6. Livable Communities Act Update: Housing Goals Agreement.CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO: City Council
FROM: Kate Aanenson, Planning Director
DATE: October 16, 1995
SUBJ: Metropolitan Livable Communiti
Housing Goals
BACKGROUND
About one month ago, I presented to the Codicil the Lei
recommended that the city agree to partici e because i
through any state or Metropolitan Councadisbursement
future expansion of the MUSA line. I 1Qrder to participa
resolution by November 15, 1995 (semodel resolution a
December 15, 1995. It is my recot rnendation that the cc
there is concurrence on the go a "since they are the major
I am proposing tha . aineil , Je he
they are acceptable. he ci as un il' une
implement our q par�Cia i e
$50,795 towards affor rho sing in 1997.
In attendance at the Council meeting will be
Bluhm and Bob Paddock. They will be avail
about the Livable Communities Act.
.ire's Livable Communities Act. I
d mean the loss of funding
it could mean the rejection of
ie City Council must adopt a
ied) and adopt Housing Goals by
I adopt both at the same time if
tponents of the act.
g te staff input as to whether or not
&' n action plan as to how we will
d 1VI'e`tropolitan Council staff, Don
any questions that you may have
ANALYSIS
In order for the council to decide if the goals are acceptable or even achievable, we must
examine the housing trends of the city. The City of Chanhassen is being compared with 20 other
Livable Communities
October 16, 1995
Page 2
communities in Sector 8 of the Metropolitan area (see attachment 2). If you average all of the
affordable, diversity, and density numbers for the 20 communities in the sector, you would arrive
at the benchmark numbers for Sector 8 (see Attachment #2). After arriving at a bench mark for
the areas of affordability and density, the city was measured against these areas to determine the
city index. The goals the city is trying to achieve is for the period 1996 to the year 2010. The
city has 15 years to work toward these goals.
Development is cyclical. Recently the city has seen more multi - family development. As
explained by the Met Council staff, the objective for the city is to turn the course of the ship for
housing development. It may be impossible for the city to accomplish the change of course
(achieve all of the goals) within this time frame. The process is then threefold. The first step is
to pass a resolution to participate in the process and set goals. The second step is to develop
implementation strategies to achieve these goals. The third step is to allocate Affordable and
Life -cycle Housing Opportunities Amount (ALOHA) dollars for affordable housing in the city's
1997 budget. This makes the city eligible for the three funding accounts: Tax Base
Revitalization, Livable Communities Demonstration, and Local Housing Incentives.
The Met Council has estimated that the number of new households for this period will be 5,784
(see attachment 2). Staff estimates that the current number of households is 5,907. The Met
Council is assuming that based on available land, the city will double the number of households
in the next 15 years. This is assuming a 6 percent growth rate.
The Met Council projections can be compared to the projections made in the city's 1991
comprehensive plan.
Table 1
Household and Population Projection Composite
Source: 1991 Comprehensive Plan
1
0
Livable Communities
October 16, 1995
' Page 3
' Some of the assumptions made in the earlier projections include the household size at 2.7
persons per unit (2.65 after the year 2000) The current household size is estimated at 2.92, which
is reflected in the number of young families in the city. Another assumption in the projections is
that all property would be developed. Staff finds the projected household numbers possible only
if all available land in the MUSA develops, which is unlikely. There are all large tracts of
property in the current MUSA that may not be developed by the year 2010. These properties
include Prince, who has 156 acres guided for low density development, and Eckankar, which has
60 acres of property, guided for high and medium density.
The three areas the city has to address in affordable housing are Life - cycle, Density and
Affordable.
' • Life -cycle housing is made up of two components. The number of non - traditional housing or
percentage of housing that is not single family detached. The other component is the ratio of
' owner occupied units to renter units.
• Density compares the number of units to the acres of development. This ratio is applied to
' low density and multifamily.
• Affordable is that percentage of new housing units that will be affordable. The Met Council
' considers those owner occupied units under $115,000 affordable. Rental affordability is the
percentage of rental units with rents under $625.
I In order for the Council to assess a goal carefully, staff has reviewed developments in the city
since 1991 to evaluate development trends.
