9a. Low and Moderate Income Housing Update.CITY OF
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690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO: Don Ashworth, City Manager
FROM: Todd Gerhardt, Assistant City Manager .
DATE: July 20, 1994
SUBJ: Low and Moderate Income Housing Update, Assistant City Manager
On July 19, 1994, the Mayor and I attended a acting with the Association of Metropolitan
Municipalities staff and several southwest sub baq.�,communities to discuss strategies in
providing more housing opportunities for lownd moderate income persons through the metro
area. Attached please find the AMM's Urbag€' Stratees Task Force's "draft report." The
report identifies the issues and principles ad&ted by Vim metro area's deteriorating
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neighborhoods as well as the Task Forcetindin s recommendation. The Ma
g ,� g �� or asked Y
that this item be placed on the agenda tor receive city d ncil input and suggestions on the
Task Force's findings. The Mayor wilYte soliciting the111;ouncil's comments regarding this
item at Monday night's meeting.`.`
Attachments
1. AMM Letter Jtl Dbih Chmiel dated June 28, 1994
2. AMM Urban
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June 28, 1994
as ociati n of
metropolitan
municipalities
Don Chmiel
Mayor
7100 Tecumseh Lane
Chanhassen, MN 55317
Dear Mayor Chmiel:
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Metropolitan cities face several critical issues that will be
discussed by the 1995 Legislature. Urban poverty and the
apparent disparity of affordable housing near job creation
centers was a matter of much discussion during the 1993 and
1994 sessions and will continue when lawmakers return in 1995.
How to pay for reinvestment /rehabilitation as well as
providing more housing opportunities for low and moderate
income persons will be a prime topic.
The local government trust fund will be replaced by an index
for LGA starting with aids payable 1996. School funding is
repealed after 1998. HACA is a target for other programs.
Property tax relief tied to income is becoming popular. All of
the above plus more revenue,issues could have major impact on city
finances.
We want your views on these and other issues of importance to
establish the legislative direction for the Association of
Metropolitan Municipalities for the 1995 session. To provide
a forum for this exchange of ideas, we are planning our ninth
annual summer Outreach Breakfast for you and other city
officials in your area.
The breakfast is scheduled for Tuesday, July 19, at 7:30 A.M.
in the Wellington Room at the Minnetonka Ramada Plaza Hotel
(formerly Radisson) located on the southeast corner of the
Interstate 395 and Ridgedale Drive interchange. Exit the
Interstate at Ridgedale Drive, turn south and drive one block
to the hotel on the left.
Please R.S.V.P. to Carol, 490 -3301 by noon Monday, July 18.
Your input on the following issues will be helpful for policy
development:
* Urban poverty and how to combat it;
3490 Lexington avenue north, st. paul, minnesota 55126 (612) 490 -3301 #
* Effective location of affordable housing in
conjunction with jab creation and /or location;
* Transit and highway funding alternatives;
* Revenue issues such as LGA /HACA funding and
distribution, reinvestment funding, TIF, etc., and;
* How to influence or obtain commitments and /or
build identification of metro issues with metro
legislators.
This is not a formal gathering and we hope for lots of
discussion from you. Your opinions, concerns and advice will
definitely help shape AMM policies and priorities for the 1995
session.
The breakfast also can be an avenue for you to tell us what
you'd like to see the AMM do in the way of member services.
Are there other support services that we should provide or
improvements to the existing services that you can suggest?
We hope you plan to attend your area breakfast by making
reservations now. We would ask that managers and mayors make
this information and invitation available to city council
members and interested staff persons. As always, if you have
any questions, please call the AMM office.
Sincerely,
R
Craig Rapp
AMM President
Brooklyn Park Manager
Coral Houle
AMM Board Member
Bloomington Councilmember
Mary Ra and
AMM Board Member '
Deephaven Councilmember
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Dear AMM City Official:
In order to make the Urban Strategies Task Force final product
representative of our organization, we would appreciate
your input and suggestions for recommendations to be
considered by the task force. Comments are welcome on all
parts of the preliminary report.
Thank you for your assistance.
Jim Prosser, Chair
Recommendations /Comments:
Mail to: Roger Peterson (or) Fax 490 -0072
Assoc. of Metro. Munic.
3490 Lexington Ave., No.
St. Paul, MN. 55126
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AMM Urban Strategies Task Force I
Draft Report for AMM Member Comment
In September 1993 the AMM Board of Directors formed the Urban Strategies Task Force in
response to concerns raised about problems facing the central cities and inner ring suburbs. The '
task force was asked to define problems facing the region and to respond to them through all cities
working together. The task force was asked to examine long -tern and short-term answers to these
problems and make recommendations to the board, the Legislature, and others about what can be '
done to deal with the troubles at the core.
