From our Executive Director - Archive

March 28, 2022

Since early in the pandemic, PHA staff have worked diligently to assist residents who were struggling to pay rent.  Staff began helping residents apply for emergency rental assistance as soon as the State’s RentHelpMN program and the County’s Zero Balance Project began accepting applications.  To date, staff have collectively spent nearly 4,000 hours helping 665 residents apply for assistance to avoid eviction.  These efforts have paid off, with the PHA receiving an additional $168,808 in emergency rental assistance payments in the last month, for a total of $2,355,816 received as of March 15, 2022. 

Total Assistance Payments	$2,355,816
RentHelpMN Payments	$2,154,379
Zero Balance Project Payments	$201,437
Applications Submitted	665
Accounts Receiving Payments	603

 

No new applications were submitted in the past month because neither RentHelpMN nor the Zero Balance Project accepted applications after the end of January.  As of March 10, 2022, RentHelpMN had paid more than $413.9 million in rental assistance out of the $450 million in funding received.  Without a new infusion of federal or state funds, they will exhaust their funding very soon, however the Minnesota Legislature is considering putting an additional $330 million in federal recovery money towards emergency rental assistance in order to continue providing assistance payments through June 30, 2022. 

While the substantial amount of rental assistance the PHA has received has reduced the number of households owing rent and/or sales and service fees, the total amount of delinquent rent owed has increased compared to last month.  This continues to be driven by the substantial number of newly delinquent households.  In the last month, 299 households that had been delinquent paid their balance and 6 households vacated; however 251 newly delinquent households were added.  This resulted in a net decrease of 54 households owing delinquent rent, but an increase of $53,228 in total delinquent rent owed, as shown below.

	Feb-22	Mar-22	Change
Total Delinquent Rent Owed	$698,169	$751,397	$53,228
Total Households Owing	671	617	(54)
Sales and Service Fees	$57,499	$55,200	($2,299)

 

While staff hope that both the delinquent rent owed and the number of households owing rent continue to trend downward, it is difficult to predict what will happen when a substantial number of new households become delinquent each month, and as emergency rental assistance funds are exhausted. 

Resident Services staff continue to contact residents with delinquent accounts to remind them that they are responsible for the amounts owed, and to meet with residents to assist them in seeking alternate emergency funds to cover unpaid rent.  Staff have made an average of seven attempts to contact each household that was delinquent on rent payments.  While the PHA’s goal is to obtain payment and promote successful tenancies, staff have sent 30-day notices of lease termination for late rent to over 2,200 households since October 12, 2021.  Unfortunately, the PHA cannot waive any rent due to it.  According to HUD, "PHAs are not permitted to directly pay tenant’s rent or to offer debt forgiveness programs with CARES Act funds, public housing Operating or Capital Funds or HCV funds."  HUD has stated that rent is still due during the COVID-19 pandemic and will accumulate if unpaid, and that no PHA-sponsored debt forgiveness or amnesty programs are authorized. 

PHA staff filed 32 Eviction Actions for unpaid rent in December 2021, and as of March 28, 2022 staff had not filed any additional Eviction Actions for unpaid rent.  Out of the 32 Eviction Actions filed, most households have either paid their balance or are continuing to cooperate with PHA staff in order to do so.  The PHA obtained writs of recovery in only five of the 32 cases.  Most evictions are permissible now, but renters who are eligible and have applied for State or County payments will continue to be protected against evictions until June 1, 2022.  The PHA Legal Team, Resident Services and Finance Department staff continue to coordinate in order to identify residents who have not responded to previous notices, and to prepare to file additional Eviction Action proceedings in Ramsey County Housing Court when necessary.  PHA staff continue to work diligently to avoid evictions, while upholding the Agency’s fiduciary responsibility to the taxpayers who provide deep subsidies that make PHA-owned housing affordable to families with very low incomes. 

 

February 23, 2022

Since early in the pandemic, PHA staff have worked diligently to assist residents who were struggling to pay rent.  Staff began helping residents apply for emergency rental assistance as soon as the State’s RentHelpMN program and the County’s Zero Balance Project began accepting applications.  The RentHelpMN program alone has paid the PHA almost $2 million on behalf of residents struggling to pay rent.  However, both programs have stopped accepting new applications from renters, and without a new infusion of federal or state funds, they will exhaust their funding in the coming months.

