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Minnesota Assistance Council for Veterans (MACV) Affordable Housing Project FAQ

Updated Monday, 12/12/03, 2:45 pm

Go!Questions from the Nov 19 meeting
Go!More questions from residents


  Related Links
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Thank You!
to all who participated in the
Follow Up Meetings on
Nov. 19th and Dec. 16th.

The November 19th Meeting

   


On November 19, 2003, NENA brought together project developers, office holders and residents for a meeting to discuss the facts of the housing project. The meeting was the first follow-up to the October 15th public hearing at the VA Medical Center

 
  State Representative Jean Wagenius (right) addresses a resident's question on state funding for the project. Standing in back are (from left to right) Anne Olson and Barb Johnson from Senator Mark Dayton's office and Brette Hjelle from 12th Ward Council Member Sandra Colvin Roy's office.

 
 
  Dick Brustad (left), President of the Community Housing Development Corporation, presented information on the project. Also standing in front are Olin Moore (middle) of US Representative Martin Sabo's office and NENA Associate Director, Doug Walter (right), who facilitated the meeting.

NENA held a meeting for neighbors of the project on November 19th during which the project developer, the Community Housing Development Corporation (CHDC), provided an update on the plans for the 132 unit facility.CHDC had a handout at the meeting with background on the project, including a copy of the criteria for accepting residents.

At the end of the meeting, some questions required additional research and follow up. NENA is publishing those questions here, and is gathering information and responses from the appropriate parties. This information will also be presented at a second follow up meeting scheduled for Tuesday, December 16th, 7:00 PM at Morris Park Neighborhood Center.

If you have a question or would like to factually respond to a question or clarify an answer, please . Electronic files and email will receive the fastest turnaround.



Questions from the November 19 meeting

  1. Is the project a done deal? Are there any additional approvals needed for the project to advance?
  2. How will police coverage be provided? If the Hennepin County Sheriff's Office is providing the coverage, how will adequate response time be assured? What specific plans are there for a substation near the VA?
  3. Why is the St. Paul providing fire coverage when there is a Minneapolis Fire Station closer to the site?
  4. How was 51% number arrived at? Can the percentage of veterans be changed?
  5. What assurances are there that the project won't be any expanded in the future?
  6. What assurances are there that the project won't change criteria for who can be accepted as a tenant or that the facility won't be converted to a different kind of project such as Section 8 Housing?
  7. Can there be an annual citizen review of the project? If so, how should it be set up?
  8. What precisely is the county's role in the project? What oversight does the county provide?
  9. Why did the VA decide to lease the property to this project, and what will the VA's role be in the project? Will the VA provide any security to the project?

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Go!Skip to More Questions from Residents



Responses to Questions from the Nov. 19 meeting

  1. The project concept was approved by the Secretary of the Department of Veteran's Affairs. That approval allowed the developers to move forward with planning and seek community input. The housing proposal has not received Congressional Approval. In fact, the Enhanced-Use Lease proposal has not been reviewed by the Department of Veteran Affairs, which is the step that precedes submission to Congress. See the flow chart of the Enhanced-Use Lease process to clarify the steps the housing proposal will go through before it can be built. The 60-day Congressional comment period has been confused with a 60 day public comment period. Residents can continue to comment up to the point of a Congressional decision. This means that the December 16th meeting will not be after pubic comment has closed. Residents who want to make their opinions known should write a letter to Secretary Anthony Principi with copies to your federal representatives. - Sandy Colvin Roy, 12th Ward Council Member (12/08)

    All of required approvals from the various government agencies have been received.
    - Barb Broen of Broen Housing Consultants. (12/05)

    [ Additional: The public hearing and the collecting of public comment was for the concept portion of the project which also includes the developer's proposals, architectural designs and schedules, etc. The actual Enhanced-Use Lease, between the Department of Veterans Affairs and Hennepin County, would be written by VA legal counsel at a later date. - Doug Walter, NENA Associate Director. (12/05)]Back to question(return to the question)


  2. The development site is located in an area where police and emergency service is routinely provided by the Hennepin County Sheriff's Office. For residents of the facility, any 911calls, emergency, or other matters requiring police service will be the responsibility of the Sheriff's Office. Residents will be informed of this system. Phone numbers for the Sheriff's Office will be included as part of the orientation (and will be included in their orientation packet) when they first move in.