Using data from the 1990 census and other surveys, concerns about the troubles at the core and the
impact of those problems on the region as a whole have been raised by legislators and other '
organizations. The legislature has debated alternative solutions to these problems in the last two
sessions. In 1993 the AMM Metropolitan Issues Task Force made recommendations to the Board
regarding housing and development controls. This task force agreed that government action is '
necessary to arrest deterioration in the metropolitan area
The Metropolitan Council issued the report, "Trouble at the Core," in 1992 and prepared a plan to '
address these problems in 1994. A Governor's Task Force on Metropolitan Housing Policy and
the Citizens' League have also recently conducted studies and prepared reports related to these
problems.
AMM recognizes the need for cities to forge consensus in order to support legislative mandates or '
other recommendations, and for cities to develop their own capacity to deal with the issues raised
by these studies. By providing a broad -based forum to discuss these issues, AMM can be '
proactive in addressing problems and preparing recommendations.
The Urban Strategies Task Force has gathered information in a variety of ways over the last 10
months:
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- Members have toured distressed areas of the central cities and the first ring suburb of Richfield.
- Expert speakers, including Dr. John Adams of the University of Minnesota, Search Institute,
and neighborhood and planning groups, have addressed the task force.
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- A task force meeting was held with suburban legislators regarding proposed legislation.
- Members have shared books and articles on related topics.
The Task Force now presents a draft of its principles, findings, and recommendations for review
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and comment by AMM members. This draft will serve as the basis for discussions at Outreach
Breakfast meetings with members. The task force will review the comments from the membership
before a final report is submitted to the AMM Board of Directors.
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AMM Urban Strategies Task Force - Discussion Draft Page 1
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Issue Identification:
Deteriorating neighborhoods -- Concentration of low income residents living in deteriorating
housing in central city and suburban neighborhoods with increasing or high rates of crime and
decreasing public and private investment.
' A range of factors -- economic, social, and personal -- can contribute to people living in poor
economic conditions. People without basic life choices often lack the ability to improve their
' economic condition. They can become concentrated in areas where inadequate housing and job
opportunities exist, and their conditions are further worsened. This condition is made even more
difficult when people in these neighborhoods exhibit behaviors detrimental to the well being of
themselves, their neighborhood, and the metropolitan area in general.
' Principles
The Urban Strategies Task Force's. work and report are based on the following principles:
' * It is the responsibility of governments at all levels to encourage problem solving through
meaningful citizen involvement and to participate in a unified effort to provide:
' - opportunities for people to be self sufficient and to live and work in safe, viable, diverse
communities;
choice in affordable housing and job opportunities; and
' - a reduction in concentration of poverty.
* It is the role of government to actively support diversity within their communities. AMM
agrees with the statement in the Citizen's League's Committee on Housing Policy and
' Metropolitan Development conclusion that "policy makers must lead the way toward a new
vision of community that includes tolerance of socioeconomic and racial differences."
' * Government must maximize the efficient use of public and private funds by planning
coordinated local, sub - regional, and regional strategies to address the identified issues.
* Barriers to reducing concentrations of poverty, and therefore deteriorating neighborhoods,
' have developed over time as the result of geographic and social patterns, public policy, and
market forces. These barriers can be social, economic, legislative, housing, racial, or
educational barriers. Although governments may not have intentionally created such barriers,
the fact that governments have failed to address these barriers contributes to the problems seen
today in areas with concentrations of poverty. Each community in the region as a whole
should identify and address such barriers that exist within their communities.
AMM Urban Strategies Task Force - Discussion Draft Page 2
General Findings
' Impact
of Problem:
Concentrations of poverty, deteriorated housing, inadequate employment opportunities,. and
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increasing crime rates are currently found in Minneapolis and St. Paul and are growing elements
in the inner first ring suburbs.
Once a certain level of concentration of deteriorated housing occurs and when there is a
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perception that an area is no longer safe, people and businesses with adequate resources tend to
leave the area and public and private disinvestment occurs.
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The future vitality of the metropolitan area as a whole is dependent on maintaining strong,
healthy, and viable core cities.
There is a tendency to stereotype low income people. The term "low income" refers to many
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different kinds of people living in many different circumstances with a variety of needs, and
these people can not all be served by the same solution.
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Racism and prejudice can not be condoned. There can be strength in diversity and communities
need to know how to build on and support diversity of all kinds -- economic, racial, age, etc.
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Findings:
The Twin Cities are not unique in facing problems of urban decay, for the challenge is facing
most major metropolitan areas.