Livable Communities '
October 16, 1995
Page 4 '
Table 2
Residential Development Statistics '
Source: Chanhassen Planning Department
_
GROSS
ROW
WE
PA
NET
TOTAL
GROSS
NET
NOTES
CASE
PROJECT NAME
RE
ACRES
ACRES -
AND - _ - --
- C -
ARES
-
UNITS
- - --
DENSITY
--
DENSITY
- - --
SINGLE FAMILY DETACHED
--
- -
- --
93 1 SUB
Hignds of hla Lake St. Joe
36
_
0.4
_ 11 .54
_ 0
2
0 .92
1.37
Sh orelan d district
93 -4 SUB
0
Wind mill Ru
17.92
3.3
___ 0
_
1
_33
35
_
1.95
2 .
_
f arm field _
93 8 SUB
Royal Oaks Estates
13
2.2
0
___ 0
0
_ _
10 .8
3. 85
_ _
23
7
_
1.77
1.57
__
_2.13
1.82
_
f arm field
wood ed/wetland
93 -10 SUB
Lotus La Wood
4.47
0.32
_
0
93 -11 SUB
Oaks a Minnewashta
35.83
9
3
8
1 5_.83
45
1.26
2.84
93 -12 SUB
T ower Hei hts
7.1
0
0
0
13
1.8
2.0
_
93 -14 SUB
Shenandoah Rid
11.5
3.5
_
_ 0
0
_6.5
8
_
20
1.74
_
2.50
9 -15 SUB
Church Road
3.3
0
6
0
3.3
4
121
_
1.2
- -
9 SUB
TJO
1.06
0
0
6
1
3
2.83
2.83
9 3-25 SUB
MiCn er Addition
9.9
2A8
0
0.15
__
7 .72
17
1 .71
_
- - - -
94-1 SUB
Minnewashta Landings
19.7
1.
0
_
0
18
_
_ 27
9
1.37
0.3
_2.20
_ 1 .50
1
beach district
s horelan d_d istric t
94 -3 SUB
- SUB
Olivewood
25.95
4 .6
1 4.8
_ 0
_
6. 55
94 -4
Shadow Ridge
15.99
2.15
_ 1.9
_ 0
_11.94
17
1.42
3.9_a_c outl to be platte
94 5 P
M ission Hills /Sin famil
7.1
_0
0
0
7.1
16
_1
2.25
_
2.25
94 -7 SU
S Ride
37.9
3.67
6. 7
0
27.53
_ _
45
1.19
_
1.63
- - --
9 8 SUB
Creekside
39.5
4.2
5 .7
24 .6
_
44
1.11
__
1.79
_ _ - --
94-10 SUB
Brenden Pond
23.3
3.6
7.2
_5
0
0
1 2.5
1_0.9
_
21
19
0.90
1.0
1.68_
1 .74
94-13 SUB
Point Lake Lucy
18.15
1.
5. 62
94-14 SUB
Lake Ann Highlands
35.1
9. 2
_ 0
_ 0
__
25.9
__
92
2.62
3.5
14_._8_ acres of MF t south
94 -15 SUB
Hoben Wild Woods Farm
1.87
_ 0
0
0
1.87
_
3
1.60
1
-
95 -10 SU
F Meadows
20.2
2.2
_ 0
_
13
19
0 .94
_
92 -4 P UD
Meadow at Lon acres
95
10
2 4
_5
0
_ _
112
1.18
1.84
- - - - - --
93-2 PUD
Trotters Ridge
32.5
7.44
5 .6
0
_61
19
49
2.5
9 1-3 P UD
Willow Rye
30.3
_ 4
_
_
0
_
1 7.91
__
37
_1
1
_
2.0
_
92 -1 SUB
Stone Cr eek
81
10 .04
_
0.96
8
62
_
- 074
_
92 -4 SUB
I thilie n Addition
9
1 .8
0.9
_
0
_
6.3
_ _141
17
1.89
2.70
92 -5 SUB
Bluff Creek Estates
61
7 .9
0
_
__
78
127
2.30
-
93 -3 PUD
Wood at Long acres
96.7
13 .1
_19.7
_ 10. 87
_
0
_ _33.8b
72.8
_
115
1 .19
_
1.5 8_
93 -6 PUD
Ro gers /Dole'si
80
2 0 . 2
1
0.5
127.
