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02-1070Council �le # O�,- ��1C RESOLUTION ��� Referred To Committee Date Resolution Establishing Guidelines and a Spending Plan for the City's Tenant Remedy Aetions Initiative 1 WHEREAS, the City Council authorized the Mayor to �ecute an agreemern accepting a$200,000 grant from the 2 Family Aousing Ftmd for City-initiated tenant remedy actians m CF #02-728 on August 7,2002; and 3 WHEREAS, pursuing City-initiated tenant remedy actions has been deemed an i�ortant component in the City's 4 efforts to reduce and eliminate chronic problem properties; and 5 WHEREAS, City-initiated tenant remedy actions aze eJCpected to kcep housing units in good repair and occupied by 6 good tenants, rather than be`9osY' to condeamation because of poor management and repair practices; and 7 WHEREAS, the City's agreement with the Family Housing Fund states the City shall provide the Family Housing Fund 8 cvith qnarterly reporfs on the use of the fund and make available, on request of the Family Housing Fund, its accounting 9 records pertaining to the expenditure of these fixnds; and 10 WHEREAS, the "Tenant Remedy Actions Initiative Fund" is i�ended to pay for the up-front expenses associated with 11 pwsuing tenant remedy actions in the courts, including both property management, provisian of basic facilities and 12 leasehold improvement expen9es; and 13 WHEREAS, the City's "Tenant Remedy Actions Iniriative" is irnended to be lazgely self-supported, as many of the 14 costs it incurs shall be eventually reimbursed through collected rents, billing, tax assessments, judgements, liens and 15 mortgage refinancing; and 16 WHEREAS, it is anticipated that some of the elcpenses associated with property management and leasehold improvement 17 will not be reimbursed to the "Tenant Remedy Actions Initiative Fund," hereafter referred to as the TRA Fund, because of 18 evictions and subsequent vacancies, tax delinquency, property abandonmant and a lack of equity in the property which 19 can be used to r�a'u and operate these properties in accordance with court orders resulting from City-initiated tenant 20 remedy actians; and 21 WHEREAS, a new activity 30254 named Tenant Remedy Actions Initiative wiil be established 'm the Property Code 22 Enforcement Special Fund 040; Green Sheet # I Q �t 5 I � OF SAINT PA'- ��, MIFIi �SOTA � 23 WHEREAS, the Mayor, pursuant to Section 10.07.01 of the City Chartey dces certify that there aze $200,000 in 24 revenues, in excess of those estimate in the adopted 2002, available for appropriatio�and O g . Ic�'!o 1 b) In TRA cases where the TRA Fund will be used, a plan for repayment of the TRA Fund shall be 2 specified in the court order; and 3 c) A limit of $3,000 in estimated unrecoverable expenses, e.g. those �penses the City cannot recapture 4 through the use of assessments, judgements, liens, rents or refinancing of the property, is allowable per 5 property when using the TRA fund, without a waiver by the Council; and 6 RESOLVED, that the City Council hereby requests the director of the Office of Neighborhood Housing and Property 7 Improvemern provide the Council copies of the quarterly reports provided to the Family Housing Fund and that these 8 quarterly reports include 1) a summary of each tenant remedy action pwsued, 2) the number of housing units affected 9 by the actions, 3) the expenses incurred for management and leasehold improvements, 4) an estimate of unrecoverable 10 expenses, and 5) any changes to these guidelines suggested by the Administration; and be it 11 RESOLVED, that these guidelines shall apply to all organizations pursuing tenant remedy actions involving the TRA 12 Fund, as per the City's