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E Rev of Current Housing Trends E MEMORANDUM CITY OF CHANHASSEN TO: Todd Gerhardt. City Manager 7700 Market Boulevard PO Box 147 Chachassen, MN55317 FROM: Kate Aanenson, AICP, Community Development Director DATE: May 3, 2005 ctff· Administration Phone 952.227.1100 Fax: 952227.1110 SUBJ: Housing Update 2005 Building Inspections Phone: 952227.1180 Fax 952227.1190 Attached is the PowerPoint presentation that will be presented to the City Council on Monday night. The purpose of the update is to: Engineering Phone: 952227.1160 Fax: 952.227.1170 1. Review current residential building permits 2. Project future residential development 3. Review the status of the Livable Communities Act Finance Phone: 952227.1140 Fax: 952.227.1110 Park & Recreation Phone 952227.1120 Fax: 952227.1110 RecreationCenler 2310 Coulter Boulevard Phone 952227.1400 Fax: 952227.1404 Planning & Natural Resources Phone: 952227.1130 Fax: 952227.1110 Public Works 1591 Park Road Phone: 952227.1300 Fax: 952.227.1310 Senior Center Phone: 952227.1125 Fax: 952.227.1110 Web Site www.ci.chanhassen.mn.us The City of Chanhassen . A growing community wlih clean lakes, quality schools, a charming downtown, thriving businesses. winding trails, and beautitut parks A great place to live, work. and play CHANHASSEN POPULATION 40,000 10,000 --.---" 35,000 30,000 25,000 20,000 15,000 5,000 -+-Oumhassen _MetCoW1ci1 o 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2030 Population estimate 38,000 (Met Council) Chanhassen 2020 LAND USE Acres % Single Family 7,718 52.3% Mnltifamily 1,027 7.0% Commercial 348 2.4% Office 117 0.8% Industrial 1,269 8.6% Institutioual 1,242 8.4% Parks & Open Space 1,466 9.9% Agricultural 0 0.0% Undevelopable 1.573 10.7% 14,760 100.0% I Housing Tenure 100% 75% 50% 25% 0% 1970 1980 1990 2000 . owner occupied iii renter occupied . seasonal 0 vacant Housing Tenure owner occuDied renter occuoied seasonal vacant 1970 67,70% 25.10% 3.20% 4.11% 1980 68.80% 22.00% 0.70% 8.50% 1990 80.00% 13.80% 0.70% 5.50% 2000 89.60% 10.40% 0.50% \.40% 2010 Est. 90% 10% .25% 1% Source us Census 2 Total Residential Dwellings Units 500 -~ 450 400 . / \ ~ / " f !\ -7\ 350 I \ / / \ ... / 300 --/ \ j ¡. v \ / 250 / \ ./ V V 200 I ~ 150 100 / \ "\ / .. 50 'i-I 0 0 ;;; N M .. ~ ~ ~ ~ ~ :;: ~ N M .. ~ ~ ~ ~ ~ ~ § N M 11 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 2:: :!: :!: :!: :!: :!: :!: :!: :!: N ~ N Residential Building Permits 500 450 400 350 300 250 200 150 100 50 o -----.---. ---~-_.,._-------------_. .------------. -.--- "---- _..._..----~---- 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 a Single Family ..AJtached SF OÞpts . Total Owelllings Staff estimates 300 units annually 3 Single T_ T'" y= Fami]y ""PIa ...... ApBrllnall1 o-ning "" .. " '" " "" " , " ]982 " , " "" .. . " '''' ".. ". " " '" "" '" " ,. " '" "" '" . . '" Chanhassen 1987 '" , " '" 1988 '" " " '" Residential "" '" " " '" Building Permits ,... '" '" '''' '" '" 1980-2004 ,m '" At1Bd1edlinglcfami]y" ". "" '" " '" ",. '" '" '" '''' '" '" " ". ".. no " ,., ,m on " '" "'. '" '" '" "" '" .. m woo '" " '" ,,. "'''' " .. '00 '" woo " '" '00 20m " " '" '" """ " " " 2005 MUSA Bluff Creek Lowlands Existing Land Use ("........._...) GROSS ACRES TOTAL 624 ACRES Agriculture Use (row crop or pasture) 442 Acres Agriculture. Residential 174 Acres Residential Estate 9 Acres Other Area Calculations T.R 212 Right-Of-Way (approximate area) 125 Acres Wetlands (Chanhassen Wetland Inventory-45.2 54 Acres acres and Bernardi Property delineated-8.8 acres) Roodways (100 year floodplain) 78 Acres Steep Slopes (Chanhassen inventory of 18% or 19 Acres greatefs1opes) Bluff Creek Overlay Primary District 200 Acres Net developable 