280493 WHITE - CITV CLERK 1y��������
C NARV - DEPARTMENT COUIICII r�i� ,;
BLUE - MAYOR GITY OF SAINT PAUL File NO. �
c;ty attny/�rH • •
unc�l Resolution
Presented By
Referred To �—`�-- Committee: Date �/ ��/��
Out of Committee By Date
RESOLUTION APPROVING THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM
HOUSING ASSISTANCE PLAN 1983-1986
WHEREAS , in accordance with requirement of the Housing and
Urban Development Act of 1974, as amended and regulations adopted
pursuant to that Act, particularly Title 24 C.F.R. §570. 306 , there
has been prepared and submitted to the City Council a Housing
Assistance Plan 1983-1986; and
WHEREAS, said Plan which consists of forms HUD-7091. 1 and
7091 . 2 and thirteen pages of mimeographed text dated April 1983 ,
is a measure of the condition of the housing stock in the City of
Saint Paul , an assessment of need for housing assistance among its
households and a statement of goals for the provision of such
housing assistance and distribution of housing resources under the
Community Development Block Grant Program; and
WHEREAS , said Plan has been reviewed and approved by the
Planning Commission with recommendation for its adoption, Resolution
File No. 83-10 dated April 22 , 1983 , has been recommended by the
Mayor for adoption by the City Council , and has been duly considered
by the City Council; now therefore be it
RESOLVED that the Housing Assistance Plan 1983-1986, Saint Paul
Community Development Block Grant Program Year IX, dated April 1983 ,
is hereby approved for submission to HUD to serve as a meails for HUD
to distribute assisted housing resources to Saint Paul under the
Program, and as a means for the City to implement strategies to
conserve and expand its housing stock available to persons of all
incomes with emphasis on those of low and moderate income .
COUNCILMEN Requested by Department of:
Yeas Nays
Fletcher �
Levine In Favor
Masanz
Nicosia c.-�i
Scheibel _ __ Against BY
Tedesco
Wilson
Adopted by Council: Date ��N 2 �- 1983 Form Appr ved by City t r y
Certified a_se ounci reta BY
V '
By -
/�lpproved vor: ate J�N 1983 A r ve by Mayor f r S bmission to Council
By _ BY
PllBLISNED J U L 2 1��
^'�'. i 1� i.�. \ � / I R
��" ; . Y:,,. � C�ITY OF S�1I�� P�.UL `�'��: '��"�
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T0 � Sainz Paui Cifiy Council
F F� O M = C O 1'Yl CY11�'r@ e O�'l FII�ANCE, AtANAGEMENT � PERSONNEL �
C H A 1 R James Scheibel
1. Approval of minutes from meeting held June 2, 1983. ^�
�J Resolution approving the Community Develogment: $14ck Grant. Program
`�__� Housing Assistance Plan, 1983-1986. �d - a--�-'�'"
3. Ordinance amending Sections 33.04 and 370. 16 of the St. Paul _
Legislative Code. n OJFR 0!.1,,,� ' W=�i�''=�--"��--�
. �` �---�-_.-�..�..�,{'
4. Resolution approving the 1983 Memorandum of Agreement _between �
Plumbers Union and the City of St. Paul. �d,.���
5. Resolution approving� the 1983 Memorandum of Agreem�nt,b?etween
Pipefitters Union and City of St. Paul. ' �� +� �;
6. Resolution approving the issuance of bonds by the HRA to finance
Phase I of. the rental housing development in Energy Par��.�.�*..��0• -
CITY HALL SEVENTi[ FLOOfi SAINT PAUL, r3l�NESOTA 55)02
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-'�", � "�'� OFFICE OF "I'HE MAYOR
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`'� �a�a 347 CITY HALL
°"'�r—� SAI�iT PAUI„ VITNNESO'T'A S�IU2
GF.ORGE LATII�7ER (6t2) 298-d323
MAYOR
April 27, 1983
Council President Victor Tedesco
and Members of the City Council
719 City Hall
Saint Paul , Minnesota 55102
Dear President Tedesco and Members Qf the City Council :
Enclosed is a new Housing Assistance Plan for the City for the years 1983-1986.