contract with the Family Housing Fund; and be it 13 RESOLVED, that the City Council hereby zequests its fust written report and presentation on the City's Tenant 14 Remedy Actions for its July 9, 2003 meeting. Date "� ay � �-� �p a a� by Council Secretary Requested by Department of: 0� � ���P��� � i ; ,,. , _ ; 1 VJHEREAS, the Mayor recommends the following changes to the 2002 budget: b7-� f�� Amended Current Budget Changes Budget 2 2002 FINANCING PLAN 0 � 7 10 11 12 13 14 040 Neighborhood Housing and Properry Improvement 040-30254-6905 Contribution - Grant All Other Financing Total Finaucing Plan 2002 SPENDING PLAN 040 Neighborhood Housing and Property Improvement 040-30254-0219 Other Professional Services 040-30254-0379 Other: Utilities 040-30254-0206 Civil Filing Fees 040-30254-0589 Miscellaneous - Rehabilitation All Other Approved Spending Total Spending Plan 15 now therefore be it $200,000 $0 $0 + $ZOQ000 $0 $30,000 $10,000 $5,000 $155,000 $0 $200,000 $200,000 �� $200,000 $30,000 $10,000 $5,000 $155,000 $0 $200,000 16 RESOLVED, that the City Council, accepts the $200,000 grant from the Family Housing Fund; and, after considering 17 the Mayor's recommendations, approves the above changes to the 2002 budggtand be it further 18 RESOLVED, that the City Council establishes the following guidelines to be used in the expenditure of these funcis: 19 1) A masimum of ono-fifth of the TRA Fund may be spent on items related to the management of these properties; 20 2) A"master contracY' will be developed with the primary court-appointed administrator to the City, and this 21 wntract will require the administrator to make best efforts to hire from a list of contractors which includes 22 women and disadvantaged, etc.; 23 3) 24 25 4) 26 5) 27 28 29 30 31 32 33 34 35 36 The TRA Fund shall not be used to reimburse the City for staff time associated with code enforcement activities or the staff time and wurt costs associated with pursuing City-initiated tenant remedy ac6ons; The City Attomey must review and approve all City initiated Tenant Remedy Actions; A scope of work plan and budget shall be developed for each property for which the City pursues a tenant remedy action where the TRA Fund may be accessed, and this plan shall include a) A"Dwelting's Economic Viability" statement shatl be developed, in consultation with the Department of Planning and Economic Development, for all properties for which the City files tenant remedy actions, pursuant to Minnesota Statutes, Chapter SO4B.445, Subd 8: Dwelling's economic viabiliry. In considering whether to grant the administrator funds under subdivision 4, the court must consider jactors relating to the long-term economic viabiliry of the dwelling, including.� (1) the causes Zeading to the appointment ojan administrator, (2) the repairs necessary to breng the properry into code compliance; (3) the market vadue of the properry, and (4) whnher present and future rents wi11 be sufficient to cover the cost of reparrs and rehabilitation. o�.- lo�o co��ttm�b� r.� iv�r2oo2 GREEN SHEET No10!�11 11l13l2002:Diacussion TOTAL # OF SIGNATURE PAGES wm�ae soa ROUIWG �,�� �� ❑ m..TiOMlY ❑ a.V«i1tlC _ ❑ wuxr��aoncFSOrt ❑ wuno��mm�ccro ❑ wraelutwsasourtl ❑ (CLIP ALL LOCATIONS FOR SIGNATURE) Approval af re.solwion Fstabtishing Cnridelines and a Spending Plan for the City+s Tenant RemedyActioes Initiative. w PLANNING COMMiSSION CIB COMMITfEE CIViI SERVICE CAMMISSION Has mic ce��m ever wnrked uMe. a contract t« tMe departmem4 YES NO Has this P�rtn e�er been a cdY emPbyee� YES NO Does ihis Pa���m poesesc a sldll riM namallYW� M' anY curteM citY emP�7 YES NO Is Mis pe'soNfi�m a targeted vendM YES I� ' t�am an Yes ar�swe�a m sepaiare snee[ ana