Nokomis Day declared, HRA tax status clarified




 

 

The Pipestone Housing and Redevelopment Authority (HRA) was in the spotlight a couple of times during the Pipestone City Council’s July 5 meeting, receiving both recognition and criticism all in one night.
The recognition came in the form of a proclamation from the city declaring Aug. 15, 2016, Nokomis Day,’ in honor of the agency’s 45th anniversary. To mark the event, there will be an Open House on the grounds of the 82-apartment highrise from 4 – 8 p.m.
In proclaiming the day, Mayor Laurie Ness extended “congratulations and appreciation to all the staff and volunteers at the Pipestone HRA for 45 successful years of providing clean, safe and affordable housing to Pipestone and surrounding communities.”
Though its Nokomis property began housing tenants in 1971, the Pipestone HRA was established in 1966. In addition to the highrise, the agency owns 20 scattered single-family housing units around the city, overseeing 53 Section 8 vouchers for Pipestone County.
It was the scattered sites that drew criticism during the Community Concerns portion of the council meeting.
Susan Wienands, a Pipestone resident who will be on the ballot in November as a candidate for one of the open city council seats, proposed that the HRA homes be put on the market for sale when they become vacant so they provide additional tax revenue for a city in need of infrastructure projects.
“I really think the properties need to go on the tax rolls, because right now, they are not paying taxes,” Wienands said. “And the payment in lieu of taxes is extremely low; the dollar amount is low.”
Tammy Manderscheid, HRA director, was in the audience to accept the proclamation and heard Wienand’s comments. The next day, a tenant who had watched the council meeting live on local Channel 3 asked Mandersheid about the taxes. Manderscheid decided her board may receive questions within the community and added the topic to her monthly meeting agenda for Wednesday, July 13, the day this issue of the paper is published.
Manderscheid pointed out that the Pipestone HRA is a federal agency outside the city’s jurisdiction.
“If the question was going to be asked (about selling HRA properties), that would be brought to my board,” Manderscheid said. “The city council has nothing to do with us.”
The HRA pays a “service charge,” also known as a payment in lieu of taxes, on its properties, as required by Minnesota statutes. Though Minn. Statute 469.040 requires the payment be 5 percent of the revenue from the rent collection of a public housing authority total rental revenue minus utilities and bad tenant debt, for example the HRA pays 10 percent, and has since its inception back in 1966.
The HRA paid $16,275 in 2015 in total as a payment in lieu of taxes on its 20 sites, according to its official computation document.
The amount has increased every year for the past nine years, with the exception of 2012 when it dropped from $12,949 to $12,808. A Pipestone summary report prepared by the HRA shows the agency has paid an average $16,515.22 annually for the past nine years, or $825.76 per property.
According to the Minnesota Department of Revenue, the median property tax (half are higher, half are lower) in Pipestone County is $761.
“I just want the community to understand we do pay taxes just like everyone else and the people in those homes are working people who are also paying taxes,” Manderscheid said.
The Pipestone HRA board meets every second Wednesday on the 12th floor of Nokomis Apartments at 1 p.m. The meetings are open and the public welcome to attend.

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