A-5. Housing Action Plan •
MEMORANDUM A- 5-
CITY OF TO Todd Gerhardt, City Manager
CHANHASSEN FROM. Bob Generous, Senior Planner
7700 PO Market
Boulevard
DATE. Apnl 27, 2015
47
Chanhassen,MN 55317
SUBJ Housing Action Plan
Administration Kate Aanenson, Community Development Director, will be presenting this item to
Phone 952 2271100
Fax 952 2271110 City Council as a discussion item. The Housing Action Plan is scheduled for
adoption by the City Council at the May 11, 2015 City Council meeting
Building Inspections
Phone 952 2271180 BACKGROUND
Fax 952 2271190
As part of the City's participation in the Livable Communities Act with the
Engineering Metropolitan Council, the City is required to adopt a Housing Action Plan by June
Phone 952 2271160
Fax 952 2271170 2015. Much of the action plan items are already contained within the City's 2030
Comprehensive Plan with the housing goals shown in Figure 4-18 of the Housing
Finance Element of the plan
Phone 952 2271140
Fax 952 2271110 PLANNING COMMISSION
Park&Recreation
Phone 952 2271120 Staff presented this item to the Planning Commission on Apnl 21, 2015 as a
Fax 952 2271110 discussion item. Staff pointed out that we currently do many of the items outlined in
the Housing Action Plan No additional recommendations were forwarded from the
Recreation Center Commission They did note that staff will have to work with the developers and other
2310 Coulter Boulevard agencies to develop the partnerships necessary to implement these goals
Phone 952 2271400
Fax 952 2271404 ACTION
Planning&
Natural Resources Staff requests that City Council review and provide comments and direction on the
Phone 952 2271130 adoption and implementation of the Housing Action Plan
Fax 952 2271110
ATTACHMENTS
Public Works
7901 Park Place 1 Figure 4-18 Livable Communities Act.
Phone 952 2271300
Fax 952 2271310 2 Planning Commission Memorandum Dated April 21, 2015
Senior Center g\plan\inet council\Ica 2014-2020\hap cc cover discussion docx
Phone 952 2271125
Fax 952 2271110
Website
www ci chanhassen mn us
Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow
C CD a)
CQ ® L U
co co
tZ
C 0 0 0 E (NI 0 ci)
"' Cr)
0 CO CO M U 0
W r
r CA
T.
o U 2
i CO CI3 as
CO '4: '.&'. ,4,:.) M N
C`7 M CV = 'c
.0 co
V r r i C
C C(O M M d-
Cp o? O
r
m v
L
W
al coV
C -o t
Q) i� 4-
> C1)C
-
0 Ln
yr
4 a)
CA CD 0
_ ca)
r"t+ = V
0.-1E >
ID
OC..) ll U
w a 0
�� L 0
torso J
�' 1' s C a) E >. u
w
'id MOW OD 0 Ce
a 4
.44:4Q J
TO: Planning Commission
CITY OF FROM: Kate Aanenson, AICP, Community Development Director
CHANIIASSEN DATE: April 21, 2015
7700 Market Boulevard SUBJ: Housing Action Plan
PO Box 147
Chanhassen,MN 55317
Beginning in 1995 the City of Chanhassen was a member of the Livable
Administration Communities Act (LCA), a Housing Policy Program of the Metropolitan Council
Phone 952 2271100
Fax 952 2271110 For the years 2010-2014 the city was not a participant in the LCA program In
December of 2014 the city adopted a resolution of support for the program As part
Building Inspections of participation in the LCA, the city is required to adopt a Housing Action Plan
Phone 952 2271180 (HAP). This plan is to be submitted to the Metropolitan Council within six months of
Fax 952 2271190 participation
Engineering
2271 The city was one of the original beneficiaries of the LCA as a part of the Villages on
Phone 952 2271160
Fax 952 2271170 the Pond development The grant money received from the Metropolitan Council
was used for public improvements Most recently the city supported the Gateway
Finance Apartments for 48 affordable units. This project was part of the state of Minnesota
Phone 952 2271140 Tax Credit Project
Fax 952 2271110
The city has reviewed the standards for lot sizes, setbacks and private streets as a tool
Park&Recreation to assist affordability The city has continued to participate in the plat monitoring
Phone 952 2271120
Fax 952 2271110 program with the Metropolitan Council. The information allows staff to track
development densities and other statistics
Recreation Center
2310 Coulter Boulevard This HAP plan is the similar to the city's original submittal in 1995 and includes the
Phone 952 2271400 following information.
