C. Metropolitan Council Livable Communities Act9
CITY OF
CAANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227,1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227,1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Kate Aanenson, Community Development Director
DATE: August 9, 2010 0�
SUBJ: Metropolitan Council Livable Communities Act
e
PROPOSED MOTION:
"Staff recommends that City Council adopt the attached resolution electing to
continue participating in the Livable Communities Act."
Approval requires a simple majority vote of the City Council.
BACKGROUND
On November 13, 1995, the Chanhassen City Council passed Resolution 1995-
122 electing to participate in the local housing incentives account program under
the Metropolitan Livable Communities Act.
In 1996, the City received a $500,500 Livable Communities Demonstration
Account (LCDA) grant to assist with the development of the Villages on the
Ponds.
In 1999, $200,000 was awarded for Chanhassen Family Housing in conjunction
with 34 townhouse units within the Arboretum Village. However, the award
was declined by the City.
On November 13, 2000, the Chanhassen City Council passed Resolution 2000-
84 electing to participate in the local housing incentives account program under
the Metropolitan Livable Communities Act.
In 2005, $300,000 was provided for the Gateway Place Development.
In 2006, the City applied for $200,000 for clean -up of the Moon Valley rifle pit
through the polluted sites cleanup fund. However, no funding was awarded.
In 2009, the City applied for an LCDA grant for the Chanhassen downtown
parking ramp project. No funding was awarded because housing was not a
component of the project.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Todd Gerhardt
Metropolitan Council Livable Communities Act
August 9, 2010
Page 2 of 5
DISCUSSION
Participation in the Metropolitan Livable Communities Act Local Housing Incentives Account
(LCA LHIA) is voluntary. However, participation in the program provides the City with the
opportunity to compete for grants and loans to support projects that meet the City's housing
goals, clean up polluted sites and support projects linking jobs, housing and transit.
As part of the City's 2030 Comprehensive Plan, which was approved in December 2008, the
City reiterated its Livable Community Act goals, which were originally approved in 1995:
Figure 4.1 Livable Communities Act
We also acknowledged in the plan that the Metropolitan Council had calculated the City's share
of affordable housing at 1,166 units.
1996 — 2010 Livable Communities Act Goals
In calculating the goals, the Metropolitan Council extrapolated the unit numbers for affordable
and rental housing based on the percentage of these types established with the City's LCA goals.
City Index
In 1995
Metro Area
Benchmark
City of
Chanhassen
G oal (1995/2000)
Affordability
Units
Units
%
Ownership
37%
60-69%
30%
Rental
44%
35-37%
35%
Life -cycle
463
414
1 89
Type (Townhouse and Multi-
Family)
19%
35-37%
34% 1991 Comp
Plan
Owner/Renter Mix
85/15%
67- 75 %/25 -33%
80- 90 %/20 -10%
Density
Single - family detached
1.5 units /acre
1.8 - 1.9 units /acre
1.8 units /acre
Multi- family
11 units /acre
10 - 14 units /acre
9 - 10 units /acre
Overall Average Density
3.3 units /acre
We also acknowledged in the plan that the Metropolitan Council had calculated the City's share
of affordable housing at 1,166 units.
1996 — 2010 Livable Communities Act Goals
In calculating the goals, the Metropolitan Council extrapolated the unit numbers for affordable
and rental housing based on the percentage of these types established with the City's LCA goals.
@Taken from Enclosure A of the Metropolitan Council letter to the City
Metropolitan Council@
Constructed
Percent of Goal
Units
Units
%
Affordable Owner
1,251
384
31
Affordable Rental
162
123
76
New Rental
463
414
1 89
Life -Cycle Housing
1,084*
1,609
148
@Taken from Enclosure A of the Metropolitan Council letter to the City
Todd Gerhardt
Metropolitan Council Livable Communities Act
August 9, 2010
Page 3 of 5
2011— 2020 Affordable and Life -Cycle Housing Goals
The Metropolitan Council has calculated the City of Chanhassen's share of affordable housing
for the period from 2011 to 2020 as 1,166 units. The City projects that during this time period
1,929 units will be constructed. The lower range goal of 758 units represents 40 percent of the
housing units projected for the time period, and the 1,166 units represent 60 percent of the
projected housing units for this time period. Below are the ranges for affordable and life -cycle
housing which the Metropolitan Council is requesting that the City establish as our goals for the
2011 — 2020 time frame.
New Affordable Units
758-1,166
New Life -Cycle Units — + - 1,
– 2,600
These numbers were determined for each city through the following steps:
Determine the need for affordable housing throughout the metropolitan area.
a. Determine housing growth.
b. Determine proportion of growth mode up of low - income housing.
c. Estimate the number of new affordable units the private market will create.
d. Calculate the need for new affordable units.
2. Allocate the net number for new affordable units to each community using the following
criteria:
a. Household growth potential (land available for development/redevelopment).
b. Ratio of low -wage jobs to low -wage workers.
c. Current provision of affordable housing.
d. Transit service.
Regarding the City's life -cycle housing goal, the low end of the Metropolitan Council's range
represents the City's total share of the region's affordable housing need and the high end
represents the potential number of units permitted by the land use guiding in the City's 2030
Comprehensive Plan (i.e., the Regional Framework housing growth projection) for the 2011 —
2020 time frame.