To date, staff have collectively spent nearly 4,000 hours helping 665 residents apply for assistance to avoid eviction.  These efforts have paid off, with the PHA receiving an additional $366,585 in emergency rental assistance payments just in the last month, for a total of $2,187,008 received as of February 15, 2022.  

Total Assistance Payments	$2,187,008
RentHelpMN Payments	$1,999,698
Zero Balance Project Payments	$187,310
Applications Submitted	665
Accounts Receiving Payments	557

The substantial amount of rental assistance the PHA has received has resulted in a decrease in overdue rent balances, the number of households owing rent, and sales and service fees owed.  While things are trending in the right direction overall, staff continue to see a substantial number of newly delinquent households.  In the last month, 370 households that had been delinquent paid their balance and 22 households vacated; however 224 newly delinquent households were added in February.  This resulted in a net decrease of 168 households owing delinquent rent despite significantly more households clearing their balance, and a decrease of only $138,958 in total delinquent rent owed despite having received an additional $366,585 in rental assistance, as shown below. 

The 22 households that vacated while owing rent had balances ranging from $20 to $45,374, with an average balance of $3,629.  These households vacated for a variety of reasons, including eviction, voluntary notice to vacate, and death of the sole household member.  While staff hope that both the delinquent rent owed and the number of households owing rent continue to trend downward, it is difficult to predict what will happen when a substantial number of new households become delinquent each month, and as emergency rental assistance funds are exhausted. 

	Jan-22	Feb-22
Total Delinquent Rent Owed	$837,125	$698,169
Total Households Owing	754	671
Sales and Service Fees	$59,050	$57,499

 

While both the RentHelpMN program and Zero Balance Project officially end June 1, 2022, the agencies administering those programs anticipate that the funds will be fully spent before then.  As of February 10, 2022, RentHelpMN had paid more than $385.9 million in rental assistance out of the $450 million in funding received, and stopped accepting new applications on January 28, 2022.  RentHelpMN reports that monthly applications doubled between August and December from 5,400 to 10,900, and that they then doubled again from December to January, reaching 22,600 applications in a single month.  Still, RentHelpMN reports that they likely have sufficient funds remaining to cover up to twelve (12) months of unpaid rent for eligible households with applications currently in process.  Similarly, effective December 13, 2021, the Zero Balance Project is no longer accepting new applications, though previous recipients are still able to request additional funds provided they have not already received 18 months of assistance. 

Resident Services staff continue to contact residents with delinquent accounts to remind them that they are responsible for the amounts owed, and to meet with residents to assist them in seeking alternate emergency funds to cover unpaid rent.  Staff have made an average of seven attempts to contact each household that was delinquent on rent payments. 

While the PHA’s goal is to obtain payment and promote successful tenancies, staff have sent 30-day notices of lease termination for late rent to over 2,200 households since October 12, 2021.  Unfortunately, the PHA cannot waive any rent due to it.  According to HUD, "PHAs are not permitted to directly pay tenant’s rent or to offer debt forgiveness programs with CARES Act funds, public housing Operating or Capital Funds or HCV funds."  HUD has stated that during the COVID-19 pandemic, “Rent is still due during this time period and will accumulate if unpaid;” and “HUD does not authorize any PHA-sponsored amnesty or debt forgiveness programs.”

PHA staff filed 32 Eviction Actions for unpaid rent in December 2021, and as of March 1, 2022 staff had not filed any additional Eviction Actions for unpaid rent.  Out of the 32 Eviction Actions filed in December, most households have either paid their balance or are continuing to cooperate with PHA staff in order to do so.  The court authorized the PHA to obtain Writs of Recovery in nine of the 32 cases, and the PHA obtained writs in five of those nine cases.

The moratorium continues to phase out in stages.  Most evictions are permissible now, but renters who are eligible and have applied for State or County payments will continue to be protected against evictions until June 1, 2022.  The PHA Legal Team continues to work with Resident Services and Finance Department staff to identify residents who have not responded to previous notices, and to prepare to file additional Eviction Action proceedings in Ramsey County Housing Court when necessary.  PHA staff continue to work diligently to avoid evictions, while upholding the Agency’s fiduciary responsibility to the taxpayers who provide deep subsidies that make PHA-owned housing affordable to families with very low incomes. 