Fax 952 2271404
Planning& • Housing Goals from 2030 Comprehensive Plan
Natural Resources • Summary of Demographic findings from Maxfield Research dated 2014
Phone 952 2271130 • List of partners and opportunities to provide affordable and lifecycle housing
Fax 952 2271110
Public Works The item is for your review; no formal action is required but any comments you have
7901 Park Place will be forward to the City Council. The City Council will be discussing this item at
Phone 952 2271300 their April 27, 2015 work session
Fax 952 2271310
ATTACHMENTS
Senior Center
Phone 952 2271125 1 Housing Action Plan.
Fax 9522271110 2 Metropolitan Council Resolution No 2014-35
Website 3. Metropolitan Council Livable Communities Act—Ownership and Rent
wwwci chanhassen mn us Affordability Limits for 2014
4. Metropolitan Council Housing Policy Plan Executive Summary dated December
10, 2014
g\plan\rnet council\lca 2014 2020\hap staff report docx
Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow
HOUSING ACTION PLAN
As a part of the Livable Communities Act the City of Chanhassen has prepared a Housing Action
Plan The city's housing goal and policies as stated in the comprehensive plan are the first
element of the action plan
Chanhassen's Comprehensive Plan Goals and Policies
Goals:
• Provide housing opportunities for all residents, consistent with the identified community
goals.
• Balanced housing supply, with housing available for people of all income levels
• Accommodation of all racial and ethnic groups in the purchase, sale, rental and location
of housing within the community.
• A variety of housing types for all people in all stages of the life cycle
• A community of well-maintained housing and neighborhoods, including ownership and
rental housing.
• Housing development that respects the natural environment of the community while
striving to accommodate the need for a variety of housing types and costs
• The availability of a full range of services and facilities for its residents, and the
improvement of access to a linkage between housing and employment
Policies:
• Continue to enforce the City Code regarding property maintenance and to maintain the
existing housing stock
• As state and federal funding permits, efforts should be made to provide low and moderate
housing where needed, to provide balance to the generally high cost of new housing
• The City should promote the use of state and federal programs to reduce land costs for
developers of low and moderate income housing
• The City will cooperate with other governmental units and public agencies to streamline,
simplify, and coordinate the reviews required for residential development to avoid
inflating the cost of housing due to unnecessary delays in the review process
Chanhassen
Housing Action Plan
Page 2
• The City will continue to encourage the development of affordable housing; the City may
increase the permitted net density of a project by 25 percent The"bonus" units must
meet affordable housing criteria as defined by the City Developers shall be required to
enter into an agreement ensunng the affordability of the units
• Subsidized housing should be given equal site and planning considerations to non-
subsidized housing units and should not be placed in infenor locations or in areas that do
not provide necessary urban services including transit and commercial services
• The City will continue to provide alternative types of homes including smaller lot homes,
townhouses, etc that will supplement the conventional single-family homes
• New residential development shall be discouraged from encroaching into natural
resources or physical features
• Housing development methods such as PUDs, cluster development, and innovative site
plans and building types, should be encouraged to help conserve energy and resources for
housing
• Citizen participation in developing plans and implementing housing programs is
encouraged in redevelopment, rehabilitation, and in planning for the future
• While density is given by a range in the comprehensive plan, the City shall encourage
development at the upper end of the density range.
• The City will promote the mixing of housing densities within projects in order to provide
a wide range of housing styles and types. Such mixed densities must provide appropriate
transitions for existing development
• The City will continue to participate in the Livable Communities Act of 1995 as stated in
the Housing Plan
• The City will promote the integration of life-cycle housing opportunities throughout the
community Affordable and subsidized housing shall not be overly concentrated in one
area of the City.
In June of 2014, Maxfield Research completed a Comprehensive Needs Assessment for Carver
County Following is a summary of the City Demographic as well as housing recommendations
for the City of Chanhassen.
Chanhassen
Housing Action Plan
Page 3
CARVER COUNTY HOUSING STUDY CONCLUSIONS AND RECOMMENDATIONS
Chanhassen -Summary of Demographic and Housing Findings
Key demographic and housing market findings for Chanhassen are highlighted below. For a
comparison,figures for Carver County are shown as well Chanhassen is Carver County's largest
community,but because Chanhassen is gradually becoming more fully-developed,growth will
begin to slow. The population in Chaska surpassed that of Chanhassen in 2010. The current
housing supply is predominantly owner-occupied(a homeownership rate of 87%in 2010). With
its close proximity to lobs and shopping,there is strong demand for all housing products, how-
ever.