In April 2009, the City re- evaluated its growth projections due to the changed economic
conditions. Based on this examination, we have lowered our housing growth projections to
1,929 units during the 2011 — 2020. Based on this growth and the continuation of the LCA goals
the City has already adopted, it would lead to an affordable housing goal of 598 units (30% of
80% of housing units (owner) and 35% of 20% of the housing units (rental)) and a life -cycle
housing goal of 656 units (34% of total housing units). Staff is recommending that this numbers
be incorporated as the lower limits of the LCA housing goals.
The City will need to submit by December 1, 2010 a housing action plan outlining the steps the
City will take to help met its LCA goals.
Todd Gerhardt
Metropolitan Council Livable Communities Act
August 9, 2010
Page 3 of 5
2011— 2020 Affordable and Life -Cycle Housing Goals
The Metropolitan Council has calculated the City of Chanhassen's share of affordable housing
for the period from 2011 to 2020 as 1,166 units. The City projects that during this time period
1,929 units will be constructed. The lower range goal of 758 units represents 40 percent of the
housing units projected for the time period, and the 1,166 units represent 60 percent of the
projected housing units for this time period. Below are the ranges for affordable and life -cycle
housing which the Metropolitan Council is requesting that the City establish as our goals for the
2011 — 2020 time frame.
New Affordable Units
758-1,166
New Life -Cycle Units
1,165
— 2,600
These numbers were determined for each city through the following steps:
1. Determine the need for affordable housing throughout the metropolitan area.
a. Determine housing growth.
b. Determine proportion of growth mode up of low- income housing.
c. Estimate the number of new affordable units the private market will create.
d. Calculate the need for new affordable units.
2. Allocate the net number for new affordable units to each community using the following
criteria:
a. Household growth potential (land available for development/redevelopment).
b. Ratio of low -wage jobs to low -wage workers.
c. Current provision of affordable housing.
d. Transit service.
Regarding the City's life -cycle housing goal, the low end of the Metropolitan Council's range
represents the City's total share of the region's affordable housing need and the high end
represents the potential number of units permitted by the land use guiding in the City's 2030
Comprehensive Plan (i.e., the Regional Framework housing growth projection) for the 2011 —
2020 time frame.
In April 2009, the City re- evaluated its growth projections due to the changed economic
conditions. Based on this examination, we have lowered our housing growth projections to
1,929 units during the 2011 — 2020. Based on this growth and the continuation of the LCA goals
the City has already adopted, it would lead to an affordable housing goal of 598 units and a life -
cycle housing goal of 656 units. Staff is recommending that this numbers be incorporated as the
lower limits of the LCA housing goals.
The City will need to submit by December 1, 2010 a housing action plan outlining the steps the
City will take to help met its LCA goals.
Todd Gerhardt
Metropolitan Council Livable Communities Act
August 9, 2010
Page 4 of 5
Affordable and Life -Cycle Housing Opportunities Amount ( ALHOA)
The City is currently and will continue to meet its ALHOA goals. We currently have three tax
increment financing districts which provide assistance for affordable housing projects: North
Bay (TIF #5), Villages on the Ponds - Presbyterian Home (TIF #8) and Gateway West (TIF #9).
Additionally, the funding that the Carver County Community Development Agency (CDA)
receives through taxes on Chanhassen properties is included in meeting our funding
requirements.
There is no penalty to the City if it is working toward it's affordable and life -cycle housing goals,
but cannot achieve them. As long as the City is working toward meetings its goals, the City is
eligible for funding to assist in development.
Attachments Description
1. Resolution. The City must provide a resolution to the Metropolitan Council by September 1,
2010.
2. City of Chanhassen Goals Status. The top table shows the City's current goals for affordable
housing, lifecycle housing and development density. The middle table shows the
developments approved during the period from 1996 -2010 and the percent and number in
each goal that were approved as well as the percent and number that would have been done
based on the goal. The bottom table shows units actually constructed during the period from
1996 -2010 and the percent and number in each goal that were constructed as well as the
percent and number that would have to have been constructed based on the goal.
3. Approved Developments. Provides a list of the approved residential subdivisions for the
period from 1996 -2010. This information is provided to the Metropolitan Council annually
as part of the plat monitoring program. This data is used to determine compliance with
density goals. During this period, the City's overall net density was 4.55 units per acre
which exceeded the adopted goal. We have color coded the information to show affordable,
rental and affordable rental projects. (Staff will create a map showing the location of multi-
family projects as part of the presentation.)
4. Housing Type. This table shows building permit activity by housing type from 1996 through
2010.
5. Metropolitan Council Letter. Provides the Metropolitan Council's estimates of the City's
housing goals.
Enclosure A. Provides the Metropolitan Council's estimate of the housing provided from
1996 -2010.
Enclosure B. LCA funded and unfunded projects for the City of Chanhassen.
Enclosure C. Sample Resolution
Enclosure D. Metropolitan Livable Communities Act Housing Action Plan. Provides
information and resources for development of housing action plans.
Todd Gerhardt
Metropolitan Council Livable Communities Act
August 9, 2010
Page 5 of 5
RECOMMENDATION
Staff recommends that City Council adopt the attached resolution electing to continue to
participate in the Livable Communities Act. (This item is on your regular agenda for approval.)
