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Chapter 03 HousingCity of Chanhassen 2040 Comprehensive Plan43 Chapter 3Housing City of Chanhassen 2040 Comprehensive Plan44 FIGURE 3 - 1 | Historic Count of Housing Types 3.0 | Introduction Housing comprises 43% of the land use in the city. Since Chanhassen became a city in 1967, the number of housing options has become more diverse. Housing choices have expanded from single-family detached homes to include apartments, condominiums, attached-single family, senior living facilities, and group homes. “Chanhassen is a Community for Life” and thus has provided land use and zoning supporting a variety of housing options for residents in all stages of life. The housing plan will examine existing conditions and provide an analysis of housing needs. The data comes from the June 2014 Maxfield Research Inc. “Comprehensive Needs Assessment for Carver County”, the US Census, the Metropolitan Council, the May 2017 Community Partners Research, Inc. “Carver County Affordable Housing Update”, the Minneapolis Area Association of Realtors, and the City of Chanhassen. Whenever possible the city has attempted to use the most recent information available; however, some older sources, particularly the 2014 Maxfield study, provide unique data not found elsewhere. 3.0 | Overview of Existing Housing Since 2000 the city has grown from a Census estimated 6,299 owner occupied homes and 719 rental units to an estimated 7,497 owner occupied homes and 1,207 rental units in 2015. Source: US Census & City of Chanhassen Building Permit Activity Housing Type Type of housing and units in structure 1990 2000 2010 2015 Owner Renter Owner Renter Owner Renter Owner Renter Single family detached 3,102 105 5,312 88 5,992 115 6,111 144 Single family attached 292 331 920 37 928 169 1,265 316 Duplexes 8 21 10 23 13 0 4 17 Buildings 3-4 units 15 30 24 35 95 23 18 15 Building with 5- 19 units 1 197 33 208 48 44 59 176 Building with 20 0 193 0 328 57 583 37 539 Mobile Homes 2 0 0 0 28 0 3 0 Other Units 8 11 0 0 0 0 0 0 Total occupied housing units 3,428 888 6,299 719 7,161 934 7,497 1,207 HOUSING | Preserve Housing City of Chanhassen 2040 Comprehensive Plan45 FIGURE 3 - 2 | Housing Permits Issued 2000-2017 *Attached Single Family homes are multi-family homes in which one structure has several dwellings sharing a common wall or walls with another unit. Attached homes are different from apartment buildings in that they usually have fewer dwelling units, typically two to six, and are more likely to be owner occupied than rented. Examples include duplexes, townhomes, and row houses. Source: City of Chanhassen Year Single Family Attached Single Family*Apartments Dwellings 2000 124 34 162 320 2001 85 44 100 229 2002 54 246 0 300 2003 59 94 243 396 2004 76 16 0 92 2005 60 24 0 84 2006 89 42 48 179 2007 65 86 18 169 2008 28 38 0 66 2009 71 14 0 85 2010 71 30 0 101 2011 106 62 0 168 2012 107 78 0 185 2013 89 86 0 175 2014 57 96 0 153 2015 80 24 0 104 2016 48 0 76 124 2017 55 12 0 67 Average 74 57 36 167 Over the last 18 years, the city has approved the construction of an average of 167 dwelling units a year. During 2003, the city issued 396 permits, compared to 66 permits in 2008. The extreme variation during this period is the result of it spanning both the height of the real estate boom and the subsequent economic recession. The five-year average of 125 permits a year represents typical post-recession permit volume for the city. As of 2018, projections for the city’s growth between 2017 and 2021 range from a low of 165 units a year to a high of 200 units a year. City of Chanhassen 2040 Comprehensive Plan46 3.1.1 | Occupied Housing Units by Type and Tenure Approximately 83% of the city’s housing was owner occupied in 2015, down from 88% in 2000. Detached single-family housing continues to be the mainstay of the city’s housing stock; however, the city has added 1,026 attached single-family units since 2000. Many of these units are owner occupied townhomes, although some of these dwellings are being rented. The city has also approved projects featuring multifamily dwellings during this period. Multifamily dwellings are defined as buildings with more than five units. These units include larger townhouses, condominiums, and apartments. Multifamily developments are generally rental properties; however, townhouses and condominiums can be either owner or renter occupied. Since the year 2000, the city has added 647 apartment units. FIGURE 3 - 3 | 2015 Housing Unit Types FIGURE 3 - 5 | Housing Tenure Source: U.S. Census, Metropolitan Council Source: US Census ( 2000, 10-year and 2015, 5-year ) Source: U.S. Census, Metropolitan Council FIGURE 3 - 4 | 2015 Housing Tenure Housing Type Single-family Multi-family 8,180 1,276 Tenure Ownership Units Rental Units 8,186 1,270 88% 10%2% 2000 Housing Tenure Owner-Occupied Renter-occupied Vacant 83% 14%3% 2015 Housing Tenure Owner-Occupied Renter-occupied Vacant HOUSING | Southwest Village City of Chanhassen 2040 Comprehensive Plan47 Over half of Chanhassen’s housing stock was built after 1990. While Chanhassen’s ratio of owner occupied housing built before and after 1990 is similar to Carver County as a whole, a significant portion of its housing stock is older than that of the other rapidly growing cities in the county. For example, 44% of Chanhassen’s ownership housing was built before 1990, compared to 25% in Victoria and 29% in Waconia. The above table lists the median sale price for all residential homes, including detached single-family, attached single-family, and condominium style homes. In 2017, Chanhassen’s median home sale price of $346,950 was the second highest in Carver County, $34,700 over the county’s median sales price. Only Victoria’s median home sale price of $439,900 was higher. FIGURE 3 - 6 | Age of Owner Occupied Housing Stock (Selected Communities) FIGURE 3 - 7 | Median Sale Price (Selected Communities) Sources: U.S. Census Bureau, Cities and Townships; Maxfield Research, Inc. Sources: Minneapolis Area Association of Realtors 3.1.2 | Owner Occupied Housing Cities Owner occupied before 1950 1950-1969 1970-1989 1990-1999 2000-2009 2010-2014 Carver 109 39 119 275 509 166 Chanhassen 159 788 2,560 2,552 1,133 714 Chaska 306 419 1,749 1,910 1,797 364 Victoria 128 202 319 617 927 358 Waconia 203 459 364 1,005 1,127 365 Carver County 2,512 2,855 7,002 7,522 6,947 2,090 Cities Median Sale Price (Selected Communities) 2013 2014 2015 2016 2017 Carver $282,500 $270,000 $277,750 $296,090 $345,000 Chanhassen $305,000 $318,838 $325,000 $336,950 $346,950 Chaska $252,000 $235,000 $255,000 $272,500 $293,000 Victoria $371,500 $369,990 $403,250 $423,018 $439,900 Waconia $229,000 $237,000 $250,000 $266,500 $272,000 Carver County $252,000 $258,050 $273,490 $279,900 $312,250 City of Chanhassen 2040 Comprehensive Plan48 FIGURE 3 - 8 | Chanhassen Single Family Sales FIGURE 3 - 9 | Active Single Family Developments January 2014 Source: Carver County Assessor; Community Partners Research, Inc. Source: Regional Multiple Listing Service, Maxfield Research Inc. *Home Starts are an average of permits issued from 2006 through 2013. **Estimates are for 2013 and are based on an inventory of active subdivisions. A 2014 survey of active subdivisions found that Chanhassen’s new single-family housing was typically priced between $325,000 and $525,000. The Maxfield study showed that Chanhassen and Victoria had the highest average “active” price of approximately $385,000. There were no active single-family developments under $325,000. *Good sales are fair, open market transactions. Once the data for detached homes, attached homes/townhomes, and condominiums is separated out, it is clear that