Respectfully,

Jon Gutzmann

 

December 20, 2021
 

PHA staff spent over 2,500 hours helping 497 households apply for rent assistance and avoid eviction proceedings.

Since the pandemic began, many households have become delinquent in their rent payments.  The St. Paul Public Housing Agency (PHA) recognized this right away and assembled a team of staff members to reach out to residents who were struggling to pay rent.  Through the dedication and hard work of the PHA’s Resident Services Department, the PHA was instrumental in securing over $1.4 million in rental assistance for its residents.  At least 894 households have been delinquent on rent, some as far back as March 2020, owing the PHA more than $2 million.  Some households obtained rent assistance on their own, but to date PHA staff have collectively spent over 2,500 hours assisting over 497 households process the paperwork needed to avoid eviction.  This is equivalent to more than one full-time staff person devoted to this work for an entire year.

Only 32 households failed to positively respond to the PHA’s efforts to help before the State of Minnesota’s Eviction Moratorium was lifted on October 12, 2021.  PHA staff reached out to those households and offered assistance, averaging 10 contacts per household before the moratorium was lifted.  Of those remaining 32 households, eight have already paid their rent due.  Fourteen other households have applied for rent assistance, and their Eviction Actions have been put on hold while their applications are processed.  One resident’s case was set for a later date due to technical issues they experienced during the Zoom hearing.  Only nine households failed to appear in court or otherwise make any arrangement to repay their outstanding balances, resulting in writs of recovery being issued that will allow the PHA to take back the property and rent it to a family in need on the waiting list.  Over 9,000 households are on the PHA’s waiting list at this time.

Over 412 residents have already received rental assistance, and many more are awaiting assistance payments from RentHelpMN, the State of Minnesota program established to help low income individuals with rent payments in the wake of the COVID-19 pandemic.  PHA staff dedicated an average of six hours of time, per household, assisting residents with the RentHelpMN application process. 

This effort is far from over.  Over 200 PHA residents were newly late on rent this month, and this pattern is likely to persist.  Staff continue to provide residents with thorough, targeted assistance applying for rent help.  Through this focused effort the PHA seeks to ensure that no resident loses their housing because they cannot pay rent.  The rental assistance is available, and the PHA stands by to help any resident obtain this aid.  Simultaneously, we will follow HUD regulations and uphold our fiduciary obligations to tax payers who provide the deep rental subsidies that make this housing affordable to very low income people.

The following is the PHA’s written statement to the StarTribune Reporter on December 8.  It remains posted on our website at www.stpha.org.

DECEMBER 8, 2021

ST. PAUL PUBLIC HOUSING AGENCY (PHA) STATEMENT ON EVICTIONS

The PHA is in the business of housing people in need.  And, the PHA has worked closely with all residents regarding available rent assistance. 

We have 34 years of data confirming that 99% of the people residing in the over 4200 units we own and manage have successful tenancies each year.  They comply with the terms of their lease.  Pre-COVID, approximately 1% of the households (45 some per year) have their leases terminated for serious lease violations, most for violent criminal activity, or drug related criminal activity, some for non-payment of rent.  In 2019 (the last full year with pre-pandemic data) the PHA filed only 91 evictions (out of 2,668 total cases filed in Ramsey County) and only 22 of those resulted in a writ of recovery. 

We also have a fiduciary responsibility to the taxpayers who provide deep subsidies to make this housing affordable to people earning 30% of AMI or below.  Since rents are income-based and not tied to the cost of operating public housing, we count on federal subsidies to balance the books.  The $42 million revenue budget is comprised of $17 million in tenant rents and $25 million in operating subsidies.  Taxpayers provide the operating subsidy (via HUD).

Related, the PHA has a 30-year record of collecting 99.5% of all rent charged.  However, because of COVID related issues, rent delinquencies began occurring as far back as March of 2020.  They grew to over 894 households owing over $2.0 million.  This delinquency accounted for almost 6% of rents charged. 

As mentioned, the PHA has worked closely with all residents regarding available rent assistance.  For those who have sought PHA assistance, PHA staff have spent an average of five to six hours with each resident helping them complete the application process and provide the program necessary information.  This effort speaks volumes of the dedicated and mission driven staff who work at the PHA.  We want residents to succeed.