acrxn m Dreen snee[ ������� ��������ll�d��'@E'�{�y have the beaefit of an improved hovsing stock and fewer people displaced becavse of condemearioes, it will also receive a$200,000 @rant from the Family Housing Fwd tn offset the up-front cosp of comcactingthe administreti� ofthese Properties. ` �e i� improved housing, fewex people displaced because of condemnazions and receive a$200,000 grant &om the Family Housing Fimd. ��vvtN�cgts�t�ts incuaed by the CityAitomey associated with ffie prosecution of tenant temedy aMions. However, there has bcen a City Attamey assigied to work with the Office of Neighboxhood Housing and Property Improvement tp }iandte these and other cases. Housing Fimd COST/REVENUE BUDfiETED (GRCLE ONE) ACTIVITY NUMBER YES NO MFORMATON (EXPWIQ oa-�o� FAMILY HOUSING FUND CITY OF ST. PAUL GRANT AGREEMENT The Family Housing Fund, a 501(c)3 Minnesota non-profit corporation, is making a$200,000 grant to the City of Saiat Paut to support its Tenant Remedies Act (TRA) Initiative. The grant is subject to The terms and conditions outlined below. 1. The grants funds will be used to pay costs associated with a comprehensive TRA Iniriarive to deal with problem proper[ies in Saint Paul as outlined in E�ibit A, attached hereto as part of Uus funding agreement. 2. The City of Saint Paul will cooperate fully with the Fund by having the Department of Neighborhood Housing and Property Improvement provide quarterly reports that specifically report on the acriviries of The initiative and the use of grant funds. 3. The. Pund will disbutse the full $200,000 upon zeceipt of the signed Cnant Agreement. 4. The City of Saint Paul will establish a sepazate account in its books and records showing all disbursements of proceeds of the grant, wluch account shall be mamtained in accordance with generally accepted accounting principles. Further, the City of Saint Paul agrees to maintain all files and records in such a manner as will confum conformance to this agreement and to make such files and records available at its office at all reasonable times during the period of tlns agreement for inspection or audit by the Fund. 5. If the City of Saint Paul violates or breaches any provisions of tlus Agreement, then the City of Saint Paul shall immediately return to the Fund any unspent remaaung portion of the grant and any amount that the Fund deems to have been spent conlrary to the provisions of this agreement. FAMILY HOUSING FUND ��� j�e � ��'ic�G�i Thomas P. Fulton President CITY OF SAIIVT P`G� A �G� 4` C� /` M B y : � � 115: �QEt�"���1\AAVCI{��.,rA,C S CITY OF SAINT PAUL By: � l�-�cV�� Its: �'�. , , � �+''� Z� a' � ph� �"`� Date: � � I D l�D 2 Date: CITY C By: Its: Date: (O^�Cs >AINT PAUL /�%(/t�`--- ` � �'u�tJ� l�� � i'� s"vld�^7 /b�Z%-6Z o�- Ic�o TRA $200K Proposal - City of St. Paul I. Where lodge the $? Answer With Department of Neighborhood Housing and Property Improvement II. How spend the $? Answer Get council resolution on guidelines/parameters a) Per statute, court appointed administrator must petition court for approval to access $ lodged at city' (504B.445 Sub.4(5)) b) Per Family Housing Fund, the director of Neighborhood Housing and Property Improvement shall have full and complete discretion to decide if any, all or none of the $200,000 will be allocated to the Community Stabilization Project and Southern Minnesota Regional Legal Services for non-city initiated Tenant Remedies Actions. c) Per council resolution, set maximum limit per expense but allow more than one expense per building. d) Per council resolution, limit expenditures to repairs that are leasehold improvements and expenses of administration. e) Per council resolution, set up Master Contract with