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HomeMy WebLinkAbout7.b. Scattered Site Houseing AgreementJUAKV 1 A U3 U Al Y :aas�=.sem HRA -Tt 74 * Serving People and Communities January 13, 1988 Dean Johnson, Planning Director Rosemount City Hall 2875 - 145th Street Rosemount, MN 55068 Dear Mr. Johnson: IJA.KMA MUMY HOUSING & REDEVELOPMENT AUTHORITY 2496 - 145th STREET WEST ROSEMOUNT, MINNESOTA 55068 612-423-4800 The Dakota County Housing and Redevelopment Authority received funding recently from HUD to purchase fifteen units of Scattered -Site Low Rent Housing throughout Dakota County. The City of Rosemount had entered into Cooperation Agreements for our Scattered -Site acquisition program on November 15,'1977 and July 3, 1979. Both agreements authorized the purchase of up to five properties. All ten have since been purchased under past ,awarded programs. Another Cooperation Agreement was entered into on February 3, 1981, for twenty units of new construction. This agreement applied to the twenty units of low -rent housing that were constructed at the HRA office site. Therefore, we lack the authority to purchase any additional units under our currently funded program in your community. Although we have balances remaining on several Cooperation Agreements with other communities, we would like to give Rosemount the opportunity to enter into a new Cooperation Agreement for five units of family or senior housing so that we can have the opportunity to add to,our Rosemount inventory for this program. We currently have fifteen eligible Rosemount residents on our waiting list for the units that we do have. Because our turnover is so low, these families are faced with an approximate wait of anywhere from eight months to over a year. Since HUD's funding is so limited and their policy on new funding is uncertain, we are extremely fortunate to have received a funding allocation for fifteen new units. Opportunities in the foreseeable future to again add to our housing inventory may not exist. Therefore I urge the Council to seriously consider this request. "AN EQUAL OPPORTUNITY EMPLOYER" -2- 0 I have enclosed a copy of a new Cooperation Agreement that we are requesting the Council approve. If its convenient, we would like to have this item considered at your February 2nd meeting. Should you have any questions of me prior to the February 2, 1988 Council Meeting, please call me. I will also be present at that meeting to discuss this further as directed. Sincerely, Michele M. Schnitker Director of Low Rent Housing �1 P.U. BOX 510 Z6%� 2875 -145TH ST. W. ,ROSEMUT, MINNESOTA 55068 OJeMOv�� 612-423-4411 TO: Mayor, City Council and City Administrator FROM: Dean Johnson, Director of Community Development DATE: January 28, 1988 SUBJ: February 2 Regular Council Meeting Agenda Items Scattered Site Housing_Asreement You've received copies of a cover letter and Cooperation Agreement regarding scattered site housing. Michele Schnitker, Public Housing Director, Dakota County HRA, will make a presentation at the meeting. This particular program allows the county to acquire single family homes on the open market and rent them to qualifying low and moderate income families or senior citizens. Many of the homes acquired under this program are homes that are vacant and in foreclosure with HUD. Others may be existing rental units. Often the properties acquired are in need of repair and represent lower value homes in a particular neighborhood -- sometimes eyesores. The county has its own maintenance crew that upgrades the homes and provides on-going upkeep. The county enforces strict tenant requirements on all of its renters. The net result is that most of the homes involved experience overdue facelifts and code improvements, which have positive impacts on the neighborhoods. Most residents are unaware that the homes are public housing units. This eliminates the usual (unfounded) perception that low rent housing will affect neighborhood property values. Perhaps the best benefit is that the tenants have an opportunity to be in the mainstream of society by not living in a "project." Most tenants in the scattered site homes have successfully elevated themselves economically; that is, they improve their self worth and employment status to where they no longer qualify for assistance. You can easily see the benefits this provides the children in the households. There is no knowledge or stigma of public assistance with the children's peers, which is the best avenue for escape from second generation dependance on welfare and other public assistance. We have ten units in the City at this time. I do not recall a single complaint (other than one or two prejudiced remarks 8 or 9 years ago) in my 10 years with the City. This is an excellent housing program for the needy, and I heartily recommend unanimous approval of the Cooperation Agreement. It should also be noted that these units are applicable to the proposed condominium as additional senior citizen units, which could enhance the start-up of the project. Finally, 10010 of the actual rent collected is paid in lieu of actual property taxes. This is an insignificant impact compared to the benefits of the programa February 2, 1988 Coneeting Agenda Items Page Two n#M 0 7d. Building Official - Year End Report You have received the annual year end report and 1980-1987 housing summary. As noted earlier, 1 would prefer offering any revelations or speculations on this material until we make our department presentation March 8. I will be prepared to answer any questions you may have, however, at the February 2 Regular Meeting. 