ATTACHMENTS
1. Resolution.
2. City of Chanhassen Goals Status .
3. City of Chanhassen Approved Residential Projects 1996 — 2010.
4. City of Chanhassen Housing Types 1996 — 2010.
5. Letter from Guy Peterson to Todd Gerhardt dated June 25, 2010.
g: \plan\met council \lca 2011- 2020\1ca participation memo 2010.doc
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: August 9, 2010 RESOLUTION NO: 2010-
MOTION BY: SECONDED BY:
RESOLUTION
ELECTING TO CONTINUE PARTICIPATING IN
THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM
UNDER THE METROPOLITAN LIVABLE COMMUNITES ACT
CALENDAR YEARS 2011— 2020
WHEREAS, the Metropolitan Livable Communities Act (Minnesota Statues Section
473.25 to 473.255) establishes a Metropolitan Livable Communities Fund which is intended to
address housing and other development issues facing the metropolitan area defined by Minnesota
Statutes section 473.121; and
WHEREAS, the Metropolitan Livable Communities Fund, comprising the Tax Base
Revitalization Account, the Livable Communities Demonstration Account, the Local Housing
Incentive Account, and the Inclusionary Housing Account, is intended to provide certain funding
and other assistance to metropolitan area municipalities; and
WHEREAS, a metropolitan area municipality is not eligible to receive grants or loans
under the Metropolitan Livable Communities Fund or eligible to receive certain polluted sites
cleanup funding from the Minnesota Department of Trade and Economic Development unless
the municipality is participating in the Local Housing Incentives Account Program under the
Minnesota Statues section 473.254; and
WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan
Council to negotiate with each municipality to establish affordable and life - cycling housing goals
for that municipality that are consistent with and promote the policies of the Metropolitan
Council as provided in the adopted Metropolitan Development Guide; and
WHEREAS, previously negotiated affordable and life -cycle housing goals for
municipalities participating in the Local Housing Incentives Account Program expire in 2010;
and
WHEREAS, a metropolitan -area municipality can participate in the Local Housing
Incentives Account Program under Minnesota Statutes section 473.254 if: (a) the municipality
elects to participate in the Local Housing Incentive Program; (b) the Metropolitan Council and the
municipality successfully negotiate new affordable and life -cycle housing goals for the
municipality; (c) the Metropolitan Council adopts by resolution the new negotiated affordable and
life -cycle housing goals for the municipality; and (d) the municipality establishes it has spent or will
spend or distribute to the Local Housing Incentives Account the required Affordable and Life -Cycle
Housing Opportunities Amount (ALHOA) for each year the municipality participates in the Local
Housing Incentives Account Program.
NOW, THEREFORE, BE IT RESOLVED that the City of Chanhassen hereby
1. Elects to participate in the Local Housing Incentives Program under the Metropolitan
Livable Communities Act during the calendar years 2011 through 2020.
2. Agrees to the following affordable and life -cycle housing goals for calendar years 2011 —
2020:
Affordable Housing
Goals Range
Life-Cycle Housing Goals Range
598-1,166
656-2,600
3. Will prepare and submit to the Metropolitan Council a plan identifying the actions it plans
to take to meet its established housing goals.
Passed and adopted by the Chanhassen City Council this 9th day of August, 2010.
ATTEST:
Todd Gerhardt, City Manager Thomas A. Furlong, Mayor
YES NO ABSENT
gAplan\ net coundhIca 2011- 2020Uesolution.doc
CITY OF CHANHASSEN GOAL STATUS
Figure 4.1 of the 2030 Comprensive Plan - Livable Communites Act
1996 - 2010 Approved Development
City Index
Metro Area
City of Chanhassen
Affordability
In 1995
Benchmark
Goal (1995 /2000)
Ownership
37%
60-69%
30%
Rental
44%
35-37%
35%
Life -cycle
123
35%
210
Type (townhouse /multi - family)
19%
35-37%
34% 1991 Comp
Plan
Owner/Renter Mix
85 %/15%
67- 75%/25 -33%
80- 90%/20 -10%
Density
1,022
Owner/Renter Mix
75%/25%
Single - family detached
1.5 units /acre
1.8 - 1.9 units /acre
1.8 units /acre
Multi- family
11 units /acre
10 - 14 units /acre
9 - 10 units /acre
Overall Density
1
1
3.3 units /acre
1996 - 2010 Approved Development
1996 - 2010 Constructed Units
Percent
Number
Goal
Number
Affordability
As Approved
As Approved
Based on Goal
Ownership
13%
284
30%
721
Rental
16%
123
35%
210
Life -cycle
Type (townhouse /multi - family)
74%
2,218
34% 1991 Comp
Plan
1,022
Owner/Renter Mix
75%/25%
2,245/760
80- 90 %/20 -10%
2,404/601
Density
Range
Number
Single - family detached
1.89 units /acre
0.15 - 3.71 units /acre
1.8 units /acre
Multi- family
9.27 units /acre
4.15 - 33.47 units /acre
9 - 10 units /acre
Overall Density
4.55 units /acre
3.3 units /acre
3,005
1996 - 2010 Constructed Units
* 100 units converted from rental to ownership
# In 2006, the City lost 170 affordable rental units with the demolition of Lakeview Hills Apartments
Single - family and duplex (1996 - 201 1,579