the price of Chanhassen’s detached single-family housing stock is increasing significantly faster than the price for attached homes/townhomes or condominiums. This discrepancy may be due to the fact that only 24 new attached-single family units and no new condominiums were constructed in 2015 and 2016, meaning that most of these sales involved the resale of older units. Chanhassen Single Family Sales Sales Year Detached Houses Town Homes Condominiums Number of Good Sales* Median Sales Price Number of Good Sales* Median Sale Price Number of Good Sales* Median Sale Price 2016 332 $420,000 79 $228,250 79 $166,500 2015 356 $370,000 75 $228,242 76 $161,000 Cities Active Single Family Developments January 2014 Avg. Home Starts (2006- 2014)* Total Lots Vacant Dev. Lots Estimated New Home Prices Estimated Avg. Price** <$325K $325K - $525K $525K + Carver 29 115 68 25%70%5%$307,890 Chanhassen 87 479 118 0%80%20%$385,179 Chaska 68 671 256 5%75%20%$371,179 Victoria 64 502 106 0%50%50%$384,893 Waconia 61 481 144 15%65%20%$285,302 Carver County 357 4,128 1,216 32%55%13%$310,804 City of Chanhassen 2040 Comprehensive Plan49 FIGURE 3 - 10 | Active Multifamily Developments January 2014 FIGURE 3 - 12 | Chanhassen Rent Summary Quarter 1, 2017 Source: Regional Multiple Listing Service, Maxfield Research Inc. Sources: U.S. Census Bureau, Cities and Townships; Maxfield Research, Inc. Source: Community Partners Research, Inc. Approximately one third of Chanhassen’s rental housing was constructed before 1990. In Carver County as a whole, over half of rental units were constructed before 1990. No other community in the county has a higher percentage of rental properties constructed after 1990. The city has approved multiple apartment projects in 2017. The Venue with 134 market rate units and Mission Hills Senior Housing with 136 units. *Home Starts are an average of permits issued from 2006 through 2013. **Estimates are for 2013 and are based on an inventory of active subdivisions. The Maxfield Study found that Chanhassen had the highest average price of active multifamily developments. The city’s estimated average price of $322,076 for new multi-family dwellings is significantly higher than the Carver County Average of $200,000. Cities Active Multi-Family Developments January 2014 Avg. Home Starts (2006- 2014) Total Lots Vacant Dev. Lots Estimated New Home Prices Estimated Avg. Price** <$325k $325K - $525K $525K+ Carver 20 27 27 60%40%0%$207,450 Chanhassen 54 185 10 60%40%0%$322,076 Chaska 31 168 2 30%70%0%$280,000 Victoria 13 22 0 10%60%30%$260,000 Waconia 29 296 37 80%20%0%$225,000 Caver County 159 1,275 258 65%30%5%$200,000 Cities Renter Occupied before 1950 1950- 1969 1970- 1989 1990- 1999 2000- 2009 2010- 2014 Carver 20 0 0 0 0 0 Chanhassen 20 62 303 420 279 100 Chaska 154 115 1,140 471 988 0 Victoria 0 7 120 38 11 0 Waconia 96 156 234 74 162 100 Carver County 646 596 2,140 1,015 1,676 197 3.1.3 | Rental Housing FIGURE 3 - 11 | Age of Rental Housing Stock (Selected Communities) Bedrooms Estimated Median Rent 0-Bedroom $905 1-Bedroom $1,387 2-Bedroom $1,516 3-Bedroom $1,850 4-Bedroom N/A City of Chanhassen 2040 Comprehensive Plan50 Market rate rents in Chanhassen are higher than the rest of Carver County, for example, the median rent for a 2-bedroom unit in Chanhassen is $1,516 compared to $1,304 in Chaska. This discrepancy in rent rates is likely due to the fact that Chanhassen’s rental stock has a significantly higher percentage of newer units than other communities in Carver County. Community Partners Research, Inc. found that with an estimated 1,270 rental units Chanhassen has nearly 19% of Carver County’s rental stock. Only Chaska has a larger share of the County’s rental properties. A phone survey conducted by Community Partners Research reported a 1% or less vacancy rate in Chanhassen’s rental properties. Pervious work by Maxfield Research, Inc. in 2014 reported Chanhassen’s vacancy rate as 2.90%; however, they found that the city’s affordable housing had a vacancy rate of 0%. Vacancy rates below 5% are generally considered to indicate unmet need for rental housing. 3.1.4 | Housing Condition Seventy-five percent of the Chanhassen’s housing stock was constructed before 2000, and nearly two-thirds of the city’s housing was built between 1980 and 1999. Using the city’s property maintenance code, the city works with homeowners and property managers to ensure that this aging housing stock is safe and maintains its value. The property maintenance code establishes minimum requirements and standards for premises, structures, equip- ment, and facilities for light, ventilation, space, heating, sanitation, protection from the elements, life safety, safe- ty from fire and other hazards, and safe and sanitary conditions. The ordinance also provides for administration, enforcement, and, when necessary, penalties for non-compliance. Maintaining existing housing helps to provide residents with an increased diversity of housing options. 3.1.5 | Analysis of Existing Housing Needs The City of Chanhassen began as a farming and then a bedroom community and has continued to evolve over the last 30 years. While the largest land use is low density residential the city has become a full service community. As the population ages and the industrial and commercial uses attract younger people, the demand for a wide variety of housing has emerged. The city has identified preserving naturally-occurring affordable ownership and rental housing, ownership housing for seniors looking to downsize, ownership housing for first-time homebuyers, and rental housing for individual of all income levels as the highest priority existing housing needs. Preserving and expanding these five categories of housing is a vital component of ensuring that Chanhassen is a community where individuals in all stages of life can find safe and desirable housing. HOUSING | Lake Susan Hills HOUSING | Western Hills City of Chanhassen 2040 Comprehensive Plan51 FIGURE 3 - 13 | Existing Housing Needs Action Plan Iden�fied Need Available Tools Circumstances and Sequence of Use Preserve exis�ng naturally-occurring affordable ownership housing within all levels of affordability Referrals The city will ensure staff is familiar with resources provided by the Carver County CDA and Minnesota Housing Finance Agency which can assist individuals with maintaining their homes and avoiding foreclosure. Maintenance Requirements Staff will con�nue to enforce the city's maintenance ordinance to preserve the quality and value of exis�ng housing stock. Land Trust The city would consider suppor�ng applica�ons to the Carver County CDA Land Trust. Preserve exis�ng naturally-occurring affordable rental housing within all levels of affordability Referrals The city will ensure staff is familiar with resources provided by the Carver County CDA, the Minnesota Housing Finance Agency, and the Greater Minnesota Housing Fund which can assist property owners with rehabilita�ng and maintaining the affordability of rental proper�es. Maintenance Requirements Staff will con�nue to enforce the city's maintenance ordinance to preserve the quality and value of exis�ng rental stock. Rental Licensing Program The city maintained a rental licensing program from 2002 to 2011. It was discon�nued because few viola�ons were uncovered and all of those were addressed by other sec�ons of the Code. It is unlikely the city will reinstate a rental licensing program.MN Housing Reduced Property Taxes The city would consider working with interested proper�es to apply for reduced property taxes as provided for in Minnesota Statute 273.128. Housing Bonds The city would not support the issuance of housing bonds; however, it will refer interested