E-5. Approval of Resolution Participating in the Livable Communities ActCOY of
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
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Kate Aanenson, Community Development Director
DATE: November 10, 2014 tW
SUBJ: Metropolitan Council Livable Communities Act
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.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
In 2010 the City Council chose to no longer participate in the Livable Communities
Finance
Act. In order for the city to receive the $206,000 for soil contamination on the
Phone: 952.227.1140
Dakota Retail Development from DEED, the city must participate in the Livable
Fax: 952.227.1110
Communities Act. The background below is the from the 2010 staff report which
Park & Recreation
stated the goals for the city. Also, attached is a modified resolution for adoption
Phone: 952.227.1120
which states that there will be no negative impacts on the city for not achieving these
Fax: 952.227.1110
goals, background on the Livable Communities Act and the Action Plan that the city
must complete within the next six months.
Recreation Center
2310 Coulter Boulevard
BACKGROUND
Phone: 952.227.1400
Fax: 952.227.1404
On November 13, 1995, the Chanhassen City Council passed Resolution 1995 -122
Planning &
electing to participate in the local housing incentives account program under the
Natural Resources
Metropolitan Livable Communities Act.
Phone: 952.227.1130
Fax 952.227.1110
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.
Public Works
7901 Park Place
Phone: 952.227.1300
In 1999, $200,000 was awarded for Chanhassen Family Housing to conjunction with
Y g � j
Fax: 952.227.1310
34 townhouse units within the Arboretum Village. However, the award was declined
by the city.
Senior Center
Phone: 952.227.1125
On November 13, 2000, the Chanhassen City Council passed Resolution 2000 -84
Fax: 952.227.1110
electing to participate in the local housing incentives account program under the
Website
Metropolitan Livable Communities Act.
www.ci.chaphassen.mn.us
In 2005, $300,000 was provided for the Gateway Place Development.
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
Todd Gerhardt
Metropolitan Council Livable Communities Act
November 10, 2014
Page 2 of 4
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.
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
Goal (1995 /2000)
Affordability
Ownership
37%
60-69%
30%
Rental
44%
35-37%
35%
Life-cycle
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.
Todd Gerhardt .
Metropolitan Council Livable Communities Act
November 10, 2014
Page 3 of 4
@Taken from Enclosure A of the Metropolitan Council letter to the city
*Based on 34% of the 3,188 units permitted from 1996 — 2010.
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 1,929 units will be
constructed during this time period. 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
Metropolitan Council@
Constructed
Percent of Goal
1,165
Units
Units
%
Affordable Owner
1,251
384
31
Affordable Rental
162
123
76
New Rental
463
414
89
Life -Cycle Housing
1 1,084*
1 1,609
1 148
@Taken from Enclosure A of the Metropolitan Council letter to the city
*Based on 34% of the 3,188 units permitted from 1996 — 2010.
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 1,929 units will be
constructed during this time period. 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.
Todd Gerhardt
Metropolitan Council Livable Communities Act
November 10, 2014
Page 4 of 4
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 these
numbers be incorporated as the lower limits of the LCA housing goals.
The city will need to submit by May 1, 2015 a housing action plan outlining the steps the city
will take to help met its LCA goals.
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.
Staff recommends that City Council adopt the attached resolution electing to continue to
participate in the Livable Communities Act.
ATTACHMENTS
1. Resolution.
2. Livable Communities Act and Requirements for a Housing Action Plan.
g: \plan\met comcil\2014\lca participation memo 2014- 2020.doc
DATE:
MOTION BY:
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION NO: 2014-
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 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, existing affordable and life -cycle housing goals for municipalities participating in
the Local Housing Incentives Account Program expired 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; and
WHEREAS, the City of Chanhassen has received an allocation of affordable and life -cycle
housing goals for the municipality per a letter from Guy Peterson, Metropolitan Council, dated
June 25, 2010; and
WHEREAS, there are numerous variables outside of the control of the City that negatively
impact its ability to achieve these goals, including but not limited to: cost of land and
infrastructure, market demands, availability of employment and affordable and convenient
transportation, and cost of compliance with regulatory requirements at all levels of government;
and
WHEREAS, the City does not believe that sufficient public financial resources are available to
meet its allocated goals; and
WHEREAS, the City of Chanhassen does not have funding available to provide direct financial
assistance to affordable and life -cycle housing projects;
WHEREAS, the City is willing to encourage development that assists in meeting these goals,
but is unable to mandate private investment in providing this housing; and
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 for calendar years 2014 through 2020.
2. Does not agree that the goals provided by the Metropolitan Council are achievable
regardless of the current state of the economy given the current limits on the amount of
properties that can be serviced with sanitary sewer.
3. Establishes the following affordable and life -cycle housing goals for calendar years 2014
through 2020 as provided by the Met Council per its June 25, 2010 correspondence with
the understanding that there shall be no negative impacts on the City for not achieving
these goals:
Affordable Housing Goals Range
Life-Cycle Housing Goals Range
758— 1,166 units
1,165 -2,600 units
4. Will prepare and submit to the Metropolitan Council a plan identifying the actions it
plans to take to meet its established housing goals.
5. Reserves the right to cancel its participation in the program if it is determined by the City
at some future time that participation in the program does result in negative impacts to the
City of Chanhassen.
Passed and adopted by the Chanhassen City Council this day of 2014.