Townhouses (1996 - 2010) 974
Multi - family (1996 - 2010) 635
3,188
G: \PLAN \Met Council \LCA 2011 - 2020 \2010 LCA goals status.xlsx
Percent
Number
Goal
Number
Affordability
Actual
Actual
Based on goal
Ownership
14%
384*
30%
765
Rental
30%
123 #
35%
223
Life -cycle
Type (townhouse /multi - family)
50%
1,609
34% 1991 Comp
Plan
1,084
Owner/Renter Mix
87 %/13%
2,774/414*
80- 90%/20 -10%
2,550/638
Density
Range
Number
Single - family detached
1.89 units /acre
0.15 - 3.71 units /acre
1.8 units /acre
Multi- family
9.10 units /acre
4.15 - 33.47 units /acre
9 - 10 units /acre
Overall Density
4.55 units /acre
3.3 units /acre
3,188
* 100 units converted from rental to ownership
# In 2006, the City lost 170 affordable rental units with the demolition of Lakeview Hills Apartments
Single - family and duplex (1996 - 201 1,579
Townhouses (1996 - 2010) 974
Multi - family (1996 - 2010) 635
3,188
G: \PLAN \Met Council \LCA 2011 - 2020 \2010 LCA goals status.xlsx
City of Chanhassen Livable Communities Act 1AVulo
Townhouse; at Creekside
Walnut Grow (sf, sm la + tvsnhs
Lake Susan Apartment Homes
Powers Ridge Apartments
Arboretum Village
Presbyterian Homes
Building C Villages on the Ponds
Highlands on Bluff Creek
Liberty on Buff Creek
The Preserve
Gateway Place
Lakeside
TOTALS
'ERCENT
Final Mat GROSS ROW WETLAND/ MISC. PARK NET TOTAL GROSS NET Land Use NOTES
Approved ACRES ACRES PRIMARY ACRES LAND ACRES UNITS DENSITY DENSITY Density
POND ACRES
r 1.221 01 01 1 01 1121 21 1.641 1.64110. linfllde,
8272001
CASE
PROJECT NAME
0.38
SINGLE-FAMILY
96.3 SUB
Slather Addition
964St10
Melwly Hill
96-7 SUB
Arundel
96-8 SUB Rice Lake Manor Estates
96-9 SUB
Rook Place
96-15 SUB
Black Walnut Acres
96.18 SI16
Song Addition
97.1 SUB
Highoycr Addition
97 -11 SUB
Munson, Suaridge Addition
98 -1 PUD
Lynmore Addition
98-10 SUB
Eric Peterson
99 -3 SUB
Nickulay
99+4 SUB
Brmoriek
99-5 SUB
Smith Hill Addition
99 -10 SUB
Arrowhead Development
99 -11 SUB
Sandy Point
00-1 SUB
Marsh Glen
00-2 SUB
Lucas Igel Addition
00-3 PUD
Summer0eld 2nd Addition
00.8 SUB
Anidson•s Addition
00-9 SUB
White Oak Addition
2000 -15
Ashling Meadows
2001 -3
Big Woods
2001-6
Tristan Heights
2001 -10
Lake Lucy Ridge
2002.2
Knob Hill 2nd
20024
Hidden Creek Estates
2002 -2 PUD Vatserman Ridge
2002-6
Boyer Lake Minnewashta Add.
2002 -7
Willow Ridge 3rd Addition
2003 -7
Coutryside
2003 -12
Buriewood
04-10
Walnut Grmc 2nd
04-05
Settlers West
04-03
Kenyon Bluff
04.23
Lotus View Addition
04-26
Frontier 2nd Addition
04-31
Hidden Creek Meadows
04-36
Mnehurst
04.43
Yoberry Farm (Highcrest)
05 -02
Crestview
03 -05
John Henry
05 -08
Fox Den
0544
Lake Harrison
05 -21
Frontier 3rd Addition
05 -25
Minnewabsta Creak Hills
05 -26
Hanicux Addition
05 -37
Stmmfield
0544
Christianson Sub #05-44
06-02
Eidness Metes & Bounds
06-09
Peterson Property (Pioneer Pass)
D6-10
Boulder Cove
D7 -02
The Arbors
D7 -07
Gauer
D9 -01
Apple Tree Estates
09-02
Seoul Map & Bounds
Townhouse; at Creekside
Walnut Grow (sf, sm la + tvsnhs
Lake Susan Apartment Homes
Powers Ridge Apartments
Arboretum Village
Presbyterian Homes
Building C Villages on the Ponds
Highlands on Bluff Creek
Liberty on Buff Creek
The Preserve
Gateway Place
Lakeside
TOTALS
'ERCENT
Final Mat GROSS ROW WETLAND/ MISC. PARK NET TOTAL GROSS NET Land Use NOTES
Approved ACRES ACRES PRIMARY ACRES LAND ACRES UNITS DENSITY DENSITY Density
POND ACRES
r 1.221 01 01 1 01 1121 21 1.641 1.64110. linfllde,
8272001
6.3
1.11
0.38
0
01
01
5.2
7.74
91
1.43
1.73
low
stivis slo lake shor stream
0.95
23.6
6/112001
1.15
0
hi lakuhorc
0
0
0
1.15
I
4.3
2
1.74
1.74
low
bluffon one lot
Affordable Rental
13%
25%
5/28/2002
18.57
2.4
7.16
Affordable Owner
1,145.1
9.01
229.0
17
0.92
1.89
low
well=&- bluff
Rrntal
4.55
17%
20%
72712002
7.59
1.22
0.57
0
0
5.8
9
1.19
1.55
low
Lakelucysuetp slo
7222002
22.28
3
8.5
0
0
10.78
20
0.90
1.86
low
wetlamis limited upload
722/1002
68.76
8.69
27.92
1.94
0
30.21
94
1.22
2.78
low
Bluff Credo O-lay 1.94 -commercial
8262002
13.59
1.26
2.34
3.25
6.74
to
0.74
1.48
low
wetlan fake Min beachlot of3.25atras
528/2002
2.09
0
0
0
0
2.09
2
0.%
0.%
low
In611 simp slo
6/142004
5.93
1.02
0.58
4.33
10
1.69
2.31
low
wetlands Lake St. Joe
12/82003
5.17
1.75
3.42
9
1.74
2.63
low
6/142004
3.09
0.5
1.1
1.49
4
129
2.68
low
Bluff Creek wedand
QL5U0D5
2.771
0.641
0.38
1
1
5.57
1 2.131
7.74
61
2.17 1
2.82
low
Hwy 101
0.95
23.6
7/122005
62
6.17
hi lakuhorc
20.9
1.53
4.42
28.98
I
4.3
38
0.61
1.31
low
overlords 1,14 existing homse, water treatment plant site
Affordable Rental
13%
25%
7252005
0.77
57%
Affordable Owner
1,145.1
0.77
229.0
2
2.60
2.60
low
bluff
Rrntal
4.55
17%
20%
8222005
1.4
58%
1.4
3
2.14
2.14
low
private street
9292005
1.99
0
0
0
0
1.99
3
1.51
1.51
law
lake shore
4/10/2006
17.63
2.23
I5.4
30
1.70
1.95
low
st slo wetland fin a
4/102006
1.05
1.051
2
1.90
1.90
low
inb8
. SUBTOTAL 717.89 134.86 122.71 16.69 26.3 417.33 787 1.10 1.89
PERCENT 19% 17% 2% 4% 58%
I I I I I I I
7.03 2.18 I l 1 1 0.211 3.641 25 I 3.56 6.97 mods - .