Demographic Summary
Chanhassen Carver County
Population 12314/2020/2030/20401 25.580/ 31,715 /36,055 39,560 99,426 /122,425 / 145,626/ 268,829
Househutds(2014/Kao 2430/20404 13.960 / 11.575 /13,855/15.520 35,448 / 45,195 / 58.S73/ 705:5
Household Growth 12014 to 2040) 6,560 35,077
Median Household Income(30141 $108,157 Ssaclo
Median Age of Population 12010) 39.3 36.3
Homeownership Rate(2010( 86.8% 81.5% II
Current Housing Characteristics Summary
for-Sale llousinrt
Chanhassen Carver County
Average resale price of esistimg single-family home(2013) 5360,000 $270,000
Average resale price of enisti rig multi-family homes(2013) $163,700 5128,500
Average sale price of new construction sinr-family homes 5385,179 5310,80-
Average number of singlr-family homes,built annually since 2006 87 355
Average sale price of new construction)multifamily homes $322,076 5225,000.
Average number of multifamily homes built annually since 2006 54 158
Rental Hemline
Chanhassen tnrvcr County
Number of surveyed units and average monthly rent for market rate.unit!.
One-bedroom units 223 / 5754 611 / 5763
Two-bedroom units 337 / 51,086 1.220/ $973
Three-bedroom units 29 / $1,473 220/ $1,473
Market rate vacancies/vacancy rate 18 / 2.9% 42 / 2 9%
Number of affordable/subsidized units 61 680
Affordablehubsidi,erf vacancies/vacancy rate 0.0% 12 / 1 8%
Senior[lousing
Chanhassen _ Carver County
Units Vacant' %Vac. Units Vacant` %Vac.
Market rate senior housing
Adult ownership 0 -- 40 0 0.0%
Adult rental 0 -- 0 - -
Congregate 90 0.0% 195 0 0.0%
Assisted living 53 0.0% 328 29 8.8%
Memory Care 18 0.0% 112 16 14.3%
Subsidized/Affordable rental housing 65 0.0% 639 14 2.2%
•Vacant units at projects in their initial lease-up are not included in ties figure.
MAXFIELD RESEARCH INC. 126
Chanhassen
Housing Action Plan
Page 4
CARVER COUNTY HOUSING STUDY CONCLUSIONS AND RECOMMENDATIONS
Chanhassen Recommendations
Chanhassen is projected to add 6,560 households between 2014 and 2040; most of this house-
hold growth is expected to occur over the next ten years as Chanhassen continues to build out.
Currently,single-family homes remain the favored housing product Most of the housing added
between 2015 and 2030 to meet demand will be multifamily on in-fill/redevelopment parcels
since Chanhassen will have exhausted most of its vacant land by then. Because Chanhassen is
located near job centers in Carver and Hennepin Counties,demand for housing from higher-
income households is strong. Thus, most of the new housing added through 2040 will be mar-
ket rate,although demand also exists from low-and moderate-income households. Existing af-
fordable housing in Chanhassen is fully occupied.
Chanhassen Projected Housing Demand,2014 to 2040
Housing Demand
6,560
Ownership Senior Rental
4,479 1,206 875
1 1 1 1
Single-famil Multifamily Adult Owned Adult Rental Service-Em id -l : 'urd. Sub Market Rdle
1,971 2,508 310 580 316 285 590
Note Because households are mobile and are willing to seek out various housing products in adjacent
communities,these demand figures may experience fluctuations Detailed demand calculations can
be found in Tables 30 through 35
Demand was calculated for 875 general-occupancy rental units between 2014 and 2040. From
2014 to 2020,there is demand for 230 units of general occupancy rental housing with the re-
mainder of demand occurring between 2020 and 2040. Strong job growth in the area and de-
creasing vacancies in existing buildings support the short-term demand
Of the total rental demand, about one-third is need from low-and moderate-income house-
holds seeking affordable housing. While Chanhassen has some older rental buildings with
moderate rents,there are no affordable or subsidized buildings There is currently unmet need
in Chanhassen for affordable workforce housing units
Summerwood of Chanhassen has been well-received in the market and all of its units are occu-
pied. Although demand for service-enhanced units is currently experiencing some softness in
the market in Carver County,we anticipate that this segment will strengthen toward 2020 and
beyond because of the aging of the population Demand is projected for 316 market rate sen-
ior housing units with services between 2014 and 2040,with most of this demand occurring af-
ter 2020.