7e. - 7g. Fire Code, Building Code, Fee Schedules Agenda item 7e includes proposed amendments to the City Code which will accomplish the following: 1. Adopt the current edition of the Minnesota Uniform Fire Code. 2. Clarify language on the storage of L.P. gas containers. 3. Adopt the current edition of the Minnesota State Building Code. 4. Adopt Appendix Chapter 70 of the Uniform Building Code to replace the chapter on "Excavations." Both old and new language of the particular sections are enclosed, with the exception of "Appendix Chapter 70." It is rather lengthy, and I took the liberty of sparing you the extra reading material. The Building Official and Public Works Director have also recommended adopting "Appendix Chapter 70." I will be prepared to provide any detailed explanations you may have, regarding the amendments. Agenda items 7f and 7g are proposed resolutions to increase building permit fees and electrical permit fees. Both old and new fee schedules are enclosed for each of the permits. The bottom line is that we have not increased either fee schedule for several years, and these actions will bring us in line with area cities. Again, I will be prepared to provide any detailed explanations you may have on the proposed fee schedules. 0 COOPERATION AGREEMENT • This Agreement entered into this day of '19_, by and between the Housing and Redevelopment Authority of Dakota County (herein called the "Local Authority") and the City of Rosemount, Minnesota (herein called the "Municipality"), witnesseth: In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: 1. Whenever used in this Agreement: (a) The term "Project" shall mean scattered site low -rent housing approved by Resolution of the Dakota County Board of Commissioners on May 10, 1977, and hereafter developed or acquired by the Local Authority with financial assistance of the United States of America acting through the Secretary of Housing and Urban Development (herein called the "Government"); excluding, however, any low -rent housing contributions entered into between the Local Authority and the Government, or its predecessor agencies, prior to the date of this Agreement. The scattered site low -rent housing units developed or acquired by the Local Authority in accordance with this agreement shall be individually designated, for the purpose of being identified as part of this project, with the code "SFS". (b) The term "Taxing Body" shall mean the State or any political subdivision or taxing unit thereof in which a Project is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer to be levied for its use and benefits with respect to a Project if it were not exempt from taxation. (c) The term "Shelter Rent" shall mean the total of all charges to all tenants of a Project for dwelling rents and nondwelling rents (excluding all other income of such Project), less the cost to the Local Authority of all dwelling and nondwelling utilities. (d) The term "Slum" shall mean any area where dwellings predominate which by reason of dilapidation, overcrowding, faulty arrangements or design, lack of ventilation, light or sanitation facilities, or any combination of these factors are detrimental to safety, health or morals. 2. The Local Authority shall endeavor (a) to secure a contract or contracts with the Government for loans and annual contributions covering one or more Projects comprising not more than 5 family or senior units of low -rent housing and (b) to develop or acquire and administer such Project or Projects, each of which shall be located within the corporate limits of the Municipality. The obligations of the parties hereto shall apply to each such to each such Project. The Local Authority agrees that it will engage in no new construction within the Municipality and that all housing will be obtained by purchasing and rehabilitating existing housing. 3. (a) Under the statutes of the State of Minnesota, all Projects are exempt from all real and personal property taxes levied or imposed by an Taxing Body. With respect to any Project, so long as either (i) such Project is owned by a public body or governmental agency and is used for low -rent housing purposes, or (ii) any contract between the Local Authority and the Government in connection with such Project remains in force and effect, or (iii) any bonds issued in connection with such Project or any monies due to the Government in connection with such Project remain unpaid, whichever period is longest, the Municipality agrees that it will not levy or impose any real or personal property taxes upon such Project or upon the Local Authority with respect thereto. During such period, the Local Authority shall make payments (herein called "Payments in Lieu of Taxes") in lieu of such taxes and in payment for the Public, services and facilities furnished from time to time without other cost or 0 - 2 - i charge for or with respect to such Project. (b) Each such annual Payment in Lieu of Taxes shall be made at the time when real property taxes on such Project would be paid if it were subject to taxation, and shall be in the amount equal to ten percent (10%) of the Shelter Rent actually charged by the Local Authority in respect to such Project during the 12 month period ending December 31 before such payment is made. (c) No payment for any year shall be made to the Municipality in excess of the amount of the real property taxes which would have been paid to the Municipality for such year if the Project were not exempt from taxation. (d) Upon failure of the Local Authority to make any Payment in Lieu of Taxes, the provisions of Minn. Stat. 462.455 and 462.571 shall apply. 