par�es to the Carver County CDA. Preserve exis�ng low- income housing tax credit proper�es The city will explore possibil�es for preserving exisitng low-income housing tax credit proper�es with MN Housing and Carver County CDA. Ownership housing for seniors looking to downsize PUDs The city will support the crea�on of small lot villas/condos/townhouse PUDs in appropriately zoned areas. Accessory Dwelling Units The city code allows for variances to accommodate ageing parents living in a separate dwelling unit within an exis�ng house. Staff will encourage residents to pursue this op�on where appropriate. Ownership housing for first �me homebuyers Code Op�miza�on The city will con�nue to evaluate development ordinance and its impact on development costs, especially the PUD ordinance and lot size/setback and design standards. PUDs The city will support the use of PUDs to create a variety of owner occupied housing types (ver�cal/horizontal townhouses, condominiums, detached villas/co�age style homes, etc.) Referrals The city will ensure staff is familiar with resources provided by the Carver County CDA and Minnesota Housing Finance Agency which can assist first �me homebuyers. Rental housing for individual's of all income levels.Referrals The city will ensure staff is familiar with resources provided by the Carver County CDA and Minnesota Housing Finance Agency which can assist perspec�ve renters in finding and affording housing. Accessory Dwelling Units The city would not support the use of accessory dwelling units to provide addi�onal rental housing. City of Chanhassen 2040 Comprehensive Plan52 The Metropolitan Council has designated Chanhassen as an Emerging Suburban Edge. The density requirements for this designation are overall average net densities of at least 3-5 dwelling units per acre in forecasted growth through 2040. The city has also provided sufficient high-density land use to potentially meet the goal of accommodating 806 affordable housing units. 3.2 | Population and Income Over the last decade, the city of Chanhassen’s population increased just over 20 percent. The median age of the city increased 3.7 years and the household size has decreased by nearly 5 percent. 3.2.1 | Demographic Changes FIGURE 3 - 14 | Chanhassen Population by Age Chanhassen Population by Age 2000 2015 Change Number % of Total Number % of Total Number % ChangeAge Under 5 years 2,020 9.9%1,515 6.2%-505 -25.0% 5 to 9 years 2,227 11.0%1,931 7.9%-296 -13.3% 10 to 14 years 1,889 9.3%2,126 8.7%237 12.5% 15 to 19 years 1,197 5.9%2,102 8.6%905 75.6% 20 to 24 years 590 2.9%1,026 4.2%436 74.0% 25 to 34 years 2,608 12.8%2,370 9.7%-238 -9.1% 35 to 44 years 4,903 24.1%3,348 13.7%-1,555 -31.7% 45 to 54 years 2,816 13.9%4,839 19.8%2,023 71.8% 55 to 59 years 732 3.6%1,808 7.4%1,076 147.0% 60 to 64 years 419 2.1%1,173 4.8%754 179.9% 65 to 74 years 591 2.9%1,393 5.7%802 135.7% 75 to 84 years 270 1.3%464 1.9%194 72.0% 85 years and over 59 0.3%342 1.4%283 479.9% Total Population 20,321 100.0%24,437 100.0%4,116 20.3% Source: US Census In 2015 the largest segment of the population (19.8%) was 45 to 54 years old. The median age of the city’s residents was 39.2 years old, an increase of 3.7 years from the 2000 cen- sus’s average age of 35.5. The average age in the metropolitan statistical area was 36.6 years, roughly unchanged from its 2000 av- erage of 36.1 years. During this same period, the average age in Minnesota increased from 35.4 to 37.7 years, an increase of 2.3 years. These different rates of increase are likely the result of millennials’ preference for more urban environment, and Chanhassen’s hous- ing market being skewed towards executive/ move up housing rather than starter homes affordable to younger couples and families. HOUSING | Summerwood City of Chanhassen 2040 Comprehensive Plan53 Chanhassen Population and Household Estimates Met. (2016)City (2016) Total Population 25,448 24,951 Number of Households 9,267 9,233 Persons per Household 2.74 2.70 Household Type 1990 2000 2010 2015 Family Households 3,273 5,524 6,257 6,864 Married Couples 2,982 4,925 5,505 5,957 with related children under age 18 1,767 3,143 3,470 3,673 no related children under age 18 1,215 1,782 2,035 2,284 Other families 291 599 752 907 Male household, no wife present 88 168 218 276 with related children under age 18 47 112 128 156 no related children under age 18 41 56 90 120 Female Household, no husband present 203 431 534 631 with related children under age 18 137 316 352 348 no related children under age 18 66 115 182 283 Non-family households 743 1,390 2,095 1,840 1 person 527 1,086 1,718 1,523 2 or more persons 216 304 377 317 Total 4,016 6,914 8,352 8,704 Source: US Census The majority of households in the city are comprised of married couples with children. Many of these couples desire traditional detached single-family housing, and this demand has largely driven Chanhassen’s housing market. The city’s location in eastern Carver County and proximity to employment centers means that there will continue to be strong demand for single-family housing. Between 2000 and 2015 the US Census shows that the average persons per household in Chanhassen has dropped from 2.94 to 2.8, a decrease of 4.76%. This decrease is partially explained by young couples choosing to have fewer children, average family size decreased by 3% over this period, and millennials choosing to delay starting families until later in life. Another contributing factor is the increasing number of empty nesters and widows/ widowers. This trend of smaller households and families is expected to continue as the population ages; however, Chanhassen’s 2015 average household size of 2.8 is significantly higher than the metropolitan statistical area’s av- erage household size of 2.54. Due to Chanhassen’s location in Eastern Carver County and its amenities, it is likely that the city will continue to attract a disproportionately large share of the region’s young families with children. FIGURE 3 - 15 | Chanhassen Households by Type FIGURE 3 - 16 | Chanhassen Number of Households and Size FIGURE 3 - 17 | 2016 Estimates 2000 2015 Change % Change Number of Households 6,914 8,704 1,790 25.89% Persons per household 2.94 2.8 -0.14 -4.76% Source: US Census Source: Metropolitan Council, Internal Projections. The Metropolitan Council estimates that Chanhassen’s 2016 population was 25,448 people in 9,267 households, which works out to an average of 2.74 people per household.* City of Chanhassen 2040 Comprehensive Plan54 *The difference between these estimates and the numbers reported by the US Census is likely the result of the fact that the most recent census data available comes from the 2011-2015 American Community Survey 5-year estimates. This means that since data from 2011 to 2015 is averaged out to reduce the margin of error the census estimates likely underestimate the population and number of households actually present. The 2015 5-year estimates were used for the proceeding discussion because they provide more detailed data on age and household composition and allow for direct comparison with previous years’ census data. The U.S. Census estimates that Chanhassen’s 2015 median household income was $110,569. Caver County’s 2015 median household income is reported as $86,323, and the metropolitan statistical area is listed as $68,778. Chanhassen’s amenities, location, and housing stock is expected to continue to attract house- holds with median incomes above the regional average The Maxfield study examined the population’s demographic trends and believes that following will be true in Carver County: »Households will increase faster than population as the overall population ages, couples will have fewer