5. 3
_
54.8
_
134
1.66
2
SUBTOTAL
871.71
31. 45
-- 5 83.68
_
PERCENT
15%
15%
4%
67%
_11
AVG
1.37
2.05 _
MULTI -FAMILY
- --
- - - --
-- --
- - --
- --
-- - - - --
94-5 PUD
Mission Hills/Multi-family
-
47.18
11.6
---
-- 5.87
0
29.71
208
4.41
7.00
94-18 PUD
Autu Ridg
11.5
__ _0
0
- - - - -
0 -
- -- --
11.5
- --
4_6
_
4.00
_
92 -3 PUD
Oak Pond /Oak Hills
24.19
_ 2. 0 . 9
_ 1. 8
0
_ _
1 47
_
6 .08
7.2
94 -7 SP
P rairie Creek Townhomes
4.6
6
_ 0
_
0
_20.3
4.6
24
5
_
5.22
_
87 -3 PUD
Powers Place
9.7
0
0
7.29
_
34
4.66
---
95-7 SP
Lake Susan Hills Townhomes
ni
7.29
-
-- 0
- - 0
0
95 -8 SP
-
Centenial Hills
--
2.2
0 0
- --
--
0
- --
- - - --
0
- - - - - --
2.2
- -- -
65
--2-- ...
_
2 . 9.55
9 5 -1 PUD
N orth Bay
52 .1
2 .92
16.61
10 %
8._66
16.33
------ - - - -
26.38 - -
26.38
°
17 /°
---- - - - --
_ 14 -
99.44
°
63 /°
- - --
76
. _
5
SU BTOTA L
158.76
_
648
AVG
_1
_
PERCENT
°
-
4.08
6.52
-- -
144.01
57.83
683.12
TOTALS
1030.47
145.51
1843
-- -- - - -
PERCENT
14%
14%
6%
66%
AVG
_
1.79
2.70
_
' Livable Communities
October 16, 1995
' Page 5
' Table 3
1991 Comprehensive Plan Land Uses
Source: 1991 Comprehensive Plan
I DENSITY GOALS
As Table 2 indicates, the city has been averaging 2.05 net units an acre on the single - family (low
' density) and 6.52 units and acres on the multi - family (medium and high density). In
Chanhassen, low density includes twin homes. The North Bay project which is developed as a
' single family detached project does not increase the density in the single family detached land
use because the land use is guided high density. This highlights an issue the Planning
Commission has been raising for a long time —if the city allows development to occur below the
' designated density, then where does this lost density occur.
The benchmark the city should be trying to achieve in the single family detached is the 1.8 -1.9
' units /acre. In Chanhassen, because of the number of wetlands, staff has asked to have the net
density used in calculations. Currently, the city index is 1.5 /acre. I believe a goal that is
obtainable is 1.8 units an acre net density. In the multifamily district, the bench mark is 10 -14
units /acre. The city index is 11 units /acre. Staff is recommending a goal of 9 -10 units per acre.
This number is based on 1990 data. As indicated earlier, this number has moved farther from the
benchmark because of the number of projects approved at the medium density range. The only
Livable Communities
October 16, 1995
Page 6
way to achieve the density benchmark in the multifamily land use would be to build
developments at the maximum density permitted. In cases where the development is
appropriate, give density bonuses as permitted in the PUD ordinance. The city currently has
limited high density development. The majority of projects are being developed at 6 units an
acres, therefore, a significant number of developments will have to be built in excess of 14 units
an acre to increase the multi - family units per acre density to achieve the benchmark.
Table 4
Housing Goals Agreement
LIFE CYCLE GOALS
The method for determining life -cycle housing is to look at the future number of households the
Met Council has predicated for the city in the next 15 years and establish what percentage of
owner to renter the city will try to achieve. The type of non - single family includes apartments,
townhouses, 3 and 4 plexes, etc.
Assuming the Met Council prediction of 5,784 new households, staff's recommended goal of an
80% owner to 20% rental mix would mean that 4,627 units should be owner occupied and 1,157
should be rental units. In the 1990 comprehensive plan, the approved housing goal was for 34%
of the housing units to be non - single family detached. I believe this still is a reasonable goal.