    If for some reason residents of the surrounding community feel they have any police related calls related to the facility or its residents, they should call their Minneapolis Police Department. - Dick Brustad, Community Housing Development Corporation (12/12/03)
  3. Back to question

  4. The Minneapolis VA Medical Center campus is in an un-incorporated portion of Hennepin County. This means that it is not part of any city. Fire and police service are provided through city governments as one of the functions of the City. Since the campus is outside of any city limits, the VA needs to make independent arrangements for these services. The VA solicited bids for fire suppression services using the federal guidelines for competitive bidding. As a result of this bidding process, the St. Paul fire department was selected as the lowest bidder who could meet all of the bid criteria. The housing project will get fire suppression services under an amendment to, or a subcontract of, the existing fire suppression contract. The Minneapolis VA Medical Center bids out this contract on a regular basis and the Minneapolis fire department may, in the future, be the low bidder, in which case, it would hold the contract. - Barb Broen

    [ Additional: The Mpls VA's current fire suppression contract with St. Paul expires Dec. 31, 2003, and the VA Medical Center is currently soliciting a Request for Proposal (RFP) from potential contractors. The RFP process closes Dec 11, after which bids will be unsealed and considered. - DW ]Back to question


  5. Unfortunately, the information given out at the meeting on November 19th was not accurate. The requirement that no less than 51% of the units be rented to veterans is not part of the funding appropriation language. This was a commitment made to various veterans service organizations by the Minnesota Assistance Council for Veterans (MACV) to insure that veterans would benefit from this project. The 51% has always been a minimum, not a maximum. The percent of veterans certainly can exceed 51%, and in fact, is likely to be significantly higher than 51%. - Barb BroenBack to question


  6. There are no plans, and no funding for any expansion to the project. Any change in the scope or size of the project would require approval from all of the affected governmental agencies. - Barb BroenBack to question


  7. There can be not change in the use of the project, the tenant selection criteria etc. without the agreement of the agencies involved in the project including Hennepin County and the Minnesota Housing Finance Agency (MFHA). - Barb BroenBack to question


  8. In a preliminary discussion, city staff indicated that the requirements can be put into legal documents signed by the city and the developer. This will provide a guarantee that the review will continue into the future. My proposal requires the developer to hold an annual meeting with neighboring residents, neighborhood association, City Council Member, County Commissioner, and VAMC staff to talk about problems related to the building and/or its tenants. Solutions to those problems will be put into writing and reported back to the elected officials who can then communicate with residents. If you have any specific suggestions for conditions or requirements that might improve the usefulness of an annual review, I would appreciate hearing them. Please contact me if you have any comments or suggestions. -Sandy Colvin Roy (12/08)

    Yes, there can be an annual review of the project. CHDC and MACV would be happy to work with the neighborhood, NENA and other interested parties to establish such a process. - Barb Broen (12/05) Back to question


  9. The largest single source of funding for this project is Minnesota General Obligation Revenue Bonds. This funding requires that the development be owned by a public body, in this case, the Hennepin County Housing and Redevelopment Authority (HRA). Hennepin County HRA will lease the land from the VA, and borrow the bond funds from the Minnesota Housing Finance Agency (MHFA). Hennepin County HRA has signed a development agreement with Community Housing Development Corporation (CHDC). Under this agreement CHDC will enter into all of the necessary contracts to construct and rehabilitate the buildings. Hennepin County HRA will oversee this process on an on-going basis.

