CCP 09-11-2000 - Laserfiche WebLink

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e . . .4 CITY OF ARDEN HILLS MEMORANDUM DATE: Wednesday, September 06, 2000 TO: Mayor and City Council Jennifer Chaput, City Plallller~ FROM: SUBJECT: Hunter's Park Apartments During the public portion of the meeting, a representative of Hunter's Park Apartments, 4 Pine Tree Drive, will be present to voice the concerns of the tenants. A packet of infonnation regarding fifteen units of Section 8 housing that are returning to market value has been provided to you, for your information. There are currently fifteen Section 8 units (HUD subsidized rents) in Hunter's Park Apartments. The owner of the building has chosen to allow his contract to expire with HUD, causing the fifteen units to return to market value rents in September, 200l. Vouchers will be provided to the residents of the fifteen units, allowing them to continue to have subsidized rent and the building owner has agrecd to take them for an additional year following expiration. These vouchers can also be used to assist with rent at other properties if the building owners choose to accept them. Hunter's Park contacted City staff over a month ago to inquire what the City may be able to do to assist with their situation. At that time, staff stated that there was not anything that the City could do since the owner of Hunter's Park had fulfilled his obligations with mID. They have chosen to come before the City Council to ensure that you are aware of this issue and to ask for any assistance that you may be able to provide. Since this time, I have been in contact with Mary Lou Egan, Ramsey County Community Development Department, who reiterated that there wasn't anything that the City could do to assist the residents unless the building owner was interested in renewing his contract with HUD. The legislature appropriated funds to this type of situation within the metro area during the past year. Financial incentives were offered to the owner to allow for the continuance of Section 8 units but he refused. He has plans to retire and also has discussed with City staff in the past that he may wish to convert the complex from rental units into condominiums in the near future. Affordable housing has become extremely difficult to locate in the metro area. The vacancy rate for rental units has been just over 1 % in the past few years, creating a very tight market and allowing for property owners to significantly increase rents. Although this situation is very unfortunate for the current tenants of the fifteen affected units in Hunter's Park Apartments, it is solely the decision of the property owner to remain within the HUD program, not the responsibility of the City.