H-1.a. 2040 Comprehensive Plan Discussion - Housing 41 --1
2 Housing
2.0 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,townhouses, twin homes,
senior living facilities, and group homes. "Chanhassen is a Community for Life" and thus has
provided the 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 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.
2.1 EXISTING HOUSING
Since 2000 the city has grown from an estimated 6,195 owner occupied homes and 719 rental
units to an estimated 7,497 owner occupied homes and 1,180 rental units in 2015. Historically,
the city has been dominated by single-family housing. While this is still the predominate form of
housing, the city has diversified its housing stock through the construction of townhomes and
condominiums. Additionally, the construction of several senior oriented apartments has further
expanded the city's housing inventory.
Figure 2-1: Housi
,j&Permits
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
1
Year Single Family Attached Single Family* Apartments Dwellings
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
Average 75 60 38 172
Source: City of Chanhassen
*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.
Over the last 17 years, the city has approved the construction of an average of 172 dwelling units
a year. During 2003, the city issued 396 permits, compared to 66 permits in 2008. The extreme
variation between different years during this period is the result of it spanning both the height of
the real estate boom and subsequent economic recession. The five-year average of 148 permits a
year represents the typical post-recession permit volumes for the city. As of 2017, 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.
2.1.1 OCCUPIED HOUSING UNITS BY TYPE AND TENURE
Figure 2-2: Housing Tenure
2000 Housing Tenure 2015 Housing Tenure
i Owner- r Owner-
Occupied Occupied
Renter- � ■Renter-
occupied occupied
Vacant ■Vacant
Source: US Census (2000, 10-year and 2015, 1-year)
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Detached single-family housing continues to be the mainstay of the city's housing stock;
however, the city has added 1,014 attached single-family units since 2000. Many of these units
are owner occupied townhomes, although some of these dwellings are being rented out.
Figure 2-3: Housing Types
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 0111, 0 1 0 0 0
Total occupied housing units 3,428 588 6,199 719 7,161 934 7,497 1,207
Source: US Census & City of Chanhassen Building Permit Activity
The city has also approved projects featuring multifamily dwellings during this period.
Multifamily dwellings are defined as buildings with more than 5 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.
2.1.2 INVENTORY OF HOUSING STOCK
Figure 2-4: Households by Type
Household Tye 1990 2000 2010 2015
Family Households 3,273 5,524 6,257 7,258
Married Couples 2,982 4,925 5,505 6,371
with relatedchildren under a ge 18 1,767 3,143 3,470 5,550
no related children under age 8 1,215 1,782 2,035 821
Other families 291 599 752 887
Male household, no`'vvife proent 88 168 218 240
with related children under age 18 47 112 128 239
no related children under age 18 41 56 90 1*
Female Household, no husband present 203 431 534 647
with related children under age 18 137 316 352 594
no related children under age 18 66 115 182 53*
Non-family households 743 1,390 2,095 1,738
1 person 527 1,086 1,718 1,365
2 or more persons 216 304 377 373
Total 4,016 6,914 8,352 8,996
Source: US Census
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*The 2015 1 year supplemental has a relatively small number of respondents and large margins
of error, especially for the less common household configurations.
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.
Figure 2-5: Age of Housing Stock (Selected Communities)
Owner occu ied Renter Occu ied
Cities before 1950- 1970- 1990- 2000- 2010- before 1950- 1970- 1990- 2000- 2010-
1950 1969 1989 1999 2009 2014 1950 1969 1989 1989 2009 2014
Carver 109 39 119 275 509 166 20 0 0 0 0 0
Chanhassen 159 788 2,560 2,552 1,133 714 20 62 303 420 279 100
Chaska 306 419 1,749 1,910 1,797 364 154 115 1,140 471 988 0
Victoria 128 202 319 617 927 358 0 7 120 38 11 0
Waconia 203 459 364 1,005 1,127 365 96 156 234 74 162 100
Carver
County 2,512 2,855 7,002 7,522 6,947 2,090 646 596 2,140 1,015 F1,676 197
Sources: U.S. Census Bureau, Cities and Townships; Maxfield Research, Inc
Over half of Chanhassen's housing stock was built after 1990, and the Metropolitan Council
projects the city will construct another 4,733 units between 2017 and 2040. The pace and timing
of this development will be linked to the availability of land for both new subdivisions and infill
development. The nearby communities of Carver, Chaska, Victoria, and Waconia are also
expected to..experience significant growth.