l j,
;III
128 affordable ,
D affordable. Villa.. on the Ponds
it'll labl'
136 affordable ownership, 2.9 acres,
Villages ma the Ponds, 35 affordable
6.2
0.25
0.38
0
5.57
7.74
8.62
mined 48 affordable wits
26.29
1.74
0.95
23.6
231
8.79
9.79
hi lakuhorc
I I
4272
I
55.7
I
106.3
I
4.3
17.1
243.8
2,218
5.19
9.10
Affordable Rental
13%
25%
1%
4%
57%
Affordable Owner
1,145.1
190.6
229.0
20.9
43.4
661.1
3,005.0
2.62
Rrntal
4.55
17%
20%
2%
4%
58%
City of Chanhassen
Livable Communities Act
Housing Type
YEAR
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
TOTAL
PERCENT
SINGLE- FAMILY
177
260
187
124
85
54
59
76
60
89
65
28
71
70
1,575
49%
DUPLEX
737
4
4
0%
TOWNHOUSE
97
162
88
34
44
246
30
16
24
42
86
38
14
16
974
31%
MULTI - FAMILY
I
I
I
1
1 162
100
3071
1
1 481
181
1
1
1 635
1 20
TOTAL
1 2071
2741
4221
2751
3201
2291
3001
3961
921
841
1791
1691
661
851
901
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G: \PLAN \BG \Met Council \housing by type 1996 - 2010.xls
t Metropolitan Council
June 25, 2010
Mr. Todd Gerhardt
City Manager
City of Chanhassen
PO Box 147
Chanhassen MN 55317
RECEIVED
JUN 2 8 2010
CITY QE CHANHASSEN
Dear Mr. Gerhardt:
The City of Chanhassen previously elected to be a participant in the Metropolitan Livable
Communities Act Local Housing Incentives Account (LCA LHIA. Participation in the
voluntary LCA LHIA provides the City with the opportunity to compete for grants and
loans to support activities that help the City meet its affordable and life cycle housing
goals, clean up polluted sites, and support demonstration projects linking jobs, housing
and transit.
The City's previously adopted LCA LHIA affordable and life cycle housing goals were
negotiated with the Metropolitan Council for the period 1996 — 2010. Those goals are
indicated in Enclosure A.
If the City elects to continue its participation in the LCA, it must establish new
affordable and life -cycle housing goals for the next decade (2011 through 2020).
As part of the City's recently submitted 2030 Comprehensive Plan Update, it
acknowledged its fair share of the region's affordable housing need. For the City of
Chanhassen the fair share number is 1,166 units over the next 10 years.
Although the Council fully supports the need for this total number of new affordable units
over the next decade, it also acknowledges the reality of limited funding available to create
new affordable housing opportunities. For this reason, the Council asks the City establish
its LCA affordable housing goal as a range of 758 to 1,166 units for the period 2011 to
2020 with the low end of the range representing the number of units that can be
accomplished at currently available funding levels region -wide.
Regarding the City's life -cycle housing goal to diversify the type and density of housing to
meet residents' changing housing needs and preferences, the Council asks the City
establish a goal range of 1,165 to 2,600 units over the next decade. The low end of the
range represents the community's total share of the region's affordable housing need and
the high end is the potential number of units permitted by the land use guiding in the City's
2030 Plan Update for medium, high, mixed use, redevelopment, TOD or similarly named
residential development, or the total forecasted household growth for the community to
2020, whichever number is less.
www.metrocouncil.org
390 Robert Street North • St. Paul, MN 55 10 1 -1805 • (651) 602 -1000 • Fax (651) 602 -1550 •TTY (651) 291 -0904
An Equal Opportunity Employer
City of Chanhassen, Cont.
Enclosed with this letter is a listing of the grants awarded to the City of Chanhassen through the
LCA and a list of projects the City applied for, but where funding was not awarded. See
Enclosure B.
To make official the City's decision to continue participation in the LCA, the Metropolitan Council
is asking the City to adopt these new affordable and life -cycle housing goal ranges, by passing a
resolution that incorporates the numbers described above. A sample resolution is enclosed;
however, the City may craft the resolution in the manner that best meets its needs as long as the
affordable and life -cycle goals are part of the resolution. The Council asks that the City pass a
resolution and provide a copy to the Council no later than September 1, 2010. See Enclosure C.