A Planning Commission Resolution recommending adoption of the plan is also
enclosed.
ihis plan demonstrates ►vith the list on page 3 the wide uariety of progras�
efforts which`the City-:s supporting to meet the housing needs i�entified.
It ��so indicates a very m�dest goal of 300 units of federal rental sub-
sidy far lcwer income households over a 3-�ear period. This represents
-r. less than 30°� of the rate at which housing assistance ��as be�ing provided in
St. Paul over the severai year�s prior to the cut-back in housing programs by
the present administration. The plan states that these goals will be revised
when conclusions are reached in Washington on n�w housing resources to be
r�ade available.
This plan reflects the goals and policies arrived at in the Loa�er Income
Housing Strategy adopted by the Council ir 1982. This plan is our fulfillment
of the requirements for a Housing Assistance �'lan in our application for
Community Development Block Gran funds. I recomrnend its adoption by the
Council .
Sincerely, 1
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��'i� �- I�.�,l�..----'""'"'��"'—
�eo� Latimer
Mayo r�
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ENC
cc: William Q. �atton
Kenneth E. Ford
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. . Form Approved
• OMB No.2506-0063
` U.S.DEPARTMENT OF HOUSING AND URSAN DEVELOPMENT 1•NAME OF COMMUNITY
COMMUNITY DEVELOPMENT BIOCK GRANT PROGRAM
ENTITLEMENT PROGRAM 2.GRANT NUMBER -
HOUSING ASSISTANCE PLAN g _ _• _ _
3.PERIOD Of APPLICABILITY 5• HUD APPROVAL
FROM: �une 1 1983 T�� Ma 31 , 19.86
4.OATE OF SUBMISSION 4a.
� Original ❑ Revision ❑Amendment fSignatureofAuthorizedOfficiafl (Darel
PART I - HOUSING ASSISTANCE NEEDS
TABLE I - HOUSING STOCK CONDITIONS
STANDARD UNITS SUBSTANOARD UNITS SUBSTANDARD UNITS SUITABLE FOR REHAB
TENURE OCCUPIED UNITS
TYPE OCCUPIED VACANT OCCUPIEO VACANT VACANT
UNITS UNITS UNITS UNITS Total Lower Income UNITS
q B C
p E F G
s Owner 0 674 191 10 472 5 223 187
� Renter 22 6 9 269 22 251 ' 16 451 1 245
TABLE II - RENTAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS
ELDERLY SMALL FAMILY LARGE FAMILY TOTAL
H , t � K .
s Ver Low income - 10 656
s Percent 33.3 96 63.3 % . .5 % 10096
to Other Lower Income � - 4" Ol l `
tt ETR • O O
�2 To be Dis laced 6 18 6 30
ts Total 9�4 .f'�7
ta Percent 2,�—°� % % 100°�6
� PART(I-THREE YEAR GOAL
TABLE I - UNITS TO BE ASSISTED
RE ABI�F ATION NEW CONVERSION l0 HOME
SUBSTANOARD UNITS CONSTRUCTION STANDARD UNITS IMPROVEMENTS
L M N 0
15 Owner
t6 Renter
(UNITS EXPECTED TO ASSIST LOWER INCOME HOUSEHOLDS)
t� Ow�er 1 200 150 0
ts Renter 750 285 0
TABLE 11 - LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES
EIDERIY SMA�L FAMILY IARGE FAMILY TOTAL
— p Q q S
ts Households to be Assisted 65 175 0 300
2o Percent 21 .7 % 58.3 96 `� ���
TABLE 111 - GOALS FOR HUD RESOURCES: SUBJECT.TO LOCAL REVIEW AND COMMENT •
ELDERLY SMALL FAMILY LARGE FAMILY TOTAL
T U V W
2t Househoids to be Assisted 65 175 6 300
HOUSING TYPE PREFERENCE(Maximum Number of Uniis ihat wi!/be Accepiedl
2Z NEW REHAB EXISTING
- 2 250 - 250 �
23 ❑Check ihis box if the app/ica�i wishes to review State Housing Agency proposals within its jurisdiciion. �
PART III - GENERAL LOCATtONS
24 Attach map identifying ihe general locafions of proposed assisted housing. _ _ � •
. Hua�os�.� ��ass)�
' (24 CFR 570.306)
_ MAP 1 .