Figure 2-6: Median Resale Price (Selected Communities)
Cities Median Sale Price(Selected Communities)
2013 2014 2015 2016
Carver $282,500 $27 ,000 $277,750 $296,090
Chanhassen $303,500 $318,000 $325,000 $336,950
Chaska $251,000 $23`5,000 $255,000 $272,000
Victoria $371,500 $369,990 $403,250 $423,018
Waconia $229,000 $237,000 $250,000 $266,250
Carver
County $250,820 $258,050 $273,490 $279,900
Sources: Minneapolis Area Association of Realtors
The above table includes the sales price of all detached single-family, attached single-family, and
condominium style homes. In 2016, Chanhassen's median home sale price of$336,950 was the
second highest in Carver County, about $57,000 over the county's median sales price. Only
Victoria's median home sale price of$423,018 was higher.
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Figure 2-7: Chanhassen Single Family Sales
Chanhassen Single Family Sales
Detached Houses Town Homes Condominiums
Sales Year Number of Good Sales of Good Median Number Median of Good Number Median
Sales* Price Sales* Sale Price Sales* Sale Price
2016 332 $420,000 79 $228,250 79 $166,500
2015 356 $370,000 75 $228,242 76 $161,000
Source: Carver County Assessor; Community Partners Research, Inc.
*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.
Figure 2-8: Active Single-Family Housing Developments January 2014 (Selected Communities)
Active Single Family Developments January 2014
Avg.
Estimated New Home Prices
Cities Home Total Vacant Estimated Avg.
Starts(20065 Lots Dots $325K- Price"
2014)* <$325k $525K $525K+
Carver 29 115 68 25% 70% 50% $307,890
Chanhassen 87 479 118 0% 80% 20% $385,179
Chaska 68 671 256 50% 75% 20% $371,179
Victoria 64 502 106 0% 50% 50% $384,893
Waconia 61 481 144 15% 65% 20% $285,302
Caver
County 357 4,128 1,216 32% 55% 13% $310,804
Source: Regional Multiple Listing Service, Maxfield Research Inc.
*Home Starts are an average of permits issued form 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 shows that Chanhassen
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and Victoria have the highest average "active"price of approximately$385,000. There are no
active single-family developments under $325,000.
Figure 2-9: Active Multifamily Developments January 2014
Active Multi-Family Developments January 2014
Avg. Estimated New Home Prices
Cities Home Total Vacant Estimated Avg.
Starts(20065 Lots Lots $325K- Price
2014) <$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% 40% 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
Source: Regional Multiple Listing Service, Maxfield Research Inc.
*Home Starts are an average of permits issued fonn 2006 through 2003.
"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.
Figure 2-10: Chanhassen Rent Summary Quarter 1, 2017
Bedrooms Estimated Median Rent
0-Bedroom $905
1-Bedroom $1,387
2-Bedroom $1,516
3-Bedroom $1,850
4-Bedroom N/A
Source: Community Partners Research, Inc.
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 $1,516.00 compared to $1,304 in Chaska.
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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 I%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. The city anticipates an increased demand for rental
housing, especially affordable rental housing based the community's proximity to Caver
County's job hubs; and the desire to locate housing in conjunction with transits or commercial
centers.
2.1.3 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, equipment, and facilities for light, ventilation, space,heating, sanitation,protection
from the elements, life safety, safety 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.
2.2 POPULATION AND INCOME
2.2.1 DEMOGRAPHICS
Figure 2-11: Demographics
2000 2010 Chane % Change
Total Population 20,321 22,952 2,631 12.95%
Number of Households 6,914 8,352 1,438 20.80%
Persons per household 2.94 2.75 -0.19 -6.46%
Number of families 5,524 6,257 733 13.27%
Persons per family 3.33 3.23 -0.10 -3.00%
Source: US Census
Figure 2-12: 2015 Demographics
Chanhassen Po ulation and Household Estimates
ACS 2015 Met. 2016 City(2016)
Total Population 25,332 25,448 24,951
Number of 9,233
Households 8,996 9,267
Persons per Household 2.82 2.74 2.70
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Source: US Census, 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. The US Census
found that Chanhassen's 2015 population was 25,335 people in 8,996 households, which works
out to an average of 2.82 persons per household.