ATTEST:
Todd Gerhardt, City Manager
YES
gApIm\met comcil\2014\2014 resolutim.doc
Thomas A. Furlong, Mayor
NO ABSENT
Metropolitan Council
June 25, 2010
Mr. Todd Gerhardt
City Manager
City of Chanhassen
PO Box 147
Chanhassen MN 55317
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.
w v.metrocouncil.org
390 Robert Street North • St. Paul, MN 55101 -1805 • (651) 602 -1000 • Fax (6511602-1550 • TTY (651) 291 -0909
An Equnl OpP onn fty 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
httv://www.metrocouncil.oWIplanninglindex.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,
n194r�-
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
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.
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:
• Redevelopment and infill development including revitalized inner -city
communities with additional housing and job opportunities; redeveloped
older suburban downtowns and neighborhoods with additional housing
opportunities linked to neighborhood retail and commercial services and
public spaces;
• Development in newer suburban communities, including town centers, that
connects jobs, a choice of housing types, retail and commercial services, and
community activities in close proximity.
• Provide better jobs/housing/transportation connections through added housing
and services in locations well served by transit;
• Assist projects in the predevelopment stage that show potential to evolve into
projects that could be funded with LCDA development grants; and
• Engage communities in working together to solve issues of regional and
subregional concern.
The Local Housing Incentives Account (LHIA) helps preserve and expand lifecycle
and affordable rental and ownership housing in the metropolitan area. LHIA grants have
helped produce new and rehabilitated affordable rental and homeownership housing in 50
communities in the region, promoting the Council's policy to expand and preserve
lifecycle and affordable housing options to meet changing demographic trends and
market preferences, and to support the region's economic competitiveness. In some cases,
a single city may be designated as the grantee for an award, while the actual housing
units may be located in more than one city.
0 From 1996 through 2009, $20.4 million in Local Housing Incentives Account
(LHIA) grants (115 grants to 50 communities) have assisted with gap financing in
proposals that are expected to:
• Leverage nearly $304 million in private investment
• Stimulate over $191 million in estimated other public investment
• Develop 1,888 new affordable rental units
• Rehabilitate 717 affordable rental units
• Develop 462 new affordable ownership units
• Rehabilitate 352 affordable ownership units
• Provide home improvement loans to over 1,100 homeowners
• The Inclusionary Housing Account (IHA) In 2000 and 2004 the Council awarded grants
from a one -time appropriation of funds to support affordable housing developments in which
the reduction of local controls and regulations resulted in reduced development costs. The
account is currently unfunded.
In 2000 & 2004 the Council awarded Inclusionary Housing Account (IHA) grants
totaling almost $4.6 million (13 grants to 8 communities) to assist with gap
financing for projects that were expected to:
Include $125 million in total development investment
Help develop 134 new affordable condominiums and townhomes
Help develop 578 new rental units -271 of which are affordable to lower
income households
Total LCA Awards
From 1996 through 2009, the Metropolitan Council awarded a total of $198,731,459 in 578
grants and loans. Over 90% of these LCA awards have been used to move forward to completion
projects that have leveraged over $9 billion in private and other public investment, created over
24,000 housing units and nearly 31,000 jobs while adding over $62 million to the metro area tax
base. During this timeframe, 52 awards have been relinquished in full or in the majority, for a
net award total of $175,682,248 in 526 grants.
Applicant Eligibility
In order to be eligible to compete for this funding, the LCA requires interested communities to:
negotiate long -term affordable and lifecycle housing goals with the Metropolitan
Council;
have in place an LCA Housing Action Plan to identify and give direction to the city's use
of programs, official controls and fiscal devices to help accomplish these negotiated
goals; and
contribute toward or expend locally a specified amount of local resources for affordable
housing each year they participate in the program. This contribution, or expenditure, is
called the Affordable and Life -Cycle Housing Opportunities Amount ( ALHOA) and is an
amount equal to the community's Livable Communities Demonstration Account levy.
Communities must expend or contribute at least 85% of their annual ALHOA obligation
annually. Communities have some flexibility in determining which local expenditures
fulfill the ALHOA contribution. Examples of ALHOA - qualifying expenditures include
housing assistance, development or rehabilitation efforts, the costs of local housing
inspection and code enforcement, and local taxes to support a local or county Housing
and Redevelopment Authority.
Conclusion
The Livable Communities Act funding has been a valuable tool to help metropolitan area
communities:
• Build stronger communities through infill redevelopment of brownfields, tax base
growth, and new jobs
• Provide neighborhoods throughout the region with more housing opportunities linked to a
mix of neighborhood retail and commercial services, and public spaces
• Increase public /private investment to develop, improve, and preserve affordable and
lifecycle housing
(This document was adapted by Livable Communities staff on 6 -21 -10 from a document
prepared for the 2009 American Planning Association Conference entitled Twin Cities Livable
Communities Projects)
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:
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 Housing 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 Tenn Homelessness Initiative Fund (ELHIF)
• Flexible Financing for Capital Costs (FFCC)
• Land Acquisition for Affordable New Development (LAAND) Initiative
Metropolitan Council
• Local Housing Incentives Account
• Livable Communities Demonstration Account
• Land Acquisition for Affordable New Development (LAAND)
Family Housing 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)
• Ending Long Tenn 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
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.
hi 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
o inclusion of private streets in subdivision development
o sidewalks or non - motorized pathways
o park and trail dedications
o minimum right -of -way, pavement widths and depth for different streets
o storm sewer design - pipe diameter, distance between catch basins, etc.
o street lighting
o trees, tree replacement and foliage
o landscaping costs
o allow alternative construction methods (building materials, exterior surfaces, etc.)
o special or conditional use permits
o development fees for off -site public improvements - e.g. park, trail and road fees
o soil correction variances
o service availability charge (SAC) credits
o issuance of e- permits
o 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
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