N1AXFIELD RESEARCH INC. 127
Chanhassen
Housing Action Plan
Page 5
Affordable Housing Goals
The following table is the city's estimated housing goals as determined by the Metropolitan
Council
New Affordable Units 758— 1,166 New Life-Cycle Units 1,165—2,600
The following housing activities will be taken either by the city, the Carver County CDA or
other housing agencies and organizations as well as private housing developers
City
The following are possible actions the city should take to pursue lifecycle affordable housing.
• Continue to review city ordinances, especially the PUD ordinance and lot size/setback
and design standards.
• Pursue upper limits of zoning on new developments where there is a density range
• Provide for mixed-use projects with transit components
• Enforcement of a local housing maintenance code
• Housing remodelers fair
• Potential for assessing sewer development fees
• 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.
City HRA
The city through its housing authority will explore all avenues for financing affordable housing,
including tax-increment financing
• Conduit revenue bonds
• General obligation bonds
• Credit enhancements
• Low-income housing Tax Credits
• Local fee waivers or reductions
• Local tax abatement
Carver County CDA
The city will seek to continue to partner with the County CDA with the following programs.
• Low income Housing Tax Credits (LIHTC) MN Housing
• Tax Exempt Bonds Carver County HRA
• Carver County Community Land Trust(CCCLT)
Chanhassen
Housing Action Plan
Page 6
• "Home Stretch" is an approved 8-hour homebuyer education course required in order to
qualify for many down payment assistance programs or other special mortgage loans.
• Pre-Purchase/Home Ownership: Informational workshops &individual counseling on
the home purchase process.
• Budget and Credit Counseling: Individual financial needs
• Foreclosure Prevention: Assistance on work-out options with lenders
• Home Improvement Loans: Deferred and low-interest rate loans
Metro HRA
Carver County CDA no longer administers the Section 8 Voucher program but rather works with
Metro HRA to administer the program Currently here are 40 housing choice vouchers in
Chanhassen.
Minnesota Housing Finance Agency
• Minnesota Mortgage Program
• Community Activity Set Aside(CASA) Program
• Homeownership Assistance Fund
• HOME HELP
• Homeownership Opportunity Program
• Land Acquisition for Affordable New Development(LAAND) Initiative
• Housing Trust Fund Rental Assistance(HTF-RA)
• Bridges
Twin Cities Habitat for Humanity
Chanhassen has two houses built by Habitat for Humanity and will continue to seek other
opportunities to partner with Habitat.
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)
Chanhassen
Housing Action Plan
Page 7
• Publicly Owned Housing Program (POHP)
• Ending Long Term 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
Housing Maintenance Rehabilitation and Redevelopment Programs
The city will work with Carver County's Fix Up Program
Fix up your home with help from Minnesota Housing
• Affordable, fixed interest rates with lower interest rate for energy conservation and
accessibility improvements
• Higher loan-to-value ratio on secured loans than traditional loan products
• Longer repayment terms mean lower payments
• Hire a contractor or do the work yourself
• No prepayment penalty
• Single family homes, duplexes, triplexes and fourplexes are eligible You must own and
occupy the property to be improved
Loan Maximum Maximum Income
Loan Repayment
Type Limit
Amount Term
Secured $50,000 10 to 20 years $99,500
Secured $15,000 10 to 20 years No income limit
Energy/Accessibility
Unsecured $15,000 10 years $99,500
Unsecured $15,000 10 years No income limit
Energy
Chanhassen
Housing Action Plan
Page 8
Repair, remodel and make energy saving improvements including.