    CHDC and Hennepin County HRA are also entering into a long term lease and operating agreement. Under this agreement CHDC is responsible for the operation and management of the property. This responsibility includes the following:
    • Provide housing to only those individuals with incomes at or below fifty percent of the MSA Median Income.
    • Allow Landlord "Program Oversight" as defined in the Order.
    • Pay all operation and maintenance costs of the Project.
    • Maintain the Project and the abutting grounds, sidewalks, roads, parking and landscaped areas in good repair, order and condition.
    • Promptly make all necessary or desirable repairs, renewals, replacements and additions to the Project which shall have been elsewhere herein specifically identified as Tenant's obligation.
    • Not commit or suffer waste with respect to the Project.
    • Refrain from impairing or diminishing the value or integrity of the Project or the value of this Agreement.
    • Not remove, demolish or in any material respect alter any of the Improvements or personal property, provided that Tenant may remove any personal property in accordance with the provisions of Section 5.1 hereof.
    • Not make, install or permit to be made or installed, any alterations or additions to the Project if doing so will impair the value of the Project or violate the terms and conditions of this Agreement.
    • Not make, suffer or permit any nuisance to exist on the Project.
    • Conduct its business in a manner consistent with the purpose and character of the Project and in accordance with the highest industry standards for operating the type of business to be operated in the Project by Tenant, in accordance with the Legal Requirements of this Agreement.
    • Keep the Facility Site and Facility clean and attractive in appearance at all times, and keep any refuse in proper containers in compliance with allapplicable laws, ordinances and governmental requirements.
    • Adequately heat the Facility.
    • Comply with the Governing Agreements.
    The County is responsible for making sure that CHDC complies with these requirements. This will most likely be done through reviews of operating reports and regular inspections. If CHDC is not meeting the terms of the agreement the County may step in and do the things that should be done. The County can also declare CHDC in default and terminate the contract. - Barb BroenBack to question


  10. MACV and CHDC approached the VA with the idea of developing this housing project. After much discussion, the VA decided that it was a good idea and agree to go ahead with the Enhanced-Use Lease process. The primary benefit to the VA is an additional service (housing) for veterans.

    The VA is supportive of this project and recognizes the benefit for Veterans. This housing project, however, is not part of the operations or responsibility of the VA Medical Center. The VA Medical Center has a set of responsibilities dictated by the Federal Government. The funding, reimbursement system, budgeting process etc. for the VA is also federally mandated. There is a specific provision in Federal law permitting the VA to lease land or buildings for projects that are in one way or another beneficial to the VA (Enhanced Use Lease) . This does not, however, mean that the VA can use Hospital or other resources to support outside operations (i.e. security for the apartments). This housing project is not a VA project and the VA cannot use its own resources to support it. - Barb BroenBack to question

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More Questions from Residents

  1. The Enhanced Lease Programs continually mentions the "Secretary" as being the designated person to notify the community and hold a hearing for input on such a program. Who is the "Secretary" for this proposal? Was this individual present at the October 15th meeting? Who does this person report to? - Linda Schirmer, Minnehaha neighborhood

  2. NENA is hosting another informational meeting on Dec. 16th. Isn't that after the 60-day comment period that started on October 15th is over? - Frequently asked question.

  3. When did the Secretary submit the notice to the congressional Veterans Affairs Committees of the proposed enhanced-use lease? If so, has the Secretary also published a notice of this intention in the Federal Register? - Linda Schirmer, Minnehaha neighborhood

Responses to More Questions from Residents
  1. The Secretary of Veterans Affairs is Anthony J. Principi. He was not present at the Oct. 15th Public Hearing. A Washington DC representative from the Dept. of Veterans Affairs, Vanessa Chambers, was at the meeting. She collects the public input and prepares a report for presentation to the Secretary. See the Enhanced-Use Lease Process flow chart for more information. - Doug Walter, NENA Associate DirectorBack to question

  2. In fact, there isn't any 60-day comment period linked to the October 15th meeting date. Public comments can be made any time until the point where the 60-day Congressional period expires. See the Enhanced-Use Lease Process flow chart for more information on public comment timing. For your convenience, we have posted a copy of the US statute that applies to the Enhanced-Use Lease. Specifically note the amendment that establishes the 60-day period of continuous session of Congress, which may be where the confusion comes from. - Doug Walter, with information from Sandy Colvin Roy's staff and Barb Broen.Back to question

  3. The MACV Affordable Housing concept (proposal) has not gone to Congress yet. As of 12/2/03, it was still at the Dept. of Veterans Affairs, unsigned. From what I understand, there is approximately another month of processing from the time it is (if) approved by the Secretary until received by the House and Senate Committees. Note that the Congressional Committees do not have to take any action on the proposal during the 60-days. Only if they choose to stop it will any action be required. The Federal Register may be searched at www.gpoaccess.gov/fr/ - Doug WalterBack to question

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