children, and single-person households will become more common. By 2040, they predict an average household size of 2.39 people. Caver County’s household size decrease will likely be at a slower pace than other areas of the metropolitan statistical area. »Strong growth is expected across all age groups for the next 20 years with growth in the number of 25 to 39 year olds fueling demand for single-family housing, town homes, and rental options. After 2030, the older adult population, 55+, is expected to increase rapidly, prompting an increased need for senior oriented housing. »People between ages 55 and 74 will experience the most rapid growth rates this next decade. The younger portion of this group is still looking for move-up housing and are willing to consider alternatives to traditional single-family homes. »Western Carver County will likely have higher percentage of young families seeking affordable housing; where as, communities in eastern Carver County will likely see a mix of senior, young adults and older adults. These increases will be due to the aging of the existing population, young adults looking for rental housing near employment hubs, and older adults with greater means purchasing housing that is more expensive. »Post 2030, adults ages 60 to 79 are expected to become the second largest age cohort after adults 40 to 59 3.2.2 | Income FIGURE 3 - 18 | Chanhassen’s Median Household Income by Age 2015 Median Household Income By Age Under 25 $53,472 25 to 44 $119,778 45 to 64 $127,852 65 and over $43,894 All Households $110,569 Source: American Community Survey 5-Year Estimates 3.3 | Future Housing Demand FIGURE 3 - 19 | 2040 Regional Development Forecast Chanhassen Regional Development Forecast Category Census Revised Forecast 2010 2020 2030 2040 Population 22,952 26,700 31,700 37,100 Metro Sewered 20,576 25,660 30,660 36,060 Households 8,352 10,000 11,900 14,000 Metro Sewered 7,519 9,620 11,520 13,620 Employment 10,905 15,600 17,000 18,400 Metro Sewered 10,662 15,400 16,800 18,200 Source: Metropolitan Council The Metropolitan Council believes that Chanhassen’s population will grow by over 11,500 between 2017 and 2040. This population in- crease will take the form of over 4,700 new households. The size and composition of these new households will determine the composition of Chanhassen’s housing market. City of Chanhassen 2040 Comprehensive Plan55 3.3.1 | Residential Lands The city has approximately 1,200 acres of land guided for residential uses. The city projects that the majority of this land will be developed by 2030. It anticipates that land guided for single-family homes will initially be the preferred dwelling type with an increasing share of multifamily housing developed as the city transitions from building out to in-fill/redevelopment. Most of the housing is expected to be market rate, though there is a strong demand for low- and moder- ate-income housing as well as senior oriented housing products. The Maxfield study had projected that the city would add 6,560 units of housing between 2014 and 2040. Since the study was commis- sioned, new information has caused the Metropolitan Council to re- vise its projections for the city’s growth to down to 4,733 households. FIGURE 3 - 20 | Chanhassen Projected Housing Demand, 2014 to 2040* FIGURE 3 - 21 | Chanhassen Projected Housing Demand, 2014 to 2040* Housing Demand 6,560 Ownership 4,479 Single Family 1,971 Multi- family 2,508 Senior 1,206 Adult Owned 310 Adult Rental 580 Service- Enriched 316 Rental 875 Afford/Sub 285 Market Rate 590 Source: Maxfield Research Inc. *The numbers in the Maxfield model are higher than the city’s expected growth; however, the relative distribution of dwell- ing units between the different categories of housing is still informative. HOUSING | Fawn Hill Demand for Additional For-Sale Housing 2014 to 2020 2020 to 2030 2030 to 2040 Projected Household Growth 2,615 2,280 1,665 Estimated Homeownership Rate 75%76%66% Total New Homeowners 1,964 1,730 1,095 Ratio Single Family/Multifamily 50/50 35/65 35/65 Number of Single Family/Multifamily 982/982 606/1,125 383/712 Single Family <$325,000 0 (0%)0 (0%)0 (0%) Single Family $325,000 -$525,000 393 (40%)61 (10%)38 (10%) Single Family $525,000+589 (60%)545 (90%)343(90%) Multifamily-Gen. Occupancy <$225,000 471 (50%)301 (30%)197 (35%) Multifamily-Gen. Occupancy $225,000+471 (50%)703 (70%)365 (65%) Multifamily-Senior <$225,000 40 120 150 Source: Maxfield Research Inc. *The numbers in the Maxfield model are higher than the city’s expected growth; however, the expected distribution of dwelling units between the different catego- ries of housing is still informative. City of Chanhassen 2040 Comprehensive Plan56 3.3.4 | Demand for Rental Housing FIGURE 3 - 22 | Demand for Additional Rental Housing* Source: Maxfield Research Inc. *The numbers in the Maxfield model are higher than the city’s expected growth; however, the expected distribution of dwell- ing units between the different categories of housing is still informative. The city anticipates a high demand for rental housing based on the community’s proximity to Carver County’s job hubs, and the desire to locate housing in conjunction with transit or commercial centers. The Maxfield models shows between 2014 and 2030 the greatest demand for rental housing will be for general occupancy rather than senior oriented developments. Throughout the period be- tween 2014 and 2040, they indicate that while the majority of demand for rental housing will be for market rate units; there is also a need for afford- able general occupancy and senior oriented units. Demand for Additional Rental Housing 2014 to 2020 2020 to 2030 2030 to 2040 Projected Household Growth 2,615 2,280 1,665 Estimated Percent Renters 25%24%34% Total New Rentals 651 550 570 Ratio General-Occupancy/Senior 58/42 53/43 37/63 No. of Units (General- Occupancy/Senior)375/276 290/260 210/360 General Occupancy Percent Subsidized 39%28%29% 50-80% Median 100 40 50 50% Median 45 40 10 Total New Rentals 145 80 60 Percent Market Rate 61%72%71% Number Market Rate 230 210 150 Senior Rental Housing Percent Affordable Adult 40%46%28% Number 110 120 100 Percent Market Rate 60%54%72% Adult 100 50 100 Congregate 36 50 80 Assisted Living 5 20 40 Memory Care 25 20 40 Number (total)166 140 260 Maxfield’s model shows that they believe the majority of Chanhassen’s detached single-family housing will con- tinue to be oriented toward move-up and executive housing with no new units expected to be available for less than $325,000. As land available for constructing new detached single-family homes becomes scarcer, they expect the cost of these types of houses to increase. Their model shows that most of the demand for entry-level ownership housing will be met by multi-family developments, i.e. apartment condominiums and town houses. HOUSING | Centennial Hills City of Chanhassen 2040 Comprehensive Plan57 FIGURE 3 - 24 | Chanhassen’s 2021-2030 Affordable Housing Allocation 3.4 | Livable Communities Act/Fair Housing Policy 3.4.1 | Affordable Need Allocation In order to ensure that options for affordable housing are available in every community and that no one community is providing a disproportionate share of the region’s affordable housing, the Metropolitan Council assigns each community a share of the region’s affordable housing need. This need is further broken up by income category with specific targets for level of need. The City of Chanhassen is committed to meeting all federal and state fair housing standards, and to protecting its residents from all forms of housing discrimination. Additionally, the Metropolitan Council plans to require participants in its Livable Community’s Act to adopt local