administrator to require best efforts to hire from a list of contractors that includes women and disadvantaged, etc. fl Require quarterly reports to council and Family Housing Fund. III. How revolve the $? A) Answer re Repairs The money spent is assessed to the property's upcoming property tax bill. The city already does this kind of coding expenses and tracking collections back to same fund. Step A} Set up expenditure code Step B) Assess the expense to properiy ta�c bill (per 504B.445 last paragraph) and track with code number Step C) Ramsey County collects the taxes and per code number sends the dollazs back to Neighborhood Housing and Property Improvement fund using a report form B) Answer re Costs of Administration The statute also allows the costs of administration to be assessed against the properry owner (504B.445Subd3) by getting a judgement, and this judgement could then become a lien against the property. �It is important to note that this fund will not be accessed except when rent flows and second mortgages (equity) are insufficient to cover costs DEPART�[ENT/OFFICE/COUYCIL: DATE IN[TIATED G�EN SHEET NO.: II4OIS by ��� O Citizen Service 11/01/2002 COYTACC PERSOY & PHO\E: I\ITlaunwTE I�IT7.alluwTE Andy Dawkins 266-8427 � t DEPARTbIEVT DIR. CITY COU�iCIL ASSIG\ ? CRY ATIOR.VEY _ CITY CLERK hiliST BE O\ COL"\C[L AGE\DA BY (DATE) �li�[BER 3 FINANCIALSERV DIR � FL��SCIAL SERV/ACCTG FOR 4 MAYOR(ORASST.) _CIl"ILSERVICECOM�ISSION RO�TI\G ORDER TO"IAI- n OF STG\ATORE PAGES _(CLIP ALL LOCATIO\S FOR SIG\ATtiR£) ACCIOV REQUESTED: Si�atures on grant a�eement between the City and Family Housin� Fund as authorized by Council Fi1e 02-728 adopted on August 7, 2002. RECO�IME\DATIONS�Approve(A)orReject(R) PERSONALSERV[CECO\TR4CTSbIL`ST.4\SR'ERTHEFOLLOW[NG QUESilO�S: PLANNNG COMM[SSION 1. Has this person/firm ever worked under a contrac[ for this departmen[? CIB COMMITTEE 1'es No CNIL SERVICE COMMISSION 2. Has this person/firm ever been a city employee? ' Yes No 3. Does this person/firm possess a skill not normally possesszd by any cuirrnt c�ty employee? Yes No Explain sll yes answers on separate sheet and attach to green sheet INITIATiVG PROBLEM, ISSUE, OPPORTUMTY (Who, What, When, Where, Why) Council File 02-728 accepted a$200,000 grant from the Family Housing Fund. The grant will be used to pay the costs associated with the Tenant Remedies Act (TRA) Initiative. ADVANTAGES IF APPROVED: The City will receive $200,000 to be used in city initiated tenant remedies actions �vhenever the subject property lacks sufficient revenues to repair code violations and/or pay the administrative costs of property receivership. DISADVAIVTAGES IF APPROVED: None DISADVANTAGES IF NOT AYPROVED: There will be more problem properties in Saint Paul TOTAL AAIOUNT OF TRANSACTIODi: S ZOO,OOO COST/REVEtiUE BUDGETED: FUNDING SOURCE: GT2T1Y fI'OID FBIYllIY HOUSlllg FUTAd ACTIVITY YUN[BER: O�O-3OZS4-E)9OS FLYAYCIAL INFOR\1ATION: (EXPLAI\) G \Uscrs\LCdGenGovi�FHA grm[ grnah[ wpd 0�.-l01 Co�nc; � pl� e- C�� -'1 2-� Gre�� S�ee= = 1023c'c Prese^ted By RESOLUTION CI'fY OF SA1NT PAtSL, MiNNESOTA Cor,.mittee: Date � P.e�erred To 1 `VHEREAS, the city has an opportunity to receive. che same Family Housin� Fund grant that Minneapolis has 2 received for its city-initiated Tenant Remedies Actions; and 3 4 �VHEREAS, the Office of Citizen Services, Division of Code Enforcemznt, has dztermined that city-initiated j Tznant Remedies Actions are an important component of the strateey to close-do�vn problem properties, and 6 this Family Housin� Fund money is an essential component of that strategy; and 7 8 �VHEREAS, the �rant is for �200,000 for the purpose of initiatin� Tenant Remedies Actions. 