3SOAcres 4 2005 MUSA Bluff Creek Lowlands LAND USE TOTAL NET PERCENTAGE MAXIMUM PROJECT DESIGNATION DEVELOPABLE OF INTENSITY OF MAGNITUDE ACRES LAND USE DEVELOPMENT DATA Medium Density 132 38% 8du1acre 528·1056 units ResidentiaULow 8 staff has been Density Residential directing < 4u1a Medium Density 66 18% 8du1acre 528 units Residential Office 17 5% 0.35 FAR 270,00 square feet Qfficellndustrial 70 20% 0.30 FAR 920,500 square feet Bluff Creek 45 13% Primary Zone ""k 20 6% p"k Net Acres Total 100% 350 .. Any Ðislrict 112 SCOOoI has beeneHminated from tæ 200S MUSA Future Residential Developments · Sands Company - Apartments - Townhouses · Lake View Hills . Southwest Metro Hub · KIinge1hutz, John · KIinge1hutz, Al 117 22 300 24 100 50 5 Why was the Livable Communities Act Established? . 1995 a landmark housing discrimination settlement call the Hollman Consent Decree was started because of a severe housing scarcity for lhe region's poor. The Hollman settlement mandated the demolition of 770 subsidized rental units in and around the Sumner- OlsoniGlenwood-Lyndale projects, tbe largest public housing in the Upper Midwest. These units were to be distributed throughout the Metro Area. . The state legislature was responding to this law suit and the concentration of affordable housing in the central cities. Legislators such as Myron Orfield were critizing the suburbs especially the southwest "fertile crescent" as discriminating against affordable housing. A bill called the Livable Communities Act was a compromise law that gave incentives to those communities that were willing to agree to set goals for housing diversity and affordability. What is the Livable Communities Act? . Approved by the Minnesota Legislature in 1995. . The goal of the Livable Communities Act (LCA) is to stimulate housing, economic and community development in the seven-county metropolitan area. The LCA authorizes the Metropolitan Council to levy funds to create affordable housing; promote redevelopment through cleaning up polluted sites; and to develop compact, high density neighborhoods that are both pedestrian and transit-friendly to local residents. Participation in the the LCA is voluntary. The Metropolitan Council is required to report to the Minnesota Legislature on the progress made by metro communities toward providing affordable life-cycle housing. 6 Definition of Life-cycle and affordable housing . Life-cycle housing must have enough variety in its housing stock to support the physical needs and fit the financial resources of residents throughout their lives. It includes rental units for young people, starter homes for first time homebuyers, move-up units and empty nester units. . Affordability is based on the Census Bureau and federal housing subsidy standard defining a housing unit as affordable if residents pay 30% or less of their household income on housing costs. The numbers are adjusted every year. The Metropolitan Council also uses data compiled by the Department of Housing and Urban Development, mortgage eligible guidelines and housing needs. In February 2003, the median income for the Metropolitan area was $75,300. Why does Chanhassen participate in the Livable Communities Act? Housing diversity has always been a goal in the city's Comprehensive Plan. _ 1982 Goal "To provide housing opportunities for all residents. consistent with the identified community development goals." _ Policies "The .. city will attempt to provide adequate land for the projected housing growth and to provide housing opportunities for persons of a range of incomes." _ Efforts should be made to provide subsidized housing where needed. to provide a balance to the generally high cost of new housing. New construction programs may provide a