2b TIF #8 Affordable Housing CITYOF
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Pho ne: 952.227.1100
Fax: 952.227.1t10
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
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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:
DATE:
RE:
Justin Miller, Assistant to the City Managercy,,,.
July 7, 2003 t~.
Code Amendment - Income Restrictions for Affordable Housing
TIF District//8
BACKGROUND
As part of the redevelopment agreement with Presbyterian Homes, the developer
is making a percentage of their units affordable under Internal Revenue Code and
State of Minnesota guidelines. Recent interpretations of Tax Increment Financing
(TIF) statutes by the State Auditor's office have suggested that cities should
incorporate affordability requirements into their ordinances. This code
amendment will further clarify the affordability requirements for TIF District 4/8,
which encompasses this project.
The income requirements rmrror those in the redevelopment agreement, and are as
follows:
Percentage of Units
20%
5O%
10%
20%
Median Income Level
No more than 50% of the median income
No more than 110% of the median income
No more than 150% of the median income
No income limitations
These affordability requirements will apply to all housing developments in TIF
District//8, which currently is set up only for the Presbyterian Homes project.
RECOMMENDATION
Staff recommends that the Chanhassen City Council adopt the attached code
amendment relating to income limits for housing developments within Tax
Increment Financing District 4/8.
The City of ChanJ~assen ,, A 0rowing community wiih clean Iakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks. A great place to live, work, and play.
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 11 OF THE CHANHASSEN
CITY CODE ESTABLISHING INCOME LIMITS FOR HOUSING DEVELOPMENTS
WITHIN TAX INCREMENT FINANCING DISTRICT NO. 8
THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS:
SECTION 1. The Chanhassen City Code is amended by adding the following new
section to Chapter 11:
Sec. 11.6. Income Limits for Housing Development in Tax Increment District No. 8.
(1) Purpose.
1.01
1.02
1.03
1.04
In order to address and alleviate the shortage of decent, safe, and sanitary housing
of persons of low or moderate income in Chanhassen, and to provide for other
redevelopment opportunities, the Downtown Chanhassen Redevelopment Project
Area and Tax Increment Financing District No. 8, both located in downtown
Chanhassen have been created.
The Chanhassen Economic Development Authority will be considering assistance
to housing facilities located within the TIF District.
Tax Increment Financing District No. 8 is a "housing district" under section
469.174, Subd 11 of the TIF Act. Accordingly, in compliance with the
requirements of Section 469.1761, Subdivision of the TIF Act, the development
must satisfy the income requirements for a qualified residential rental project as
defined in section 142(d) of the Internal Revenue Code.
This section is intended to establish and declare the income requirements for the
development.
(2) Income Limitation Requirements.
2.01
2.02
2.03
No more than 20 percent of the fair market value of the Minimum Improvements
may be used for any purpose other than low and moderate income housing.
At least 20 percent of the units must be reserved for persons whose income is no
more than 50 percent of the median for the Twin Cities metropolitan area.
An additional 50 percent of the units must be reserved for persons whose income
is no more than 110 percent of the median for the Twin Cities metropolitan area..
JBD-232942v4
CH 135 -54
2.04
2.05
(3)
3.01
3.02
3.03
At least ten percent of the units are reserved for persons whose income is no more
than 150 percent of the median for the Twin Cities metropolitan area.
Up to 20 percent of the units may be occupied or available for occupancy by any
persons without regard to income limitations.
Additional Requirements.
The limits described in sections 2.02, 2.03 and 2.04 must be satisfied commencing
with the date on which at least ten percent of the units are occupied.
Income for calculation of the limit described in section 2.02 shall be adjusted for
family size in accordance with section 142(d) of the Internal Revenue Code and
related regulations.
Income for occupants of Units described in section 2.03 need not be adjusted for
family size, and shall be based on the statewide gross income for a family of four.
SECTION 2. This ordinance shall be effective immediately upon its passage and
publication.
PASSED AND ADOPTED this
of Chanhassen, Minnesota.
day of June, 2003, by the City Council of the City
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
JBD-232942v4
CH135-54