98-512Council File # � S/2
Green Sheet # �� `,�
4RIG1NAl.
Presented
Referred To
Committee Date
1 WHEREAS, since 1980, the Saint Paul Housing Information Office has served as a HUD-certified housing agency
2 for St. Paul residents of all incomes; and
3 WI�REAS, Saint Paul Housing Information Office provided mortgage foreclosure prevention counseling to 234
4 Saint Paul residents during 1997; and
RTF�REAS, Saint Paul Housing Information Office fiuther recognizes that budget counseling can facilitate HIO's
mortgage foreclosure prevention efforts; and
7 WHEREAS, 5aint Paul Housing Information Office's comprehensive housing counseling also includes explaining
8 the rights of tenants and landlords and working with the Saint Paul Police Depariment's FORCE unit, Ramsey
9 County Attorney's Office, and Ramsey County Housing Court to train landlords; and
10 WHEREAS, Saint Paul Housing Information O�ce also recognizes that housing mediation services can resolve
I 1 housing disputes with less costs to owners and tenants;
12 BE IT RESOLVED, that Council of the City of Saint Paul authorizes the Saint Paul Housing Information Office
13 to submit a housing counseling grant request to HUD for the purposes of providing mortgage fareclosure prevention
14 counseling, budget counseling, landlord tranring, and housing mediation services; and
15 BE IT FINALLY RESOLVED, that the Council of the Ciry of Saint Paul authorizes the Mayor's Aduiinistration
16 to execute the necessary grant agreements if HUD awards a housing counseling grant to the Saint Paul Housing
17 Information Office.
Benanav
Blakey
Bostrom
Coleman
Hazris
Reiter �
6 Z
Adopted by Council: Date �
Adoprion Certified by Council etary
By:
Approved by May r: te �" l `
By:
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
�
Form Appro ed 6y City Attome
By: ��� � �-�
Approv b yor f S mission to Council
By: �.-.
Requested by Department of:
St
Infoxmation
' `'�' � � 266-6000
FilicejJoe Collins
S�Z9�9$ I GREEN SHEET
TOTAL # OF SIGNATURE PAGES
�� St2
m�n�mrowecime
No 6017`7
� an�narotv ��� uira.cna _
❑ auncw.amv�cesort ❑ w�xauamv�KCra
� 1MYOR1aRAS9fi411n ❑
(CLJP ALL LOCATIONS FOR SIGNATURE)
Saint Paul Housing Information Of£ice (HIO) requests City Council's authorization to
submit a AUD housing counseling grant.
PLANNING COMMISSION
CIB COMMITTEE
CNIL SERVICE COMMISSION
LSONAL SERVlCE CONiRACTS MUSTANSWER THE FOLLOWING Q
H25 thlS p¢ISOf�Ifl1 eYef WakEd U(MEf 8 COnStdU tof ihis tlepBtFmeill'7
VES NO
Has this pereoNfirm ever been a ciry empwyee7
res nio
Does tM1is persaMfirm poesess a sldll not noimallypobsesbetl by arry arteM city emPloyee7
YES NO
I8 tliie person/firm e tarpMed vendorl
YES NO
Recently, HIID announced requests for housing counseling grant proposals. If awarded HUD
funds, HIO can provide housing counseling services, such as mortgage foreclosure prevention,
budget counseling, housing mediation services, and landlord training to Saint Paul residents
HIO provides more housing counseling service to Saint Paul residents. C!g�dS�3J�Q�,���.��
;. � ss.
i
None
L _<__.- -.-_.
�m c�o�u�nseling services will not be offered to Saint Paul residents. Also, HY0"`iS°'
seeking alternative funding for HIO's mortgage foreclosure prevention counseling program as
"-- ---'---`- t-- n_`__� .._n t.--'.. --_„ __.a a.._a..,. ,000_oo
AMOUNT OF 7RANSACTION S
COST/REVENUfi BUDfiETED (qRCLE ON� YES NO
AcrryiTyNU��c GL-065-30131
GL-065-30136
iNFORMATION (FJ�LAIN)
CITY O� SAINT PAUL
Narm CoLemme, Mayor
HOUSING INFORMATION OFFICE �� S � 2
Amy Filice, Acting Diseaar
lso Cuy xou an,�r zerepao,�e: 612-266-6000
25 A'est FourUe SYreet Facsimile: 612-298-5054
Saint Paul, Minnesom SSIO2
MEMORANDUM
To:
� From:
Re:
Date:
Norm Coleman, Mayor
Amy Filice, Director of Saint Paul Housing Information Office
Mayor's signature requested for Certifzcation of Consistency with the City
Consolidated Plan - HIO's 1998 HUB Housing Counseling Grant.
3une 4,1998
HIO requests your signature certifying that HIO's 1998 Housing Counseling Grant proposal
is consistent with the City's Consolidated Plan.
As you may know, the City's Consolidated Plan has several sections which notes HIO's
mission to serve Saint Paul residents of all incomes. Furthermore, HIO's proposal is an
innovarive response to some barriers to Fair Housing choices, identified in the City's Analysis
of Impediments to Fair Housing Choices, which submitted to HUD.
With HUD funding, HIO will continue its mortgage foreclosure prevention program,
administer a Housing Court Diversion Project (training landlords), and develop two pilot
programs - a Housing Mediation project and budget counseling program.
HIO must submit its HUD proposal by June 25. Given the timeliness of tYus proposal, I have
attached HIO's working drafi proposal for your review. A resolution is also being drafted for
Council authorization to submit HIO's proposal. If I can provide more information for your
review, please call me at 266-6020.
U.S. De artrnent of Housin � ��
Certification of Consistency with a�d Urban Development 9
tne Consolidated Plan
I certify Wat t6e pzoposed activifieslprojects in tl�e application are coasistent with the jurisd3ction's cursent,
approved Coasolidaced Plan.
(Type or clearly print t6e following information:)
Applicant Name: Saint Paul Housing Information Office
Pmject Name: _ St. Paul HousinQ Information Office's HousinQ Counseling
Proposal
Locacion of the Pmjecr. General service area — City of Saint Paul
_special pilot service area for default counseling —
Ramsey County
Name of the Federal
Program to which the
applioant is applying: HUD Housine Counseling ProQram Grant
Name of
Certifying Jurisdic[ion: City of Sdint P8u1
Certifying Official
of the Jurisdictioa
Name:
Title:
Signature:
Date:
Norm Coleman
C&A
Page no: a
����T � ►� �8-SlZ
Saint Paul Housing Information Office
1998 EIUD Housing Counseling proposal
RATING FACTOR 1
Introduction
Since 1980, the Saint Paul Housing Information Office (HIO) has served as a HUD-certified
housing counseling agency. HIO's mission is to assist people in finding, providing, and keeping
housing in Saint Paul which helps promote personal stability, stable families, stable
neighbarhoods, and a stable and prosperous Ciry. HIO's clients aze tenants, landlords, and
homeowners. In 1947, HIO counseled 8078 citizens.
Some of HIO's counseling services aze to:
-- inform Saint Paul residettts of existing HUD and other rental opportuniries;
-- identify emergency shelters serving HUD-eligible clients;
-- explain tenant and landlord rights and responsibilities;
-- explain city and state mortgage programs; and FHA and HUD-financing programs;
-- assist city residents dislocated due to condemnaions for health and safety vialations;
-- counsel H[JD-eligible clients regarding mortgage foreclosure prevention procedures
-- provide crisis intervention counseling for utility shut-offs, and
-- provide landlord training programs for new owners of rental property, owner-occupied
rental properties such as duplexes, & landlords identified as owning nuisance properties.
After serving HCTD for 17+ years, HIO is seeking innovative ways to serve the changing needs
of HUD-eligible clients. HIO recognizes that many St Paul residents can not secure and keep
affordable housing; homeowners in default are often in more dire financial cucumstances than
previously; and some restrictive laws and rising legal costs often create disincentives for
landlords to provide affordable housing. Consequently, HUD-eligible homeowners, tenants, and
the landlords that serve them need new responsive housing counseling services.
I998 HUD Housing Counselireg Proposal Reguest
Responding to these housing issues which affect HUD clients, HIO proposes four programs and
a computer upgrade project for 1998 H(JD Housing Counseling funding.
I.
II.
III.
N.
V.
Mortgage Foreclosure Prevention (MFP) Project.
(Currently funded by private foundation and state funds)
Housing Court Diversion Project:
Landlord Instruction Sentencing Alternative (LISA)
Housing Mediation and Dispute Resotution
$udget Counseling Services
Computer database and mapping capacity upgrade match
Total:
$41,652
ri, i iil
$ 9, 467
$ 5,400
$ 7, D00
$73,SI9
Note: The LISA program, Housing 141ediation project, and computer upgrades represent one-
time start-up expenses. Housing mediation and budget counseling are pilot programs.
The existing private foundution financial support for the MFP Project ends during 1998.
. �.
� �t
98-s�z
1998 I3UD Housing Counseling proposal RATING FACTOR 1
Saint Paul Housing Information Office
I. Mortgage Foreclosure Prevention Program.
Statement of Current Status - HIO's Default Counseling
"In the last 10 yeats, the overall mortgage loan delinquency rates have decreased from 5.56°!o in
1986 to 4.33% in 1996.. However the delinquency rates for FHA and VA-insured loans, taken
out prnnarily by families and individuals of modest means, have increased. In 1986, FHA and
VA delinquency rates were 7.16% and 6.58%, respectively. By 1996 the rates have increased to
8.05% for FHA and b.75% for VA loans."'
Even during these economic boom times, many families continue to face the threat of mortgage
foreclosures. People experiencing unexpected health problems, job loss, family deaths, divorce,
and natural disaster often also experience mortgage problems. During the first 100 working days
of 1998, HIO received 105 initial requests for default counseling by Saint Paul residents.
Through a collaborative effort with the Family Housing Fund and the Minnesota Housing
Finance Agency, HIO has access to emergency loan funds available for reinstating mor[gages
(Loans are interest free "due-on-sale" loans.). From October 1996 through December 1997, HIO
provided intensive default counseling to more than 94 HiJD-eligible clients who reside in Saint
Paul (See: HLTD-9902) The average cost for a mortgage foreclosure prevention loan was $3,300
In comparison, with a FHA mortgage foreclosure, a11 interested parties incur a combined loss of
$73,300 - or over 22 times the auerage cost of prevenrion. For a foreclosed privately ansured
conventional mortgage, the combined losses are about $26,600 - ar approximately eight times
the costs of prevention.
Homeowners-in-default often haue complicated circumstances surrounding the default. Most
lender perforxn loss mitigation, but these services often lack a housing counseling component that
addresses the overall issues of the homeowner. One-on-one counseling is time consuming and
expensive, but the societal costs of providing emergency housing to homeowners-in-default, as
well as time lost from a job, etc., often outweighs the costs of this type of crisis-intervenrion . In
addition to mortgage default counseling, HIO staff has identified intensive budget counseling as
an extremely helpful tool for default clients. (See proposal N- Budget Counseling.)
'Ana Moreno, "Preventing Mortgage Foreclosure: Is it Cost Effective?" Northwest
Re�ort. a newsletter ofthe NorthwestArea Foundation. Issue 21, December 1997, p. 5.
Z Ana Moreno, Preventing Martgage Foreclosure: Is it Cost Effective? Northwest Report.
Issue 21, December 1997, p. 7-8. (Northwest Foundation evaluated the effectiveness of
the Mnmesota Mortgage Foreclosure Prevention Program. The study focused on data from two
of the participating Twin Cities agencies: the Northside Residents Redevelopment Council and
the Saint Paul Housing Information Office (HIO).)
1998 I3UD Housing Counseling proposal
Saint Paul Housing Information Office
Mortgage Foreclosure Prevention Program (continued)
HIO's long term mortgage counseling experience
RATING FACTOR 1 10 ',S/2
As a HUD-certified agency, HIO has recognized that effective default counseling stabilizes
neighborhoods by stabilizing HCTD families. Over the past eighteen years, HIO has worked with
HUD homeowners to assess their immediate needs, evaluate their options, and providing
in-depth counseling. Additionally, HIO has a successful work experience in securing private
and public emergency funds to assist eligible homeowners solve their housing problems.