With the types of owner occupied and rental there is a large variety of housing options. I
believe it would be impossible to achieve a higher level of rental to owner occupied units
because there has only been two rental projects built in the city in the last 10 years. The
proposed Met Council benchmark is 67 / 75 and 25 / 33 ratio of owner to renter. The city index
according to the Met Council is 85 / 15. The Heritage Park Apartments, with 60 units, was built
in 1989 -90 and in 1995 -96, Centennial Hill (Senior Project), with 65 units is being built. Even
at 1,157 units over the next 15 years it would mean 70 units a year. The important number to
keep in mind is for every eight units of owner occupied, the city should be developing two units
of rental.
' Livable Communities
October 16, 1995
' Page 7
AFFORDABLE
Table 5
Housing Goals Agreement
' The definition of affordable owner occupied units are those units under $115, 000 in homestead
valuation. Affordable rental units are those units with rents under $625 a month. To determine
' the number of affordable ownership, the first step is to determine the number of owner occupied
units. As stated previously with an 80 / 20 ratio of owner occupied units to rental units, the
number of owner occupied households over the next 15 years could be 4,627. The number of
' rental could be 1,157. The bench mark the Met Council is recommending is 60 -69% ownership
affordable and 35 -37% rental affordable. The city is currently at 37% affordable rental,
according to the Met Council and the County Assessor (see Table 6). According to 1995 data,
' 32% of Chanhassen homesteaded homes are affordable. I believe a 50% goal is more realistic.
That means that 50% of all new homes constructed in the next 15 years should be under the
$115,000 in valuation.
Table 6
' Chanhassen Homestead Valuation January 2, 1995
Source: Carver County Assessor
n
Livable Communities '
October 16, 1995
Page 8 '
Table 7
Housing Goals Agreement ,
RECOMMENDATION I
Staff is requesting input from the City Council as to the proposed goals. The resolution and
goals should be approved at the November 13, 1995 meeting. The next step in, the process is to '
provide the Met Council with implementation strategies that will be used to achieve these goals
(due June 30,1996). Strategies staff is considering are reviewing the PUD ordinance to allow
zero lot line homes and density bonuses, working with the City's HRA and Carver County HRA '
for another housing development, examine the use of CDBG dollars for affordable housing,
down payment assistance, requiring all developments to meet the comprehensive plan densities,
providing additional mixed use opportunities, and investigating commercial /industrial /office '
contributions to affording housing fund.
Attached is the Housing Goals Draft Agreement and Resolution for your input and consideration '
for the next Council meeting.
ATTACHMENTS I
1. Model Resolution '
2. Sector 8 Housing Data
3. Draft Housing Goals
� �o
CALENDAR YEAR 1996
WHEREAS, the Metropolitan Livable Communities Act (1995 Minnesota Laws Chapter 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 and the Local Housing Incentives 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 finding from the Minnesota Department of Trade 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 munici-
pality 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, by June 30, 1996, each municipality must identify to the Metropolitan Council the actions the municipality
plans to take to meet the established housing goals; and
WHEREAS, the Metropolitan Council must adopt, by resolution after a public hearing, the negotiated affordable and life -
cycle housing goals for each municipality by January 15, 1996; and
WHEREAS, a metropolitan area municipality which elects to participate in the Local Housing Incentives Account Pro-
gram must do so by November 15 of each year; and
WHEREAS, for calendar year 1996, a metropolitan area municipality can participate under Minnesota Statutes section
473.254 only if: (a) the municipality elects to participate in the Local Housing Incentives Account Program by November
15,1995; (b) the Metropolitan Council and the municipality successfully negotiate affordable and life -cycle housing goals
for the municipality; and (c) by January 15, 1996 the Metropolitan Council adopts by resolution the negotiated affordable
and life -cycle housing goals for each municipality;
NOW, THEREFORE, BE IT RESOLVED THAT the [specific municipality] hereby elects to participate in the Local
Housing Incentives Program under the Metropolitan Livable Communities Act during calendar year 1996.
By:
Mayor
i
RESOLUTION NO.
RESOLUTION ELECTING TO PARTICIPATE IN
THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM
UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT
Clerk
Ai+aehM,Q + Z.