Between 2000 and 2010 the US Census shows that the average persons per household in
Chanhassen has dropped from 2.94 to 2.75, a decrease of 6.46%. 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 2.82 is significantly higher the
metropolitan statistical area's average household size of 2.56. Due to Chanhassen's location in
Eastern Carver County and its amenities, it is likely that the city will continue to attract a
disproportionately larger share of the region's young families with children.
Figure 2-13: 2040 Regional Development Framework
CARVER Population Households Employment
COUNTY
2010 2020 2030 2040 2010 2020 2030 2040 2010 1 2020 2030 2040
Carver 3,724 6,300 10,300 15,500 1,182 2,120 3.630 5,600 187 650 1,030 1,700
Chanhassen 22,952 26,700 31,700 37,100 8,352 10,000 11,900 14.000 9,746 13,200 14,400 15,400
Chaska 23,770 27,100 j 32,000 36,600 8,816 10,400 12,300 14,200 11,123 13,600 16,000 17,600
Victoria 7,345 10,000 12,600 15,400 2,435 3,500 4,570 5,700 1,502 2,100 2,380 2,600
Waconia 10,697 14,200 20,600 24,000 3,909 5,400 8,000 9,500 5,578 7,600 8,700 10,200
Carver
County Total 91,042 108,520 135,960 161,240 32,891 40,940 52,180 62,590 31,836 42,190 48,100 53,840
Chanhassen's 25.39 24.43 22.81 22.37 30.61 31.29 29.94
Share 25.2% 24.60% 23.32% 23.01% % % % % % % % 28.60%
Source: Thrive MSP 2040-January 1, 2017 Forecasts.
Figure 2-14: City and Met Council Population Projections.
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Population
38,000
36,000
34,000
32,000
30,000
28,000
26,000
24,000
22,000
20,000
2010 2020 2030 200
--*-City Met Council
Figure 2-15: Chanhassen Population by Age
Chanhassen Population by 2000 2010 Chan e
Age Number % of Number % of Number
Age Total Total Change
Under 5 years 2,020 9.9% 1,310 5.7% -710 -35.1%
5 to 9 years 2,227 11.0% 1,946 8.5% -281 -12.6%
10 to 14 years 1,889 9.3% 2,274 9.9% 385 20.4%
15 to 19 years 1,197 5.9% 1,885 8.2% 688 57.5%
20 to 24 years 590 2.9% 784 3.4% 194 32.9%
25 to 34 years 2,608 12.8% 2,113 9.2% -495 -19.0%
35 to 44 years 4,903 24.1% 3,478 15.2% -1,425 -29.1%
45 to 54 years 2,816 13.9% 4,828 21.0% 2,012 71.4%
55 to 59 years 732 3.6% 1,566 6.8% 834 113.9%
60 to 64 years 419 2.1% 1,001 4.4% 582 138.9%
65 to 74 years 591 2.9% 1,001 4.4% 410 69.4%
75 to 84 years 270 1.3% 543 2.4% 273 101.1%
85 years and over 59 0.3% 223 1.0% 164 278.0%
Total Population 20,321 100.0% 22,952 100.0% 2,631 12.9%
Source: US Census
In 2010 the largest segment of the population (21%) is 45 to 54 years old. The median age of the
city's residents is 39.3 years old, an increase of 3.8 years from the 2000 census's average age of
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35.5. The average age in the metropolitan statistical area is 36 years, roughly unchanged from its
2000 average of 36.1 years. During this same period, the average age in Minnesota increased
from 35.4 to 37.4 years, and increase of 2 years. These different rates of increase are likely the
result of millennials' preference for more urban environment, and Chanhassen's housing market
being skewed towards executive/move up housing rather than starter homes affordable to
younger couples and families.
That Maxfield study concluded the following regarding Carver County's demographics:
• 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; whereas, 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.
Figure 2-16: 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
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 metropolitan
statistical area is listed as $68,778. Chanhassen's amenities, location, and housing stock is
expected to continue to attract households with median incomes above the regional average.
2.3 RESIDENTIAL LANDS
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The city has less than 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 moderate-
income housing. The Maxfield study has projected the following housing demand:
Figure 2-17: Demand for Additional For-Sale Housing
Demand for Additional For-Sale Housing
2014 to 2020 to 2030 to
2020 2030 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 5,150 35/65 35/65
Number of Single
Family/Multifamil 982/982 606/1,125 383/712
Single Family<$325,000 0 (0ow), 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 (306/o) 197 (35%)
Multifamily-Gen. Occupancy
$225,000+ 471 (50%) 703 (70%) 365 (65%)
Multifamily-Senior<$225,000 40 120 150
Source: Maxfield Research Inc.