source of such housing. _ The city should promote the use of existing programs designed to reduce land costs for developers of low and moderate income housing. _ Subsidized housing should be given equal site and planning consideration to non· subsidized housing units and should not be placed in inferior locations or in areas that are not provided with necessary urban service. _ The development of alternative types of housing such as patio homes, townhouses and quadplex should be permitted to supplement conventional single family homes and apartments providing that they are compatible with appropriate land use practices. _ Housing development methods such as PUD's. cluster development and innovative site plans and building types should be encouraged to help conserve energy and resources for housing. 7 The City's participation in the LCA . The city has been in the paper in the mid 1990' s for turning down a townhouse project, the city was labeled in the paper as "elitist." Town and Country Homes was rejected because it was industrial land and the city did not want to fe-guide it residential for tax implication reasons. The city was given a black eye on this issue; the city rightly argued that zoning for housing should occur at the local level. The city wants to maintain its eligibility for funding from the Metropolitan Council and scoring for any State of Minnesota project. The city is cognizant of its role in the region - the city has and is continuing to create a significant work force in the region. Housing is not just a social issue but also a future economic growth and stability issue. The city's strategic plan and recent "State of the city 1999" stated that the city "will encourage a broad range of housing options." What are the city's LCA Goals? Table 2-3 CITY INDEX BENCHMARK GOAL Allordablllty Ownership 37% 60-69% 30% Rental 44% 35-37% 35% LIfe-Cycle Type (non-single 34% family detached) 19% 35-37% 1991 Comp Plan OWner/Renter Mix 85/15% 67-75/25-33% 80-90 I 20-10 Density Single Family 1.5/acre 1.8-1.9/acre 1.8 Detached Multi-family 11/acre 10-141acre 9-10 Overall Average 3.3 8 Tie of the LCA to the Comprehensive Plan The Metropolitan Land Planning Act requires all communities to include a housing element in their comprehensive plans and establishes the Council' 5 responsibility for reviewing the housing element of the plan. Elements of the Housing Plan must include: _ Affordable housing _ Mix of housing types _ Development/redevelopment densities mix use _ Employment housing linkages _ Concenttation of lower-cost andlor substandard housing _ Comparison with other communities _ Relations to regional plans and policies _ Housing policies on residential land use control, local housing implementation activism and maintenance The plan must include "official controls and land use planning to promote the availability of land for development of low and moderate income housing (Minn. Stat Sec.473.859. Subs. 2) Lifecyc1e Housing Implementation Program! Action Plan _ Housing program - Local controls _ Local fiscal devices that can be used to assist or facilitate Assisted . Financial Assistance from other sources other than the developer City EDA Tax Increment Financing - Housing District Carver County HRA Community Development Block Grant Minnesota Housing Finance Agency Section 8 Assistance Program Metropolitan Council HRA Habitat for Humanity 9 What have we done to meet the Goals? . Market rate (there is no assistance from the city) - Mission Hills - Autumn Ridge - Oak Pond/Oak Hills - Prairie Townhomes - Walnut Grove - Lake Susan Townbomes - Lake Susan Apartments Assisted (there has been financial assistance from the city) _ Centennial Hills - North Bay _ Presbyterian Homes Chanhassen Affordable