fair housing policies. The City of Chanhassen, a current participant in the Liable Community’s Act, will investigate adopting a local fair housing policy to comply with these new requirements and maintain its eligibility in the program. The Metropolitan Council acknowledges that market conditions and development forces may mean that these units are not constructed; however, they require that cities demonstrate that they have sufficient land guided at high enough densities in order to accommodate these developments should the opportunity emerge. The Metropolitan Council states that communities can meet this requirement by having a sufficient amount of land guided at a minimum density of 8 units/acre to meet its affordable housing need allocation. Source: Metropolitan Council. Affordable Housing Need Allocation 31% to 50% AMI 197 51% to 80% AMI 145 At or below 30% AMI 464 Total Units 806 AMI = Area Median Income FIGURE 3 - 25 | Demonstrated Capacity to meet 2021 - 2030 Affordable Housing Allocation The city anticipates that 103 acres guided for residential uses with minimum densities of at least 8 units/acre will develop between 2020 and 2030. These 103 acres are divided between 52 acres guided for high density residential land use which has a density range of 8-16 units/acre, 15 acres guided for mixed use primarily residential which has a density range of 8-20 units/acre, 30 acres guided for regional/lifestyle center which has a density range of 10-16 units/acre, and 6 acres of downtown redevelopment with an expected density range of 16 to 33 units an acre. Land Use Category Acres Density (unites/acre)Total Units High Density Residen�al 52 8 416 Mixed Use Primarily Residen�al 15 8 120 Regional/Lifestyle Center (Commercial)15 10 150 Regional/Lifestyle Center (Office)15 10 150 Downtown (Redeveloped as Residen�al)6 16 96 Total 103 932 Capacity to Meet Affordable Housing Need Alloca�on City of Chanhassen 2040 Comprehensive Plan58 FIGURE 3 - 26 | Areas Accommodating New High Density Residential Sand y H o o k Road W82ndStWestL a keCrt LakeS u s a nD riveL ak o t a LaneSunset TrailSandyHook C irCheyen neBighornDrive HazeltineBlvd(Hwy41)Lyman Blvd (CS AH1 8 )MinnewashtaParkwayCircle JuniperAve.DogwoodRdSommer G ate RingneckDr.Pheasant Dr Hillsd al eCrt S o u th e r n C r t ForestRidgeCircleHawthorne ChaskaRoadMolineCirS te lle r Cir WhiteDoveDr Stratton CrtCharing Bend H e a therCourtPowersBlvd(CSAH17)S a ddlebrookPass Trott ersCirTargetLaneKerberBlvdChippewaCir ChippewaTrailSan ta Ve r a DrSaratogaDr Saratoga CirSanta Fe Trail Si er raT ra ilSierra Court S h a d owm e r e CanterburyCir R e d w i ng C t.NezPerceCt O x b o wBendSum mit Circle StagHornLn Oxbow B e ndD ak o taD a k otaCir cl eBuc k in g w o o d C ou rtT i mberwood Dr Pin e wo o d Cir cle A co rn L a neM a p lew o odT e rrac e Oakwood Ridge Renais sance Co urtBenwoodCircle StoneCr eekRdStoneCree k D rStoneCreekDr BluffViewCourt CreekViewCourt Lake D riveW estCommerce Dr Valle y Ridge TrailNorth V alley Rid g eTrail South Valley View Court ValleyRidgeCourtValleyRidge Place ValleyView P lSpoo n b il l C i r M alla rd C r tEgretCrtLakeSusanHillsD r FlamingoDrTe r n C r tK ingfis he r Crt T h r ush Crt M erga nser C rtOaksid e CircleLyman Court MaryJ aneCirBarbara Cr tDrakeCrtDove CrtParkDrPark Roa d L a k e D riveDakotaCirErie AveW 86thSt Quinn RoadBluffCircleFawnHill Court RidgeRoadBelmo nt L n W 78th St W.Village Road LakeLucyLane C restvi ewCir Wh i te t a il R id ge C o ur t MoccasinTrai l W 79th St.Crimson Bay RdG reatPlainsBlvdIn d i a n H i l l R d Yuma D r KiowaLongacres D rMcGlynn DrMelodyLane P.V.LN.P.V.CirLake LucyRoad CenturyBoulevardLon g a c re s D rFawnHillR d FAWNHILLROAD82nd Street MainStreetHighoverDriveHighoverCrtS HighoverCrtN 21 3 4 5 6 Grandview RdStone CreekCrt H eron Dr AlisaCourtAlisaLaneBentBowTrail GunflintCourt 3 C ou lt e r B o u le v a r d Coulter Blvd Andrew Court Coulter Blvd 1 KIMBERLY LANE 3 Nicholas Way 2 Kelly CourtLakewayDrive Lake D riveWestL a k e D r iveL a keD rE.Deerbr o o k Dr H o rse s h o eL a n e HorseshoeCurveBridleCreek Circle NorthwoodCourt4 Autumn Ridge Ct5 Autumn Ridge Ln6 Autumn Ridge Way StoughtonAveHennepinCountyR e g io n a lT ra ilC o r r i d o r West Farm Ro a d H e id i L a neHe s s e F a r m C i r VogelsbergTrailMandan RaspberryHillBl uff Creek Drive M ills Road FlintlockTrailW. 96th Street Hwy101GreatPlainsBlvdFoxfordRoad W 94thSt.KiowaTrailLake Riley BlvdDeerfootTrail ParklandWay Spr ingfiel d D rEastwoodCrt OverlookCourt Sun n y v a le D rGree n v i ew Dr. ShoreviewCourt Greenleaf CourtSummerfieldDrSummerfieldDrive Lym a n Blvd Lak ev iewRdE N o rthB ayDr1 Mission Way Hill W2 Marshland Tr 3 Blackbird Ct4 Hartland Ct 5 Mission Hill Way E6 Rice Ct7 Monk Ct 8 Mayfield Ct9 Mission Hills Dr 10 Frisco Ct Tig u a L aChanhass en Hills Dr NorthC hanh a ssenH illsDrSouthL a keS us a nC rtL akeSusan Hills D r2 43 1 W 187th StW 77th St 5 P elicanC rtOspreyLnBluebillTrailBitternCourtSwanCourtI bi sCrtWestLakeDr MarketBlvd DellRoadLakeDrive E. 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EastKoehnenCir. West P heasantCir Shadow LaneIthlienAshton CT Te to nLaneBretton Way£¤212 Arlington Ct. WelsleyCt.PleasantViewC ov e Willow C r e e k Devonshire DrPointeLakeLucyMulberryCirEastMul b erryCirW est PeacefulLaneTroendleCircleTecumsehLane ShawneeLa ne RedmanLnUticaLaneUticaTerraceUticaCircleUtic a Lane State Hwy 5 Picha KerberBlvdMarket Blv d W 78th St Chan ViewKiowaIroquois AveHuronFrontierTrailWest 76th St Great Plains BlvdSouthShore D r S o u thS h o reCtErieAveFrontierC ourtLaredoDrive2 1 San ta VeraD rLaredoLaneSantaFeCirFrontier TrlIroqu o is Cimarron Cir SantaFeCirCa nyonC urveSad d l eb rook Trail Cones to gaTrailConestogaCourtButte Court PontiacCrt.Ponti ac Circle Ponti ac L n DerbyDrive De lRioDrDel Rio Dr Preakness Ln P im licoLaneFox Hill DrNava jo D r B r o ke n Ar r o wDr Rin g o DrCa rv e r Beac h RdPi maLnCh a p a r r al LnR ed w i ngL a n e Kerber Blvd NezPerceDrWoodhill Dr Cree Dr Ponderosa Dr Imperial Lone E agle Rd Carver BeachRd PenamintCtRedwingLnPenamintLnChaparral L NHiawatha Dr Western Dr ChaparralCourtLotusTr ailMohawk DrLakeAnnParkDrPawneeVinelan dCtFoxPat hH o p i R d DeerwoodDrQuiverDrive NapaDr. Pleasant V iewRoadFox Pat hF o x C t Lake P oi ntPl ea sant Vie w Road Trappers Pass Mountain W a y MountainViewCt NearM ou n t ai nBl vd Piedmont Ct Cascade Court S h a s ta C ir.W C a s tl eRidgeC a scade Cir Shasta Cir. E Olympic Cir. CastleRidgeCourtCa s c a de P a s s Townline Road Trap Line Circle Tim b e r Hill Rd RojinaLane T ra p LineLn PleasantParkDrBluffRidgeC rtGr a y Fox C urveFoxtail Crt QuailCrossingGrayFoxLaneH u n ters C rtFox Hollo w D r Chanhassen Rd. HWY. 101PleasantViewWayChoctawCirBrule CircleKruversPointRdWillow ViewCove TwinMapleLn Basswood CirHorseshoeCurve M e r r y P la c e Holly Lan eKNOBHILLLA NE L a k e way Lane W o od Duck L n HighgateCir O r chard La n e M a p le w o o d C irCactusC u rveSad d lebrookCurveChan View Dakota Lane HennepinCountyRegionalTrailCorridorFlying Clo u d D r ( C S A H 6 1) St a t e H W Y 1 0 112 3 4 5Highland DrLaredoLn 7 6 Mission HillsCourtMissionHillsCircleMissionHillsLane 1098 Pio n e e r T ra il(C S A H 1 4 )Meadowlark LnHesse Farm Road Sunri d geCrtAudubonRdPioneerCircleCreekwood Dr HomesteadLaneUplandCir c l e Mall oryCourtBriarwoodCt.Galpin Blvd. (CR 117)LakeL ucy Road Lake Lucy Road D ia mo n d C o urt Melody HillMurrayHillCrt AudubonRdHill StLongviewCirGalpinBlvd(CSAH 15)Cen t ury Trail CenturyBlvd1 2 34 7 6 5 3 Coach Place2 Coach Lane1 Coach Court 4 Coach Dr !Chesterfield Ln 5 Village Street6 Village Place !Century Circle Century Ct.Century Place 7 Arboretum Village Trl Big WoodsBlvd A rboretumVill ageCircleWaterTowerPlace