I998 HUD��nosal: HIO Mortgage Forectosure Prevention Program*
HIO proposes tn continue pravdding default counseling to HUD clients or HUD-
eligible clients.
HUD Funding Reyuest: Mortgage Forectosure Prevention Program 4$ 1• b52
(* Private foundation support for HIO current default counseling program ends in 1998.)
Trained Staf,f �'�
Trained staff is essential in providing mortgage foreclosure prevendon counseling.
Currently, Barb Carr and Bobbi Leviton, HIO staff inembers, provide mortgage foreclosure
prevention counseling. Barb Carr has extensive real estate training. She has attended the
Minnesota Bar Associafion's 1997 Real Estate Institute and graduated from the Realtor Institute
sponsored by the St. Paul Area Board of Realtors. In 1997, Bobbi Leviton received extensive
training on I3UD-sponsored Loss Mitigation procedures as well as she attended several training
sessions sponsored by the Minnesota Mortgage Foreclosure Prevention Association.
Future coltaboratioxs
In addition to City residents, suburban county residents frequently request mortgage foreclosure
prevention assistance from HIO. In response to these increasing requests, HIO met with Ramsey
County officials regarding a pilot default counseling proposal utilizing county AOME loan funds.
During July 1998, HIO will submit a default counseling proposal to serve counry residents.
Consequently, HUD funds are even more essential as HIO tries to meet the expanding demand
for default counseling.
(** See Appendix A: Housing Counseling Work Experience - HIO staf�
Saint Paul Housing Informafion Office RATING FACTOR 1
1998 HITD Housing Counseling Grant
� � �
�.
II. Housing Court Diversion Projec&
"Land[ord Instruction SentencingAlternative (LfSA) ProjecP'
Current conditiorts:
The City's 2°/a rental vacancy rate often forces HUD clients attd HIJD-eligible clients to seek
fND-subsidized housing and affordable housing opportunities. Throughout the years, their
needs have not abated. Simply, this long-stagnant rental housing mazket prohibits many HIJD-
eligible residents securing safe affordable housing. Moreover, illegal drug activity in apartment
buildings often e�irpates law-abiding HITD-eligible clients from "affordable" but "problem
properties."
City of Saint Paul aggressively seeks to control problem properties. First, the City condemns
mulri-unit properties for violative health code conditions or deteriorated housing conditions
resulting from illegal drug activiries. Second, the City aggressively demolishes blighted vacant
housing. Third, the City actively enforces its nuisance laws to protubit behavioral problems,
such as illegal drug activities, loud parties, and fighring.
However, these enforcement methods nnpose economic hardships on landlords, who can
provide affordable housing opportunities in the City. Further, the condemnations of multi-unit
buildings ertacerbate the affordable housing crisis currently facing the City. On the other hand,
many landlords lack the necessary skills to properly manage their buildings, especially if illicit
drug activity occurs in the building.
1998 HUD pronosal: Landlord Instruction Sentencing Alternative (LIS.4�
HIO proposes the Housing Court diversion project, an innovative housing counseling
program to train landlards, identffied by the Saint Paul Police Department's FORCE
unit, (anti-drug police unit) or the Ramsey County Attorney's Offzce.
HIO will provide 6-8 landlord training sessions with 35-4D landlords attending these
evening sessions. HIO ad»xinisters these training sessions. Together, HIO, Saint Pau[
Police, and Ramsey CountyAttorney train the landlords to combat illegal drug
activities within their buildings. Moreover, HIO and SL Paut Human RighYs Office
can use LISA to educate landlords about FAIR Housing. .
HZ/D Funding Reguest: 0 00
The Saint Paul Housing Information Office requests HUD to fr�nd Housing Court
Diversion Project Landlord Instruction Sentencing Alternative (LLSA), as a pflot
program, in the amount of $10, 0a0.
i -
i
� r ��
Saint Paul Housing Informafion Office RATING FACTOR 1
1998 HITI) Housing Counseling Grant
Housing Court Diversion Project: LI5A Imnlementafion (Continued)
HIO will administer the Landlord Instrucrion Sentencing Alternative program (I.ISA) as a
proactive response to nuisance properties. Implementing this pilot program can improve housing
conditions, reduce housing code violations, educate property owners, and enhance public safety.
As a court diversionary tool, the LISA program has a four-fold ob}ective. First, Housing Court
Referees "divert" housing code violators to landlord training classes as an altemative sentencing.
Second, landlords learn to properly manage rental properiy and comply with city, state, and
federal laws, including FAIR housing requirements. Third, proper rental management promotes
safe housing for IiUD-eligible clients, including Section 8 recipients. Fourth, prosecuting
attorneys can better focus on more serious criminal violations.
HIO will work collaboratively with the Ramsey County Housing Court referee, Ramsey County
Attorney's Office, City's Division of Code Enforcement, City Attorney's Office, and the Police
Dept.'s FORCE unit (the city's anti-drug unit). Housing court referees or prosecuting attomeys
identify health code violators eligible for this housing court diversion project. Program
attendance will comprise of health code violators mandatorily sentenced to these landlard
training sessions or required by their plea negotiations.
Otherwise, the City's Code Enforcement Divisions and the Police Deparhnent's anti-drug unit
will encourage landlord participation in LISA as a proacrive intervenrion before rental properties
aze declared nuisance properties.
In 1998, the County Attorney staff will provide 5-7 landlord training sessions with 30-35
landlords attendang a four hour evening session. Landlords like this program, even request more
training. However, Ramsey County Attorney's Office prefers that HIO administers future
programs, as the program operation is labor-intensive.
Finally, while the demand for landlord training is increasing, the state funding ends in 1498.
If HUD funding is approved, LISA wdll be an innovative way to combat illegal drug activity
nccurring in restdential properlies while still maintaining affordable hausing for HUD-
eligible cdients.
�
�9t S/2
Saint Paul Housing Informarion Office RATING FACTOR 1
1998 HUD Housing Counseling proposal
III. Housing CounselingMediation Project
Problem Statement
The 5aint Paul Housing Information Office daily receives calls about tenantllandlord concerns
and conflicts. These housing concerns are often the results of poor communicarion and lack of
trust between the tenant and the landlord and a lack of understanding of both tenant and landlord
rights and responsibilities. Subsequently, housing court must resolve many of these housing
disputes. No matter who wins, this traditional method of resolving a housing concern is costly
in terms of money and loss of housing stability.
As alternative dispute resolution, housing mediation services can rebuild the trust and
communication necessary for tenant and landlords to maintain good affordable housing
situations. Before filing a court action, mediation allows the parties to "speak to each other"
about their problems. Subsequently, the parties can create their own housing solutions, which
may require other supplemental community services. As an example, the tenant may maintain
the properry for lower rent, or the landlord may execute a long term rental agreement if the tenant
accepts budget counseling. Mediation can help the parties renew their rental relationslup. This
project allows Saint Paul to support landlords in the business of providing affordable housing
and to support tenants trying to maintain their access to good affordable housing.
I998 HUD �ropnsal: HIO Housing Mediation Project.
HIO proposes a housing counseling mediation program for HUD-eligible clients, who
have unlawful detainers or other tenant/landlord concerns. HID will offer mediation
services to tandlords and tenants involved with Section 8 progra»xs, other public
housing progra»rs, other HUD assisted housing programs, and other Saint Paul
landlards and tenants fiting actions with the Ramsey County Housing Courx
As a pilot program, HIO will train existing staff in mediation techniques and mediate
20 disputes during the I998 HUD funding periorL
FiI/D Funding Reguest: Housing Mediation project $ 9,467*
(*This pilot program has one-time trainiug eapenses.)
98- S/t
1998 HUD Housing Counseling proposal RATIl�G FACTOR 1
Saint Paul Housing Information Office
IV. Budget Counseting
As a HI7D certified agency for 17+ years, HIO believes that budget counseling can greaUy
enhance a housing counseling program. HIO strongly believes that many HUD- eligible tenants
or HUD homeowners need " hands-on" budget counseling to resolve their housing problems.
Typically, HIO clients can be currently refeaed to other agencies for one session of budget
counseling, but HIO counselors see a greater need for, on-going budget counseling services for
clients, which would allow clients to leam and practice new money handling habits. This project
would allow HIO to purchase budget counseling services which are tailored to a specific clients
needs.
1948 HUD�roposal: HIO Budget Counse[ing
HIO proposes to purchase "hands-ott" budget counseling services
for 20-25 HUII clients - tenants or homeowners.
HUD Funding Request: Budgel Counseling $5,400
�' ' � i
I ' � '
1998 HUD Housing Counseling proposal RATING FACTOR 1
Saint Paul Housing Informarion Office
Y. HIO Cvmputer Database and Mapping Capaciry Upgrades
HIO maintains client files with the assistauce of a computer program which was developed for
the office appro�mately nine years ago. While it is still fimctioning adequately as an "electronic
filing cabineY' in allowing access to historical client data and notes, HIO is no longer able to
access the data effectively as a database and is having great difficulty in obtaining professional
backup services to work in the original program language.
Through daily interacfion with clients, HIO counselors really have a"finger on the pulse" of
housing issues in Saint Paul. HIO would like to translate ttris general flow of housing
information into regular reporting of housing trends, hot issues, and geographic demand for
services to elected officials for informational purposes and to help inform housing policy
decisions. The computer upgrades would allow HIO to build their client files off a newly
upgraded city address file maintained by the licensing and inspection department. This
interconnection would allow literal mapping of housing issues, and the new program would
allow HIO to easily develop a database of housing issues from the client files which wouid feed
direcdy into reports.
1998 HUD pronosal: HIO Computer Ca��cid�Ungrade Match
HIO requests $7, 00� for computer capacity upgrades with database and mapping
capacity which can be used to track and report on housing issues and trends. Iffunded,
HIO will provide a$7, DDO match.
HUD Fuxdin��e�uest: Computer Capacity Upgracle Match: �7,OOQ
� �8-S/2.
1998 HUD Housing Counseling Proposal.
Saint Paul Housing Information Office
Appendia A
RATING FACTOR 1
Housing Counseling Work Ex�erience/Trainiag Experience - HIO staff
All HIO housing counselors work with HUD clients or HUD-eligible clients. In addition to these
services, the HIO staff have other duries. The following is a list of the HIO counseling staff and
any training received in the last two yeazs:
STEVE RICB, HOL3SING COiJNSELOR (1981 - current)
In addition to providing housing counseling services to City of Saint Paul residents,
DUTIES also include:
--Staff person, Saint Paul Overnight Shelter Boazd
--City Prograzu Administrator for the Stewart B McKinney Emergency Shelter Grant
--Boazd member to Family Homeless Assistance and Prevention Program Board
TRAINING:
--Mortgage Foreclosure Prevention Training
--Minnesota 4(d) Property Tax Classificariott Program* (* tax classificarion for lower-income
rental housing including Section 8 buildings), Minnesota Mulri-Housing Association
BARB CARR, HOUSING COUNSELOR
DUTIES also include:
--Counselor, Mortgage Foreclosure Prevention Program
--Instructor - Landlord training, Saint Paul Community Education
TRAINING
(1989- current)
--Graduate Realtor Insritute (G.R.I.), National Association of Realtors
--Fair Aousing Seminar, Realtor Association
--1997 Real Estate Institute, Minnesota Bar Association
--Minnesota 4(d) Property Tas Classification Program,* MN Multi-Housing Association
DARRELL SPEARS, HOUSING COUNSELOR
DiJTIES also include:
(1996- current)
--Assistant Program Administrator, Stewart B McKinney Emergency Shelter Graut Loan
Committee member, Mclmight Foundation Family Loan Program
--HIO representarive, Housing LINK program (pilot project, as part of the Hol an
settlement, to develop a central clearinghouse for affordable housing)
TRAINING
--Section S Certificate and Housing Voucher Program, Saint Paul Public Housing Agency, 4/98
--Minnesota 4(d) Pmperry Tas Classification Program,* Minnesota Multi-Housing Ass'n, 1/98
9�-5�2.