Additionally, before December 1, 2010 the City must develop a Housing Action Plan outlining the
steps the City will take to help meet its LCA goals. Much, if not all of this Action Plan can be taken
from the housing implementation section of the City's Comprehensive Plan Update. A checklist to
assist in the development of the Housing Action Plan is attached as Enclosure D.
We have also attached an information item about the LCA, (Enclosure E), and additional
information is available on the Council's website at
http: / /www.metrocouncil .org/planning/index.htm
The LCA emphasizes cooperation and incentives to achieve goals. The Metropolitan Council looks
forward to continuing to work with the City through its continued voluntary participation in the
LCA to continue to meet the affordable and life -cycle housing needs of the City and the region.
If you have any questions or need additional information please feel free to contact your Council
staff Sector Representative, Jim Uttley, at (651) 602 -1361 or jim.uttley@metc.state.mn.us.
Sincerely,
Guy Peterson,
Director, Community Development Division
Metropolitan Council
Enclosures for the City of Chanhassen:
A:
1996 to 2010 LCA Goals
B:
Funded and unfunded LCA projects /grants
C:
Sample city resolution
D:
Housing Action Plan checklist
E:
Information on the LCA
cc: Jim Uttley, Sector Representative
Enclosure A
City of Chanhassen
Livable Communities Act (LCA) Goals* 1996 -2010
New Affordable Ownership Units: 1,251
New Affordable Rental Units: 162
New Rental Units - All. 463
* When communities established LCA goals in 1995, the goals were expressed as percentages
of the communities' housing stock (ownership and rental). The numbers above represent the
unit numbers extrapolated from the percentages.
Enclosure B
Funded and Unfunded Projects /Grants
Funded LCA Grants 1996 - 2009 for the City of Chanhassen
1999 $200,000 Chanhassen Family Housing
2005 $300,000 Gateway Place
1996 $500,500 Villages on the Ponds
Unfunded LCA Grants 1996 - 2009 for the City of Chanhassen
2006 $6,000 Moon Valley Gun Range
Enclosure C
Sample Resolution
RESOLUTION NO.
RESOLUTION ELECTING TO CONTINUE PARTICIPATING IN
THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM
UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT
CALENDAR YEARS 2011 THROUGH 2020
WHEREAS, the Metropolitan Livable Communities Act (Minnesota Statutes sections 473.25 to
473.255) establishes a Metropolitan Livable Communities Fund which is intended to address
housing and other development issues facing the metropolitan area defined by Minnesota Statutes
section 473.121; and
WHEREAS, the Metropolitan Livable Communities Fund, comprising the Tax Base Revitalization
Account, the Livable Communities Demonstration Account, the Local Housing Incentive Account
and the Inclusionary Housing Account, is intended to provide certain funding and other assistance to
metropolitan-area municipalities; and
WHEREAS, a metropolitan-area municipality is not eligible to receive grants or loans under the
Metropolitan Livable Communities Fund or eligible to receive certain polluted sites cleanup funding
from the Minnesota Department of Employment and Economic Development unless the
municipality is participating in the Local Housing Incentives Account Program under Minnesota
Statutes section 473.254; and
WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan Council to
negotiate with each municipality to establish affordable and life -cycle housing goals for that
municipality that are consistent with and promote the policies of the Metropolitan Council as
provided in the adopted Metropolitan Development Guide; and
WHEREAS, previously negotiated affordable and life -cycle housing goals for municipalities
participating in the Local Housing Incentives Account Program expire in 2010; and
WHEREAS, a metropolitan-area municipality can participate in the Local Housing Incentives
Account Program under Minnesota Statutes section 473.254 if. (a) the municipality elects to
participate in the Local Housing Incentives Program; (b) the Metropolitan Council and the
municipality successfully negotiate new affordable and life -cycle housing goals for the municipality;
(c) the Metropolitan Council adopts by resolution the new negotiated affordable and life -cycle
housing goals for the municipality; and (d) the municipality establishes it has spent or will spend or
distribute to the Local Housing Incentives Account the required Affordable and Life -Cycle Housing
Opportunities Amount (ALHOA) for each year the municipality participates in the Local Housing
Incentives Account Program.
NOW, THEREFORE, BE IT RESOLVED THAT the {specific municipality):
1. Elects to participate in the Local Housing Incentives Program under the Metropolitan
Livable Communities Act for calendar years 2011 through 2020.
2. Agrees to the following affordable and life -cycle housing goals for calendar years 2011
through 2020:
Affordable Housing Goals Range
Life -Cycle Housing Goals Range
{insert goal ranges for the specific
municipality)
{insert goal ranges for the specific
municipali
3. Will prepare and submit to the Metropolitan Council a plan identifying the actions it plans to
take to meet its established housing goals.
Approved: _, 2010.
By: By:
Mayor
Clerk
Enclosure D
Metropolitan Livable Communities Act
Housing Action Plan Checklist
In preparing a Livable Communities Act (LCA) Action Plan, a community should consider a
number of factors before deciding which implementation efforts it will identify and undertake to
expand affordable and life -cycle housing opportunities. A community should consider its
housing situation, land availability, forecasted household and employment changes and any
number of applicable demographic characteristics and trends that should influence its housing
implementation efforts.
The Action Plan should not only address the kinds of implementation efforts to be employed,
but, where possible, the general timeframe in which they will be undertaken. The Plan should
identify, as best as possible, the number of households to be assisted, or housing units to be
produced or rehabilitated through the various programs and activities that will be pursued. Also,
to the degree possible, the plan should identify the income levels of the households to be
assisted, e.g. the number or percent with very low, low and moderate incomes. Finally, where
possible, it should identify the efforts that will be targeted specifically to the elderly, large
families, homeowners and renters.
