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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 , , 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) � RD:aj t� • �- : 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. ,... ._. ,..;.�i. ;. .,.; :. ; .. .._ _, .. .. :�._ ,: _ . . -, , •� .. , . ,,_ .. . . , . , . . . . - . . . .. . . ,.,. � F « 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. .:,ie. t �a...� .L.-.`� .. .a.'. ..-. �.. z,. , . .. . . . 'y'• :. „ , �� _� . . .. .._ . , . . . , �. � , . .. �. . . .. .. , . ... � . , .. �.. . . ' ... ,. . .. . •i :t s . r r Page` 2 : 75-9 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 .z>.. , . .�"'�` . �' . . . . , -. .. - • �. . 't�:' :w .. '''"� - . � ' : ,, , < ��'�.'ita.�; � , - : _. � . . �° -� ��� � T ti �r 1 : � � � ��C�►�T��i"��� ���T�'J�'.��� .� �� �► �� � �. �"..� �► '`r. � �,�e� News f�om the Gouncil's Hous+ng Program `'F� s�` 300 Metro Square 81dg., St. Paui� Minn. 55101 6t2/22T-9421 � � �'1N CL'r��� . . � . .� . � . . . . . . . � � .. � � . , � . 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 �.....:. .,., .N�wa.....,.,. �,.t;.;� r��� '. . -.. sa' h' � — .'%�i...c'bes v.S s .�,t r�i..� . .� . �. . . � �. . -�:�� . . . . . .. ,.r .. ;� . . . . ,.. . ; � �. . .. . _ _ . . ,..., n A : . , . . . . F . . - .� � . � ' � . . - . . , .. ' . . � � � � . . :+: . ., � . . . . . . . * . . . . . � � 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 . _Z^ • 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 . . _ - .hyC 1+• y 1�. Y� xrr .. ..'.;. :._y } ' '.� .{� �Y: ..�. �.:., .. ... . �-�.;- . . . .. . . , . . . . . .. .. , . . , f . . • . � � . . . • .. . � . � . ' . . . .. .. - � � . . j. � . � � . . � � � � . . . . . . � � � . . . . . � . . r -3_ 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. ��; �'.yi�� ' . . . . • b' �^ ,t +�l� ^ !Y.1w•p' •'wr. a�'�-� � .' . i•. � �..' ,.. ... � '..;- .,,�. .i:"^ '. �.." '�..�. . .�. :� � :-� .. s� � S • :Y. . . '•'y'� �•i4�.� � +�.���C . �� Acc�ounting proced�ures� mus� be established �and maintainec�. � ` , s ��`' ' � ' I . HUD procedures must be followed on a regular basis. . . . r.�. . . � . . . . . . � . � . . � . .� � . . � . . � . � ✓w �' . _ � .. � . �� . . � . . � �^� � � � � . . . . . � '3 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. �011�� /� 8utk Rate O `'O U.S. Postage VA�6 � ; G . . . . � . � . � . . Mp�s.. Minrt. � 'l�' "rt .. . . � . . . � � � �. � . . . � . . . . � Perrrtif N0.�i81f1 .� � .. � � µ � �l•oc-��� N . . � . .0�. �, . . . . . . . . � . . . � � .. . � � . C� �i Pr . . � . - � � . . . . . . . . . F. y . . . . . . .�!N C7T\F. � � � � . . . . � . . . . �.� . � � . 300 Metro Square 8uilding 7th and Robert St. Paul, Minnesota 55101 :. i : a,. ..:_ .s.;,. -. .:;� •.., . ._ ��.•:�. .:-. . � �.. -,__ . '`_.. - ,, .'ay , �... .-,.- - . �. .. , � . . . . , .. . . � - ' . - - . . - . .. . ' . . . . „ .� .. . � . . . . � .'g . �� . � ' . . ' . . . . . . . . s .. . .� � .. �