_
LOCATION PLAN FOR ADOITIONAL SUBSIDIZED HOUSING UNITS FOR FAMILIES :;
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� ADDITIONAL UNITS ENCOURAGED
� ; lst PRIORITY: Higher Income Census Tracts with Little or
No Subsidized Housing Units
� � ' 2nd PRIORITY: Lower Income Census Tracts with Little or
, No Subsidized Housing Units
l
� a ,ADDITIONAL UNITS CONDITIONALLY PERMITTED �
,k
- `. - MAP 2
LOCATION PLAN FOR ADDITIONAL SUBSIDIZED HOUSING UNITS FOR THE ELDERLY
_ _ _ _
•
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. C �O 30 306.01 306.02 f
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376.01
376.02
Q . ,.,, .,.
'ADDITIONAL UNITS ENCOURAGED
� ; lst PRIORITY: Higher Income Census Tracts with Little or �
No Subsidized Housing Units
� ! 2nd PRIORITY: Lower Income Census Tracts with Little or
No Subsidized Housing Units
a ;ADDITIONAL UNITS CONDITIONALLY PERMITTED
. � . _
� ,K►,r. s-��iv �
' 3 ,
'. City of St. Paul
' HOUSING ASSISTANCE PLAN
1983-1986
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. April 1983
' Department of Planning and
Economic Development
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HOUSING ASSISTANCE PLAN (1983-1986)
� 1.0 INTRODUCTION �
� The purpose of the Housing Assistance Plan (HAP) for
' 1983-1986 is two-fold. First, the plan will include
' an assessment of the need for housing assistance among
Saint Paul households. Secondly, it will set forth a
series of objectives and policies intended to inform
the expenditure of federal, state and local housing assis-
' tance funds.
For the City of Saint Paul, the purposes of the federally
1 mandated HAP are consistent with those of - " •
the Lower Income Housing Strategy developed by the Saint
Paul Planning Commission and adopted by the City Council
' on July 12, 1982. Intended as a three year plan to guide
City housing-related activity through 1984, the Lower
Income Housing Strategy includes many of the elements
required of the HAP. As such, it is attached and will
� be referenced where appropriate.
'
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, . _ . Form Approved
' OMB No.2506-0063
U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 1•NAME OF COMMUNITY
COMMUNITY�EVELOPMENT BIOCK GRANT PROGRAM
ENTITLEMENT PROGRAM 2.GRANT NUMBER
� HOUSING ASSISTANCE PLAN g _ _ _ _
3
3.PERIOD OF A PucAa�uTV 5• HUD APPROVAL
FROM: �une 1 1983 T�� Ma 31 , 19.86
�ATE OF SUBMISSION 4�.
� Original ❑Revision ❑Amendment (Signature of Authorized Officia/J (Dare!
PART 1 - HOUSING ASSISTANCE NEEDS
TABLE I - HOUSING STOCK CONDITIONS
STANDARD UNITS SUBSTANDARD UNITS SUBSTANDARD UNITS SUITABLE FOR REHAB
, TENURE oCCUP1ED uNiTs
TYPE OCCUPIED VACANT OCCUPIED VACANT VACANT
UNITS UNITS UNITS UNITS Total Lower Income UNITS
A B C p E F G
s Owner 3 10 674 191 10 472 5 223 187
� Renter 22 6 9 1 269 22 251 16 451 1 245
TABLE II - RENTAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS
ELDERLY SMALL FAMILY LARGE FAMILY TOTAL
�„� � � � K
s Ver Low Income 10 656
s Percent 33.3 % 63.3 96 . .5 % 10096
o Other Lower Income 5 a ���
t ETR O O
2 To be Dis laced 6 18 6 .30
i3 Totai � 7 9 4 ��7
a Percent 2,�—°� 96 % 100%
PART II -THREE YEAR GOAL
TABLE I - UNITS TO BE ASSISTED
RE ABI�F ATION NEW CONVERSION l0 HOME
SUBSTANDARD UNITS CONSTRUCTION STANDARD UNITS IMPROVEMENTS
� M N �
5 Owner
s Renter
(UNITS EXPECTED TO ASSIST LOWER INCOME HOUSEHOLDS)
� Owner 1 200 150 �
s Renter 750 285 0
TABLE 11 - LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES
ELDERLY SMALL FAMILY IARGE FAMILY TOTAL
_ p Q q g
g Households to be Assisted 65 175 60 300
o Percent 21 .7 % 58.3 % � °� ���
TABLE I11 - GOALS FOR HUD RESOURCES: SUBJECT TO LOCAL REVIEW AND COMMENT - '
ELDERLY SMALLFAMILY LARGEFAMILY TOTAL
T U v W
zt Households to be Assisted 65 175 60 300
HOUStNG TYPE PREFERENCE(Maximum Number of Units rhat will be AcceptedJ
NEW REHAB EXISTING
Z 250 - 250
❑Check this box if the app/icant wishes to�eview Sraie Housrng Agency proposa/s wiihin its jurisdicrion. �
PART I11 - GENERAL LOCATIONS
Aitach map identifying ihe general locations of proposed assisted housing. Lower I nc. Ho u s i n a S tr�t Pa v, p.54,55
, . . Hua�os� � ��as2��.