SECTOR 8 - Southwest of Minneapolis
Current Situation
Other Key Factors to be Considered
Cotnt"fi ly
Chanhassen
Affordability
Homesteads % Rent Below
Below 5115 $500
1994 1990
37 44
% Non - Single
Family % Rental
1993 199 0
19 15
Density
Single Family Muldramlly
Density Density
1990 1990
��
1.5 II
Age of Housing 1990
Owned Rental ' /•
% Built Before Built Before
1970 1970
11�
28 44
Forecasted
Growth to 2010
Household Em lo ent
5,784 4,485
Age Composition 1990 hift
% Hsbld /• Hshld /• Hshld
Heads Heads Heads
45-54 SS-64 W
16 9 7
Chaska
75
49
49
39
2.6
9
29
27
2,888
4,067
13
9
12
Dccphavcn
31
23
2
6
1.2
1
77
71
176
93
26
16
16
Excelsior
70
70
61
63
2.7
25
89
51
40
394
12
10
24
Golden Valley
60
45
28
21
2.2
10
80
40
177
1,911
17
17
25
Greenwood
22
9
8
18
1.3
0
74
73
10
55
24
IS
16
Hopkins
81
45
72
69
3.2
18
83
42
177
888
10
9
21
Long Lake
73
49
34
34
1.9
13
62
40
163
630
17
12
13
Minnetonka
47
12
39
26
1A
11
54
11
5,813
20,564
19
14
16
Minnetonka Bch
11
0
2
6
1.2
0
85
91
26
80
26
IS
14
Mound
76
47
22
25
2.5
22
55
48
90
801
17
10
15
Orono
30
18
2
9
.9
6
65
1 62
737
80
25
15
15
St. Louis Park
82
38
44
41
3.8
18
88
51
1,775
3209
12
11
Shorewood
26
33
14
10
1.1
6
50
44
1,124
273
21
14
427
Spring Perk
60
37
77
76
2.3
22
77
40
49
138
11
10
Tonka Bay
30
12
6
13
1.8
0
76
79
1 113
55
23
13
16
Victoria
39
52
13
11
1.1
4
40
42
894
187
18
13
14
Wecon ia
78
62
r
43
37
2.8
17
67
28
999
1,604
14
13
Wayrala
43
36
51
50
1.0
15
75
57
335
210
16
14
27
Woodland
II
33
2
4
.5
0
68
100
4
1 50
24
15
21
pp080395.sc8
MM M MM M M M = M
DRAFT
HOUSING GOALS AGREEMENT
METROPOLITAN LIABLE, COMMUNITIES ACT
I PRINCIPLES
I�
The city of Chanhassen supports:
1. A balanced housing supply, with housing available for people at all income levels.
2. The accommodation of all racial and ethnic groups in the purchase, sale, rental and
location of housing within the community.
3. A variety of housing types for people in all stages of the life - cycle.
4. A community of well- maintained housing and neighborhoods, including ownership
and rental housing.
5. Housing development that respects the natural environment of the community while
striving to accommodate the need for a variety of housing types and costs.
6. The availability of a full range of services and facilities for its residents, and the
improvement of access to and linkage between housing and employment.
GOALS
To carry out the above housing principles, the City of Chanhassen agrees to use
benchmark indicators for communities of similar location and stage of development as
affordable and life -cycle housing goals for the period 1996 to 2010, and to make its best
efforts, given market conditions and resource availability, to remain within or make
progress toward these benchmarks.
To achieve the above goals, the City of Chanhassen elects to participate in the Metropolitan
Livable Communities Act Local Housing Incentives Program, and will prepare and submit
a plan to the Metropolitan Council by June 30, 1996, indicating the actions it will take to
carry out the above goals.
CERTIFICATION
I Mayor Date
CITY INDEX BENCHMARK
GOAL
Affordability
Ownership
37%
60-69%
5d 7
Rental
44%
35 -37%
Life -Cycl
Type (Non- single family
detached)
19%
35 -37%
3L4 7o
PICin
Owner /renter Mix
85/15%
(67 -75) /
(25 -33)%
001W
Density
Single - Family Detached
1.5 /acre
1.8 -1.9 /acre
8
Multifamily
11 /acre
10 -14 /acre
q' l
To achieve the above goals, the City of Chanhassen elects to participate in the Metropolitan
Livable Communities Act Local Housing Incentives Program, and will prepare and submit
a plan to the Metropolitan Council by June 30, 1996, indicating the actions it will take to
carry out the above goals.
CERTIFICATION
I Mayor Date