Attached Board reports detail the PHA’s efforts to reach out to residents.  We attempted to contact each household numerous times via phone, by personal visit to the residence, and by U.S. Mail.  (The latest Report dated November 24, 2021 may be the most useful to review as it includes new charts and graphs.)

We are very happy to report that of the over 4200 households in PHA-owned housing, only 32 are delinquent on rent and have not followed through with rent assistance available to them.

So far PHA residents have received $1,404,916 in rent assistance.  PHA staff assisted all residents who needed assistance with their applications fill out the application for rent assistance.

Unfortunately, the PHA cannot waive any rent due to it.  According to HUD, "PHAs are not permitted to directly pay tenant’s rent or to offer debt forgiveness programs with CARES Act funds, public housing Operating or Capital Funds or HCV funds." Department of Housing and Urban Development, Centers for Disease Control and Prevention (CDC) Eviction Moratorium FAQs for HUD’s Office of Public and Indian Housing 5 (2020). HUD has stated that during the COVID-19 pandemic, “Rent is still due during this time period and will accumulate if unpaid.” U.S. Department of Housing and Urban Development, Addressing Tenant Concerns Regarding Rent and the Temporary Suspension of Evictions for Nonpayment of Rent (2020).  “HUD does not authorize any PHA-sponsored amnesty or debt forgiveness programs.”  HUD PIH Notice 2018-18 issued on October 26, 2018 (addressing repayment agreements).

The 32 Evictions Actions filed represent those residents who are delinquent in rent AND ALSO have not applied for rental assistance that is readily available to them.  They collectively owe the PHA a total of $101,942.  The PHA stands ready to assist each of these households in applications for rent assistance, but the household must apply for the assistance.  The programs do not allow the PHA to apply for rent assistance on the resident’s behalf.

The goal of the PHA is to have every resident who is behind or struggling to stay current on their rent signed up for one of the rent assistance programs and avoid eviction.  To do that, residents must participate in the rent assistance program.  

About the Saint Paul Public Housing Agency:
The PHA administers federal rent subsidies that provide safe, affordable housing to more than 22,000 Saint Paul residents.  Almost half of those residents live in the 4,273 affordable homes and apartments that the PHA owns and manages.  The PHA also administers the federal rent subsidy program called “Housing Choice Vouchers”, previously known as Section 8.  The rental vouchers help over 5,000 households pay affordable rents in privately-owned apartments and rental homes.

The St. Paul PHA is a 31-consecutive year HUD designated high performer that owns and manages residential real estate currently valued at approximately $756 million dollars.  We achieve high marks in all operational indicators such as:

• 26th consecutive years of 99% occupancy,
• Collecting 99% of all rents,
• Completing approximately 21,755 [emergency 6,573 + non-emergency 15,182 = 21,755 in FY 2021] maintenance work orders/year; emergencies in less than 24 hours; non-emergencies in average 15.84 days,
• In addition, we have a 31 year innovative community policing program, a prime reason why major crime rates in public housing developments are lower than citywide averages,
• Completed a 25 year homeownership program in 2014 that helped 300+ low-income families move from subsidized rental to homeownership, and
• Executed a community solar agreement in 2018 that provides 10 of our hi-rises 100% solar power for electricity while saving $120,000 per year for 25 years,
• The PHA compiled a 23rd year record with zero findings on its annual audits and has won awards for its financial reporting,
• The PHA invested $8.3 million in life safety improvements by installing fire sprinklers and upgrading the fire alarm systems in all 16 PHA Hi-Rises, starting in 1991.

The PHA received HUD’s National Outstanding Sustained Performance Awards in 1991 and 1996, and was the highest-rated large housing agency in the country in 1996 (the only year HUD published such a national ranking).

Respectfully,

Jon Gutzmann
December 20, 2021
 

October 2021

The PHA’s Fiscal Year 2021 was like no other.  The COVID-19 pandemic had a profound effect on everyday life at the PHA and in all our homes.  As the COVID-19 operations report chronology reminds us, we went into action immediately.  Like everyone, we first had to understand the extent of the crisis.  We responded with incremental and common sense actions designed to protect the health and safety of residents, participants, employees and the general public.  Fiscal Year 2021 also reminded many that the PHA is an essential agency.  We remained “open for business” and mission strong because this is a place filled with essential, hard-working, inventive and caring employees, guided by a supportive and mission-focused Board of Commissioners.