(24 CFR 570.306)
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. 2.0 HOUSING ASSISTANCE NEEDS •
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.�1 DEFINITIONS OF In a survey �f h�using c�n�it��ns c�n�ucte in 1 =1,
HOUSING CONDITIONS residential structures and units were characterized on
' the basis of a number of externally observable conditions
as being in one of the following conditions:
. Condition 1 : Sound. Adequately maintained requiring
� no, or very itt e, restoration.
. Condition 2: Needing Minor Repair. Requiring repairs
I to surfaces of the structural elements, usually
painting of window frames, eaves and porches.
, . Condition 3: Needing Major Repair. Often requiring
roof replacement and painting of eaves, walls, window
frames and porches; having deterioration of some
structural elements. �
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. Condition 4: Dilapidated. Damaged, rotted or missing
structural elements, having extensive deterioration.
, For the purposes of this plan, those units classified
as Condition 1 are defined as "standard units" with the
, remaining units considered "substandard". Those which
are described as needing minor or major repair, however,
are considered "suitable for rehabilitation".
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.02 LOWER INCOME HOUSEHOLDS An assessment •f the num�er •f h�useholds needing rental
EXPECTED TO RESIDE assistance should include those which can be expected
! IN SAINT PAUL to move into the area. HUD guidelines suggest that an
estimate of the number who can be "expected to reside"
in the area should be based on levels of current employment,
� planned employment and anticipated in-migration of elderly
persons. For Saint Paul, it is expected that there will
be little, if any, increase in the number of people
, needing rental assistance resulting from in-migration.
As a central city, the conditions in Saint Paul differ
from those of other municipalities within the metropolitan
, area. There is a well established trend of out-migration
from the central city which seems almost independent
� of the presence of employment opportunities in the City.
, Relatively free transportation access to the City enables
people to exercise their choice to live in the suburban
area while working in the city. Specifically, the three
, components affecting future population may be described
as follows:
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� Current Employment: Employment data for Saint Paul indi-
, cate the number of jobs in the City has, at best, stayed
about even over the past three years. While new jobs
have been created, they tend only to balance losses exper-
ienced over the same time period.
� • A thou h efforts are bein made
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by the Department of Planning and Economic Development
� and the Port Authority to attract new labor intensive
business and industry, it is unlikely that any increase
in the number of jobs will reverse a well established
� pattern of out-migration of working age adults from the
central city. Because of the accessibility of the city
from surrounding suburbs, people can work in the city
� and still exercise the choice to live in the suburbs.
There is no reason to expect a dramatic reversal in that
trend.
I Elderly: Once again those elderly persons who might
be expected to need rental assistance over the next three
years generally already live in the City. Indeed, the
� number of people over the age of 60 declined over the
past decade, indicating little, if any, in-migration.