4. If by reason of the Municipality's failure or refusal to furnish or cause to be furnished any public services or facilities which it has agreed hereunder to furnish or to cause to be furnished to the Local Authority or to the tenants of any Project, the Local Authority may deduct the amount of such expenses from Payments in Lieu of Taxes due or to become due to the Municipality in respect to any Project or any other low -rent housing projects owned or operated by the Local Authority. 5. During the period commencing with the date of the acquisition of any part of the site or sites of scattered site Project and continuing so long as either (i) such Project is owned by a public body or governmental agency and is used for low -rent housing purposes, or (ii) any contract between the Local Authority and the Government for loans or annual contribution, or both, in connection with such Project remains in force and effect, or (iii) any bonds issued in connection with this Project or any monies due to the Government in connection with this Project remain unpaid, whichever period is the longest, the Municipality without cost or charge to the Local Authority or the tenants of such Project (other than the Payments in Lieu of Taxes) shall: (a) Furnish or cause to be furnished to the Local Authority and the tenants of such Project public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality; (b) Cooperate with Local Authority by such other lawful action or ways as the Municipality and the Local Authority may find necessary in connection with the development and administration of such Project. 6. In respect to any Project, the Municipality and Local Authority agree that in the event that any public improvements become necessary that the Municipality will install and construct said improvements (in consideration whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Project site for such work if such site were privately owned). 7. No Cooperation Agreement heretofore entered into between the Municipality and the Local Authority shall be construed to apply to this Project covered by this Agreement. 8. No member of the governing body of the Municipality or any other public official of the Municipality who exercises any responsibilities or functions with respect to any Project during his tenure or for one year theretoafter shall have any interest, direct or indirect, in this Project or any property included or planned to be included in this project, or any contracts in connection with such projects or property. If any such governing body member or such other • - 3 - public official of the Municipality involuntarily acquires or had acquired prior to the beginning of his tenure any such interest, he shall immediately disclose such interest to the Local Authority. 9. So long as any contract between the Local Authority and the Government for loans (including preliminary loans) or annual contributions, or both, in connection with any Project remains in force and effect, or so long as any bonds issued in connection with any Project remain unpaid, this Agreement shall not be abrogated, changed, or modified without the consent of the Government. The privileges and obligations of the Municipality hereunder shall remain in full force and effect with respect to each Project so long as the beneficial title to such Project is held by the Local Authority or by any other public body or governmental agency, including the Government, authorized by law to engage in the development or administration of low -rent housing projects. If at any time the beneficial title to, or possession of, any Project is held by such other public body or governmental agency, including the Government, the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including the Government. 10. The Municipality hereby gives approval of any site that may be selected by the Local Authority under this agreement, so long as no more than one site is located within 200 yards of any other HRA -owned site. The Municipality and the Local Authority agree that this action constitutes the approval of a Housing Project within the Municipality's boundaries by the governing body of the Municipality, as is required by Laws of Minnesota, 1971, Chapter 333, Section 3. IN WITNESS WHEREOF the Municipality and the Local Authority have respectively signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written. (SEAL) ATTEST: CITY OF ROSEMOUNT By Mayor City Clerk DAKOTA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY By Chairperson ATTEST: Secretary