1998 FIUD Housing Counseling ProposaL
Saint Paul Housing Information Office
Appendix A
RATING k'ACTOR 1
Housing Counseling Work Ex�erience/T'raining Ex�►erience - HIO staff
JOSEPH COLLINS, HOUSING COLJNSELOR 7anuazy 1998 - current
DUTTES also include:
--Project Manager, Mortgage Forecloswe Prevention Program
TRARIING:
--Training within the last two yeazs included working as: City Council Legislarive Assistant,
and appointed Saint Paul City Councilmember
--4th year law student, Williatn Mitchell College of Law
--Minnesota 4(d) Property Ta�c Classification Program,* Minnesota Multi-Housing Ass'n. 1!9'7
JAI�IICE SMITH, HOUSING COUNSELOR June 1977 - current
DUTIES also include:
--Coordinator, District Council outreach program
--Boazd Member, Heat Share Board (East metro NSP emergency energy assistance)
--Boazd Member, Liberty Plaza Housing, a HUD subsidized housing development
TRAINING
--Section 8 Certificate Program, Saint Paul Public Housing Agency
--Loss Mitigation training, Housing and Urban Development.
—Mortgage prevention training, Minnesota Mortgage Foreclosure Prevention Associarion
(MMFPA)
--Minnesota 4(d) Property Tax Classification Program, MHA, 1/97
BOBBI LEVITAN, HOI3SING COITNSELOR September 1993 - current
DUTIFS also include
--Counselor, Mortgage Foreclosure Prevention Program
--Instructor - Landlord training for owners of duplex to fourplex rental properties,
--Writer, TenanUlandlord handbook
TRAINING
--Credit and Legal Issues Training, MN Mortgage Foreclosure Prevention Ass'n, 8/97.
--HUD Loss Mitigation Training, HUD staff from Washington D.C. and Minnesota, July 1997.
--AARP1HiJD HECM Basic Satellite Training (reverse mortgage), HUD and the American
Association of Retired Persons, June 1997.
--1997 Flood Disaster Relief! Default Counseling Traiiung, MI3FA, 5f97.
--FHA Loss Mirigation Procedures and Contracts for Deed, MNIFPA, 4/97.
--Soiving the Foreclosure Puzzle, NIl�PA, September 1996 (received certification).
--Designing Questionnaires, Ciry of Saint Paul - Office of Human Resources, 5/96.
--Home Stretch Trainiug for Housing Counselors, Minnesota Housing Finance Agency, 4/96.
--Cultural Sensitivity Training, African American Family Services, 6l96.
--Crime Free Multi-Housing Program - Management Traiivng, Saint Paul Police Department,
3anuary 1996.
--Financial Management for Limited Incomes Training Conference, Minnesota Extension
Service, University of Minnesota, May 1994.
� y8-siL
Saint Paul Housing Informafion Office (HIO) RATING FACTOR 2
1998 HUD Housing Counseling proposal
Housing Counseling - Current program funded by Ci ,tYBndget includin� CDBG funds.
Saint Paul's Consolidated Plan notes HIO as providing "fair housing and counseling services to
city residents." 3 HIO advocates for Saint Paul residents while disseminating information
regarding financial assistance, govemmental prograins, and community resources available to
HUA clients and HUD-eligible clients. In 1997, HIO counseled 8078 citizens regarding HUD
rental opportunities', emergency shelters tenant and landlord rights, FAIR Housing regulations,
city & state mortgage programs, FHA, & HUD-fivancing programs, code-enforced relocation
assistauce, and utility shut-offs.
1998 Pro ,nosal De�'ault Counselinr�
currently funded by city, state, and private funds
Saint Paul Housing Information Office provided default counseling to 94 homeowners, during
October 1 1996-September 30, 1997 (See: I3CID-9902). 40 homeowners brought the
mortgages current using HIO counseling and HIO's home loan assistance. Additionally,l7
homeowners secured forbearance agreements. The need has not abated. During the first five
months of 199$, 105 homeowners requested default counseling.
To resolve mortgage foreclosure problems, HIO interviews the homeowners, evaluates their
mortgage default situations, and idemifies needed community resources. Moreover, ffiO
combines community resources, such as Family Service, Ramsey County Co�ununity Services,
and St. Pau1 Foundarion, and loss xnitigafion procedures to create forbeazance agreements.
Additionally, HIO secured $8Q,000 for homeowner loan assistance - emergency funds to
cure default - by collaborating with the Family Housing Fund, Saint Paul HRA and Minnesota
Housing Finance Agency. Consequently, many homeowners cure mortgage defaults by using
their own funds and "leveraging" HIO funds with other emergency funds as needed.
Currently the ciry, state, and a private foundation funds HIO's default counseling program. The
foundation funds support "start-up" activities. Thus, funds will be needed to guarantee a long-
term default counseling.
' City of Saint Paul, Minnesota Consolidated Plan and Submission. (April 1995). Saint
Paul Housing Information Office, Project ID. #30, Local Code 61108.
° ["HIO] provides housing refemals to individuals and families who aze seeking housing
or losing their housing." Consolidated Plan. § 41.205.
S HIO staffs the City's Overnight Shelter Boazd and monitors T3UD's Emergency Shelter
Graut while daily providing emergency housing information to AUD-eligible clients.
Consolidated Plan.§91.210.
6 The Mortgage Foreclosure Prevenrion Program is part of the City's Housing Action
Program, Consolidated Plan. §91.215(b) Strategic Plan - Affordable Housing; §91.216(c}(1)
Strategy for helping low-income families avoid being homeless.
j'� 98•Sia
w�
Budget Counseling- current[y not funded by HIO.
As a pilot project, "hands-on" budget counseling could greatly enhance a default counseling
program by reaching those homeowners who are not financially prepared to cure a mortgage
default. Furthermore, budget counseling encourages family stability by promoting fiscal
responsibility. Simply speaking, many HUD-eligible tenants and HLTD homeowners need
continual "hands-on" budget counseling because financial instability is a major barrier to
affordable housing.
Housin�Court Diversion Project: Landlord Instruction SentencingAlternative (LISAL
st¢te funding ends in 1998
HIO warks collaborafively with the Ramsey County Housing Court referee, Ramsey County
AUorney's Office, City's Division of Code Enforcement, City Attorney's Office, and the Police
Dept.'s FORCE unit (the city's anU-drug unit) to address "problem-properties."
As a proactive response, the Ramsey County Attorney's Office administers LISA to train
landlords idenrified as owning problem properties. The program goal's are improving housing
conditions, enhancing public safety, and stabilizing neighborhoods by training landlords about
proper rental management procedures, including compliance with city, state, and federal laws,
including FAIR housing requirements. With the city's 2% vacancy rate, LISA has become even
more critical. Many HUD-eligible clients can not find adequate housing, and LISA can preserve
the city's affordable housing stock'.
In 1998, HIO and the County Attorney staffprovided 5-7 landlord training sessions with 30-35
landlords attending each session. While the demand for landlord training increases, state funding
ends in 1998. Consequently, Ramsey County Attorney's Office prefers that HIO administers this
stafF intensive program.
Housing Mediation project- pilot program - not currentlyfunded
As a pilot project, HIO proposes a housing counseling mediation program for HUD-eligible
clients, Saint Paul Public Housing Agency, HUD-assisted housing properties, private Saint Paul
landlords, and tenants and landlord filing with Ramsey Counry Housing Court. During the 1998
HUD funding period, ffiO will train six housing counselors as qualified mediators to mediate 20
disputes. If this pilot program is successful, then HIO will consider continuing such services.
In the Consolidated Plan, the City recognizes many barriers to affordable housing. HUD-
eligible clients often become homeless because their special housing needs are not met. On the
other hand, the Housing Mediation Project can promote stable affordable housing for HUD
clients or HUD-eligible clients by facilitating tenant and landlord relationships. Simply,
mediation facilitates communication and mast building necessary for the landlord and tenant to
resolve their dispute.
� Improving rental housing management and effectively enforcing housing code to reduce
negative conditions of rental housing aze listed priorifies of the City's Housing Action Plan.
Consolidated Plan. §91.215(b) Strategic Plan - Affordable Housing; Housing affordability is a
growing concern. Analysis of Im�diments to Fair Aousing Choice, City of Saint Paul, April
1996.
Council File # � S/2
Green Sheet # �� `,�
4RIG1NAl.
Presented
Referred To
Committee Date
1 WHEREAS, since 1980, the Saint Paul Housing Information Office has served as a HUD-certified housing agency
2 for St. Paul residents of all incomes; and
3 WI�REAS, Saint Paul Housing Information Office provided mortgage foreclosure prevention counseling to 234
4 Saint Paul residents during 1997; and
RTF�REAS, Saint Paul Housing Information Office fiuther recognizes that budget counseling can facilitate HIO's
mortgage foreclosure prevention efforts; and
7 WHEREAS, 5aint Paul Housing Information Office's comprehensive housing counseling also includes explaining
8 the rights of tenants and landlords and working with the Saint Paul Police Depariment's FORCE unit, Ramsey
9 County Attorney's Office, and Ramsey County Housing Court to train landlords; and
10 WHEREAS, Saint Paul Housing Information O�ce also recognizes that housing mediation services can resolve
I 1 housing disputes with less costs to owners and tenants;
12 BE IT RESOLVED, that Council of the City of Saint Paul authorizes the Saint Paul Housing Information Office
13 to submit a housing counseling grant request to HUD for the purposes of providing mortgage fareclosure prevention
14 counseling, budget counseling, landlord tranring, and housing mediation services; and
15 BE IT FINALLY RESOLVED, that the Council of the Ciry of Saint Paul authorizes the Mayor's Aduiinistration
16 to execute the necessary grant agreements if HUD awards a housing counseling grant to the Saint Paul Housing
17 Information Office.
Benanav
Blakey
Bostrom
Coleman
Hazris
Reiter �
6 Z
Adopted by Council: Date �
Adoprion Certified by Council etary
By:
Approved by May r: te �" l `
By:
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
�
Form Appro ed 6y City Attome
By: ��� � �-�
Approv b yor f S mission to Council
By: �.-.
Requested by Department of:
St
Infoxmation
' `'�' � � 266-6000
FilicejJoe Collins
S�Z9�9$ I GREEN SHEET
TOTAL # OF SIGNATURE PAGES
�� St2
m�n�mrowecime
No 6017`7
� an�narotv ��� uira.cna _
❑ auncw.amv�cesort ❑ w�xauamv�KCra
� 1MYOR1aRAS9fi411n ❑
(CLJP ALL LOCATIONS FOR SIGNATURE)
Saint Paul Housing Information Of£ice (HIO) requests City Council's authorization to
submit a AUD housing counseling grant.
PLANNING COMMISSION
CIB COMMITTEE
CNIL SERVICE COMMISSION
LSONAL SERVlCE CONiRACTS MUSTANSWER THE FOLLOWING Q
H25 thlS p¢ISOf�Ifl1 eYef WakEd U(MEf 8 COnStdU tof ihis tlepBtFmeill'7
VES NO
Has this pereoNfirm ever been a ciry empwyee7
res nio
Does tM1is persaMfirm poesess a sldll not noimallypobsesbetl by arry arteM city emPloyee7
YES NO
I8 tliie person/firm e tarpMed vendorl
YES NO
Recently, HIID announced requests for housing counseling grant proposals. If awarded HUD
funds, HIO can provide housing counseling services, such as mortgage foreclosure prevention,
budget counseling, housing mediation services, and landlord training to Saint Paul residents
HIO provides more housing counseling service to Saint Paul residents. C!g�dS�3J�Q�,���.��
;. � ss.
i
None
L _<__.- -.-_.
�m c�o�u�nseling services will not be offered to Saint Paul residents. Also, HY0"`iS°'
seeking alternative funding for HIO's mortgage foreclosure prevention counseling program as
"-- ---'---`- t-- n_`__� .._n t.--'.. --_„ __.a a.._a..,. ,000_oo
AMOUNT OF 7RANSACTION S
COST/REVENUfi BUDfiETED (qRCLE ON� YES NO
AcrryiTyNU��c GL-065-30131
GL-065-30136
iNFORMATION (FJ�LAIN)
CITY O� SAINT PAUL
Narm CoLemme, Mayor
HOUSING INFORMATION OFFICE �� S � 2
Amy Filice, Acting Diseaar
lso Cuy xou an,�r zerepao,�e: 612-266-6000
25 A'est FourUe SYreet Facsimile: 612-298-5054
Saint Paul, Minnesom SSIO2
MEMORANDUM
To:
� From:
Re:
Date:
Norm Coleman, Mayor
Amy Filice, Director of Saint Paul Housing Information Office
Mayor's signature requested for Certifzcation of Consistency with the City
Consolidated Plan - HIO's 1998 HUB Housing Counseling Grant.
