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D-9. Approval of Housing Action Plan 11017 MEMORANDUM CITY OF TO. Todd Gerhardt, City Manager CHANHASSFN FROM: Kate Aanenson AICP, Community Development Director 7700 Market Boulevard PO Box 147 DATE: May 26, 2015 ©� Chanhassen,MN 55317 SUBJ: Housing Action Plan Administration BACKGROUND Phone 952 2271100 Fax 952 2271110 At their Apnl 26, 2015 work session, the City Council discussed the Housing Action Building Inspections Plan The city is required to adopt this plan and submit it to the Metropolitan Council Phone 952 2271180 by June Fax 952 2271190 Engineering ANALYSIS Phone 952 2271160 Fax 952 2271170 The Council requested the following additional information on the amount of affordable housing that was done since 2011 Finance Phone 952 2271140 Fax 952 2271110 Single Town Multi Affordable Affordable Affordable Rental Rental Year Family Homes Family Total Provided Goal Value Provided Goal Park&Recreation @ 10% Phone 952 2271120 2015* 82 46 134 262 79 26 Fax 952 2271110 2014 57 78 18 153 0 46 0 15 Recreation Center 2013 89 76 25 190 0 57 $177,500 0 19 2310 Coulter Boulevard 2012 107 78 0 185 0 56 $171,500 0 19 Phone 9522271400 2011 106 62 0 168 4 50 $160,250 0 17 Fax 952 2271404 Total 441 340 177 958 4 287 0 96 Planning& Percent 46% 35% 18% 0.4% 30% 0% 10% Natural Resources *Includes Mission Hills Senior Housmg project Phone 952 2271130 City housmg diversity goal is 34 percent non-single-family Fax 952 2271110 City rental housing goal is 10-20 percent of housmg City affordable housing goal is 30 percent of ownership Public Works Staff is anticipating more rental properties in the near future that will assist in meeting 7901 Park Place Phone 952 2271300 affordable goals Fax 952 2271310 RECOMMENDTION Senior Center Phone 952 2271125 Staff recommends the City Council adopt the Housing Action Plan Fax 952 2271110 Website ATTACHMENT www ci chanhassen mn us 1 Housing Action Plan. g\plan\met council\lca 2014-2020\cc covei memo 2 docx Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow CITY OF CHANHASSEN \ T P 0 .A e' y w CNH ASS HOUSING ACTION PLAN 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. City of Chanhassen Housing Action Plan Page 1 • 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 ensuring 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 inferior 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 Page 2 Cily of Chanhassen Housing Action Plan 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 jobs and shopping,there is strong demand for all housing products,how- ever. Demographic Summary Chanhassen Carver County Population 12014/2020/2030/20401 25,580 / 31,715 /36,055 39.560 99,426 /122.425 / 145,626/ 268,829 Households(2014/2023/2333/20401 6,960/ 11,575 /13,855/15.570 35.448 /45,135 / 50.875/ 711525 Household Growth(2014 to 2040J 6,560 35,077 Median Household Income(2014) $108,157 580,049 Median Age of Population 17010) 39.3 36.3 Horneownership Rate(2010 86.8% 92.5% Current Housing Characteristics Summary For-Sale Housing Chanhassen Carver County Average resale price of existing single-family homes(2013) 5360.000 5270,000 Average resale price of existing multi-family homes(2013) 5163,700 5128,500 Average sale price of new construction yingle-fartily home 5385.179 5310,804 Average number of tingle-family home...,built annually since 2006 87 355 Average sale price of new construction multifamily homes $322.076 5225,000 Average number of meitifamiiv homes built annually a Inc..2006 54 158 Rental Housing Chanhassen Carver County Number of surveyed units and average monthly rent for market rat.units One-bedroom units 223/ 5754 611 / 5763 Two-bedroom units 337 / 51,085 1.220/ 5973 Three-bedroom units 29/ $1,473 220 / 51,473 Markt rag vacancies/vacancy rate 18 / 2.9% 42 / 1.9.% Number of affordable/subsidized units 61 680 Affordable/sub%irlizrel,vacancies/vacancy rate 0.0% 12 / 1.B''t Senior Housing 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 22% •Vacant units at•ro'ects in their initial lease-u•are not included in this fi: re. MAXFIELD RESEARCH INC. 126 City of Chanhassen Housing Action Plan Page 3 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 f 0 einershi p Sete ut Rental .4479 1306 875 1 t 1 1 j iticlr.fdntil, MulTito rally A2 ill Ct.;t r:: Adult Rental Service-belched Attord./Sub. Market Rate 1,971 2,506 i; 580 316 285 590 Note Because households are mobile and are whiling to seek out vanous 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. MAXFIELD RESEARCH INC. 127 Page 4 City of Chanhassen Housing Action Plan 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) City of Chanhassen Housing Action Plan Page 5 • "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) Page 6 City of Chanhassen Housing Action Plan • 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 T e Loan Repayment Limit yp 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 City of Chanhassen Housing Action Plan Page ? 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. Page 8 Cily of Chanhassen Housing Action Plan