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CC_Minutes_2002_0617
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Roseville City Council
Document Type
Council Minutes
Meeting Date
6/17/2002
Meeting Type
Work Session
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<br />. Continue to rely on the County Housing & Redevelopment Authority. Ramsey County currently <br />has an HRA that serves suburban communities. The County HRA does not currently use its <br />levy powers. Though this could change, even if the County HRA initiated a levy, all cities in <br />Ramsey County would compete for these funds. Further, the County HRA targets low- <br />moderate income projects. A Roseville HRA, on the other hand, might choose to target a <br />more middle-class approach, seeking to enhance housing opportunities for Working families <br />and seniors. Hence, staff feels that relying on the County HRA might be unproductive; there <br />are limited resources there and a different emphasis. <br /> <br />. The 1-35W Corridor Coalition Board has discussed exploring a corridor-wide HRA to fund <br />subregional housing projects and services such as the rebate program and the HRC. One <br />reason is that the non-profit funding offered by the McKnight Foundation to supplement the <br />cost of the HRC for three years requires an equal three year commitment from the local <br />communities. The Corridor HRA initiative is in the very beginning conceptual stage and would <br />require special state enabling legislation in 2003 or beyond. Staff feels the outcome of this <br />state legislative process is very uncertain and not to be relied upon. <br /> <br />What can an HRA provide that is not available to the City? <br /> <br />As mentioned in the staff report dated June 17, 2002, the presence of an HRA demonstrates that a <br />community is committed to a sustained and concentrated effort to improve housing. In addition, a <br />dedicated funding source would provide staff with the initiative to pursue improvements of larger multi <br />family projects. <br /> <br />. Currently, staff is not prepared to suggest that the City can assist in the renovation or <br />redevelopment of a large multi family housing project. Therefore, discussions with "absentee <br />owners" about more maintenance of their property are difficult when there are limited <br />resources the City can bring to the table. These types of owners are not interested in the just <br />below market rate financing that the County provides along with the county and federal <br />reporting requirements and red tape. There are low to moderate income people who are living <br />in substandard conditions in some of these complexes. Since there is such a shortage of <br />affordable housing, desperate people will not demand quality living arrangements. Staff <br />believes that having a Roseville HRA, with adequate funding, would help to provide the <br />incentive needed possibly for new responsible owners to purchase the properties, and with <br />possibly more stringent code compliance programs or a multi-family licensing program (which <br />could be administered by the HRA) to put pressure on "absent landlords" to make the <br />improvements that renters deserve. <br /> <br />.. This is one of the issues that staff was referring to when noting that an HRA would provide <br />"flexibility in managing housing programs". The use of abatement in some single family <br />housing situations does not compare with the multi-family code violations in Roseville's <br />affordable rental complexes. Another "flexible" opportunity that an HRA provides includes <br />working with a non-profit housing provider who may be eligible for the use of tax credits to help <br />finance projects. While cities and HRA's are not eligible for tax credits, non-profits syndicating <br />the tax credits for projects can help reduce the overall cost of development. In addition, an <br />HRA could go directly to HUD to receive grants, such as the HUD 108 loan and BEDI grants, <br />instead of working through the County and competing with other potential recipients. <br /> <br />Staff does agree with Council members statement that the "real argument here is that there is <br />insufficient funding to meet our housing needs." However, staff also believes that having an HRA that <br />can use the existing Housing Fund and rely on future funding through a special taxing levy would <br />provide more opportunities for the community to address larger housing issues as well as maintain <br />existing successful programs. An HRA dedicated funding source is one assurance to funding partners <br /> <br />41) Page 2 <br />
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