• Porches and decks
• Remodel a bathroom or kitchen
• Add a bathroom or finish basement
• Furnace or boiler and central air conditioning*
• Windows* and doors
• Insulation,* attic air sealing*
• Water heater*
• Siding and roofing
• Septic system upgrades
• Mold and radon mitigation
• Accessibility improvements*
• Basic garage, if none exists
* Choose Energy Star windows,furnace, central air and/or water heater, insulation and air
sealing, and/or basic accessibility improvements and you may be eligible for a lower interest
rate
g\plan\met council\lca 2014-2020\housmg action plan 2 docx
METROPOLITAN COUNCIL
390 Robert Street North,Saint Paul,Minnesota 55101
RESOLUTION NO.2014-35
RESOLUTION ADOPTING AFFORDABLE AND LIFE-CYCLE HOUSING GOALS
FOR THE CITY OF CHANHASSEN WHICH ELECTED TO PARTICIPATE IN THE
LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE
METROPOLITAN LIVABLE COMMUNITIES ACT
CALENDAR YEARS 2011-2020
WHEREAS,the Metropolitan Livable Communities Act(Minnesota Statues sections 473.25 to
473 254) 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 I-Iousing 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,the Metropolitan Council must adopt, by resolution after a public hearing,the
negotiated affordable and life-cycle housing goals for each participating municipality, and
WHEREAS,a metropolitan-area municipality that elects to participate in the Local Housing
Incentives Account Program must do so by November 15 of any year; and
WHEREAS,the City of Chanhassen adopted a resolution in November 2014 reflecting its
intention to participate in Local Housing Incentives Account Program by the November 15
deadline stated in Minnesota Statutes section 473 254, and
WHEREAS,the Metropolitan Council has negotiated affordable and life-cycle housing goals
that are consistent with and promote the policies of the Metropolitan Council as provided in the
adopted Metropolitan Development Guide, with the City of Chanhassen, which is electing to
Page 1 of 2 Pages
participate in the Local Housing Incentive Account Program for calendar years 2011 through
2020,and
WHEREAS,on December 15,2014,the Metropolitan Council's Community Development
Committee held a public hearing on the negotiated affordable and life-cycle housing goals for the
City of Chanhassen.
NOW,THEREFORE,BE IT RESOLVED THAT:
The Metropolitan Council adopt the affordable housing unit goal range of 758-1,166 units and
life-cycle housing unit goal range of 1,165 -2,600 units for the City of Chanhassen for the period
2011 through 2020 These housing goals were adopted by the City of Chanhassen,as part of its
election to participate in the Local Housing Incentives Account Program under the Metropolitan
Livable Communities Act.
Adopted this 14th day of January, 2015
;el
usan Haigh,Chair Emi y Getty Recording Secretary
v
Page 2 of 2 Pages
Livable Communities Act — Ownership and Rent Affordability Limits for 2014
The Council's definition of"affordable housing" incorporates the upper limit of monthly rents and home-
purchase prices for housing referred to in Framework policy as being affordable for low- and moderate-income
families These income limits for affordability have been a part of the foundation for goals negotiations and for
monitoring of goals progress with Livable Communities Act (LCA) participating cities since 1995, and they have
been the basis for counting all new affordable units in the regional housing stock (i e , all new publicly-assisted
and market rate units affordable to low-and-moderate income households)
Through 2010, the Council had identified a purchase price ceiling or target maximum price for owner-occupied
homes based on what a family of four with an income at or below 80 percent of area median income (AMI)
could afford at prevailing interest rates For affordable rental units, the Council had previously used the
maximum monthly rents affordable for households at 50 percent of AMI.
For units constructed in 2011 and beyond, however, the Council is using a consistent income limit based on
what a family of four with an income at or below 60 percent of AMI can afford to pay in monthly housing costs
for either rental housing or mortgage costs (including principal, interest, property taxes and home insurance)
This level is consistent with the funding criteria preference for homeownership units affordable at 60 percent of
AMI as adopted by the Metropolitan Housing Implementation Group (MHIG) in 2001 and is a commonly used
threshold for affordability in federal, state and local housing programs
Because projects serving persons at or below 30% of AMI receive priority for Local Housing Incentives
Account grants, this document includes monthly housing costs that are affordable for a family of four at that
level, along with monthly housing costs that are affordable for a family of four whose income is 50 percent of
AMI (which HUD classifies as "very low income")
For 2014, HUD is calculating an area median income for a family of four of$82,900, up slightly from the 2013
AMI of$82,300, but down from the 2012 value of$83,900
Area Median Income for a family of four
Minneapolis-St Paul Metropolitan Statistical Area
U S Department of Housing and Urban Development
2014 2013 2012
Area median income $82,900 $82,300 $83,900
60% of area median income $49,750 $49,400 $50,340
50% of area median income $41,450 $41,150 $41,950
30% of area median income $24,850 $24,700 $25,150