Some of our early COVID-19 actions included: On March 10, 2020, we conceived then published the first PHA COVID 19 statement on our website.  Early on we focused on obtaining and distributing hand sanitizers, masks and other protective equipment to residents and staff.  On March 12 we distributed care packages to all hi-rise residents.  Care packages included three bars of soap and a flyer on COVID-19.  On March 16 we published and executed our first PHA COVID-19 Action Plan.  On April 2 we published our first PHA COVID-19 Operations Report for the Board.  On May 8 staff distributed a second round of care packages to all hi-rise residents.  We published COVID-19 Operations Reports to the Board on a monthly basis thereafter. Occasionally we sent these reports to external PHA stakeholders as e-blasts.  We tried to be part of the societal sharing of knowledge and best practices.  Later we coordinated vaccine distributions to residents, staff and families.  Other actions continue to the present, as reported separately. 

While we assisted residents and participants, we also made numerous adjustments to our work environment to keep staff safe during the pandemic.  This included providing protective equipment for the front line maintenance staff who needed to remain on-site as well as equipment and resources for the staff working from home.  We utilized virtual solutions and video conferencing.  We learned that some PHA business functions performed remotely are as efficient, and more client-friendly than the previous in-office experiences.  Like many organizations, our “remote versus in-office” plans are evolving to this day.  Consideration includes regular evaluation of process improvements and customer service while balancing our need to attract and retain a skilled workforce.    

In short, as the Fiscal Year 2021 Agency Accomplishments report summarizes, the PHA fulfilled critical Agency Goals while grappling with the pandemic.  We look forward to working with Chair Thompson and all the Commissioners in the months ahead to review the Agency Goals and our strategic course of action for the year ahead.

I appreciate the privilege and honor of leading the PHA and ensuring it remains well run.  That the PHA routinely receives independent confirmation of our high performance (HUD, Auditors, elected officials, City Departments, etc.) is rewarding.  We are a place that believes in getting the job done day in and day out.  I am heartened to attend staff meetings and hear managers quote our mission statement and my short-hand version of it (“successful tenancies”).  Our direction, priorities, roles and responsibilities are clear.  The wonderful staff of the PHA continued demonstrating calm, effective and nimble leadership in response to unforeseen events beyond the COVID-19 pandemic.  These “regular crises” include power outages, fires, property destruction, violent crime, and other disturbances.  We keep our focus on resident, participant and employee health and safety.  We are perceived as a stable and responsible public agency by many in our community.  We will continue working hard to keep our residents and remarkable employees safe while providing deeply affordable quality housing.  Not only have we remained open for business during this pandemic year, we have and are adding more deeply affordable housing resources through our HCV program.

Respectfully,

Jon Gutzmann
 

December 16, 2019

Job number one at the PHA is to provide safe, affordable, quality housing.  This is supported in many ways, including our 29-year partnership with the St. Paul Police Department (SPPD) for community policing that annually reports crime rates in PHA family housing lower than city-wide averages.  It’s also demonstrated by our 22-year, $8.3 million resolve to install fire suppression sprinklers in all 16 PHA hi-rises, buildings that 2,700 low-income households call home:

 

It’s popular in some circles to write off investments in buildings as simply “bricks and mortar.”  However that’s where people live.  Investments in buildings are essential to a safe home.  The PHA owns $700 million in residential real estate in which nearly 11,000 people live.  We take seriously our job to keep it safe, healthy and affordable.  That’s why, in addition to spending approximately $11 million per year on capital improvements, we also spend over $2.2 million per year (about 6% of our annual public housing operating budget) on the life-safety protections detailed below.  We believe a safe, affordable and well maintained home is the first thing residents expect of the PHA.  While there are many innovative programs and services at the PHA, including homeownership, partnerships with over 100 community-based service providers, student scholarships, community solar garden powered buildings and more, we can assure you the PHA’s highest priority is the safety of our residents, and keeping the buildings encompassing their homes safe, affordable and well maintained.  The following are details of our important “behind the scenes” life-safety work:  

• The PHA spends over $800,000/year for our 29 year community policing partnership with the St. Paul Police Department (SPPD), plus our 23 year Officer in Residence program where 16 SPPD officers live in 16 public housing hi-rise, in addition the PHA has limited private security guard contracts.  The Officer in Residence program provides a law enforcement presence in public housing hi-rises to help deter crime in the buildings and their immediate surrounding neighborhoods.  Officers park their police squad car on PHA property during their off-duty hours, schedule regular office hours for resident contact, attend resident meetings and provide information and assistance to staff and residents related to illegal activity in and around the building.
   