The increased need which is expected to confront the
, City is likely to come from present residents who are
or will be unemployed or who face other difficulties
in a time of general economic distress and reductions
1 in resources available for their assistance:
� 2.03 IMPACT OF CONVERSION Although it can be expected there will be some conversion
OF RENTAL HOUSING TO of rental housing, the rate of conversion has slowed
OWNERSHIP STATUS dramatically in recent years. From a third quarter 1980
' high of 125 units converted, the third guarter of 1982
saw the conversion of 5 units:
There are several possible explanations for this change.
� (1) Change in City Policy: In August 1981, the City
established a policy that it would no longer provide
, rehabilitation or mortgage assistance for the conver-
sion of rental units unless the units have been
vacant for at least five years or are owner-occupied
2, 3 or 4 unit rental buildings. Many of the conversions
' done between 1979 and 1981 were done with financing
assistance from the City's below market interest
rate programs.
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' . 2 h n e in General Economic Conditions: Hi her
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interest rates and general economic instability have
' made the conversion of rental property for sale a
greater economic risk.
(3) Few Available Buildings: National data indicate
, that the prime candidates for conversions are large
multi-unit buildings requiring minimal rehabilitation
or renovation. That has, indeed been the pattern
' in the suburban comnunities of the Twin Cities metro-
politan area. Saint Paul has very few such buildings.
The pattern in Saint Paul has been the conversion
, of small historic buildings which have required sig-
nificant investments in rehabilitation. Before 1981,
that rehabilitation was often publicly assisted.
' With City assistance no longer' available and the
absence of many large rental buildings, it is not
expected that the rate of conversion will increase
again.
, For further discussion on the impact of conversions and
City policies governing the conversion process, see the
� Lower Income Nousing Strategy, pp. 30-32.
2.04 SPECIAL HOUSING NEEDS Minority Households
( The Metropolitan Council estimates that there are over
3,300 lower income minority households in Saint Paul
which are inadequately housed. This represents just
, over one-third of the City's minority households. Although
exact figures are not available, it is estimated that
almost half (42%) of these households are non-Hispanic
� Blacks, while about 25% are Nispanics and 17� are American
Indians, Asians or Pacific Islanders. The greatest increase
can be attributed to the arrival of Southeast Asian refugees
who make up about 16� of the total number of minority
, households with housing needs.
Not only are most of these households renters, as 87X
1 of them are, but the majority of them are families with
children. Indeed, almost 43% of the total minority popwla-
� tion in the City is under 18 - a percentage which can
' be expected to increase when one isolates the proportion
of minority households which are lower income.
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. Therefore, it can be generalized that the minority housing
need is concentrated in the rental housing market among
� - families with children. This only underscores the need
to conserve existing rental housing and provide to the
extent possible, additional rental housing for small
' and large families.
Sinqle Parent Households
, In 1980, there were 8,795 households with children headed
by a single parent. Over 87� of them were headed by
women. Metropolitan Council estimates indicate that
about half of those households headed by single parents
, had incomes below 80% of the area median and all but
about 6% of those lived in rental housing. Like minority
households, it can be argued that lower income single
� parent households are particularly vulnerable to shifts
in the rental housing market (e.g., higher rents, lower
vacancy rates, displacement) . It might be anticipated
that with increasing vacancy rates and a decline in the
' rate of conversions of rental units to owner occupancy,
some of the stress on this population group will be reduced.
At the same time, however, it is expected that single
� parent households will be particularly affected by reductions
in traditional federal rental assistance, increasing
the need for local government action to increase the
' supply of affordable rental housing.
Handicapped Housing Need
, Statistical data which provides an accurate indication
of handicapped housinq needs in St. Paul is� not available.
• It has been estimated that individuals with some mobility .
impairment represent 9.8% of the metropolitan area popu-
, lation. If this holds true for the city of St. Paul , it
is an indication that there could be as many as 25,000
households where some mobility impairment is involved.
' Market experience with barrier-free units that have been
made available to date provides the best indication of
demand for housing design to meet this particular need.
I When the 103-unit Lewis Park Housing Development for
handicapped households opened in 15�80, initial occupants
had to be chosen from a list of 600 qualified households
' interested in the units. While demand remains adequate
to keep the units in this structure filled, it has not
continued at the same high level . There are presently
, approximately "40 households waiting for units at this
facility. Most of these are elderly individuals.
