopkins, Minnesota,
at a regular meeting held the 16th day of June 1981.
H. E. RICHARDSON, JERRE A. MILLER,
City Clerk Mayor
JOSEPH C. VESELY,
City Attorney
METROPOLITAN COUNCIL
HOUSING AND REDEVELOPMENT AUTHORITY
SECTION 8 MODERATE REHABILITATION PROGRAM
SUMMARY
The Metro HRA Moderate Rehabilitation Program is designed to
rehabilitate privately owned rental units which are substandard
or require major building component repairs or replacements, and
to provide rent assistance to low -and moderate income families
and elderly, handicapped and disabled persons residing in these
units.
Metro HRA publicizes the moderate rehabilitation program through
newspaper circulation and direct mailing. Property owners who
indicate interest in the program are sent information packets
containing program requirements and the format for submission
of proposals.
As the administering agency of the program, Metro HRA provides
rehabilitation technical assistance to property owners by working
with them in the determination of amount and type of rehabilitation,
preparing the feasibility analysis, cost estimates and detailed
work write -ups, and locating a contractor.
Rental Property Eligibility
The Moderate Rehabilitation Program is directed toward buildings
constructed prior to 1965. Eligible buildings must contain units
requiring improvements at a minimum expense of $1,000 per unit,
but all units need not be included in the rehabilitation project.
If major building components require the improvements, the costs
are prorated to individual units. Improvements required to make
a unit accessible to a handicapped person may be included in the
$1,000 per unit minimum.
Rental property proposed for rehabilitation will be inspected by
Metro HRA and the local community's building inspector for com-
pliance with the Uniform State Building Code, in conjunction
with local housing codes and the HUD established Housing Quality
Standards. All deficiencies found must be corrected by the
owner as part of the rehabilitation activity.
Eligible improvement items to meet the $1,000 per unit costs
include:
1. Caulking, weatherstripping and other improvements
required for energy conservation.
2. Major systems in danger of failure.
a) roof replacement, insulation, sheathing
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b) structural repairs
c) plumbing system replacement
d) heating system replacement
e) electrical rewiring
3. Handicapped accessibility (5 percent of units)
if applicable.
4. Additional exterior and interior items requiring
improvement for compliance with local housing codes
and the Housing Quality Standards.
Items eligible for improvement after the $1,000 minimum cost
has been met include:
1. Major roof repair (not maintenance).
2. Cost effective energy conservation items.
a) insulation
b) storm windows
c) door replacements
All rehabilitation under the program must be completed in a
cost effective and efficient manner. Extravagant or luxury
improvements are not allowed. All work must meet standards
sufficient to serve for a minimum duration of fifteen years
(the term of the HAP Contract).
Financing
The Department of Housing and Urban Development (HUD) does not
provide financing for the rehabilitation accomplished by property
owners in the Moderate Rehabilitation Program. Therefore, the
Metro HRA is responsible for assisting property owners in securing
financing and marketing the program to prospective lenders, prop-
erty owners and communities. Any type of public or private fi-
nancing, such as Community Development Block Grant funds, may be
utilized under this program with the exception of the Section 312
rehabilitation loan program.
Metro HRA is currently participating in the Minnesota Housing
Finance Agency (MHFA) Rental Rehabilitation Program under which
financing is available to property owners in the Moderate Rehabil-
itation Program. Metro HRA is designated as an administering
entity by MHFA to assist in the delivery of rehabilitation loan
funds. The loans to property owners are FHA Title I insured
improvement loans obtained from the First Bank of St. Paul and
carry a below market interest rate of 11 percent.
C r,
Tenant Eligibility
The selection of a proposal is contingent on Metro HRA's
determination that the tenants occupying the units to be
rehabilitated are eligible to receive rent assistance under
the Section 8 program. To determine tenant eligibility,
Metro HRA will take applications from all tenants and brief
them on the rent assistance program.
In order for tenants to be eligible to receive rent assistance,
their income must be within the HUD established low -and moderate
income range.
Section 8 Income Limits
Number in Family Maximum Income
1
2
3
4
5
6"
7
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8 and over
13,200
15,100
17,000
18,900
20,050
21,250
22,400
23,600
Eligible tenants will receive rent assistance by signing a
12 month lease with the property owner and a Statement of
Family Responsibility with Metro HRA. The family will pay
25 percent of its income toward the monthly rent and Metro
HRA will pay the balance of the rent directly to the property
owner in the form of monthly housing assistance payments.
Annually, Metro HRA adjusts the rent and utility allowances
(if warranted), reviews tenant income, calculates the family's
portion of the rent, and inspects housing conditions in prep-
aration of lease renewal. .Vacancies occuring after initial
occupancy or in vacant units that were rehabilitated must be
filled by the property owner from families on the Metro HRA.
Section 8 waiting list.
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Community Involvement
Before the Metro HRA Section 8 Moderate Rehabilitation Program
can operate within a Metropolitan Area community, the community
must pass a resolution to participate in the program. Other
community involvement could include additional promotional
efforts and use of community allocated Community Development
Block Grant Funds as an alternate source of rehabilitation
loan financing.
The operation of the Moderate Rehabilitation Program within a
community does depend on the involvement of the city's building
inspector. As local code enforcement is of vital importance in
the program, Metro HRA staff works closely with community build-
ing inspectors during the rehabilitation process to ensure
quality rehabilitation in compliance with local codes and the
Housing Quality Standards.
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