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The causes of urban decay are complex and no single solution exists for solving the problem.
The social, economic, as well as physical aspects of the problem are interrelated.
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Since poverty will not be eliminated, the goal should be to reduce the extent of poverty and to
mainstream people in poverty into society.
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Governments and organizations can only do a certain amount to address the characteristics and
ramifications of urban decay. Individual motivation and assumption of individual responsibility
are key to long term solutions.
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Concentration of poverty and a sense of hopelessness generate increased violence and accelerate
the loss of middle and upper income residents.
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Historical development patterns, age of housing stock, and market trends have led to a
concentration of low income housing and often to neighborhood deterioration.
The creation of barriers to affordable housing, often due to development pressures, is not as big
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a problem as is government's lack of action to address and attempt to prevent or reduce such
barriers.
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By choice or for economic reasons, more people are spending more or most of their lives in
rental housing. Rental housing need not be viewed just as a buffer for owner - occupied, single
family housing, but could be a housing alternative where occupants are encouraged to value,
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take pride in, and invest in their housing choice.
AMM Urban Strategies Tas k Force - Discussion Draft Page 3 '
Tax policies and financing mechanisms favor or subsidize home ownership and encourage
' stability in and commitment to a community. There are not similar policies for rental property.
A significant portion of the demand for low income housing is currently met by using older,
market - obsolete housing located in the central cities and inner ring suburbs.
' Current public policy and market forces favor new structures and new facilities over
redevelopment of existing structures and areas.
Public policy does not currently provide incentives or resources to remove or replace market -
obsolete housing.
' Increasing the supply of low income housing alone will not solve the problems of poverty,
human service needs, and urban decay.
' Dispersion of low income housing reduces the problem of concentration but also creates social
service delivery problems. The creation of newly dispersed low income housing will only
reduce concentration if there is an equivalent elimination of deteriorated housing units in the
areas of concentration.
Many resources necessary to serve low income people with special needs are concentrated in the
central cities.
' The human and social service delivery systems are generally uncoordinated.
There are increasing demands on local governments to address human service needs not
' currently being met.
Lack of job opportunities and training limit the resources available to low income residents to
' increase their ability to be self- sufficient.
The most job growth is occurring in newly developed areas in the suburbs.
' Transportation systems do not link low income housing in the core cities with jobs in the
suburbs.
' Populations in all communities within the metropolitan areas will likely become more diverse.
Few suburban communities have mechanisms in place to address increasing diversity.
' It is as important to look at programs that prevent decay in the inner ring suburbs as it is in the
core cities.
' Organized and empowered neighborhoods have developed models for successfully addressing
elements of urban blight.
I AMM Urban Strategies Task Force - Discussion Draft Page 4
Recommendations
The Urban Strategies Task Force recognizes that government alone can't solve problems related to
concentrations of poverty. But the task force calls for government to take aleadership role and
provide regional opportunities for problem solving, working in partnership with metropolitan area
private non - profit agencies, residents and businesses.
By playing appropriate roles, the various levels of govemment can bring focus to finding solutions
to regional problems:
• State and federal governments should provide resources, set policy, and facilitate coordination.
• Metropolitan Council should provide data and facilitate coordination and regional planning.
• Sub- regional government clusters should participate in joint planning and problem solving
activities in areas of shared concern.
* City and county governments should be responsible for implementation.
The task force has begun to formulate recommendations around the following areas. AMM
members are asked to comment on the direction the recommendations should take and to suggest
specific action items or policies to be considered under each area.
Diversity: Strengthen the ability of communities to support diversity within their community.
(Diversity can refer to racial, cultural, age, ability, or economic diversity.)
Community Building: Empower people in communities to craft solutions to their own
problems.
Jobs: Provide cooperative planning and problem solving on a subregional basis and tie job -
creating economic development efforts to providing affordable housing for those who would fill
those jobs.
Housing: Establish a metropolitan choice housing counseling service. Establish a metropolitan
funding source to assist in affordable housing choice opportunities.
Neighborhood Revitalization: Address redevelopment of blighted neighborhoods with a multi-
faceted approach that considers the desires of neighborhood residents, neighborhood and
surrounding land uses, size, density, transportation impacts, and other relevant considerations in
determining appropriate action steps.
Education and training: To be formulated
Financing alternatives: to be formulated
Social Services: to be formulated
Regional: to be formulated
Transt>ortation: tobeformulated
Ideas for final formatlorganization of recommendations: Recommendations to state
agencies, metropolitan agencies, and local agencies/units of government.
AMM Urban Strategies Task Force - Discussion Draft Page 5
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