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� The newest high-rise structures in the public inventory,
Seal Street, and Hamline, contain a total of 35 barrier-
free units. Of these 33 are presently occupied by
' � households with a mobility-impaired member. The Public
Housing Agency indicates that demand for these units has
been very weak. There is no waiting list. Much of the
time it has been very difficult to fill the units with
, households that need barrier-free space. A single-family
house in the Highland Park area, a part of the Public
Housing Agenc,y's scattered site inventory has been re-
' habilitated to provide a barrier-free unit. This unit
was on the market for nearly six months before a qualified
household was found. A similar single-family house on
' the East Side was finally rented to a non-handicapped
household because there was no demand for the barrier-
free space from a qualified handicapped household.
' The Division of Housing and Building Code Enforcement
indicates that they have frequent complaints from
builders who have been required to meet state requirements
� for the inclusion of barrier-free units in newly constructed
multi-family buildings. They indicate that there is no
market for the units.
, The experience of the Lewis Park development indicates
that there is continuing need for units , and it may be
the supportive community that this all-handicapped
' building provides that makes these units a litt}e different
in the market from some of the others available. A 36-unit
Section 202-funded handicapped development currently
' planned for a Railroad Island site will meet more of this
need. Beyond this, it is apparent that market demand for
barrier free units is not very strong. The City will
� continue to monitor this need and 4�i11 support construction o-
additional assisted barrier free units only where a
particular need can be clearly identified.
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' 3.0 THREE YEAR GOAL �
, 3.01 GOALS FOR RENT L In a ocating renta ass�stance among e er y and fami y
ASSISTANCE TO ELDERLY • households there traditionally has been a tendency to provide
AND FAMILY HOUSEHOLDS more elderly housing than would seem justified by the
' percentage of total need represented by elderly households.
It was in response to this trend that the Metropolitan
' Council included in its Areawide Housing Opportunity
, Plan the requirement that communities use at least 60%
of their housing subsidy for families.
In Saint Paul , small and large families account for about
, 65% of the total need for rental subsidy. The need felt
by large families, in particular, however, is greater
than their proportion of the population might suggest
' inasmuch as there are very few large rental units available
and affordable to lower income households. While public
housing waiting lists continue to grow for family units,
' vacancy problems exist in some elderly housing developments.
For thesereasons the City intends to devote about 20% of
k� � �` � any rental subsidies to large families while reducing the
, resources available to elderly households to about 11% of
the total .
' 3.02 DISPLACEMENT It is expected that there will be little, if any dis-
. placement, caused by government action in the coming
three years. There are three activities which may cause
, displacement.
. Construction of I-35E: There is one owner occupied
' structure yet to be acquired to allow for construction
of the roadway. The household is eligible for reloca-
- tion assistance. .
' . Rental Rehabilitation Program: Though it is not
presently anticipated, there may be as many as 30
households displaced in the Rental Rehabilitation
' Program recently launched by the Housing Division.
The division has secured Section 8 certificates to
be used in the event that displacement is unavoidable.
, . Neiqhborhood Partnership Program: A flexibly designed
program, NPP is intended to be used for various neigh-
borhood activities. Among those activities may be
, the acquisition of properties for demolition or
rehabilitation. Judging from the Identified Treatment
Area (ITA) Program which was similarly conceived,
, and resulted in very few acquisitions, it seems unlikely
that there will be more than scattered displacement.
Because NPP is funded in part with CDBG funds, displaced
' residents are eligible for relocation assistance.
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3.� IM�LEME T TI N F THE a��r new Nr��ram in�tiatives exNecte t� e Sai t
THREE YEAR GOALS Paul 's housing effort include:
� (1) The Rental Rehabilitation�Loan Pro ram is designed
to provi e pu ic an private funds for rehabilitation
' loans at an annual effective interest rate approximately
one-half of the conventional rate as an incentive
for owners to upgrade existing rental housing in
Saint Paul .
, Units rehabilitated under the program must be main-
tained as rental units for at least eight years or
' � the outstanding period of the public financing, which-
ever period is qreater. At least 51% of the initial
occupants of any project must be lower income and
' the owner must tender at least a one-year lease to
each initial tenant.