Figure 2-18: Demand for Additional Rental Housing
Demand for Additional Rental Housing
2014 to 2020 to 2030 to
2020 2030 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
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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
Source: Maxfield Research Inc.
The Metropolitan Council forecasts that Chanhassen will add 4,733 households between 2017
and 2040, and Community Partners Research, Inc. believes that 5,000 new households will be
added by 2040. The table below projects the city's household demand assuming 5,000 units are
added from 2017 to 2040 and allocated according to market demand projected by the Maxfield
study.
Figure 2-19: Chanhassen Housing Demand 2016-2040
Housing
Demand
.5,000
Ownership Senior Rental
31415 918 667 y
Single Multi- Adult Adult Service- Market
Famil family Owned Rental Enriched Afford/Sub Rate
1,503 1,912 'r-2316- 441 241 217 450
2.4 LIFECYCLE HOUSING
Figure 2-20: Livable Communities Act
LCA from 2015 Housing Action Plan
City Index Benchmark Goal
Affordability
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Ownership 37% 60-69% 30%
Rental 44% 35-37% 35%
Life-Cycle
Type (non-single 34% (1991
family detached) 19% 35-37% Comp Plan
Owner/Rental Mix 85/15% 67-75/25-33% 80-90/20-10%
Density
Single family 1.5 1.8-1.9
detached units/acres units/acre 1.8 units/acre
11 10-14
Multifamily units/acres units/acre 1 9-10 units/acre
Overall Average 3.3
Source: City of Chanhassen
Affordable ownership housing is defined as housing that is affordable to buyers earning 80%of
the area median income. The Metropolitan Council equates this to a house priced at$238,500.
The Community Partners Research, Inc. study looked at all home sales, new and resale, and
found that the 2016 median sale price for detached single-family homes was $420,000. The
median price for townhomes was $228,250, and condominiums 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.
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 rental
stock is priced at or below the Metro Housing and Redevelopment Authority's guidelines. They
estimate that approximately 59% of Chanhassen's renters pay 30% or more of their income in
rent. Federal Guidelines establish 30% as the maximum household contribution for subsidy
programs. Rent in excess of 30% of household income is considered a cost burden.
Community Partners Research, Inc. estimates that Chanhassen has 3,037 dwelling units which
are affordable to families making less than 80%of area's median income. These units include
both owner occupied and rental properties.
While the city has created a small lot residential zoning district and uses Planned Unit
Developments to encourage the construction multifamily housing, the high cost of land and
construction costs mean that the city cannot provide the amount of assistance required to build
new affordable housing. Using the above tools the city has been able to meet the density goals as
shown on the City Plat Monitoring Sheet in Table 4-24.
Chanhassen's estimated share of the region's affordable housing for 2021 - 2030 is 806 units,
this works out to approximately 42% of the city's projected annual growth in new housing
during that period. A breakdown of these units by income category is shown in the table below.
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Figure 2-21: Affordable Housing Allocation
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
Source: Metropolitan Council.
2.4.1 EXISTING PROJECTS
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, transitioned 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 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.
2.4.1 UPCOMING PROJECTS
Several multi-family projects 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 increase the diversity and depth of Chanhassen's housing stock.
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 building. A daycare has also been
incorporated into this building. The City Council approved this development on May 8, 2017.
Powers Ridge:
A 76-unit market rate senior apartment. This is the third building of the Powers Ridge
development which included four proposed multi-family buildings. The first two buildings were
constructed in 2002.
West Park:
A 82-unit townhouse development featuring a mix of four-, five-, and six-plexs. These units are
expected to be priced between the mid $200,000 and the mid $300,000. These units will provide
entry-level housing, and some units on the lower end of the price range may meet the region's
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criteria for affordable ownership housing. This development was approved by the City Council
on July 10, 2017.
Venue:
A 134-unit market rate apartment in the heart of Chanhassen's downtown. These units will
provide a walkable downtown rental option. This development also includes a 19,000 square foot
retail space which will be occupied by Aldi. This development was approved by the City Council
on July 10, 2017.
Avienda:
A 118-acre regional commercial/lifestyle center. This development will include up to 550 units
of housing. The exact mix of this housing will be determined by the market; however,medium
density single-family ownership housing and senior apartments with some level of service are
the envisioned uses. This development was approved by the City Council on July 10, 2017.