Housing Goals under the LCA (Nov 2002) Owner Occupied New Construction Project Year Units Mission Hills 1995 200 North Bay 1995 35 Autumn Ridge 1996 112 Walnut Grove 1997 128 Arboretum 2001-2003 227 Village Powers Ridge 2003 82 Condo Total 784 10 Rental New Construction Project Year Units Centennial Hills 1996 65/39 Lake Susan 2000 162 Apartments Powers Ridge 2001 262- Apartment 100 built 2002 Presbyterian 2003 161/33 uoder Homes construction Total 650/72 ·totaJproposed Affordable City financial assistance to date has been on three projects - two rental and one owner occupied. Centennial HilIs .All units subsidized at approximately $1,500 (no property taxes) -Subsidy approximately $61,199 per unit). This subsidy is based on tax forgiveness. TIris project pays $28,000 a year in taxes versus a market rate project would pay approximately $130,000. «Example $130,000_$28,000=$102,000/65 units=1,569 tax per unit· 39 affordable units::: $61,199.00» -Approximately $300,000 is being held in escrow should the project short fall occur (30 years) oLand Acquisition $100,000 North Bav $700,000 (not including interest) subsidy of 35 units through the HRA for the creation of a housing district -18 units will be for first time homebuyers ($95,000) -17 units will be affordable by the LCA standards (under $120,000) .Subsidy approximately $20,000 per unit Presbvterian Homes 33 affordable through TIP $1,060,000 over 8 years 2006-2008. First 6 years they get 90% of increment and last 2 years they get 50% of increment. 11 Chanbassen Affordable Housing Goals Progress under the Livable Communities Act (Nov. 2003) Goals Long term Results Percent of Goals To-Date Long-Term 1995-2010 Goals Owner- Occupied 1,562 units 784 units 50% New Construction Rental 650 total units New 202 units 72 affordable 36% Construction units Or Ac..uisition Affordable Total 1,764 units Chanhassen 2020 Minnetonka Acres % Acres % Single Family 7,718 52.3% Single Family 8,956 50.0% Multifamily 1,027 7.0% Multifamily 911 5.1% Commercial 348 2.4% Commercial 735 4.1% Office 117 0.8% Office 176 1.0% Industrial 1,269 8.6% Industrial 697 3.9% Institutional 1,242 8.4% Institutional 536 3.0% Parks & Open Space 1,466 9.9% Parks & Open Space 1,459 8.2% Agricultural 0 0.0% Agricultural 0 0.0% Undevelopable 1573 10.7% Undevelopable 4430 24.7% 14,760 100.0% 17 ,900 100.0% 12 Cbaska Oakdale Acres % Single Family 1,969 21.3% Acres % Multifamily 220 2.4% Single Family 2,756 38.1% Conunercial 164 1.8% Multifamily 552 7.6% Office 18 0.2% Commercial 313 43% Industrial 510 5.5% Office 66 0.9% Institutional 328 3.6% Industrial 212 2.9% Institutional 303 4.2% Parks & Open Space 1,702 18.5% Parks & Open Space 676 9.4% Agricultural 1,413 15.3% Agricultural 221 3.1% Undevelopable 2.900 31.4% Undevelopable 2.128 29.4% 9,224 100.0% 7,227 100.0% Savage Woodbury Acres % Acres % Single Family 2,770 26.4% Single Family 5,474 23.9% Multifamily 178 1.7% Multifamily ,1090 4.8% Commercial 130 1.2% Commercial 572 2.5% Office 0 0.0% Office 104 0.5% Industrial 762 7.3% Industrial 229 1.0% Institutional 160 1.5% Institutional 531 2.3% Parks & Open Space 1,550 14.8% Parks & Open Space 1,917 8.4% Agricultural 503 4.8% Agricultural 7,124 3\.1% Undevelopable 4439 42.3% Undevelopable 5.852 25.6% 10,492 100.0% 22,893 100.0% 13 Andover Edina Acres % Acres % Single Family 6,369 28.6% Single Family 5,453 53.3% Multifamily 49 0.2% Multifamily 652 6.4% Commercial 81 0.4% Commercial 401 3.9% Office 9 0.0% Office 352 3.4% Industrial 124 0.6% Industtial 396 3.9% Institutional 230 1.0% Institutional 478 4.7% Parks & Open Space 1,156 5.2% Parks & Open Space 1,518 14.8% Agricultural 2,669 12.0% Agricultural 0 0.0% Undevelopable 11613 52.1% Undevelopable 975 9.5% 22,300 100.0% 10,225 100.0% 14