Corporate Place Century BlvdSteller Court LucyRidgeCourt Emeral dLaneLucy Ridge LaneBentBowTrailW 78thStreet W 78thStre e t W78thStreet W78thStre et W 78th Stre e tPond Pr o m enad eRuby L a n e T o pazDriveSapphireLane Ridgeview Way RidgeviewPoint Vas s ermanTrail VassermanPlace Delphinium LaneBramble Dr H an co ck Plac e Hickory R oad ShenendoahCircle GoldenCourtCountry OaksDr EdgewoodCt L a keLuc y R o a d BrendenCourtManchesterDriveLakeHarrison Circle Highov er T railGal pi nCrt F o x D r L a k e Harrison Rd A m berwoodL N Al d e r W a y GunflintTrailArrowheadLn Gunflint Tr ail Hi gh c re s t C ir StonefieldLNPipewoodLaneCartw ayLanePowersPlace4 Rosewood Dr3 Burlwood Dr2 Suffolk Dr1 Essex Rd L akeSusa n Hills Dr L a k e DriveWestYosemiteYosemiteLilacLane B lu ffC reekBlvd1 2 3 4 5 Lyman Blvd (CSAH 18) PioneerTrail(CSAH14) B l u ffCre e k Blvd 1 Degler Circle2 Ellendale Lane3 Pembroke Pass4 River Rock Drive N. 78th St W Beacon Court 5 Bethesda Circle 7 8 9 1011 12 13 13 14 15 15 Roosevelt Dr 16 16 Columbia Lane 17 17 Freedom Lane 7 Lincoln Lane8 Washington Circle9 Commonwealth Blvd10 Franklin Lane11 Madison Dr12 Jefferson Dr 14 Declaration Dr13 Washington Blvd Springfield Dr Pineview CrtPowers Blvd (CSAH 17)Maple Shores Dr Red C e darPointRd Lake Riley DrLakeR i leyTrl W a tersEdgeDrFox HollowCt CrossroadsBlv d 18 Independance Circle 1819 Colonial Lane 19 20 20 Freedom Lane Dell RoadTanadoonaDrive WestwoodDrSW Village DrApple Tree Lane Motorplex Ct Washta Bay Ct £¤212 £¤212 Flyin g C lo u d D r(C S A H 6 1 )Bl uffCr eekDrH e m lo c k WayMayapple Pass !Village Ln Riley Ridge !Village Cir !Village Crt !Arboretum VillageLn, Pl, Crt, & Crv!Rock Island Ln VioletReflectionsRdLa k e v i ewRdE!BellevueCt 1 Hemlo c k Way Cottongr a ss Court Marigold Court Red Ced a r Cove Reflections RdWyn s o n g Lan e Pleasant View Rd Blaze TrlRiver R ock DrS C a m den Rid g e DrHenryCrtStrawberryLane HWY 101Mission Hills Street Names P re serve CT Fa wnHillRd Degler LNBe ntz Ct WindsorCt14-07 EagleRidgeR dHawkcre st Cir HawkcrestCtEagleCtCrossroad CourtAnthemPlace Lotus Lake Lake Riley Lake Minnewashta Lake Lucy Rice Lake Lake Susan Lake Ann Lake Harrison Rice Marsh Lake Clasen Lake Lake St Joe Christmas Lake OHW 877.0 OHW 699.2 OHW 896.3 OHW 865.3 OHW 944.5 OHW 956.1 OHW 881.8 OHW 955.5 OHW 993.6 OHW945.2 OHW 932.77 Lake Ann Park Rice Marsh Lake Preserve North Lotus Lake ParkLake Minnewashta Regional Park (County Park)SunsetRidgeParkMeadow Green Park K e r b e r P o n d P a r k Lake Susan PreserveBluff Creek Preserve Chanhassen Recreation Center Cathcart Park Hesse Farm Preserve Pheasant Hill P ark CurryFarmsPark CityCenterParkStoneCreekPark RoundhousePark HermanFieldPark CarverBeachPlaygrou nd Park PrairieK n ollP ark PowerHillPark Chanhassen H ills Park BandimereHeightsPark Greenwood Shores Park Carver Beach Park Bluff Creek Golf Course Raguet Wildlife Management Area (WMA) MN Valley National Wildlife Refuge Minnesota Landscape Arboretum Sugarbush Park Chanhassen Nature Preserve Minnesota Landscape Arboretum Pleasant ViewPreserveFoxwoods Preserve Minnewashta Heights Park S Lotus Lake Park Bandimere Park Chanhassen Estates Park Lake Susan Park Seminary Fen Scientific and Natural Area (SNA) Park Riley Ridge Park Pioneer Pass Park Raguet Wildlife Management Area (WMA) Bluff Creek Preserve Rice Marsh Lake Park Ch a n h a s s e n Hig h S c h o o l St H u b e r t S c h o o l Ch a n h a s s e n H i g h S c h o o l Blu f f C r e e k Elem e n t a r y Sch o o l Ch a p e l HillAca d e my Ch a n h a s s e n Elem e n t a r y Sch o o l Minne t o nk aMiddle Sch o o l W L CITY OF CHANHASSEN 2040 Land Use Plan - Residential High Density, Mixed Use, and Possible Redevelopment CORRIDOR BLUFF CREEK PRIMARY CORRIDOR Taxparcel 2040 Landuse Type Lifestyle Center Mixed Use Possible Redevelopment Residential High Density 1/23/2018 City of Chanhassen 2040 Comprehensive Plan59 FIGURE 3 - 28 | 2015 Housing Cost Burdened Households Source: Department of Housing and Urban Development, Metropolitan Council The Metropolitan Council has found that in 2016 Chanhassen had 1,603 household who were cost burdened. Another important term to understand when discussing affordable housing is “cost burdened”. Federal guidelines state that a household spending more than 30% of its income on housing, including utilities, is cost burdened. Households spending more than 35% of their income on housing are considered severely cost burdened and may have trouble affording other essential goods like food and clothing due to the high proportion of their income going towards housing. Many subsidized housing projects either cap rents at rates that will not represent a cost burden to individuals making 80% AMI or limit the maximum rent tenants pay to 30% of their monthly income. Source: Department of Housing and Urban Development 3.4.2 | Affordable Housing Overview The actual income thresholds that determine if households are classified as extremely low income, very low income, or low income depend on both the household’s location and its size. The United States Department of Housing and Urban Development establishes guidelines that determine if families qualify for subsidized affordable housing. FIGURE 3 - 27 | Department of Housing and Urban Development Income Thresholds 2017 HUD Twin Ci�es Affordability Levels Household Size Extremely Low Income (30% of AMI) Very Low Income (50% of AMI) Low Income (80% of AMI) One-person $19,000 $31,650 $47,600 Two-person $21,700 $36,200 $54,400 Three-person $24,400 $40,700 $61,200 Four-person $27,100 $45,200 $68,000 Five-person $29,300 $48,850 $73,450 Six-person $32,960 $52,450 $78,900 Seven-person $37,140 $56,050 $84,350 Eight-person $41,320 $59,700 $89,800 2016 Housing Cost Burdened Households 30% or less AMI 31% to 50% AMI 51% to 80% AMI 522 363 718 City of Chanhassen 2040 Comprehensive Plan60 FIGURE 3 - 29 | 2016 Affordability of Existing Housing FIGURE 3 - 30 2015 Affordable Ownership Housing Source: Metropolitan Council The Metropolitan Council equates this to a house priced at $243,500. Affordable ownership housing is defined as housing that is affordable to buyers earning 80% of the area median in- come. The Metropolitan Council equates this to a house priced at $243,500. The Community Partners Research, Inc. study looked at all Chanhassen home sales, new and resale, and found that the 2016 median sale price for detached single-family homes was $420,000. They found that the median price for townhomes was $228,250, and that con- dominiums had a median price of $166,500. The city’s inventory of condominiums, attached single-family homes, and older detached single-family homes means that there are opportunities for affordable homeownership; however, those opportunities become scarcer for individuals earning less than 50% of the medium income. The majority of the city’s existing affordable housing takes the form of ownership units. The map below shows the distribution of the city’s ownership housing. Affordable ownership units tend to be found in the city’s older subdivi- sions and attached housing developments. Source: Metropolitan Council The Metropolitan Council estimates that Chanhassen has 3,014 dwelling units which are affordable to families making less than 80% of the area’s median income. The Metropolitan Council evaluates cities based on the amount of affordable housing they create and preserve. Chanhassen has a housing performance score of 39 out of 100 (down from 45). This number is used to help prioritize the allocation of funding in the Livable Communities Demonstration Account and Tax Base Revitalization Account. The city’s score has gone down due to the fact that no new affordable units have been constructed in the last decade. A lower score hurts the city’s chance of being award- ed money from these accounts and also impacts the city’s score on requests for transportation funding. Low scores also give the city preference for the Housing Incentives Account, an account which helps cities create affordable housing projects. While the city has created a small lot residential zoning district and uses Planned Unit Developments to encourage the con- struction multifamily housing, the high cost of land and rising construction costs mean that the city cannot provide the amount of assistance required to build new affordable housing. 