Applying an interest rate of 4 375 percent (this is the interest rate offered in mid-March 2014 by Minnesota
Housing Finance Agency's mortgage revenue bond program for first-time homebuyers)on a 30-year fixed-rate
home loan for 2014 and other standard mortgage assumptions to the 60 percent of AMI amount, adjusted for a
family of four ($49,740), yields an affordable purchase price of$166,000 in 2014 These assumptions are a 29
percent housing debt to household income ratio, 3.5 percent down-payment, a property tax rate of 1 25 percent
of property sales price, mortgage insurance at 1 15 percent of unpaid principal, and $100/month for hazard
insurance This compares to a 2012 limit of$171,500 and a 2013 limit of$177,500 Increasing mortgage
interest rates are driving the decrease in purchase price affordable at these income limits for 2014 despite the
slight increase in AMI
Page-1 METROPOLITAN
COUNCIL
To implement the Livable Communities Act in 2014, the Metropolitan Council will use as the upper limit of
affordability for ownership purchase price and monthly rents, the following dollar amounts
2014 HOMEOWNERSHIP
Household Income Level• Affordable Home Price
60% of area median income ($49,740) $162,500
50% of area median income ($41,450) $133,000
30% of area median income ($24,850) $74,000
2014 RENTAL HOUSING
Monthly gross rent Monthly gross rent Monthly gross rent
including tenant-paid including tenant-paid including tenant-paid
utilities, affordable at utilities, affordable at utilities, affordable at
30 percent of area 50 percent of area 60 percent of area
Bedroom size. median income median income median income
Efficiency $435 $727 $872
1 bedroom $466 $779 $935
2 bedrooms $560 $935 $1,122
3 bedrooms $646 $1,078 $1,284
4 bedrooms $721 $1,202 $1,445
Page-2 I METROPOLITAN COUNCIL
HOUSING POLICY PLAN
Executive Summary
„ , .r
S
1
_
III IIL' II I I;�I L `'+ ;
' '-' 10*VIVI ' - AMA
...... ...,.,.
.-IL11.0.
41
METROPOLITAN
COUNCIL
Adopted December 10, 2014
The Council's mission is to foster
efficient and economic growth for
a prosperous metropolitan region
Metropolitan Council Members
Susan Haigh Chair Edward Reynoso District 9
Katie Rodriguez District 1 Marie McCarthy District 10
Lona Schreiber District 2 Sandy Rummel District 11
Jennifer Munt District 3 Harry Melander District 12
Gary Van EyII District 4 Richard Kramer District 13
Steve Elkins District 5 Jon Commers District 14
James Brimeyer District 6 Steven T Chavez District 15
Gary L. Cunningham District 7 Wendy Wulff District 16
Adam Duininck District 8
The Metropolitan Council is the regional planning organization
Melo u,,, for the seven-county Twin Cities area The Council operates the
Wallington regional bus and rail system, collects and treats wastewater,
coordinates regional water resources, plans and helps fund regional
parks, and administers federal funds that provide housing
CarAy opportunities for low- and moderate-income individuals and families
The 17-member Council board is appointed by and serves at the
Carew C41.„ pleasure of the governor
On request,this publication will be made available in alternative formats to people with
disabilities Call Metropolitan Council information at 651-602-1140 or TTY 651-291-0904
Adopted December 10, 2014
Executive Summary
This Housing Policy Plan describes multiple strategies that advance the Metropolitan Council's overall
housing policy priority
Create housing options that give people in all life stages and of all economic means
viable choices for safe, stable and affordable homes
A range of housing options across the region benefits individuals, families, and local governments.
Viable housing choices allow households to find housing affordable to them in the communities where
they want to live Like a diversified stock portfolio, a diversity of housing types can increase local
government resiliency through changing economic climates
Why a Housing Policy Plan?
The Council has developed this Housing Policy Plan to provide leadership and guidance on regional
housing needs and challenges, and to support Thnve MSP 2040, the regional development guide the
Council adopted in May 2014 It is the first freestanding housing policy plan adopted by the Council
since 1985
This Housing Policy Plan provides an integrated policy framework that unifies the Council's existing
roles in housing and identifies opportunities for the Council to play an expanded role to support housing
in the region These roles include
• Reviewing local comprehensive plans for the housing element, the housing implementation
program, and minimum or maximum residential densities
• Funding housing development through the Metropolitan Livable Communities Act (LCA) grant
programs Since the Act's enactment in 1995, the Council's LCA grants have helped create
18,660 units of affordable housing in communities across the region.
• Working with local governments to define their share of the metropolitan area need for low- and
moderate-income housing
• Administering the state's largest Section 8 Housing Choice Voucher program and providing
rental assistance to 6,200 low-income households throughout Anoka, Carver, and most of
suburban Hennepin and Ramsey Counties
• Providing technical assistance to local governments to support orderly and economical
development.
• Collaborating with and convening partners and stakeholders to elevate and expand the regional
housing dialogue.