• Fire suppression sprinklers have been installed in every hallway, common area, and apartment in the PHA’s 16 hi-rises.  Approximately 6 to 8 fire sprinkler heads exist within each apartment and are located near the kitchen, living room, bedrooms and some closets.  (Normal daily activity poses no risk to unintended activation of a fire sprinkler.  To ensure the fire sprinklers function as intended, residents are advised not to hang any item from a fire sprinkler or its piping.)
   
• Fire sprinkler equipment is inspected and tested twice each year at 19 PHA buildings (16 hi-rises, two community centers and W.A. Boss Central Administrative Office - CAO) by a licensed fire sprinkler testing contractor to confirm proper operation in the event of a fire.  These inspections occur within the stairwells and mechanical room where fire pumps, pump controllers, standpipe control valves and similar control equipment exist.  Commercial kitchen range hoods with fire suppression devices are inspected twice per year.  The PHA pays $33,500/year for the fire sprinkler inspections and kitchen range hood cleaning plus the cost to make necessary repairs.
   
• Fire alarm equipment is inspected and tested twice each year at 20 PHA buildings (16 hi-rises, three community centers and the CAO) by a licensed fire alarm testing contractor to confirm proper operation in the event of a fire.  All fire alarm components including smoke/heat detectors and notification devices are tested throughout the building.  At our hi-rises, the fire alarm testing contractor enters every apartment twice each year to test the smoke detectors and nurse-call pull stations.  All nurse call equipment is tested twice each year.  The PHA pays $71,200/year for these inspections plus the cost to make necessary repairs.
   
• Fire extinguishers in the hi-rises and community centers are inspected monthly by trained PHA maintenance personnel.  Each year, PHA maintenance personnel receive training by a licensed fire extinguisher testing contractor to obtain the skills necessary to perform a monthly inspection of this equipment.  Fire extinguishers in the townhome developments are inspected annually by PHA maintenance personnel and replaced when necessary with a new fire extinguisher or one that has been certified by a licensed fire extinguisher testing contractor.  The cost of this inspection and testing work varies annually based upon the type, age and condition of the fire extinguishers in need of service or replacement.
   
• Emergency generators are inspected and tested monthly at the 16 PHA hi-rise buildings.  Each emergency generator is started and inspected to confirm its operation.  Once each year, the electrical power for each hi-rise is shutdown at the main distribution panel to witness and test the transfer of power generation to the emergency generator.  At the same time, the fire alarm, fire sprinkler and elevator equipment are tested by licensed contractors to confirm the functionality of this equipment under power provided by the emergency generator.  The PHA pays $55,700/year for these inspections plus the cost to make necessary repairs.
   
• Carbon monoxide detectors in hi-rise boiler rooms, laundry rooms and garages are inspected twice each year as part of the fire alarm inspections noted above.  Combination smoke/CO detectors are located within the Mt. Airy hi-rise apartment where gas stoves exist.  These combination smoke/CO detectors at Mt. Airy hi-rise are tested in conjunction with the fire alarm equipment.  Combination smoke/CO detectors have been installed in every PHA townhome unit and single-family home.  The combination detectors in townhomes and single-family homes are tested annually by PHA maintenance personnel and upon the completion of each repair within the dwelling unit.
   
• Our elevator service contractor provides 24/7 response to any issue with our elevators.  All elevators are tested monthly to confirm proper operation.  Our contract provides complete monthly maintenance and repairs at a cost of $20,665/month or $247,980/year.
   