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Figure 2-23: Demographic Summary
Demographic Summary
Chanhassen Carver Count
Population(2014/2020/2030/M10) 25,580 / 31,715 / 36,055 39,560 99,426 /122,425 / 145,6M/ 26$,829
Households(2014/20M/20D/2040) 8,960 / 11,575 / 13,855/15,520 35,448 / 45,1.45 / 59.875/ 74525
Household Growth(2014 to 204QI 6,560 35,077
Median Household Income(2D14) $108,157 $8Q049
Median Age of Population(2010) 39.3 36.3
Homeownership Rate(2010) 86.8% 81.5%
Current Housing Characteristics Summary
For-Sale Housing
Chanhassen Carver Count
Average resale price of existing single-family homes(2013) $360,000 $270000
Average resale price of existing multi-family homes(2013) $163,700 $128,500
Average sale price of new construction single-family homes 5385,179 $310,804
Average number of single-family homes built annually since 2006 87 355
Average sale price ofnew construction multifamily homes $322,076 $225,000
Average number of mtltifamily homes built annually since 2006 S4 158
Rental Housing
Chanhassen Carver County
Number of surveyed units and average monthly rent for market rate units
One-bedroom units 223 / $754 611 / $763
Two-bedroom units 337 / $1,086 1,220 / $973
Three-bedroom units 29 / $1,473 220 / $1,473
Marketrate vacancies/vacancy rate i8 / 2.9% 42 / 19%
Number of affordabl /s ibsidi ed units 61 680
Affordable/subsidized vacancies/vacancy rate 0.0% 12 / 1AX
Senior Housing
Chanhassen Carver Count
Units Vacant' %Vac. Units Vacant' %Vac-
Ma rket rate senior housing
Adultownership 0 — 40 O 0.099
Adult rental 0 — 0 — —
Congregate 90 0.0% 195 O 0.0%
Assisted living 53 0.0% 328 29 a_8%
Memory Care 18 0.0% 112 16 14-3%
Subsidized/Affordable rental housing 65 0.0% 639 14 2.2%
•Vacantunits atprojerts in their initial lease-up are not included in this figure.
Source: Maxfield Research Inc.
19
Figure 2-24: Residential Developments
GROSS ROW WETLAND/ MISC. PARK NET TOTAL GROSS NET Land Use
PROJECT NAME ACRES ACRES PRIMARY/ ACRES LAND ACRES UNITS DENSITY DENSITY Density
POND ACRES _
SINGLE-FAMILY DETACHED
Highlands of Lake St. Joe 36 0.4 11.54 0 24.06 33 0.92 1.37 low
Windmill Run 17.92 3.37 0 0 14.55 35 1.95 2.41 low
Royal Oaks Estates 13 2.2 0 0 10.8 23 1.77 2.13 low
Lotus Lake Woods 4.47 0.32 0.3 0 3.85 7 1.57 1.82 low
Oaks at Minnewashta 35.83 9 3 8 15.83 45 1.26 2.84 low
Tower Heights 7.1 0.6 0 0 6.5 13 1.83 2.00 low
Shenandoah Ride 11.5 3.5 0 0 8 20 1.74 2.50 low
Church Road 3.3 0 0 0 3.3 4 1.21 1.21 low
TJO 1.06 0 0 0 1.06 3 2.83 2.83 low
Minger Addition 9.95 2.08 0 0.15 7.72 17 1.71 2.20 low
Minnewashta Landings 19.7 1.7 0 0 18 27 1.37 1.50 low
Olivewood 25.95 4.6 14.8 0 6.55 8 0.31 1.22 low
Shadow Ride 15.99 2.15 1.9 0 11.94 17 1.06 1.42 low
Mission Hills/Single-family 7.1 0 0 0 7.1 16 2.25 2.25 low