This plan addresses housing challenges greater than any one city, or county can tackle alone It
recognizes that the future's increasingly complex housing issues demand more innovative strategies
and greater collaboration With both statutory responsibilities and local opportunities, local governments
play a key role in translating regional policy and priorities into effective implementation within local
housing markets, one size does not fit all
2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL Executive Summary Page 1
Adopted December 10, 2014
Does the metropolitan region need more affordable housing?
• Needs are growing. Between now and 2040, the region will add 391,000 households, roughly
40% will earn less than 80% of area median income ($63,900 for a family of four)
• People are paying too much for housing. At present, one-third of the region's households
pay more than 30% of their income on rent—they are "housing cost burdened" Even with the
existing supply of affordable housing, more than 265,000 low- and moderate-income
households in the region are paying more than 30% of their household income on housing
costs, and nearly 140,000 of those are paying more than half their income on housing
• More people will need affordable housing options The Council forecasts that between 2020
and 2030, our region will add 49,500 low- and moderate-income households who will need
affordable housing For comparison, in the first three years of this decade, the region added just
under 3,000 new affordable units, far under the need.
What are the priorities of this Housing Policy Plan?
Housing plays a key role in advancing all five of the outcomes the Council identified with the adoption of
Thrive MSP 2040
Stewardship Prosperity Equity 01 Livability 02 Sustainability
The Housing Policy Plan outlines housing strategies that advance the Thrive outcomes and identifies
Council roles, local responsibilities, and local opportunities to implement these strategies Many of our
region's local governments—including counties, cities, and townships—are already putting many of
these opportunities into practice By identifying these strategies, the Council's goal is to catalyze the
conversations and regional partnerships needed to advance housing policy in the Twin Cities region
Key priorities include.
• Managing, maintaining, and preserving the existing housing stock
• Creating or preserving a mix of housing affordability around emerging transit investments,
helping low-income households benefit from transit investments and expanding opportunities to
reduce the combined costs of housing and transportation
• Expanding housing options for people in all life stages and of all economic means through a
balanced approach of expanding housing choices for low- and moderate-income households in
higher-income areas and enhancing the livability of low-income neighborhoods.
• Providing housing choices for the region's changing demographics
• Promoting environmentally sustainable and healthy buildings, construction techniques, and
development patterns
• Reducing barriers to the development of mixed-income housing to create vibrant, diverse
communities that offer choices to a range of households
• Using housing investments to build a more equitable region so that every Twin Cities resident
can live in a community rich with opportunity
2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL Executive Summary Page 2
Adopted December 10, 2014
How does the Metropolitan Council support the policies of this Housing Policy Plan?
The Metropolitan Land Planning Act and the Council's review authority give the Council a unique role
with local governments Dimensions of this role include
• Developing the Allocation of Affordable Housing Need to inform local governments of their share
of the region's need for low- and moderate-income housing to assist them in addressing the
Need in their local comprehensive plans.
• Expanding technical assistance to local governments to improve the consistency and quality of
the housing elements and implementation programs of local comprehensive plans
• Providing technical support to cities with little experience in working with affordable housing
developers
• Sharing best practices developed by others
The Council also supports affordable housing development through its funding The Council uses its
resources—including Livable Communities Act grants, investments in infrastructure, and other funding
streams—to expand housing choices across the region and create and preserve mixed-income
neighborhoods and communities To advance housing choice, the Council uses Housing Performance
Scores to give priority for funding to communities that are maintaining or expanding their supply of
affordable housing and using fiscal, planning, and regulatory tools to promote affordable housing.
What are the next steps in implementing this Housing Policy Plan?
The process of developing this Housing Policy Plan has produced rich conversation and discussion
over the last year However, it has become clear that the region needs to have dialogues beyond what
the Council was able to achieve in developing this plan The Council will convene regional discussions
to address housing issues that are broader and more complex than any single agency or organization
can advance alone These include
• Reducing barriers to development of mixed-income housing and neighborhoods
• Improving the alignment of housing policies and decisions made by school districts.