• Our primary HVAC (Heating, Ventilation and Air-Conditioning) service contractor provides 24/7 monitoring of the hi-rise and community center HVAC equipment connected to the PHA’s Energy Management System.  In addition to the PHA’s own personnel, the PHA has contracted pipefitters on staff and utilizes other licensed HVAC contractors to maintain and service this equipment.  The PHA pays in excess of $1 million dollars each year to service, maintain and repair/replace HVAC equipment throughout PHA properties.
   
• Once each year the PHA hires a licensed plumbing contractor to inspect, test and repair its Reduced Pressure Zone (RPZ) Valves or back-flow preventers to confirm proper operation.  These valves are necessary to prevent stagnant water found in fire suppression systems, irrigation systems or boilers from flowing back into the drinking water supply lines.  The PHA pays $13,000/year for the inspection and repair of these valves.
   
• PHA maintenance personnel perform an annual preventative maintenance inspection of every dwelling unit (4273 units) to assess the condition of the unit and identify repair needs.  During this inspection maintenance staff inspect and test smoke detectors or combination smoke/CO detectors annually.  Faulty detectors are replaced.  In addition, PHA on-site management staff conduct 4,273 annual housekeeping inspections.  During such inspections, staff address housekeeping standards and resident compliance.  In addition to monitoring the cleanliness of a unit, staff assess if there are other critical issues such as pest control, work orders, city code violations and fire hazards.  PHA personnel are trained on health and safety measures that include checking smoke and carbon monoxide detectors, furnace filter quality, fire suppression systems, improper storage of items that may pose a fire hazard, dryer venting, and abating moisture issues.  Our annual inspections are not only completed for lease compliance purposes, but have become a teaching tool for residents on safety measures.  The goal is to decrease the risk for potential hazards that could negatively impact not only the occupant of that unit, but also residents in neighboring apartments.
   
• In addition to the PHA staff inspections and contractor testing noted above, maintenance personnel confirm the operation of dwelling unit smoke detectors upon the completion of every routine repair within a PHA dwelling unit.  The PHA completes an average of 30,000 work orders for routine repairs each year.

Thank you for your attention to this summary.  While challenges and unforeseen circumstances are also part of our daily life, we wanted to take a moment to offer detailed assurances that our mission of providing safe, affordable, quality housing is job number one for the 235 dedicated and hardworking employees of the PHA. 

Sincerely,

Jon Gutzmann 
..........................................................................................................................................................................................................................................................................................................................................

Jon Gutzmann (2019)

The St. Paul PHA is a 28 consecutive year HUD designated high performing large PHA that owns and manages a $688 million physical plant, 4,273 housing units providing safe, affordable, quality housing to about 10,000 low income residents.  We achieve high marks in all operational indicators such as:

• 20 consecutive years of 99% occupancy,
• Collecting 99% of all rents,
• Completing approximately 30,000 [emergency 6602 + non-emergency 22,715 = 29,300 in FY 2018] maintenance work orders/year; emergencies in less than 24 hours; non-emergencies in average 5 days,
• In addition, we have a 28 year innovative community policing program, a prime reason why major crime rates in public housing developments are lower than citywide averages.
• Completed a 25 year homeownership program in 2014 that helped 300+ low-income families move from subsidized rental to homeownership, and
• Executed a community solar agreement in 2018 that provides 10 of our hi-rises 100% solar power for electricity while saving $120,000 per year for 25 years.
• See general fact sheet for more highlights.

We are about to complete a RAD PBRA debt-free conversion.  We are switching nearly our entire portfolio (3855/4273 units) to RAD PBRA.  Why RAD PBRA?  Because the St. Paul PHA will never privatize public housing.  (See RAD fact sheet.)  Under RAD PBRA, the PHA retains full ownership of this deeply affordable precious asset.  And because we are a debt free conversion, we have no need to access LIHTC funds or other forms of financing that require the creation of a non-profit affiliate to hold the asset.  RAD also offers the following advantages over traditional public housing funding:

• Through RAD, we are locking in for 20 years the better 2018 capital and operating funding Congress recently appropriated;
• We will receive annual inflation adjustments of 2% to 3% on that better money over the next 20 years;
• We will meet all projected capital needs for the next 20 years without the need for any debt financing.  And we think the HUD multi-family regulatory framework has advantages over the HUD PIH regulatory environment for the converted properties.

Click here to view RAD Statement.