3une 4,1998
HIO requests your signature certifying that HIO's 1998 Housing Counseling Grant proposal
is consistent with the City's Consolidated Plan.
As you may know, the City's Consolidated Plan has several sections which notes HIO's
mission to serve Saint Paul residents of all incomes. Furthermore, HIO's proposal is an
innovarive response to some barriers to Fair Housing choices, identified in the City's Analysis
of Impediments to Fair Housing Choices, which submitted to HUD.
With HUD funding, HIO will continue its mortgage foreclosure prevention program,
administer a Housing Court Diversion Project (training landlords), and develop two pilot
programs - a Housing Mediation project and budget counseling program.
HIO must submit its HUD proposal by June 25. Given the timeliness of tYus proposal, I have
attached HIO's working drafi proposal for your review. A resolution is also being drafted for
Council authorization to submit HIO's proposal. If I can provide more information for your
review, please call me at 266-6020.
U.S. De artrnent of Housin � ��
Certification of Consistency with a�d Urban Development 9
tne Consolidated Plan
I certify Wat t6e pzoposed activifieslprojects in tl�e application are coasistent with the jurisd3ction's cursent,
approved Coasolidaced Plan.
(Type or clearly print t6e following information:)
Applicant Name: Saint Paul Housing Information Office
Pmject Name: _ St. Paul HousinQ Information Office's HousinQ Counseling
Proposal
Locacion of the Pmjecr. General service area — City of Saint Paul
_special pilot service area for default counseling —
Ramsey County
Name of the Federal
Program to which the
applioant is applying: HUD Housine Counseling ProQram Grant
Name of
Certifying Jurisdic[ion: City of Sdint P8u1
Certifying Official
of the Jurisdictioa
Name:
Title:
Signature:
Date:
Norm Coleman
C&A
Page no: a
����T � ►� �8-SlZ
Saint Paul Housing Information Office
1998 EIUD Housing Counseling proposal
RATING FACTOR 1
Introduction
Since 1980, the Saint Paul Housing Information Office (HIO) has served as a HUD-certified
housing counseling agency. HIO's mission is to assist people in finding, providing, and keeping
housing in Saint Paul which helps promote personal stability, stable families, stable
neighbarhoods, and a stable and prosperous Ciry. HIO's clients aze tenants, landlords, and
homeowners. In 1947, HIO counseled 8078 citizens.
Some of HIO's counseling services aze to:
-- inform Saint Paul residettts of existing HUD and other rental opportuniries;
-- identify emergency shelters serving HUD-eligible clients;
-- explain tenant and landlord rights and responsibilities;
-- explain city and state mortgage programs; and FHA and HUD-financing programs;
-- assist city residents dislocated due to condemnaions for health and safety vialations;
-- counsel H[JD-eligible clients regarding mortgage foreclosure prevention procedures
-- provide crisis intervention counseling for utility shut-offs, and
-- provide landlord training programs for new owners of rental property, owner-occupied
rental properties such as duplexes, & landlords identified as owning nuisance properties.
After serving HCTD for 17+ years, HIO is seeking innovative ways to serve the changing needs
of HUD-eligible clients. HIO recognizes that many St Paul residents can not secure and keep
affordable housing; homeowners in default are often in more dire financial cucumstances than
previously; and some restrictive laws and rising legal costs often create disincentives for
landlords to provide affordable housing. Consequently, HUD-eligible homeowners, tenants, and
the landlords that serve them need new responsive housing counseling services.
I998 HUD Housing Counselireg Proposal Reguest
Responding to these housing issues which affect HUD clients, HIO proposes four programs and
a computer upgrade project for 1998 H(JD Housing Counseling funding.
I.
II.
III.
N.
V.
Mortgage Foreclosure Prevention (MFP) Project.
(Currently funded by private foundation and state funds)
Housing Court Diversion Project:
Landlord Instruction Sentencing Alternative (LISA)
Housing Mediation and Dispute Resotution
$udget Counseling Services
Computer database and mapping capacity upgrade match
Total:
$41,652
ri, i iil
$ 9, 467
$ 5,400
$ 7, D00
$73,SI9
Note: The LISA program, Housing 141ediation project, and computer upgrades represent one-
time start-up expenses. Housing mediation and budget counseling are pilot programs.
The existing private foundution financial support for the MFP Project ends during 1998.
. �.
� �t
98-s�z
1998 I3UD Housing Counseling proposal RATING FACTOR 1
Saint Paul Housing Information Office
I. Mortgage Foreclosure Prevention Program.
Statement of Current Status - HIO's Default Counseling
"In the last 10 yeats, the overall mortgage loan delinquency rates have decreased from 5.56°!o in
1986 to 4.33% in 1996.. However the delinquency rates for FHA and VA-insured loans, taken
out prnnarily by families and individuals of modest means, have increased. In 1986, FHA and
VA delinquency rates were 7.16% and 6.58%, respectively. By 1996 the rates have increased to
8.05% for FHA and b.75% for VA loans."'
Even during these economic boom times, many families continue to face the threat of mortgage
foreclosures. People experiencing unexpected health problems, job loss, family deaths, divorce,
and natural disaster often also experience mortgage problems. During the first 100 working days
of 1998, HIO received 105 initial requests for default counseling by Saint Paul residents.
Through a collaborative effort with the Family Housing Fund and the Minnesota Housing
Finance Agency, HIO has access to emergency loan funds available for reinstating mor[gages
(Loans are interest free "due-on-sale" loans.). From October 1996 through December 1997, HIO
provided intensive default counseling to more than 94 HiJD-eligible clients who reside in Saint
Paul (See: HLTD-9902) The average cost for a mortgage foreclosure prevention loan was $3,300
In comparison, with a FHA mortgage foreclosure, a11 interested parties incur a combined loss of
$73,300 - or over 22 times the auerage cost of prevenrion. For a foreclosed privately ansured
conventional mortgage, the combined losses are about $26,600 - ar approximately eight times
the costs of prevention.
Homeowners-in-default often haue complicated circumstances surrounding the default. Most
lender perforxn loss mitigation, but these services often lack a housing counseling component that
addresses the overall issues of the homeowner. One-on-one counseling is time consuming and
expensive, but the societal costs of providing emergency housing to homeowners-in-default, as
well as time lost from a job, etc., often outweighs the costs of this type of crisis-intervenrion . In
addition to mortgage default counseling, HIO staff has identified intensive budget counseling as
an extremely helpful tool for default clients. (See proposal N- Budget Counseling.)
'Ana Moreno, "Preventing Mortgage Foreclosure: Is it Cost Effective?" Northwest
Re�ort. a newsletter ofthe NorthwestArea Foundation. Issue 21, December 1997, p. 5.
Z Ana Moreno, Preventing Martgage Foreclosure: Is it Cost Effective? Northwest Report.
Issue 21, December 1997, p. 7-8. (Northwest Foundation evaluated the effectiveness of
the Mnmesota Mortgage Foreclosure Prevention Program. The study focused on data from two
of the participating Twin Cities agencies: the Northside Residents Redevelopment Council and
the Saint Paul Housing Information Office (HIO).)
1998 I3UD Housing Counseling proposal
Saint Paul Housing Information Office
Mortgage Foreclosure Prevention Program (continued)
HIO's long term mortgage counseling experience
RATING FACTOR 1 10 ',S/2
As a HUD-certified agency, HIO has recognized that effective default counseling stabilizes
neighborhoods by stabilizing HCTD families. Over the past eighteen years, HIO has worked with
HUD homeowners to assess their immediate needs, evaluate their options, and providing
in-depth counseling. Additionally, HIO has a successful work experience in securing private
and public emergency funds to assist eligible homeowners solve their housing problems.
I998 HUD��nosal: HIO Mortgage Forectosure Prevention Program*
HIO proposes tn continue pravdding default counseling to HUD clients or HUD-
eligible clients.
HUD Funding Reyuest: Mortgage Forectosure Prevention Program 4$ 1• b52
(* Private foundation support for HIO current default counseling program ends in 1998.)
Trained Staf,f �'�
Trained staff is essential in providing mortgage foreclosure prevendon counseling.
Currently, Barb Carr and Bobbi Leviton, HIO staff inembers, provide mortgage foreclosure
prevention counseling. Barb Carr has extensive real estate training. She has attended the
Minnesota Bar Associafion's 1997 Real Estate Institute and graduated from the Realtor Institute
sponsored by the St. Paul Area Board of Realtors. In 1997, Bobbi Leviton received extensive
training on I3UD-sponsored Loss Mitigation procedures as well as she attended several training
sessions sponsored by the Minnesota Mortgage Foreclosure Prevention Association.
Future coltaboratioxs
In addition to City residents, suburban county residents frequently request mortgage foreclosure
prevention assistance from HIO. In response to these increasing requests, HIO met with Ramsey
County officials regarding a pilot default counseling proposal utilizing county AOME loan funds.
During July 1998, HIO will submit a default counseling proposal to serve counry residents.
Consequently, HUD funds are even more essential as HIO tries to meet the expanding demand
for default counseling.
(** See Appendix A: Housing Counseling Work Experience - HIO staf�
Saint Paul Housing Informafion Office RATING FACTOR 1
1998 HITD Housing Counseling Grant
� � �
�.
II. Housing Court Diversion Projec&
"Land[ord Instruction SentencingAlternative (LfSA) ProjecP'
Current conditiorts:
The City's 2°/a rental vacancy rate often forces HUD clients attd HIJD-eligible clients to seek
fND-subsidized housing and affordable housing opportunities. Throughout the years, their
needs have not abated. Simply, this long-stagnant rental housing mazket prohibits many HIJD-
eligible residents securing safe affordable housing. Moreover, illegal drug activity in apartment
buildings often e�irpates law-abiding HITD-eligible clients from "affordable" but "problem
properties."
City of Saint Paul aggressively seeks to control problem properties. First, the City condemns
mulri-unit properties for violative health code conditions or deteriorated housing conditions
resulting from illegal drug activiries. Second, the City aggressively demolishes blighted vacant
housing. Third, the City actively enforces its nuisance laws to protubit behavioral problems,
such as illegal drug activities, loud parties, and fighring.
However, these enforcement methods nnpose economic hardships on landlords, who can
provide affordable housing opportunities in the City. Further, the condemnations of multi-unit
buildings ertacerbate the affordable housing crisis currently facing the City. On the other hand,
many landlords lack the necessary skills to properly manage their buildings, especially if illicit
drug activity occurs in the building.
1998 HUD pronosal: Landlord Instruction Sentencing Alternative (LIS.4�
HIO proposes the Housing Court diversion project, an innovative housing counseling
program to train landlards, identffied by the Saint Paul Police Department's FORCE
unit, (anti-drug police unit) or the Ramsey County Attorney's Offzce.
HIO will provide 6-8 landlord training sessions with 35-4D landlords attending these
evening sessions. HIO ad»xinisters these training sessions. Together, HIO, Saint Pau[
Police, and Ramsey CountyAttorney train the landlords to combat illegal drug
activities within their buildings. Moreover, HIO and SL Paut Human RighYs Office
can use LISA to educate landlords about FAIR Housing. .
HZ/D Funding Reguest: 0 00
The Saint Paul Housing Information Office requests HUD to fr�nd Housing Court
Diversion Project Landlord Instruction Sentencing Alternative (LLSA), as a pflot
program, in the amount of $10, 0a0.
i -
i
� r ��
Saint Paul Housing Informafion Office RATING FACTOR 1
1998 HITI) Housing Counseling Grant
Housing Court Diversion Project: LI5A Imnlementafion (Continued)
HIO will administer the Landlord Instrucrion Sentencing Alternative program (I.ISA) as a
proactive response to nuisance properties. Implementing this pilot program can improve housing
conditions, reduce housing code violations, educate property owners, and enhance public safety.