• Expanding the supply of housing options accessible to seniors and people with disabilities
• Developing strategies to affirmatively further fair housing and address housing discrimination
• Building wealth and expanding investment in Areas of Concentrated Poverty
To fully implement this plan, the Council has more work to do to finalize the changes to the Allocation of
Affordable Housing Need, the Housing Performance Scores, and the Council's strategy for reviewing
the housing element of local comprehensive plan updates In 2015, the Council will formally amend this
plan, including a formal public comment process, to incorporate the final updated methodologies for the
Allocation of Affordable Housing Need and the Housing Performance Scores and reflect any other
updates
Nearly 30 years have passed since the Council last adopted a housing-focused policy document,
1985's Housing Development Guide With the Council's various roles that affect housing, this plan
furthers the alignment, consistency, and integration of the Council's own housing policy But we cannot
do this work alone. We look forward to present and future opportunities for collaboration to improve how
the region collectively addresses housing challenges both today and tomorrow We hope that this plan
will advance the region's conversation about how to create housing options that give people in all life
stages and of all economic means viable choices for safe, stable, and affordable homes
2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL Executive Summary I Page 3
Livable Communities Act(LCA)Locally Adopted
Affordable and Lifecycle Unit Housing Goals,2011-2020
Municipality Affordable Range Lifecvcle Range Municipality Affordable Range Lifecycle Range
Anoka 62 96 95 465 New Brighton 89 137 135 400
Apple Valley 915 1,307 1,305 3,700 New Germany 7 11 10 200
Arden Hills 187 288 285 800 New Hope 138 213 210 500
Belle Plaine 131 202 200 780 Newport 44 68 65 280
Blaine 1,212 1,865 1,865 3,970 North St Paul 75 115 115 300
Bloomington 625 961 960 2,300 Norwood Young 126 194 190 425
Brooklyn Center 106 163 160 400 America
Brooklyn Park 979 1,506 1,506 4 100 Oak Grove 2 4 2 4
Burnsville 516 737 735 1,800 Oakdale 120 184 180 520
Carver 581 894 890 4,360 Orono 202 311 311 750
Centerville 111 170 170 270 Osseo 15 23 20 100
Champlin 116 179 175 555 Plymouth 679 1,045 1,045 1,958
Chanhassen 758 1,166 1,165 2,600 Prior Lake 758 1,166 1,165 3,000
Chaska 718 1,105 1,105 1,718 Ramsey 434 669 665 2,430
Cologne 137 211 210 1,020 Richfield 497 765 765 1,500
Columbia Heights 150 231 231 600 Robbinsdale 86 133 133 300
Coon Rapids 130 200 200 900 Rogers 248 382 380 2,150
Cottage Grove 640 985 985 1,120 Rosemount 700 1,000 1,000 2,678
Crystal 57 8787 200 Roseville 131 201 200 500
Dayton 806 1,240 1,240 3,065 Saint Paul 2,625 2,625 2,625 7 000
Eagan 619 884 880 2 085 Savage 804 1,237 1,235 2 900
East Bethel 118 181 180 1,825 Shoreview 70 107 105 300
Eden Prairie 1 198 1,843 1,840 3,500 South St Paul 73 104 100 300
Edina 138 212 210 400 St.Anthony 203 312 310 800
Elko New Market 296 456 455 1,370 St Bonifacius 2 2 2 4
Excelsior 5 7 5 20 St.Francis 47 74 70 1,200
Falcon Heights 14 21 20 50 St.Louis Park 326 501 500 1,000
Farmington 345 492 490 1,720 St.Paul Park 285 438 435 1,670
Forest Lake 358 551 550 1,500 Stillwater 151 233 230 650
Fndley 75 116 116 300 Vadnais Heights 111 170 170 500
Golden Valley 68 104 100 200 Victoria 634 975 975 3,200
Hamburg 4 6 5 15 Waconia 459 706 705 3,500
Hastings 216 241 240 2,200 Watertown 39 60 60 650
Hilltop 28 43 40 100 Wayzata 71 109 105 250
Hopkins 93 143 140 300 West St Paul 73 104 100 300
Hugo 556 855855 1,305 White Bear Lake 42 65 65 200
Inver Grove Heights 610 871 870 2 652 White Bear 73 113 80 100
Jordan 74 114 110 150 Township
Lake St Croix Beach 1 1 1 1 Willemie 1 2 2 10
Lakeland 6 6 10 10 Woodbury 1,337 2,057 2,055 3,125
Lakeville 1,582 2,260 2,260 8,200
Lauderdale 23 35 35 90
Lexington 5 8 5 40
Lino Lakes 364 560 560 1,860
Long Lake 26 40 40 100
Loretto 2 3 3 10
Mahtomedi 18 27 25 100
Maple Grove 1,147 1,764 1760 3 605
Maple Plain 12 19 15 90
Maplewood 252 388 385 1,050
Mayer 113 174 170 925
Medina 329 506 505 1,480
Mendota Heights 28 43 40 100
Minneapolis 4,200 4,200 4,200 9,300
Minnetonka 246 378 375 800
Mound 44 68 65 250
Mounds View 53 81 80 200
Goals adopted as of 1/15/2015