The degree to which the Plan specifically identifies local needs and the intended beneficiaries of
local actions is ultimately the community's decision. There is no single "correct" format or
minimum requirement for how a community attempts to address this information in its Action
Plan. Understanding its current and future housing needs, and who can and should benefit from
its housing efforts is a practical and prudent step, and should be the basis for the housing
implementation activities of any community.
There are a number of programs and local fiscal and official control initiatives that can be
undertaken by communities to expand or preserve affordable and life -cycle housing.
This Action Plan Checklist is intended to assist communities in identifying from among the
myriad implementation tools, those activities suited to their particular needs and capacity to
deliver.
Housing Assistance Programs
An Action Plan to implement the community's LCA goals should identify the housing assistance
programs to be used by and in the community, and, where possible, the best estimate of how
many households will be helped by such programs each year or over the period of years
covered by the Action Plan.
A number of programs provide renter assistance and below - market -rate home mortgage
programs. Some involve little or no administration or oversight by the city, although most require
a city's consent. A list of existing housing assistance programs which a community may use, or
encourage or facilitate private market interests to use include the following:
1
2010 Housing Action Plan Checklist
Federal Government
• Section 8 Rental Vouchers and Certificate Programs
• Shelter Plus Care (S +C)
Minnesota Housing Finance Agency
• Minnesota Mortgage Program
• Community Activity Set Aside (CASA) Program
• Homeownership Assistance Fund
• HOME HELP
• Homeownership Opportunity Program
• Urban Indian Housing Program Tribal Indian Housing Program
• Land Acquisition for Affordable New Development (LAAND) Initiative
• Minnesota City Participation Program
• Housing Trust Fund Rental Assistance (HTF -RA)
• Bridges
Twin Cities Habitat for Humanity
Local Community Land Trusts
Housing Development Programs
The Action Plan may set forth specific new construction or housing rehabilitation efforts to
expand or preserve the community's stock of affordable rental housing.
A limited number of tools are available to support the construction or rehabilitation of low -and
moderate - income housing. These programs include the following:
Federal Government
• Public Housing
• Supportive Housing Demonstration Program - Transitional Housing Component
• Federal Home Loan Bank - Affordable Housing Program
• Home Investment Partnership Program (HOME)
• Section 202 - elderly
• Section 811 - handicapped
Minnesota Housinq Finance Agency
• Housing Tax Credit Program (HTC)
• Low and Moderate Income Rental Program (LMIR)
• Economic Development and Challenge Program (EDHC)
• Preservation Affordable Investment Fund (PARIF)
• Publicly Owned Housing Program (POHP)
• Ending Long Term Homelessness Initiative Fund (ELHIF)
• Flexible Financing for Capital Costs (FFCC)
• Land Acquisition for Affordable New Development (LAAND) Initiative
2
2010 Housing Action Plan Checklist
Metropolitan Council
• Local Housing Incentives Account
• Livable Communities Demonstration Account
• Land Acquisition for Affordable New Development (LAAND)
Family Housinq Fund
• Metropolitan Housing Resource Program
Twin Cities Habitat for Humanity
Community Land Trusts
Local Government
• Conduit revenue bonds
• General obligation bonds
• Housing revenue bonds
• Taxable revenue bonds
• Land write -down or sale
• Credit enhancements
• Sanitary sewer rate adjustments
• Demolition ordinances
• Local community mortgage assistance programs
• Mortgage Revenue Bonds
• Low - income housing Tax Credits
• Local fee waivers or reductions
• Local tax abatement
• Local property tax levy
• Tax - increment financing (TIF)
Housing Maintenance Rehabilitation and Redevelopment Programs
A variety of programs are available to address maintenance, rehabilitation and redevelopment.
The Action Plan should identify any or all of a number of potential programs or activities the city
may employ including the following:
Federal Government
• Federal Home Loan Bank - Affordable Housing Program
• Home Investment Partnership Program (HOME)
• HOPE III
Minnesota Housing Finance Agency
• Housing Tax Credit Program (HTC)
• Low and Moderate Income Rental Program (LMIR)
• Economic Development and Housing Challenge Program (EDHC)
• Preservation Affordable Investment Fund (PARIF)
• Publicly Owned Housing Program (POHP)
3
2010 Housing Action Plan Checklist
• Ending Long Term Homelessness Initiative Fund (ELHIF)
• Flexible Financing for Capital Costs (FFCC)
• Rental Rehab Loan Program
• Community Revitalization Fund
• Fix -Up Fund
• Community Fix -Up Fund
• Rehabilitation Loan Program
Metropolitan Council
• Livable Communities Demonstration Account
Family Housing Fund
• Metropolitan Housing Resource Program
Twin Cities Habitat for Humanity
Local Community Land Trusts
Local Government
• Adoption and enforcement of a local housing maintenance code
• CDBG supported rehab programs
• Housing improvement and rehabilitation areas
• Foreclosure awareness /prevention workshops
• Housing remodelers fair
• Weatherization programs
• Code compliance programs
• Local community first -time homebuyer financial program
• Scattered site housing replacement program
• Home repair /maintenance resource center for seniors
• Point of sale program
• Deferral or forgiveness of development fees
• Transitional Housing Partnership
Local Initiatives
Though considerably more restricted than in the past, state and federal laws permit local
governments to implement fiscal initiatives to generate capital to assist development or
redevelopment to create affordable and life -cycle housing. The Action Plan should include the
community's short- and long -term expectations and intentions regarding the use of these fiscal
tools such as the following:
Federal Government
• Community Development Block Grants (CDBG)
Minnesota Housing Finance Agency
• Nonprofit Capacity Building Revolving Loan Program
• Land Acquisition for Affordable New Development (LAAND) Initiative
4
2010 Housing Action Plan Checklist
Local Government
• Participation in Livable Communities Local Housing Incentives Program to access
funding resources through the Local Housing Incentives Account, Livable Communities
Demonstration Account and Tax Base Revitalization Account.