As a court diversionary tool, the LISA program has a four-fold ob}ective. First, Housing Court
Referees "divert" housing code violators to landlord training classes as an altemative sentencing.
Second, landlords learn to properly manage rental properiy and comply with city, state, and
federal laws, including FAIR housing requirements. Third, proper rental management promotes
safe housing for IiUD-eligible clients, including Section 8 recipients. Fourth, prosecuting
attorneys can better focus on more serious criminal violations.
HIO will work collaboratively with the Ramsey County Housing Court referee, Ramsey County
Attorney's Office, City's Division of Code Enforcement, City Attorney's Office, and the Police
Dept.'s FORCE unit (the city's anti-drug unit). Housing court referees or prosecuting attomeys
identify health code violators eligible for this housing court diversion project. Program
attendance will comprise of health code violators mandatorily sentenced to these landlard
training sessions or required by their plea negotiations.
Otherwise, the City's Code Enforcement Divisions and the Police Deparhnent's anti-drug unit
will encourage landlord participation in LISA as a proacrive intervenrion before rental properties
aze declared nuisance properties.
In 1998, the County Attorney staff will provide 5-7 landlord training sessions with 30-35
landlords attendang a four hour evening session. Landlords like this program, even request more
training. However, Ramsey County Attorney's Office prefers that HIO administers future
programs, as the program operation is labor-intensive.
Finally, while the demand for landlord training is increasing, the state funding ends in 1498.
If HUD funding is approved, LISA wdll be an innovative way to combat illegal drug activity
nccurring in restdential properlies while still maintaining affordable hausing for HUD-
eligible cdients.
�
�9t S/2
Saint Paul Housing Informarion Office RATING FACTOR 1
1998 HUD Housing Counseling proposal
III. Housing CounselingMediation Project
Problem Statement
The 5aint Paul Housing Information Office daily receives calls about tenantllandlord concerns
and conflicts. These housing concerns are often the results of poor communicarion and lack of
trust between the tenant and the landlord and a lack of understanding of both tenant and landlord
rights and responsibilities. Subsequently, housing court must resolve many of these housing
disputes. No matter who wins, this traditional method of resolving a housing concern is costly
in terms of money and loss of housing stability.
As alternative dispute resolution, housing mediation services can rebuild the trust and
communication necessary for tenant and landlords to maintain good affordable housing
situations. Before filing a court action, mediation allows the parties to "speak to each other"
about their problems. Subsequently, the parties can create their own housing solutions, which
may require other supplemental community services. As an example, the tenant may maintain
the properry for lower rent, or the landlord may execute a long term rental agreement if the tenant
accepts budget counseling. Mediation can help the parties renew their rental relationslup. This
project allows Saint Paul to support landlords in the business of providing affordable housing
and to support tenants trying to maintain their access to good affordable housing.
I998 HUD �ropnsal: HIO Housing Mediation Project.
HIO proposes a housing counseling mediation program for HUD-eligible clients, who
have unlawful detainers or other tenant/landlord concerns. HID will offer mediation
services to tandlords and tenants involved with Section 8 progra»xs, other public
housing progra»rs, other HUD assisted housing programs, and other Saint Paul
landlards and tenants fiting actions with the Ramsey County Housing Courx
As a pilot program, HIO will train existing staff in mediation techniques and mediate
20 disputes during the I998 HUD funding periorL
FiI/D Funding Reguest: Housing Mediation project $ 9,467*
(*This pilot program has one-time trainiug eapenses.)
98- S/t
1998 HUD Housing Counseling proposal RATIl�G FACTOR 1
Saint Paul Housing Information Office
IV. Budget Counseting
As a HI7D certified agency for 17+ years, HIO believes that budget counseling can greaUy
enhance a housing counseling program. HIO strongly believes that many HUD- eligible tenants
or HUD homeowners need " hands-on" budget counseling to resolve their housing problems.
Typically, HIO clients can be currently refeaed to other agencies for one session of budget
counseling, but HIO counselors see a greater need for, on-going budget counseling services for
clients, which would allow clients to leam and practice new money handling habits. This project
would allow HIO to purchase budget counseling services which are tailored to a specific clients
needs.
1948 HUD�roposal: HIO Budget Counse[ing
HIO proposes to purchase "hands-ott" budget counseling services
for 20-25 HUII clients - tenants or homeowners.
HUD Funding Request: Budgel Counseling $5,400
�' ' � i
I ' � '
1998 HUD Housing Counseling proposal RATING FACTOR 1
Saint Paul Housing Informarion Office
Y. HIO Cvmputer Database and Mapping Capaciry Upgrades
HIO maintains client files with the assistauce of a computer program which was developed for
the office appro�mately nine years ago. While it is still fimctioning adequately as an "electronic
filing cabineY' in allowing access to historical client data and notes, HIO is no longer able to
access the data effectively as a database and is having great difficulty in obtaining professional
backup services to work in the original program language.
Through daily interacfion with clients, HIO counselors really have a"finger on the pulse" of
housing issues in Saint Paul. HIO would like to translate ttris general flow of housing
information into regular reporting of housing trends, hot issues, and geographic demand for
services to elected officials for informational purposes and to help inform housing policy
decisions. The computer upgrades would allow HIO to build their client files off a newly
upgraded city address file maintained by the licensing and inspection department. This
interconnection would allow literal mapping of housing issues, and the new program would
allow HIO to easily develop a database of housing issues from the client files which wouid feed
direcdy into reports.
1998 HUD pronosal: HIO Computer Ca��cid�Ungrade Match
HIO requests $7, 00� for computer capacity upgrades with database and mapping
capacity which can be used to track and report on housing issues and trends. Iffunded,
HIO will provide a$7, DDO match.
HUD Fuxdin��e�uest: Computer Capacity Upgracle Match: �7,OOQ
� �8-S/2.
1998 HUD Housing Counseling Proposal.
Saint Paul Housing Information Office
Appendia A
RATING FACTOR 1
Housing Counseling Work Ex�erience/Trainiag Experience - HIO staff
All HIO housing counselors work with HUD clients or HUD-eligible clients. In addition to these
services, the HIO staff have other duries. The following is a list of the HIO counseling staff and
any training received in the last two yeazs:
STEVE RICB, HOL3SING COiJNSELOR (1981 - current)
In addition to providing housing counseling services to City of Saint Paul residents,
DUTIES also include:
--Staff person, Saint Paul Overnight Shelter Boazd
--City Prograzu Administrator for the Stewart B McKinney Emergency Shelter Grant
--Boazd member to Family Homeless Assistance and Prevention Program Board
TRAINING:
--Mortgage Foreclosure Prevention Training
--Minnesota 4(d) Property Tax Classificariott Program* (* tax classificarion for lower-income
rental housing including Section 8 buildings), Minnesota Mulri-Housing Association
BARB CARR, HOUSING COUNSELOR
DUTIES also include:
--Counselor, Mortgage Foreclosure Prevention Program
--Instructor - Landlord training, Saint Paul Community Education
TRAINING
(1989- current)
--Graduate Realtor Insritute (G.R.I.), National Association of Realtors
--Fair Aousing Seminar, Realtor Association
--1997 Real Estate Institute, Minnesota Bar Association
--Minnesota 4(d) Property Tas Classification Program,* MN Multi-Housing Association
DARRELL SPEARS, HOUSING COUNSELOR
DiJTIES also include:
(1996- current)
--Assistant Program Administrator, Stewart B McKinney Emergency Shelter Graut Loan
Committee member, Mclmight Foundation Family Loan Program
--HIO representarive, Housing LINK program (pilot project, as part of the Hol an
settlement, to develop a central clearinghouse for affordable housing)
TRAINING
--Section S Certificate and Housing Voucher Program, Saint Paul Public Housing Agency, 4/98
--Minnesota 4(d) Pmperry Tas Classification Program,* Minnesota Multi-Housing Ass'n, 1/98
9�-5�2.
1998 FIUD Housing Counseling ProposaL
Saint Paul Housing Information Office
Appendix A
RATING k'ACTOR 1
Housing Counseling Work Ex�erience/T'raining Ex�►erience - HIO staff
JOSEPH COLLINS, HOUSING COLJNSELOR 7anuazy 1998 - current
DUTTES also include:
--Project Manager, Mortgage Forecloswe Prevention Program
TRARIING:
--Training within the last two yeazs included working as: City Council Legislarive Assistant,
and appointed Saint Paul City Councilmember
--4th year law student, Williatn Mitchell College of Law
--Minnesota 4(d) Property Ta�c Classification Program,* Minnesota Multi-Housing Ass'n. 1!9'7
JAI�IICE SMITH, HOUSING COUNSELOR June 1977 - current
DUTIES also include:
--Coordinator, District Council outreach program
--Boazd Member, Heat Share Board (East metro NSP emergency energy assistance)
--Boazd Member, Liberty Plaza Housing, a HUD subsidized housing development
TRAINING
--Section 8 Certificate Program, Saint Paul Public Housing Agency
--Loss Mitigation training, Housing and Urban Development.
—Mortgage prevention training, Minnesota Mortgage Foreclosure Prevention Associarion
(MMFPA)
--Minnesota 4(d) Property Tax Classification Program, MHA, 1/97
BOBBI LEVITAN, HOI3SING COITNSELOR September 1993 - current
DUTIFS also include
--Counselor, Mortgage Foreclosure Prevention Program
--Instructor - Landlord training for owners of duplex to fourplex rental properties,
--Writer, TenanUlandlord handbook
TRAINING
--Credit and Legal Issues Training, MN Mortgage Foreclosure Prevention Ass'n, 8/97.
--HUD Loss Mitigation Training, HUD staff from Washington D.C. and Minnesota, July 1997.
--AARP1HiJD HECM Basic Satellite Training (reverse mortgage), HUD and the American
Association of Retired Persons, June 1997.
--1997 Flood Disaster Relief! Default Counseling Traiiung, MI3FA, 5f97.
--FHA Loss Mirigation Procedures and Contracts for Deed, MNIFPA, 4/97.
--Soiving the Foreclosure Puzzle, NIl�PA, September 1996 (received certification).
--Designing Questionnaires, Ciry of Saint Paul - Office of Human Resources, 5/96.
--Home Stretch Trainiug for Housing Counselors, Minnesota Housing Finance Agency, 4/96.
--Cultural Sensitivity Training, African American Family Services, 6l96.
--Crime Free Multi-Housing Program - Management Traiivng, Saint Paul Police Department,
3anuary 1996.
--Financial Management for Limited Incomes Training Conference, Minnesota Extension
Service, University of Minnesota, May 1994.
� y8-siL
Saint Paul Housing Informafion Office (HIO) RATING FACTOR 2
1998 HUD Housing Counseling proposal
Housing Counseling - Current program funded by Ci ,tYBndget includin� CDBG funds.
Saint Paul's Consolidated Plan notes HIO as providing "fair housing and counseling services to
city residents." 3 HIO advocates for Saint Paul residents while disseminating information
regarding financial assistance, govemmental prograins, and community resources available to
HUA clients and HUD-eligible clients. In 1997, HIO counseled 8078 citizens regarding HUD
rental opportunities', emergency shelters tenant and landlord rights, FAIR Housing regulations,
city & state mortgage programs, FHA, & HUD-fivancing programs, code-enforced relocation
assistauce, and utility shut-offs.
1998 Pro ,nosal De�'ault Counselinr�
currently funded by city, state, and private funds
Saint Paul Housing Information Office provided default counseling to 94 homeowners, during
October 1 1996-September 30, 1997 (See: I3CID-9902). 40 homeowners brought the
mortgages current using HIO counseling and HIO's home loan assistance. Additionally,l7
homeowners secured forbearance agreements. The need has not abated. During the first five
months of 199$, 105 homeowners requested default counseling.
To resolve mortgage foreclosure problems, HIO interviews the homeowners, evaluates their
mortgage default situations, and idemifies needed community resources. Moreover, ffiO
combines community resources, such as Family Service, Ramsey County Co�ununity Services,
and St. Pau1 Foundarion, and loss xnitigafion procedures to create forbeazance agreements.
