HomeMy WebLinkAbout2024/07/01 - ADMIN - Minutes - Housing Authority - RegularMINUTES
St.Louis Park Housing Authority
St Louis Park,MN
Wednesday,July 10,2024 5 p.m.
MEM BER S PRESENT:Comm issioner Catherine Courtney,Com missioner Paul Beck,
Commissioner Reynold Burro wes,Comm issioner Thom Miller,Commissioner Richard Webb
STAFF PRESENT:Karen Barton,Marn ey Olson,Angela Nelson,Nicole Randall
PRESENTER :Dan Walsh,Vice President,Trellis Co.
1.Call to Order -The m eeting was called to order at 5:01 p.m .
2.Appro val of Minutes -Minutes fo r the May 8,2024 board meeting were reviewed.
M otion to appro ve was made by Commissioner Webb and seco nded by Commissioner
Miller.M otion passed 5-0.
3.Hearings -None.
4.Presentation -None.
5.Unfinished Business -None
6.New Business
a.Election of Offi cers:Annually,the housing authority board must elect the Chair,Vice-
Chair and Secretary to serve on the board.A roster of officers was put forth including
Thom Miller as Chair,Paul Beck as Vice Chair and Reynold Burrowes as Secretary.
Motion to appro ve was made by commissioner Webb and seconded by Commissioner
M iller.Motion passed 5-0.
b.Staff recom mended the Housing Authority (HA)Board authorize the assignment of the
current agreement with Perspectives,Inc.to Trellis Co.for Housing Choice voucher
project based assistance.The current owner,Prospectives Inc.,has filed for Chapter 11
bankruptcy and is required to sell the pro perty.Comm issioner Courtney clarified that
this is an assignm ent of the current agreement with Perspectives and not a new
agreement with Trellis.The Pro spectives pro perty currently has 22 project based
vouchers (PBV)located in five buildings at Louisiana Court.
Mr.W alsh presented an introduction to Trellis,Co.It was founded in 1991 and is a non-
pro fit developer/owner focused on multi-fam ily affordable housing with more than
4,000 units in 51 properties mostly in the metro area.
Prim ary goals:
•Preserving rent assistance and supportive housing by continuing to serve the
existing target population,single mothers with disabilities and about 130
children.
•Continuing to offer comprehensive supportive services.Hennepin County is
assigning their existing service contracts to Missions Inc.which will have about
five full-tim e equivalent staff at the property.
•Continuing deep affordability by keeping the same rent and income restrictions.
About 40%of the units are at 30%AM I and the remaining are at 50%AMI.
•Applying fo r comprehensive renovation funding with the Minnesota Housing
Finance Agency and Hennepin County since the buildings have not been
renovated in decades.The estimate fo r the renovation is about $7 million to
address building perfo rmance,replace building systems,add new unit amenities,
a comm unity room and a new office building to house Mission staff.
•They have Section 8/PBVs in their portfolio of properties.
Following Mr.W alsh's presentation commissioners asked questions of Mr.Walsh and
staff.
Responding to Com missioner Courtney's question,Mr.Walsh explained that Trellis Co.is
the ow ner/developer and has six staff.Full-time adm inistrative and maintenance staff
will be provided by Trellis Management which has about 200 staff.The president of
Trellis is also the president of Trellis Management.In addition,Trellis Co.is partnering
with Missions,Inc.to pro vide supportive services.
Mr.Walsh explained there are two declarations that run with the land requiring any
ow ner to lease to households at 50%AM I fo r all 56 units on the land.Ms.Randall
clarified that the 22 PBV units are under a contract between HA and Perspectives until
the end of Septem ber 2025.The board will need to consider the renewal of this PBV
contract soon because if the contract is not renewed,tenants would need to receive a
12-month notice in September 2024.Mr.Walsh said they will be requesting the longest
possible renew al that the HA would offer.
Responding to Comm issioner Miller's question,Mr.Walsh stated the Perspectives
building at Republic Avenue and Walker Street was not considered for purchase because
it is not located near the apartments and the location was set up for other programs like
childcare.
Responding to Commissioner Burrowes'question,Mr.Walsh said BBC was acquired by
Trellis 3-4 years ago and the name was changed to Trellis.Comm issioner Burrowes
raised questions regarding online negative reviews of Trellis Management until just a
few m onths ago.Mr.Walsh offered to have management company representatives
come to a future board meeting to address any concern s befo re the contract renewal.
Ms.Olson noted that with issues specifically related to maintenance,the city has a
co mprehensive rental licensing inspection program and conducts inspections every two
years and also responds to com plaints as needed.M s.Barton stated that if staff had
concern s about the m anagem ent com pany,the assignm ent would not have been
presented.
In response to Co m m issioner Burrow es question,M r.W alsh said there currently is not a
skilled nurse at the pro perty.Trellis w ill not be adding new services so they w ill not be
adding a skilled nurse at the pro perty.
M s.Olson explained that staff intentionally did not bring the PBV co ntract renew al at
the sam e tim e as this resolution fo r the contract assignm ent.Befo re the end of
Septem ber,the board w ill be asked to consider the renew al of the PBV contract.
Attorn eys and staff fo r Hennepin County,M innesota Housing,and the Fam ily Housing
Fund have been do ing due diligence to assign loans to Trellis fo r this pro perty.The City
of St.Louis Park also has a CD GB loan w ith Perspectives that w ill be assigned to Trellis.
M otion to ap pro ve w as m ade by Com m issioner W ebb and seco nded by Com m issioner
M iller.M o tio n passed 5-0.
M s.Randall explained the HA w ould have im m ediately issued tenant based vouchers to
PBV residents if there w as no ow ner/m anagem ent com pany.M s.Barton confirm ed
there w as one other off er on the property.The bidder w as looking to rem ove the
underlying requirem ents fo r affo rdability,rehab the property and raise rents to m arket-
rate.The bankruptcy court could have rem oved the deed restrictions fo r affo rdability.
Trellis purchasing the property w ill continue to pro vide m uch needed aff ordable housing
and suppo rtive services in St.Louis Park.
7.Com m unications
a.Claim s Lists:A pril,M ay,June 2024
b.Financials M ay 20 24
c.A m y M o rris has taken a position w ith the St.Paul HA and the position is posted.
8.Other
9.A djourn m ent
Com m issio ner W ebb m oved to adjourn the m eeting and Com m issioner Burro w es seconded.
The m otio n passed 5-0.The m eeting w as adjourn ed at 6:00 p.m .
Respectfully subm itt ed,