(2) The Multi-Family Rental Housinq Development Program
tis intende to provide "individualized" financing
in the context of a comprehensive financing program
for the new construction, rehabilitation or acquisition/
, rehabilitation of rental housing. In exchange for
specially tailored financing for each project by
the Housing and Redevelopment Authority, the owner
commits to: (1 ) maintain all units as rental , and
, (2) maintain at least 20% of the units for occupancy
by lower income households (15% of the units in projects
' located in target areas) for at least the qualified
project period.
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. (3) Using CDBG and local capital improvement funds, the
City has developed a program which will enable neigh-
, borhoods to design and implement programs to meet
their individual needs. Under the Neighborhood
Partnership Program, neighborhoods will submit com-
' petitive applications for funding in which they will
be asked to identify needs, activities to meet those
needs and local private investments which will match
public investments.
' The programs designed by neighborhoods may or may
not directly address housing needs though it is
' anticipated that several neighborhoods will develop
home improvement or rehabilitation loan and grant
programs. In any case, all kinds of activities which
' strengthen neighborhood confidence (e.g. , crime
prevention, street lighting, comnercial rehabilitation)
can be argued to have a positive impact on private
' investment decisions.
(4) Under the provisions of the Family Housing Fund (Phase
II), the City will assist in the construction and
' mortgage financing of new owner-occupied housing.
Emphasizing energy efficient, shared wall construction,
the program will encourage the development of housing
' for mature households with the expectation that large
family housing presently occupied by smaller households
will be returned to the market.
' (5) For very low income home owners, the Deferred Payment
. Loan Program and Ener Incentive Pro ram also a .
deferred payment program have been developed as
' a means of protecting the City's housing stock from
substantial deterioration.
� (6) The number of households which can expect rental
assistance is highly dependent on the nature and
size of any federal program which might be designed
to replace the present Section 8 program. Until
, such a program is operational it is unrealistic for
the City to establish more than very modest goals.
� There is a possibility that some 30-50 Section 8
certificates may be available to the City under the
provisions of the continuing resolution passed by
' the Congress in December 1982 which called for the
redistribution of unused certificates.
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� The Cit also ho es to secure an allocation under
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the Section 202 program to provide financing and
' the necessary rental assistance for the development
of 40-50 units of elderly housing.
While the goal of 300 additional households to receive
, rental assistance is modest, it seems realistic given
the current projections for federal assistance.
The City is willing, however, to accept assistance
, for additional units if such funding should become
available. Should a new rental assistance program
be developed and funded at a level hiqher than that
' currently anticipated, ,these �oals will be revised.
' There are numerous other projects �f varying sizes which
can be expected to yield new or improved housing over
the next three years. Increasingly, with the loss of
direct federal assistance to lower income households,
, the City is concentrating on providing some appropriate
level of assistance to developers, landlords or homeowners
to enable them to provide the necessary housing.
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4.0 ANNUAL GOAL
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' Li t d in Part IV are all the ro rams desi ned to facilitate
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the City's meeting its annual goals for 1983-84. With
, few exceptions, these are ongoing programs or programs
in the final stages of development.
, .O1 GUIDELINES FOR Most of the rehabilitation programs administered by the
REHABILITATION PROGRAMS City have guidelines requiring that all loan or deferred
loan recipients have incomes below 8�of the area median.
' Indeed, the Deferred Payment Loan Program and the Energy
Incentive Program are restricted to homeowners with incomes
below 50% of inedian.
, The Rental Rehabilitation Loan Program and the Energy
UDAG for rental rehabilitation differ from the other
� programs in that they require that only 51� of the assisted
units be rented to lower income households.
The one program in which there are no firm structural
' requirements that more than half of the resources be
devoted to lower income households is the CDBG funded
Neighborhood Partnership Program. Program guidelines,
' however, tend to encourage neighborhoods to design projects
which will benefit lower income households. In the com-
petitive application process, projects directed toward
lower income residents are more highly rated than those
! which are not. Applications from areas with lower median
incomes require lower private funding matches than those
from higher income areas. CDBG funding, in any case,
� may only be used in census tracts where the median income
is below 80% of the area median.
� In sum, established guidelines guarantee that well over
half of the units projected to be rehabilitated under
various programs administered by the City will benefit
lower income households.
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