9 10 NO�V THEREFORE BE IT RESOLVED, the Vlayor is hereby authoazed to execute agreements ��'it t e 11 Family Housin� Fund to accept and impiement said �rant. Adopted by Council: Date �� � c��a� Q Adontior Certified by Council Secretary By: Apox sv: Reaueste3 y �/�� '""eat of : v� sY , �o'd� ��'� Fporoved bf Fi� z^c_al Services S B - J For� Ap^ 'zc by City Attorn°y g G_/1-��-�-����--- 01-��'1 Department'officelcouncil I Date c�� 1��� � Green Sheet No. 1o23ss Office of Citizens Services InitiallCate �? -1 �f Ir.i:ia:!Ca:a Contact Person S Phone� � And��Da«kins 266-8427 Depar,c.za: Dir. _C^ Co�.:.cil Assi n 3 City A¢or..ey 1—o Z_ G.y Qe:k i.'.us[ Be on Council Agenda hy (Date) Number _ Financia! Szn Dr. _ r.r.a ;c.:i Scr::ac:'= For _�la::o:(Or.�ss;) _C'.v.iSzr.:ceCo-�:ss:cs Routing Order Total K o` Signacure Pages f (Clip AU Locations for Signature) A[tion Rzquested - Appro��z the attached budget amendment to accept 5200,000 from the Family Hou��na Fund as a specia! fund �� ithin the OFfice oFCitizen Services and to get parameters for use of the funds in accordance «'ith Famil} Hoiuin� Fund srant requiremznts. Rxommzndations. Approve (A) or Rzyect (R) Planning Commission Ci8 Ccmmittee Gvii Szrvice Commission Personai Service Contracts Must Answer the Foilowing Ques:ions: �. Has this person/frm ever worked unCer a conVZCt fcr this CeFartment? Yes No 2. Has this peacn%5rr�� ever been a ciDj err.ploye�� Yes No 3. Does [his personi5rm possess a sk;0 ne: r.crmally FosszsseC by any currzat ciry empioye°? Yes No Explain ali yes answers on separate sheet and attach to green sheet Initiating Problem, Issue, Opportunity (Who, What, When, Where, Why): The opportunity esists to accept 5200,000 from the Family Housin� Fund to be us-d in city-initiated tenant remedies actions whenever the subject property lacks sufficiznt revenues to rzpair code violations and'or pay the administrativz costs of property receicership. Advantageslf Approved: It's "free money" to the City with no down sides, no added costs. The money ��'i11 bz used to impro� e the city s esisting housing stock and preserve affordable housin� units that otherivise would be in dilapidated condidon. Ic is an essential component in cleaning-up or closing-down problem properties and «ill reduce city spendin� on nrnhleir ofoD2Ttle5. pisadvantagesltApproved None Disadvantages If Not Approved� There �vill be less affordable housing in St. Paul. There �aill more problem propzrties in St. Paul. Total Amount of Transaction: S Z��,��� F��a��9 so�«e: Special Fund CosVRevenue BuCgeted. Activity Number: Financial information: (Explain) The money ���ill bz accepted by the City on or about August 3, 2002 and lo�gzd «'ith tne Deparment o, Code Enforcement as a special fund only to be spent �� ithin the parameters set by the Family Housing Fund and in accordance �vith further City Council resolutions. G Lsezn�.:ynn o } .\o�o � T M a O H �ID! 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O � � '> :4 O N L]� F R � L p U L � 3 > ° 3 Y � d� �� �a c. v�i s a :c o � � � � C J � �p �° o a+ � � U � G 4 O � U � N '� : .� 0 O a, m ' T� � L a � U a � 0 n v w, N a � rn m � z 0 N C m � O _ r N� M� � � u �� o �� a P ' � 'A � in .