Additionally, HIO secured $8Q,000 for homeowner loan assistance - emergency funds to
cure default - by collaborating with the Family Housing Fund, Saint Paul HRA and Minnesota
Housing Finance Agency. Consequently, many homeowners cure mortgage defaults by using
their own funds and "leveraging" HIO funds with other emergency funds as needed.
Currently the ciry, state, and a private foundation funds HIO's default counseling program. The
foundation funds support "start-up" activities. Thus, funds will be needed to guarantee a long-
term default counseling.
' City of Saint Paul, Minnesota Consolidated Plan and Submission. (April 1995). Saint
Paul Housing Information Office, Project ID. #30, Local Code 61108.
° ["HIO] provides housing refemals to individuals and families who aze seeking housing
or losing their housing." Consolidated Plan. § 41.205.
S HIO staffs the City's Overnight Shelter Boazd and monitors T3UD's Emergency Shelter
Graut while daily providing emergency housing information to AUD-eligible clients.
Consolidated Plan.§91.210.
6 The Mortgage Foreclosure Prevenrion Program is part of the City's Housing Action
Program, Consolidated Plan. §91.215(b) Strategic Plan - Affordable Housing; §91.216(c}(1)
Strategy for helping low-income families avoid being homeless.
j'� 98•Sia
w�
Budget Counseling- current[y not funded by HIO.
As a pilot project, "hands-on" budget counseling could greatly enhance a default counseling
program by reaching those homeowners who are not financially prepared to cure a mortgage
default. Furthermore, budget counseling encourages family stability by promoting fiscal
responsibility. Simply speaking, many HUD-eligible tenants and HLTD homeowners need
continual "hands-on" budget counseling because financial instability is a major barrier to
affordable housing.
Housin�Court Diversion Project: Landlord Instruction SentencingAlternative (LISAL
st¢te funding ends in 1998
HIO warks collaborafively with the Ramsey County Housing Court referee, Ramsey County
AUorney's Office, City's Division of Code Enforcement, City Attorney's Office, and the Police
Dept.'s FORCE unit (the city's anU-drug unit) to address "problem-properties."
As a proactive response, the Ramsey County Attorney's Office administers LISA to train
landlords idenrified as owning problem properties. The program goal's are improving housing
conditions, enhancing public safety, and stabilizing neighborhoods by training landlords about
proper rental management procedures, including compliance with city, state, and federal laws,
including FAIR housing requirements. With the city's 2% vacancy rate, LISA has become even
more critical. Many HUD-eligible clients can not find adequate housing, and LISA can preserve
the city's affordable housing stock'.
In 1998, HIO and the County Attorney staffprovided 5-7 landlord training sessions with 30-35
landlords attending each session. While the demand for landlord training increases, state funding
ends in 1998. Consequently, Ramsey County Attorney's Office prefers that HIO administers this
stafF intensive program.
Housing Mediation project- pilot program - not currentlyfunded
As a pilot project, HIO proposes a housing counseling mediation program for HUD-eligible
clients, Saint Paul Public Housing Agency, HUD-assisted housing properties, private Saint Paul
landlords, and tenants and landlord filing with Ramsey Counry Housing Court. During the 1998
HUD funding period, ffiO will train six housing counselors as qualified mediators to mediate 20
disputes. If this pilot program is successful, then HIO will consider continuing such services.
In the Consolidated Plan, the City recognizes many barriers to affordable housing. HUD-
eligible clients often become homeless because their special housing needs are not met. On the
other hand, the Housing Mediation Project can promote stable affordable housing for HUD
clients or HUD-eligible clients by facilitating tenant and landlord relationships. Simply,
mediation facilitates communication and mast building necessary for the landlord and tenant to
resolve their dispute.
� Improving rental housing management and effectively enforcing housing code to reduce
negative conditions of rental housing aze listed priorifies of the City's Housing Action Plan.
Consolidated Plan. §91.215(b) Strategic Plan - Affordable Housing; Housing affordability is a
growing concern. Analysis of Im�diments to Fair Aousing Choice, City of Saint Paul, April
1996.
Council File # � S/2
Green Sheet # �� `,�
4RIG1NAl.
Presented
Referred To
Committee Date
1 WHEREAS, since 1980, the Saint Paul Housing Information Office has served as a HUD-certified housing agency
2 for St. Paul residents of all incomes; and
3 WI�REAS, Saint Paul Housing Information Office provided mortgage foreclosure prevention counseling to 234
4 Saint Paul residents during 1997; and
RTF�REAS, Saint Paul Housing Information Office fiuther recognizes that budget counseling can facilitate HIO's
mortgage foreclosure prevention efforts; and
7 WHEREAS, 5aint Paul Housing Information Office's comprehensive housing counseling also includes explaining
8 the rights of tenants and landlords and working with the Saint Paul Police Depariment's FORCE unit, Ramsey
9 County Attorney's Office, and Ramsey County Housing Court to train landlords; and
10 WHEREAS, Saint Paul Housing Information O�ce also recognizes that housing mediation services can resolve
I 1 housing disputes with less costs to owners and tenants;
12 BE IT RESOLVED, that Council of the City of Saint Paul authorizes the Saint Paul Housing Information Office
13 to submit a housing counseling grant request to HUD for the purposes of providing mortgage fareclosure prevention
14 counseling, budget counseling, landlord tranring, and housing mediation services; and
15 BE IT FINALLY RESOLVED, that the Council of the Ciry of Saint Paul authorizes the Mayor's Aduiinistration
16 to execute the necessary grant agreements if HUD awards a housing counseling grant to the Saint Paul Housing
17 Information Office.
Benanav
Blakey
Bostrom
Coleman
Hazris
Reiter �
6 Z
Adopted by Council: Date �
Adoprion Certified by Council etary
By:
Approved by May r: te �" l `
By:
RESOLUTION
CITY OF SAINT PAUL, MINNESOTA
�
Form Appro ed 6y City Attome
By: ��� � �-�
Approv b yor f S mission to Council
By: �.-.
Requested by Department of:
St
Infoxmation
' `'�' � � 266-6000
FilicejJoe Collins
S�Z9�9$ I GREEN SHEET
TOTAL # OF SIGNATURE PAGES
�� St2
m�n�mrowecime
No 6017`7
� an�narotv ��� uira.cna _
❑ auncw.amv�cesort ❑ w�xauamv�KCra
� 1MYOR1aRAS9fi411n ❑
(CLJP ALL LOCATIONS FOR SIGNATURE)
Saint Paul Housing Information Of£ice (HIO) requests City Council's authorization to
submit a AUD housing counseling grant.
PLANNING COMMISSION
CIB COMMITTEE
CNIL SERVICE COMMISSION
LSONAL SERVlCE CONiRACTS MUSTANSWER THE FOLLOWING Q
H25 thlS p¢ISOf�Ifl1 eYef WakEd U(MEf 8 COnStdU tof ihis tlepBtFmeill'7
VES NO
Has this pereoNfirm ever been a ciry empwyee7
res nio
Does tM1is persaMfirm poesess a sldll not noimallypobsesbetl by arry arteM city emPloyee7
YES NO
I8 tliie person/firm e tarpMed vendorl
YES NO
Recently, HIID announced requests for housing counseling grant proposals. If awarded HUD
funds, HIO can provide housing counseling services, such as mortgage foreclosure prevention,
budget counseling, housing mediation services, and landlord training to Saint Paul residents
HIO provides more housing counseling service to Saint Paul residents. C!g�dS�3J�Q�,���.��
;. � ss.
i
None
L _<__.- -.-_.
�m c�o�u�nseling services will not be offered to Saint Paul residents. Also, HY0"`iS°'
seeking alternative funding for HIO's mortgage foreclosure prevention counseling program as
"-- ---'---`- t-- n_`__� .._n t.--'.. --_„ __.a a.._a..,. ,000_oo
AMOUNT OF 7RANSACTION S
COST/REVENUfi BUDfiETED (qRCLE ON� YES NO
AcrryiTyNU��c GL-065-30131
GL-065-30136
iNFORMATION (FJ�LAIN)
CITY O� SAINT PAUL
Narm CoLemme, Mayor
HOUSING INFORMATION OFFICE �� S � 2
Amy Filice, Acting Diseaar
lso Cuy xou an,�r zerepao,�e: 612-266-6000
25 A'est FourUe SYreet Facsimile: 612-298-5054
Saint Paul, Minnesom SSIO2
MEMORANDUM
To:
� From:
Re:
Date:
Norm Coleman, Mayor
Amy Filice, Director of Saint Paul Housing Information Office
Mayor's signature requested for Certifzcation of Consistency with the City
Consolidated Plan - HIO's 1998 HUB Housing Counseling Grant.
3une 4,1998
HIO requests your signature certifying that HIO's 1998 Housing Counseling Grant proposal
is consistent with the City's Consolidated Plan.
As you may know, the City's Consolidated Plan has several sections which notes HIO's
mission to serve Saint Paul residents of all incomes. Furthermore, HIO's proposal is an
innovarive response to some barriers to Fair Housing choices, identified in the City's Analysis
of Impediments to Fair Housing Choices, which submitted to HUD.
With HUD funding, HIO will continue its mortgage foreclosure prevention program,
administer a Housing Court Diversion Project (training landlords), and develop two pilot
programs - a Housing Mediation project and budget counseling program.
HIO must submit its HUD proposal by June 25. Given the timeliness of tYus proposal, I have
attached HIO's working drafi proposal for your review. A resolution is also being drafted for
Council authorization to submit HIO's proposal. If I can provide more information for your
review, please call me at 266-6020.
U.S. De artrnent of Housin � ��
Certification of Consistency with a�d Urban Development 9
tne Consolidated Plan
I certify Wat t6e pzoposed activifieslprojects in tl�e application are coasistent with the jurisd3ction's cursent,
approved Coasolidaced Plan.
(Type or clearly print t6e following information:)
Applicant Name: Saint Paul Housing Information Office
Pmject Name: _ St. Paul HousinQ Information Office's HousinQ Counseling
Proposal
Locacion of the Pmjecr. General service area — City of Saint Paul
_special pilot service area for default counseling —
Ramsey County
Name of the Federal
Program to which the
applioant is applying: HUD Housine Counseling ProQram Grant
Name of
Certifying Jurisdic[ion: City of Sdint P8u1
Certifying Official
of the Jurisdictioa
Name:
Title:
Signature:
Date:
Norm Coleman
C&A
Page no: a
����T � ►� �8-SlZ
Saint Paul Housing Information Office
1998 EIUD Housing Counseling proposal
RATING FACTOR 1
Introduction
Since 1980, the Saint Paul Housing Information Office (HIO) has served as a HUD-certified
housing counseling agency. HIO's mission is to assist people in finding, providing, and keeping
housing in Saint Paul which helps promote personal stability, stable families, stable
neighbarhoods, and a stable and prosperous Ciry. HIO's clients aze tenants, landlords, and
homeowners. In 1947, HIO counseled 8078 citizens.
Some of HIO's counseling services aze to:
-- inform Saint Paul residettts of existing HUD and other rental opportuniries;
-- identify emergency shelters serving HUD-eligible clients;
-- explain tenant and landlord rights and responsibilities;
-- explain city and state mortgage programs; and FHA and HUD-financing programs;
-- assist city residents dislocated due to condemnaions for health and safety vialations;
-- counsel H[JD-eligible clients regarding mortgage foreclosure prevention procedures
-- provide crisis intervention counseling for utility shut-offs, and
-- provide landlord training programs for new owners of rental property, owner-occupied
rental properties such as duplexes, & landlords identified as owning nuisance properties.
After serving HCTD for 17+ years, HIO is seeking innovative ways to serve the changing needs
of HUD-eligible clients. HIO recognizes that many St Paul residents can not secure and keep
affordable housing; homeowners in default are often in more dire financial cucumstances than
previously; and some restrictive laws and rising legal costs often create disincentives for
landlords to provide affordable housing. Consequently, HUD-eligible homeowners, tenants, and
the landlords that serve them need new responsive housing counseling services.
I998 HUD Housing Counselireg Proposal Reguest
Responding to these housing issues which affect HUD clients, HIO proposes four programs and
a computer upgrade project for 1998 H(JD Housing Counseling funding.