• See expanded listings of local initiatives under Housing Development and Housing
Rehabilitation and Redevelopment Programs sections.
Local Official Controls and Approvals
Local controls - zoning, subdivision regulation, building code, design requirements for public
improvements and the approvals process - impact both the type and cost of new housing. In
doing so, however, they provide communities with a wide range of opportunities to make
changes in these controls that can expand local affordable and life -cycle housing options.
In preparing LCA Action Plans and in addressing future local housing development issues,
communities should pledge to examine and evaluate the impact of a number of their local
controls on the cost of residential development and redevelopment.
The following is a checklist of local controls and requirements that a community, in preparing its
LCA Action Plan, might propose to review and evaluate in the immediate future to determine if
they are adequate, insufficient or unnecessarily excessive and should be revised, added to or
eliminated.
These controls and regulations may include:
• Sufficient available undeveloped or underutilized land guided or zoned for medium and
high density residential development or redevelopment.
• Planned unit, mixed -use and cluster development ordinances that include potential residential
density bonuses and transfers.
• The flexibility to employ zero lot line development or other innovative site planning techniques.
• The length and complexity of the local approvals process.
• Environmental regulations such as tree and wetland preservation requirements that are stricter
than those required by state law or regional policy.
• Local requirements regarding:
• minimum lot sizes and widths
• minimum floor area
• increased building height flexibility
• garage and off- street parking variances
• set -back requirements
• inclusion of private streets in subdivision development
• sidewalks or non - motorized pathways
• park and trail dedications
• minimum right -of -way, pavement widths and depth for different streets
• storm sewer design - pipe diameter, distance between catch basins, etc.
• street lighting
• trees, tree replacement and foliage
5
2010 Housing Action Plan Checklist
• landscaping costs
• allow alternative construction methods (building materials, exterior surfaces, etc.)
• special or conditional use permits
• development fees for off -site public improvements - e.g. park, trail and road fees
• soil correction variances
• service availability charge (SAC) credits
• issuance of e- permits
• inclusionary housing requirement
Authority for Providing Housing Programs
The Action Plan should describe what authority the city has for operating housing programs and
the activities of the organizations or entities that administer the programs and /or also describe
arrangements the city may have with other public or nonprofit organizations that provide
housing related services to the city.
• Local governmental unit, HRA, CDA, or EDA
• County HRA, CDA or EDA
• Community Action Program Agency
6
2010 Housing Action Plan Checklist
Enclosure E
The Livable Communities Act (LCA)
The Minnesota Legislature created the Livable Communities Act (LCA) in 1995. The LCA is a
voluntary, incentive -based approach to address the Metropolitan Area's affordable and lifecycle
housing needs while providing funds to communities to assist them in carrying out their development
plans. LCA funds have leveraged millions of additional dollars in private and public investment that
has provided new jobs, housing choices, and business growth. The Legislature established the
Metropolitan Livable Communities Fund, including three on -going accounts from which eligible
communities could apply for funding:
The Tax Base Revitalization Account (TBRA) helps cities clean up contaminated urban land
and buildings for subsequent redevelopment that could include commercial, industrial, or
housing opportunities. Supporting redevelopment opportunities that restore the tax base,
create or retain jobs, or add affordable housing to the region are the primary objectives of this
account. Projects funded through the TBRA foster increased reinvestment and infill near
existing housing and services and help clean up the environment and protect water quality in
the region's urban communities.
0 From 1996 through 2009, $69.3 million in Tax Base Revitalization Account grants (238
grants in 38 communities) have assisted projects which are expected to:
• Leverage $3.68 billion in private investment
• Increase annual net tax capacity by $62.5 million
• Create or retain over 31,000 jobs
• Redevelop over 1,600 acres of former brownfields
The Livable Communities Demonstration Account (LCDA) funds public infrastructure and
land assembly for development and redevelopment projects that achieve connected
development patterns that link housing, jobs and services, maximize the development
potential of existing or planned infrastructure and regional facilities, and expand affordable and
life -cycle housing options in the region. LCDA awards have been used to revitalize
communities and establish new neighborhoods as places for living, working, meeting daily
shopping needs and recreation. The LCDA program is a popular funding source to help
achieve regional and local community development objectives in the region's communities.
Funded project elements have included land acquisition, street infrastructure, pedestrian
connections, stormwater management infrastructure, and public -use structured parking to
support additional density. LCDA funding is a catalyst that enables cities and developers to
implement replicable models that expand development options in the market.
0 From 1996 through 2009, $81.8 million in Demonstration Account funds (155 grants to
49 communities and three multi -city coalitions) have assisted projects which are
expected to:
• Leverage nearly $2.95 billion in private development investment
• Leverage over $1.1 billion in other public investment
• Provide over 21,500 new housing units
• Rehabilitate over 600 housing units - single - family houses, townhouses,
condominiums, rental apartments for families and seniors, and live -work housing
• Offer replicable examples of:
The Livable Communities Act