HomeMy WebLinkAbout7.b. Scattered Site Houseing AgreementJUAKV 1 A U3 U Al Y
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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"
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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
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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
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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