I.
II.
III.
N.
V.
Mortgage Foreclosure Prevention (MFP) Project.
(Currently funded by private foundation and state funds)
Housing Court Diversion Project:
Landlord Instruction Sentencing Alternative (LISA)
Housing Mediation and Dispute Resotution
$udget Counseling Services
Computer database and mapping capacity upgrade match
Total:
$41,652
ri, i iil
$ 9, 467
$ 5,400
$ 7, D00
$73,SI9
Note: The LISA program, Housing 141ediation project, and computer upgrades represent one-
time start-up expenses. Housing mediation and budget counseling are pilot programs.
The existing private foundution financial support for the MFP Project ends during 1998.
. �.
� �t
98-s�z
1998 I3UD Housing Counseling proposal RATING FACTOR 1
Saint Paul Housing Information Office
I. Mortgage Foreclosure Prevention Program.
Statement of Current Status - HIO's Default Counseling
"In the last 10 yeats, the overall mortgage loan delinquency rates have decreased from 5.56°!o in
1986 to 4.33% in 1996.. However the delinquency rates for FHA and VA-insured loans, taken
out prnnarily by families and individuals of modest means, have increased. In 1986, FHA and
VA delinquency rates were 7.16% and 6.58%, respectively. By 1996 the rates have increased to
8.05% for FHA and b.75% for VA loans."'
Even during these economic boom times, many families continue to face the threat of mortgage
foreclosures. People experiencing unexpected health problems, job loss, family deaths, divorce,
and natural disaster often also experience mortgage problems. During the first 100 working days
of 1998, HIO received 105 initial requests for default counseling by Saint Paul residents.
Through a collaborative effort with the Family Housing Fund and the Minnesota Housing
Finance Agency, HIO has access to emergency loan funds available for reinstating mor[gages
(Loans are interest free "due-on-sale" loans.). From October 1996 through December 1997, HIO
provided intensive default counseling to more than 94 HiJD-eligible clients who reside in Saint
Paul (See: HLTD-9902) The average cost for a mortgage foreclosure prevention loan was $3,300
In comparison, with a FHA mortgage foreclosure, a11 interested parties incur a combined loss of
$73,300 - or over 22 times the auerage cost of prevenrion. For a foreclosed privately ansured
conventional mortgage, the combined losses are about $26,600 - ar approximately eight times
the costs of prevention.
Homeowners-in-default often haue complicated circumstances surrounding the default. Most
lender perforxn loss mitigation, but these services often lack a housing counseling component that
addresses the overall issues of the homeowner. One-on-one counseling is time consuming and
expensive, but the societal costs of providing emergency housing to homeowners-in-default, as
well as time lost from a job, etc., often outweighs the costs of this type of crisis-intervenrion . In
addition to mortgage default counseling, HIO staff has identified intensive budget counseling as
an extremely helpful tool for default clients. (See proposal N- Budget Counseling.)
'Ana Moreno, "Preventing Mortgage Foreclosure: Is it Cost Effective?" Northwest
Re�ort. a newsletter ofthe NorthwestArea Foundation. Issue 21, December 1997, p. 5.
Z Ana Moreno, Preventing Martgage Foreclosure: Is it Cost Effective? Northwest Report.
Issue 21, December 1997, p. 7-8. (Northwest Foundation evaluated the effectiveness of
the Mnmesota Mortgage Foreclosure Prevention Program. The study focused on data from two
of the participating Twin Cities agencies: the Northside Residents Redevelopment Council and
the Saint Paul Housing Information Office (HIO).)
1998 I3UD Housing Counseling proposal
Saint Paul Housing Information Office
Mortgage Foreclosure Prevention Program (continued)
HIO's long term mortgage counseling experience
RATING FACTOR 1 10 ',S/2
As a HUD-certified agency, HIO has recognized that effective default counseling stabilizes
neighborhoods by stabilizing HCTD families. Over the past eighteen years, HIO has worked with
HUD homeowners to assess their immediate needs, evaluate their options, and providing
in-depth counseling. Additionally, HIO has a successful work experience in securing private
and public emergency funds to assist eligible homeowners solve their housing problems.
I998 HUD��nosal: HIO Mortgage Forectosure Prevention Program*
HIO proposes tn continue pravdding default counseling to HUD clients or HUD-
eligible clients.
HUD Funding Reyuest: Mortgage Forectosure Prevention Program 4$ 1• b52
(* Private foundation support for HIO current default counseling program ends in 1998.)
Trained Staf,f �'�
Trained staff is essential in providing mortgage foreclosure prevendon counseling.
Currently, Barb Carr and Bobbi Leviton, HIO staff inembers, provide mortgage foreclosure
prevention counseling. Barb Carr has extensive real estate training. She has attended the
Minnesota Bar Associafion's 1997 Real Estate Institute and graduated from the Realtor Institute
sponsored by the St. Paul Area Board of Realtors. In 1997, Bobbi Leviton received extensive
training on I3UD-sponsored Loss Mitigation procedures as well as she attended several training
sessions sponsored by the Minnesota Mortgage Foreclosure Prevention Association.
Future coltaboratioxs
In addition to City residents, suburban county residents frequently request mortgage foreclosure
prevention assistance from HIO. In response to these increasing requests, HIO met with Ramsey
County officials regarding a pilot default counseling proposal utilizing county AOME loan funds.
During July 1998, HIO will submit a default counseling proposal to serve counry residents.
Consequently, HUD funds are even more essential as HIO tries to meet the expanding demand
for default counseling.
(** See Appendix A: Housing Counseling Work Experience - HIO staf�
Saint Paul Housing Informafion Office RATING FACTOR 1
1998 HITD Housing Counseling Grant
� � �
�.
II. Housing Court Diversion Projec&
"Land[ord Instruction SentencingAlternative (LfSA) ProjecP'
Current conditiorts:
The City's 2°/a rental vacancy rate often forces HUD clients attd HIJD-eligible clients to seek
fND-subsidized housing and affordable housing opportunities. Throughout the years, their
needs have not abated. Simply, this long-stagnant rental housing mazket prohibits many HIJD-
eligible residents securing safe affordable housing. Moreover, illegal drug activity in apartment
buildings often e�irpates law-abiding HITD-eligible clients from "affordable" but "problem
properties."
City of Saint Paul aggressively seeks to control problem properties. First, the City condemns
mulri-unit properties for violative health code conditions or deteriorated housing conditions
resulting from illegal drug activiries. Second, the City aggressively demolishes blighted vacant
housing. Third, the City actively enforces its nuisance laws to protubit behavioral problems,
such as illegal drug activities, loud parties, and fighring.
However, these enforcement methods nnpose economic hardships on landlords, who can
provide affordable housing opportunities in the City. Further, the condemnations of multi-unit
buildings ertacerbate the affordable housing crisis currently facing the City. On the other hand,
many landlords lack the necessary skills to properly manage their buildings, especially if illicit
drug activity occurs in the building.
1998 HUD pronosal: Landlord Instruction Sentencing Alternative (LIS.4�
HIO proposes the Housing Court diversion project, an innovative housing counseling
program to train landlards, identffied by the Saint Paul Police Department's FORCE
unit, (anti-drug police unit) or the Ramsey County Attorney's Offzce.
HIO will provide 6-8 landlord training sessions with 35-4D landlords attending these
evening sessions. HIO ad»xinisters these training sessions. Together, HIO, Saint Pau[
Police, and Ramsey CountyAttorney train the landlords to combat illegal drug
activities within their buildings. Moreover, HIO and SL Paut Human RighYs Office
can use LISA to educate landlords about FAIR Housing. .
HZ/D Funding Reguest: 0 00
The Saint Paul Housing Information Office requests HUD to fr�nd Housing Court
Diversion Project Landlord Instruction Sentencing Alternative (LLSA), as a pflot
program, in the amount of $10, 0a0.
i -
i
� r ��
Saint Paul Housing Informafion Office RATING FACTOR 1
1998 HITI) Housing Counseling Grant
Housing Court Diversion Project: LI5A Imnlementafion (Continued)
HIO will administer the Landlord Instrucrion Sentencing Alternative program (I.ISA) as a
proactive response to nuisance properties. Implementing this pilot program can improve housing
conditions, reduce housing code violations, educate property owners, and enhance public safety.
As a court diversionary tool, the LISA program has a four-fold ob}ective. First, Housing Court
Referees "divert" housing code violators to landlord training classes as an altemative sentencing.
Second, landlords learn to properly manage rental properiy and comply with city, state, and
federal laws, including FAIR housing requirements. Third, proper rental management promotes
safe housing for IiUD-eligible clients, including Section 8 recipients. Fourth, prosecuting
attorneys can better focus on more serious criminal violations.
HIO will work collaboratively with the Ramsey County Housing Court referee, Ramsey County
Attorney's Office, City's Division of Code Enforcement, City Attorney's Office, and the Police
Dept.'s FORCE unit (the city's anti-drug unit). Housing court referees or prosecuting attomeys
identify health code violators eligible for this housing court diversion project. Program
attendance will comprise of health code violators mandatorily sentenced to these landlard
training sessions or required by their plea negotiations.
Otherwise, the City's Code Enforcement Divisions and the Police Deparhnent's anti-drug unit
will encourage landlord participation in LISA as a proacrive intervenrion before rental properties
aze declared nuisance properties.
In 1998, the County Attorney staff will provide 5-7 landlord training sessions with 30-35
landlords attendang a four hour evening session. Landlords like this program, even request more
training. However, Ramsey County Attorney's Office prefers that HIO administers future
programs, as the program operation is labor-intensive.
Finally, while the demand for landlord training is increasing, the state funding ends in 1498.
If HUD funding is approved, LISA wdll be an innovative way to combat illegal drug activity
nccurring in restdential properlies while still maintaining affordable hausing for HUD-
eligible cdients.
�
�9t S/2
Saint Paul Housing Informarion Office RATING FACTOR 1
1998 HUD Housing Counseling proposal
III. Housing CounselingMediation Project
Problem Statement
The 5aint Paul Housing Information Office daily receives calls about tenantllandlord concerns
and conflicts. These housing concerns are often the results of poor communicarion and lack of
trust between the tenant and the landlord and a lack of understanding of both tenant and landlord
rights and responsibilities. Subsequently, housing court must resolve many of these housing
disputes. No matter who wins, this traditional method of resolving a housing concern is costly
in terms of money and loss of housing stability.
As alternative dispute resolution, housing mediation services can rebuild the trust and
communication necessary for tenant and landlords to maintain good affordable housing
situations. Before filing a court action, mediation allows the parties to "speak to each other"
about their problems. Subsequently, the parties can create their own housing solutions, which
may require other supplemental community services. As an example, the tenant may maintain
the properry for lower rent, or the landlord may execute a long term rental agreement if the tenant
accepts budget counseling. Mediation can help the parties renew their rental relationslup. This
project allows Saint Paul to support landlords in the business of providing affordable housing
and to support tenants trying to maintain their access to good affordable housing.
I998 HUD �ropnsal: HIO Housing Mediation Project.
HIO proposes a housing counseling mediation program for HUD-eligible clients, who
have unlawful detainers or other tenant/landlord concerns. HID will offer mediation
services to tandlords and tenants involved with Section 8 progra»xs, other public
housing progra»rs, other HUD assisted housing programs, and other Saint Paul
landlards and tenants fiting actions with the Ramsey County Housing Courx
As a pilot program, HIO will train existing staff in mediation techniques and mediate
20 disputes during the I998 HUD funding periorL
FiI/D Funding Reguest: Housing Mediation project $ 9,467*
(*This pilot program has one-time trainiug eapenses.)
98- S/t
1998 HUD Housing Counseling proposal RATIl�G FACTOR 1
Saint Paul Housing Information Office
IV. Budget Counseting
As a HI7D certified agency for 17+ years, HIO believes that budget counseling can greaUy
enhance a housing counseling program. HIO strongly believes that many HUD- eligible tenants
or HUD homeowners need " hands-on" budget counseling to resolve their housing problems.