� � .o M Da-���a Memorandum CITY OF SAIN"I� PAUL TO: Marcia Moermond FROM: Andy Dawkins � SUBJECT: City Iniriated Tenant Remedies Actions� - Case Histories (A Two-pronged strategy to close-down problem properties and rehab/preserve existing affordable housin� stock) DATE: November 12, 2002 910 E. 6` (Duplex) NHPI File: # 02-01/Court File # C20210453 Referral Source: Council Member Lantry/Daytons Bluff Community Council Owner: Frank Steinhauser Potential Administrator: 7im Erchul (Daytons Bluff N.H.S.) Violations: squirrel-size rats, mold, extezior leaks, no smoke detectors, holes in walls and ceilings, broken windows, screens and doors. Est. cost to repair to code: unknown-landlard is under court order to do the repairs Court outcome: agreed-upon repair schedule (if schedule is not keep, then a court-appointed administrator will be requested at next court hearing on November 21, 2002 � Narrative: After repeated neighborhood complaints we were able to get inside to do an interior inspection which led to condemnation. The landlord immediately took care of life-safety issues, so the order to vacate was set to coincide with the first court appearance. This property presented the issue whether the tenants were victims or part of the problem (i.e. nuisance behavior). 2. 1024 Euclid ( duplex ) NHPI File: #02-62/Court File # C50210415 Referral Source: Police ChiefFinney Owner: Frank Steinhauser Potential Administrator. Jim Erchul (Daytons B1uffN.H.S.) Violations: rats, no heat, lack of basic facilities, no smoke detector, faulty electric, no door, broken windows, defective walls and ceilings Est. cost to repair to code: unknown-landlord is under court order to do the repairs. Court outcome: Settlement - landlord agreed to temporarily lodge tenants in hotel while keeping to court-ordered repair schedule (return date November 14, 2002). Narrative: Chief Finney knew the tenants from church and they requested an interior inspection which resulted in condemnation/immediate order to vacate and an"Emergency Tenant Remedies Action". We were in court within 2 business days of the inspection. This case presented the issue of where the tenants will stay when we do an immediate order to vacate. "Tenant Remedies Acrions is a misnomer. The City can initiate an acrion against owner-occupied properties, vacant properties that were former dwellings, as well as tenant-occupied properties so long as there is a violation of state or local laws. Page 2 City Initiated Tenant Remedies Action November 2, 2002 D a-���� 771-773 E. 7 (Duplex) NIIl'I file #02-03 Refenal Source: Council Member Lantry/Daytons Bluff Community Council Owner: Kenneth Rowe Violations: Exterior, interior and state nuisance law Narrative: Two families living side-by-side, one law-abiding and just trying to raise their kids, the other drug-dealing with guests creating a constant nuisance. The place was a total eye-sore and a blighting influence. This was to be our first tenant remedies action that tested our theory that a "violation" is not just limited to propeYry code maintenance issues, but also includes management of the property that allows a nuisance to exist (i.e. failure to use eviction controls). However, prior to filing the legal action, the property owner agreed to evict the nuisance behaving occupants, and repair the entire structure to code. We aze monitoring this and so far so good - the law abiding tenants are especially happy with our actions. 4. 2281 Priscilla Street (Vacant Building - previously owner-occupied) NF3PI File: (no case # yet this is a potential case) Referral Source: Council Member Benanau Owner: Florence Smith Violations: lacks basic facilities, substantial exteriors repairs needed, rodents Est. cost to repair to code: $70,000 Narrative: For 10 years neighbors have had to put-up with dilapidation, exterior garbage and other nuisance issues. The owner occasionally occupies the property without basic facilities. The city did a majar clean-up but the problems have repeated. We don't want to tear it down because it is structurally sound and economically viable. Our strategy is to get the owner to sell. If this fails, two court alternatives to demolition are a tenant remedies action or nuisance abatement action.