3.4.3 | Affordable Ownership Housing 2016 Exis�ng Housing Assessment Affordable Level Units % of Units 30% or less AMI 71 0.74% 31% to 50% of AMI 931 9.73% 51% to 80% of AMI 2,012 21.04% Above 80% AMI 6,551 68.49% Total 9,565 100.00% 2016 Affordable Ownership Housing 30% AMI 50% of AMI 80% of AMI $85,500 $153,500 $243,500 City of Chanhassen 2040 Comprehensive Plan61 FIGURE 3 - 31 | Owner-Occupied Housing by Estimated Market Value Source: Metropolitan Council Access to ownership housing is supported by Carver County CDA’s homebuyer and foreclosure prevention counselors which assisted 369 residents in purchasing or keeping their home between 2008 and 2016. Chanhassen Eden Prairie Excelsior Greenwood Jackson Twp. MinnetonkaMinnetrista Shakopee Shorewood Tonka Bay Dahlgren Twp. Carver Chaska Victoria Laketown Twp. - Owner-Occupied Housing by Estimated Market Value 1/5/2018 .1 in = 1.05 miles Chanhassen County Boundaries City and Township Boundaries Streets Lakes and Rivers Owner-Occupied Housing Estimated Market Value, 2016 $243,500 or Less $243,501 to $350,000 $350,001 to $450,000 Over $450,000 Source: MetroGIS Regional Parcel Dataset, 2016 estimated market values for taxes payable in 2017. Note: Estimated Market Value includes only homesteaded units with a building on the parcel. City of Chanhassen 2040 Comprehensive Plan62 FIGURE 3 - 32 | 2017 Affordable Apartment Rents FIGURE 3 - 33 | 2016 Publicly Subsidized Units Source: Metropolitan Council Source: Housing Link Streams Data Note: Affordable rents include utilities. 3.4.4 | Affordable Rental Housing For rental housing to be considered affordable, units must have rents below the Metro Housing and Redevelopment Authority standard ($945 for one-bedroom units and $1,190 for a two-bedroom units) to qualify for the Housing Choice Voucher program. Community Partners Research, Inc. estimated the city’s 2017 median rents for one and two-bedroom units to be $1,387 and $1,516, respectively; however, a significant portion of Chanhassen’s older rent- al stock is priced at or below the Metro Housing and Redevelopment Authority’s guidelines. Despite the existence of lower cost rental units, Community Partners Research, Inc. estimates that approximately 59% of Chanhassen’s renters pay 30% or more of their income in rent with the figure increasing to 92% for senior households. When all renter households were examined, they discovered that median percentage of monthly house- hold income that went towards rent was 33%. By comparison, the county wide median was 27.8%. The city has one publicly subsidized housing development, the Gateway Place, a 46-unit development which was funded by housing tax credits. Gateway Place’s compliance period will end in 2021 and, unless relief is sought, its extended use period will last until 2036. The city’s other subsidized housing development, Heritage Park, transi- tioned to market rate housing in 2004 when its housing tax credits’ compliance period expired. The Centennial Hill development provides 65 units of affordable senior housing. These units are priced below market rate, and are subject to income limits of 100% of area median income. Community Partners Research, Inc. reported rental rates ranging from $798 to $919 for one-bedroom units and $1,878 for two-bedroom units. Additionally, while the Summerwood project primarily provides market rate senior housing, the city created a TIF housing district to provide 32 affordable senior housing units. Affordable rental housing is also supported by the Carver County CDA. They provide Chanhassen residents with 47 Metro HRA Housing Choice Vouchers, 65 CDA affordable rental units, 13 CDA subsidized rental units, and 3 project based voucher units. 2017 Affordable Apartment Rents Number of Bedrooms Affordable rent at 30% AMI Affordable rent at 50% AMI Affordable rent at 80% AMI Studio $474 $791 $1,265 1-BR $508 $848 $1,356 2-BR $610 $1,017 $1,627 3-BR $705 $1,175 $1,880 4-BR $786 $1,311 $2,097 2016 Publically Subsidized Units All publicly subsidized units Publicly subsidized senior units Publically subsidized units for people with disabili�es Publically subsidized units: All others 179 0 0 179 HOUSING | Oak Ponds City of Chanhassen 2040 Comprehensive Plan63 FIGURE 3 - 34 | Chanhassen Multifamily Rental Housing Inventory Source: Community Partners Research, Inc., Maxfield Research Inc. Project Name/ Location Year Built Total Units Unit Mix Unit Size (Square Feet) Amenities/Comments Market-Rate General Occupancy Powers Ridge 1371 Lake Dr W 2002 101 22 3 64 12 1BR 1BR/D 2BR 3BR 775-881 904 1,205-1,098 1,347 3-story buildings, Residents pay electric & gas. UG garage included. Lake Susan Apts 8260 Market Blvd 2001 162 59 12 82 3 1BR 1BR/D 2BR 3BR 821 1,031 1,125-1,153 1,344 3-story buildings, residents pay electric & heat. UG garage included. Heritage Park 425 Chan View 1990 60 18 6 36 1BR 1BR/D 2BR 763-766 868-872 954-1100 3-story building, residents pay electric, heat, and gas. UG garage parking is not included. W Village Townhomes 700 W Village 1987 64 1 55 8 1BR 2BR 3BR 870 912 1,050 Santa Vera 601-612 1979 18 8 10 1BR 2BR 800 1,000 Two 2-story walk-up building. Owner pays heat. 16 garages included in rent. Tenants pay electric. Chanhassen Village 7721 MN Hwy 101 1973 120 69 51 1BR 2BR 720 970 Six 3-story buildings. Owner pays heat, water, sewer, and trash. Off-street parking, additional parking available. Chan View Estates 420, 440, 489 Chan View 1969 35 2 11 22 Eff 1BR 2BR 545 690 900 Three 3-story walk up buildings. Heat is included in the rent. Chan View Apts. 410 Chan View 1968 24 12 12 1BR 2BR 650 750 3-story walk up building. Heat is included in rent. Deep-Subsidy/Shallow-Subsidy General Occupancy Gateway Place 721 Lake Susan Drive 2007 48 4 27 17 1BR 2BR 3BR 900 1,041-1,216 1,380-1,450 LIHT Affordable at 60% of AMI. 3-story building. UG parking and heat included. Market Rate Senior Housing Powers Ridge 1371 Lake Dr W 2017 76 24 45 6 1BR 2BR 3BR 812-1,065 1,066-1,175 1,426-1,453 Independent living, 55+, UG Garage included. Summerwood of Chan. 525 Lake Drive 2005 53 2 41 10 Studio 1BR 2BR 265 555-690 950 Assisted living, 55+ Summerwood of Chan. 525 Lake Drive 2004 90 44 13 33 1BR 1BR/D 2BR 705-758 1,000-1,100 1,240-2,009 Congregate, 55+ Summerwood of Chan 525 Lake Drive 2005 18 4 13 1 Studio 1BR 2BR 265 525-580 950 Memory Care, 55+ Shallow-Subsidy Senior Housing Centennial Hills 820 Santa Vera Drive 1996 65 39 23 3 1BR 1BR/D 2BR 700-750 965-984 1,060 Carver County CDA, 3- story affordable building that opened in 2006. City of Chanhassen 2040 Comprehensive Plan64 3.4.5 | Upcoming Projects Creating Lifecycle Housing Several projects which will further increase the diversity of Chanhassen’s housing stock have recently been approved, and others are working their way through the city’s approval process. While none of these projects includes publicly subsidized affordable housing, they will all provide alternatives to traditional single-family detached housing. Arbor Glen A 18 unit detached single-family development. The homes will be handicap adaptable, and the HOA will be respon- sible