Typically, HIO clients can be currently refeaed to other agencies for one session of budget
counseling, but HIO counselors see a greater need for, on-going budget counseling services for
clients, which would allow clients to leam and practice new money handling habits. This project
would allow HIO to purchase budget counseling services which are tailored to a specific clients
needs.
1948 HUD�roposal: HIO Budget Counse[ing
HIO proposes to purchase "hands-ott" budget counseling services
for 20-25 HUII clients - tenants or homeowners.
HUD Funding Request: Budgel Counseling $5,400
�' ' � i
I ' � '
1998 HUD Housing Counseling proposal RATING FACTOR 1
Saint Paul Housing Informarion Office
Y. HIO Cvmputer Database and Mapping Capaciry Upgrades
HIO maintains client files with the assistauce of a computer program which was developed for
the office appro�mately nine years ago. While it is still fimctioning adequately as an "electronic
filing cabineY' in allowing access to historical client data and notes, HIO is no longer able to
access the data effectively as a database and is having great difficulty in obtaining professional
backup services to work in the original program language.
Through daily interacfion with clients, HIO counselors really have a"finger on the pulse" of
housing issues in Saint Paul. HIO would like to translate ttris general flow of housing
information into regular reporting of housing trends, hot issues, and geographic demand for
services to elected officials for informational purposes and to help inform housing policy
decisions. The computer upgrades would allow HIO to build their client files off a newly
upgraded city address file maintained by the licensing and inspection department. This
interconnection would allow literal mapping of housing issues, and the new program would
allow HIO to easily develop a database of housing issues from the client files which wouid feed
direcdy into reports.
1998 HUD pronosal: HIO Computer Ca��cid�Ungrade Match
HIO requests $7, 00� for computer capacity upgrades with database and mapping
capacity which can be used to track and report on housing issues and trends. Iffunded,
HIO will provide a$7, DDO match.
HUD Fuxdin��e�uest: Computer Capacity Upgracle Match: �7,OOQ
� �8-S/2.
1998 HUD Housing Counseling Proposal.
Saint Paul Housing Information Office
Appendia A
RATING FACTOR 1
Housing Counseling Work Ex�erience/Trainiag Experience - HIO staff
All HIO housing counselors work with HUD clients or HUD-eligible clients. In addition to these
services, the HIO staff have other duries. The following is a list of the HIO counseling staff and
any training received in the last two yeazs:
STEVE RICB, HOL3SING COiJNSELOR (1981 - current)
In addition to providing housing counseling services to City of Saint Paul residents,
DUTIES also include:
--Staff person, Saint Paul Overnight Shelter Boazd
--City Prograzu Administrator for the Stewart B McKinney Emergency Shelter Grant
--Boazd member to Family Homeless Assistance and Prevention Program Board
TRAINING:
--Mortgage Foreclosure Prevention Training
--Minnesota 4(d) Property Tax Classificariott Program* (* tax classificarion for lower-income
rental housing including Section 8 buildings), Minnesota Mulri-Housing Association
BARB CARR, HOUSING COUNSELOR
DUTIES also include:
--Counselor, Mortgage Foreclosure Prevention Program
--Instructor - Landlord training, Saint Paul Community Education
TRAINING
(1989- current)
--Graduate Realtor Insritute (G.R.I.), National Association of Realtors
--Fair Aousing Seminar, Realtor Association
--1997 Real Estate Institute, Minnesota Bar Association
--Minnesota 4(d) Property Tas Classification Program,* MN Multi-Housing Association
DARRELL SPEARS, HOUSING COUNSELOR
DiJTIES also include:
(1996- current)
--Assistant Program Administrator, Stewart B McKinney Emergency Shelter Graut Loan
Committee member, Mclmight Foundation Family Loan Program
--HIO representarive, Housing LINK program (pilot project, as part of the Hol an
settlement, to develop a central clearinghouse for affordable housing)
TRAINING
--Section S Certificate and Housing Voucher Program, Saint Paul Public Housing Agency, 4/98
--Minnesota 4(d) Pmperry Tas Classification Program,* Minnesota Multi-Housing Ass'n, 1/98
9�-5�2.
1998 FIUD Housing Counseling ProposaL
Saint Paul Housing Information Office
Appendix A
RATING k'ACTOR 1
Housing Counseling Work Ex�erience/T'raining Ex�►erience - HIO staff
JOSEPH COLLINS, HOUSING COLJNSELOR 7anuazy 1998 - current
DUTTES also include:
--Project Manager, Mortgage Forecloswe Prevention Program
TRARIING:
--Training within the last two yeazs included working as: City Council Legislarive Assistant,
and appointed Saint Paul City Councilmember
--4th year law student, Williatn Mitchell College of Law
--Minnesota 4(d) Property Ta�c Classification Program,* Minnesota Multi-Housing Ass'n. 1!9'7
JAI�IICE SMITH, HOUSING COUNSELOR June 1977 - current
DUTIES also include:
--Coordinator, District Council outreach program
--Boazd Member, Heat Share Board (East metro NSP emergency energy assistance)
--Boazd Member, Liberty Plaza Housing, a HUD subsidized housing development
TRAINING
--Section 8 Certificate Program, Saint Paul Public Housing Agency
--Loss Mitigation training, Housing and Urban Development.
—Mortgage prevention training, Minnesota Mortgage Foreclosure Prevention Associarion
(MMFPA)
--Minnesota 4(d) Property Tax Classification Program, MHA, 1/97
BOBBI LEVITAN, HOI3SING COITNSELOR September 1993 - current
DUTIFS also include
--Counselor, Mortgage Foreclosure Prevention Program
--Instructor - Landlord training for owners of duplex to fourplex rental properties,
--Writer, TenanUlandlord handbook
TRAINING
--Credit and Legal Issues Training, MN Mortgage Foreclosure Prevention Ass'n, 8/97.
--HUD Loss Mitigation Training, HUD staff from Washington D.C. and Minnesota, July 1997.
--AARP1HiJD HECM Basic Satellite Training (reverse mortgage), HUD and the American
Association of Retired Persons, June 1997.
--1997 Flood Disaster Relief! Default Counseling Traiiung, MI3FA, 5f97.
--FHA Loss Mirigation Procedures and Contracts for Deed, MNIFPA, 4/97.
--Soiving the Foreclosure Puzzle, NIl�PA, September 1996 (received certification).
--Designing Questionnaires, Ciry of Saint Paul - Office of Human Resources, 5/96.
--Home Stretch Trainiug for Housing Counselors, Minnesota Housing Finance Agency, 4/96.
--Cultural Sensitivity Training, African American Family Services, 6l96.
--Crime Free Multi-Housing Program - Management Traiivng, Saint Paul Police Department,
3anuary 1996.
--Financial Management for Limited Incomes Training Conference, Minnesota Extension
Service, University of Minnesota, May 1994.
� y8-siL
Saint Paul Housing Informafion Office (HIO) RATING FACTOR 2
1998 HUD Housing Counseling proposal
Housing Counseling - Current program funded by Ci ,tYBndget includin� CDBG funds.
Saint Paul's Consolidated Plan notes HIO as providing "fair housing and counseling services to
city residents." 3 HIO advocates for Saint Paul residents while disseminating information
regarding financial assistance, govemmental prograins, and community resources available to
HUA clients and HUD-eligible clients. In 1997, HIO counseled 8078 citizens regarding HUD
rental opportunities', emergency shelters tenant and landlord rights, FAIR Housing regulations,
city & state mortgage programs, FHA, & HUD-fivancing programs, code-enforced relocation
assistauce, and utility shut-offs.
1998 Pro ,nosal De�'ault Counselinr�
currently funded by city, state, and private funds
Saint Paul Housing Information Office provided default counseling to 94 homeowners, during
October 1 1996-September 30, 1997 (See: I3CID-9902). 40 homeowners brought the
mortgages current using HIO counseling and HIO's home loan assistance. Additionally,l7
homeowners secured forbearance agreements. The need has not abated. During the first five
months of 199$, 105 homeowners requested default counseling.
To resolve mortgage foreclosure problems, HIO interviews the homeowners, evaluates their
mortgage default situations, and idemifies needed community resources. Moreover, ffiO
combines community resources, such as Family Service, Ramsey County Co�ununity Services,
and St. Pau1 Foundarion, and loss xnitigafion procedures to create forbeazance agreements.
Additionally, HIO secured $8Q,000 for homeowner loan assistance - emergency funds to
cure default - by collaborating with the Family Housing Fund, Saint Paul HRA and Minnesota
Housing Finance Agency. Consequently, many homeowners cure mortgage defaults by using
their own funds and "leveraging" HIO funds with other emergency funds as needed.
Currently the ciry, state, and a private foundation funds HIO's default counseling program. The
foundation funds support "start-up" activities. Thus, funds will be needed to guarantee a long-
term default counseling.
' City of Saint Paul, Minnesota Consolidated Plan and Submission. (April 1995). Saint
Paul Housing Information Office, Project ID. #30, Local Code 61108.
° ["HIO] provides housing refemals to individuals and families who aze seeking housing
or losing their housing." Consolidated Plan. § 41.205.
S HIO staffs the City's Overnight Shelter Boazd and monitors T3UD's Emergency Shelter
Graut while daily providing emergency housing information to AUD-eligible clients.
Consolidated Plan.§91.210.
6 The Mortgage Foreclosure Prevenrion Program is part of the City's Housing Action
Program, Consolidated Plan. §91.215(b) Strategic Plan - Affordable Housing; §91.216(c}(1)
Strategy for helping low-income families avoid being homeless.
j'� 98•Sia
w�
Budget Counseling- current[y not funded by HIO.
As a pilot project, "hands-on" budget counseling could greatly enhance a default counseling
program by reaching those homeowners who are not financially prepared to cure a mortgage
default. Furthermore, budget counseling encourages family stability by promoting fiscal
responsibility. Simply speaking, many HUD-eligible tenants and HLTD homeowners need
continual "hands-on" budget counseling because financial instability is a major barrier to
affordable housing.
Housin�Court Diversion Project: Landlord Instruction SentencingAlternative (LISAL
st¢te funding ends in 1998
HIO warks collaborafively with the Ramsey County Housing Court referee, Ramsey County
AUorney's Office, City's Division of Code Enforcement, City Attorney's Office, and the Police
Dept.'s FORCE unit (the city's anU-drug unit) to address "problem-properties."
As a proactive response, the Ramsey County Attorney's Office administers LISA to train
landlords idenrified as owning problem properties. The program goal's are improving housing
conditions, enhancing public safety, and stabilizing neighborhoods by training landlords about
proper rental management procedures, including compliance with city, state, and federal laws,
including FAIR housing requirements. With the city's 2% vacancy rate, LISA has become even
more critical. Many HUD-eligible clients can not find adequate housing, and LISA can preserve
the city's affordable housing stock'.
In 1998, HIO and the County Attorney staffprovided 5-7 landlord training sessions with 30-35
landlords attending each session. While the demand for landlord training increases, state funding
ends in 1998. Consequently, Ramsey County Attorney's Office prefers that HIO administers this
stafF intensive program.
Housing Mediation project- pilot program - not currentlyfunded
As a pilot project, HIO proposes a housing counseling mediation program for HUD-eligible
clients, Saint Paul Public Housing Agency, HUD-assisted housing properties, private Saint Paul
landlords, and tenants and landlord filing with Ramsey Counry Housing Court. During the 1998
HUD funding period, ffiO will train six housing counselors as qualified mediators to mediate 20
disputes. If this pilot program is successful, then HIO will consider continuing such services.
In the Consolidated Plan, the City recognizes many barriers to affordable housing. HUD-
eligible clients often become homeless because their special housing needs are not met. On the
other hand, the Housing Mediation Project can promote stable affordable housing for HUD
clients or HUD-eligible clients by facilitating tenant and landlord relationships. Simply,
mediation facilitates communication and mast building necessary for the landlord and tenant to
resolve their dispute.
� Improving rental housing management and effectively enforcing housing code to reduce
negative conditions of rental housing aze listed priorifies of the City's Housing Action Plan.
Consolidated Plan. §91.215(b) Strategic Plan - Affordable Housing; Housing affordability is a
growing concern. Analysis of Im�diments to Fair Aousing Choice, City of Saint Paul, April
1996.