for all exterior maintenance. While not age restricted, this development is designed to provide housing options for older individuals looking to downsize and age in place. Mission Hill A senior oriented planned unit development with 8 independent living twin homes, 16 units, and a 136-assisted living unit senior housing apartment build- ing. A daycare has also been incorporated into this building. The City Council approved this development on May 8, 2017. Avienda A regional commercial/lifestyle center. This development will include up to 600 units of housing. The exact mix and number of housing units will be determined by the market; however, medium density single-family ownership housing and senior apartments with some level of service are the envisioned uses. This develop- ment was approved by the City Council on July 10, 2017. City of Chanhassen 2040 Comprehensive Plan65 Venue A 134-unit market rate apartment in the heart of Chanhassen’s downtown. These units will provide a walkable downtown rental option. This development also includes a 19,000 square foot retail space which will be occupied by Aldi. This development was approved by the City Council on July 10, 2017. West Park A 82-unit townhouse development featuring a mix of four-, five-, and six-plexs. These units are expected to be priced between $300,000 and $400,000. Units on the lowest end of the price range will provide entry-level housing. This development was approved by the City Council on July 10, 2017. City of Chanhassen 2040 Comprehensive Plan66 3.5 | Action Plan The city will continue to uphold the housing goals and policies of the comprehensive plan. FIGURE 3 - 36 | Affordable Housing Needs Action Plan Iden�fied Need Available Tools Circumstances and Sequence of Use Alloca�on of Affordable Housing Need at or below 30% AMI: 464 Units TIF The City would consider using TIF to support proposals for this type of housing in areas guided for high density residen�al use. Tax Abatement The City would be unlikely to use tax abatement to support new construc�on. Housing Bonds The City would not support the issuance of housing bonds; however, it will refer interested par�es to the Carver County CDA. Site Assembly The City would not engage in site assembly. Tax Levies to support Affordable Housing The City would not adopt dedicated tax levies. Density Increase The City would consider permi�ng up to a 25% increase in the net density for a project featuring affordable housing. Local Housing Incen�ve Account The City would consider applying for a LHIA grant to support proposals for this type of housing in areas guided for high density residen�al use located near transit hubs. Livable Communi�es Demonstra�on Account The City would strongly consider applying for a LCDA grant to support proposals for this type of housing in areas guided for high density residen�al use. Tax Base Revitaliza�on Account The City would strongly consider applying for a TBRA grant to support proposals for this type of housing in areas guided for high density residen�al use located near transit hubs. Community Growth Partnership Ini�a�ve The City would strongly consider applying for a CGPI grant to support proposals for this type of housing in areas guided for high density residen�al use. Referrals The City will ensure staff is familiar with resources provided by the Carver County CDA and Minnesota Housing Finance Agency which can assist developers in crea�ng viable affordable housing projects. Super RFP The City would consider suppor�ng an applica�on to Super RFP programs for this type of housing in areas guided for high density residen�al use. Alloca�on of Affordable Housing Need between 31% to 50% AMI: 197 Units TIF The City would consider using TIF to support proposals for this type of housing in areas guided for high density residen�al use. Tax Abatement The City would be unlikely to use tax abatement to support new construc�on. Housing Bonds The City would not support the issuance of housing bonds; however, it will refer interested par�es to the Carver County CDA. Site Assembly The City would not engage in site assembly. Tax Levies to support Affordable Housing The City would not adopt dedicated tax levies. Density Increase The City would consider permi�ng up to a 25% increase in the net density for a project featuring affordable housing. Local Housing Incen�ve Account The City would consider applying for a LCDA grant to support proposals for this type of housing in areas guided for high density residen�al use located near transit hubs. Livable Communi�es Demonstra�on Account The City would strongly consider applying for a LCDA grant to support proposals for this type of housing in areas guided for high density residen�al use. Tax Base Revitaliza�on Account The City would strongly consider applying for a TBRA grant to support proposals for this type of housing in areas guided for high density residen�al use located near transit hubs. Community Growth Partnership Ini�a�ve The City would strongly consider applying for a CGPI grant to support proposals for this type of housing in areas guided for high density residen�al use. Referrals The City will ensure staff is familiar with resources provided by the Carver County CDA and Minnesota Housing Finance Agency which can assist developers in crea�ng viable affordable housing projects. Super RFP The City would consider suppor�ng an applica�on to Super RFP programs for this type of housing in areas guided for high density residen�al use. Alloca�on of Affordable Housing Need between 51% to 80% AMI: 145 Units TIF The City would consider using TIF to support proposals for this type of housing in areas guided for high density residen�al use. Tax Abatement The City would be unlikely to use tax abatement to support new construc�on. Housing Bonds The City would not support the issuance of housing bonds; however, it will refer interested par�es to the Carver County CDA. Site Assembly The City would not engage in site assembly. Density Increase The City would consider permi�ng up to a 25% increase in the net density for a project featuring affordable housing. Tax Levies to support Affordable Housing The City would not adopt dedicated tax levies. Local Housing Incen�ve Account The City would consider applying for a LHIA grant to support proposals for this type of housing in areas guided for high density residen�al use located near transit hubs. Livable Communi�es Demonstra�on Account The City would strongly consider applying for a LCDA grant to support proposals for this type of housing in areas guided for high density residen�al use. Tax Base Revitaliza�on Account The City would strongly consider applying for a TBRA grant to support proposals for this type of housing in areas guided for high density residen�al use located near transit hubs. Community Growth Partnership Ini�a�ve The City would strongly consider applying for a CGPI grant to support proposals for this type of housing in areas guided for high density residen�al use. Referrals The City will ensure staff is familiar with resources provided by the Carver County CDA and Minnesota Housing Finance Agency which can assist developers in crea�ng viable affordable housing projects. Super RFP The City would consider suppor�ng an applica�on to Super RFP programs for this type of housing in areas guided for high density residen�al use. Overall Housing Strategy Fair Housing Policy The City will inves�gate adop�ng a local fair housing policy. Partnerships The City will con�nue to explore opportunites to partner with the Carver County CDA and public and private agencies to acomplish the housing goals and policies outlined in the Comprehensive Plan. City of Chanhassen 2040 Comprehensive Plan67