Woodridge Heights 37.9 3.67 6.7 0 27.53 46 1.21 1.67 low
Creekside 39.5 4.2 5.7 5 24.6 44 1.11 1.79 low
Brenden Pond 23.3 3.6 7.2 0 12.5 21 0.90 1.68 low
Pointe Lake Lucy 18.15 1.63 5.62 0 10.9 19 1.05 1.74 low
Hobens Wild Woods Farm 1.87 0 0 0 1.87 3 1.60 1.60 low
Forest Meadows 20.2 2.2 0 5 13 19 0.94 1.46 low
Meadows at Lon acres 95 10 24 0 61 112 1.18 1.84 low
Trotters Ride 32.5 7.44 5.6 0 19.46 49 1.51 2.52 low
Willow Ride 30.3 4 8.39 0 17.91 37 1.22 2.07 low
Stone Creek 81 10.04 0.96 8 62 141 1.74 2.27 low
Ithilien Addition 9 1.8 0.9 0 6.3 17 1.89 2.70 low
Bluff Creek Estates 61.45 7.9 19.7 0 33.85 78 1.27 2.30 low
Woods at Lon acres 96.77 13.1 10.87 0 72.8 115 1.19 1.58 low
Springfield 80.8 20.2 0.5 5.3 54.8 134 1.66 2.45 low
Lake Lucy Estates 16.36 2.08 4.86 0 9.42 17 1.04 1.80 low
Knob Hill 8.35 1.1 0.66 0 6.59 12 1.44 1.86 low
Dempsey Addition 5.11 0.04 0.96 0 4.11 7 1.36 1.70 low
The Frontier 8.9 0.09 0.2 0 8.61 9 1.01 1.05 low
Oak Ridge of Lake Minnewashta 11.8 2.1 0 0 9.7 23 1.95 2.37 low
Slather Addition 1.22 0 0 0 1.22 2 1.64 1.64 low
Melody Hill 4.57 0.73 0 0 3.84 10 2.10 2.60 low
Arundel 1.32 0 0 0 1.32 2 1.52 1.52 low
Rice Lake Manor Estates 7.06 1 01 1.24 0 5.82 2 0.28 0.34 low
Rook Place 1.08 0 F 0 0 1.08 2 1.85 1.85 low
20
GROSS ROW WETLAND/ MISC. PARK NET TOTAL GROSS NET Land Use
PROJECT NAME ACRES ACRES PRIMARY/ ACRES LAND ACRES UNITS DENSITY DENSITY Density
POND ACRES
Black Walnut Acres 3.28 0 0 0 3.28 1 0.30 0.30 low
Song Addition 8.3 0 1.75 0 6.55 1 0.12 0.15 low
Hi hover Addition 48.99 13.83 2.83 0 32.33 54 1.10 1.67 low
Monson, Sunrid a Addition 5 0 0 0 5 2 0.40 0.40 low
Lynmore Addition 6.39 0.83 2.12 0.64 2.8 8 1.25 2.86 low
Eric Peterson 6.32 0 3.59 0 2.73 2 0.32 0.73 low
Nickolay 3.7 0 0.91 0 2.79 2 0.54 0.72 low
Brozorick 1.44 0 0 0 1.44 2 1.39 1.39 low
Smith Hill Addition 1.33 0 0 0 1.33 2 1.50 1.50 low
Arrowhead Development 0.91 0 0 0 0.91 2 2.20 2.20 low
Sandy Point 1.47 0 0 0 1.47 2 1.36 1.36 low
Marsh Glen 13.41 1.45 1.91 0 10.05 19 1.42 1.89 low
Lucas I el Addition 1.09 0 0 0 1.09 2 1.83 1.83 low
Summerfield 2nd Addition 5 0.95 0 0 4.05 10 2.00 2.47 low
Arvidson's Addition 2.47 0 0 0 2.47 4 1.62 1.62 low
White Oak Addition 3.4 0.6 0 0 2.8 5 1.47 1.79 low
Ashling Meadows 40.03 6.39 4.78 0 0 28.86 51 1.27 1.77 low
Big Woods 6.3 1.1 0 0 0 5.2 9 1.43 1.73 low
Tristan Heights 1.15 0 0 0 0 1.15 2 1.74 1.74 low
Lake Lucy Ride 18.57 2.4 7.16 9.01 17 0.92 1.89 low
Knob Hill 2nd 7.59 1.22 0.57 0 0 5.8 9 1.19 1.55 low
Hidden Creek Estates 22.28 3 8.5 0 0 10.78 20 0.90 1.86 low
Vasserman Ride 68.76 8.69 27.92 1.94 0 30.21 84 1.22 2.78 low
Boyer Lake Minnewashta Add. 13.59 1.26 2.34 3.25 6.74 10 0.74 1.48 low
Willow Ridge 3rd Addition 2.09 0 0 0 0 2.09 2 0.96 0.96 low
Countryside 5.93 1.02 0.58 4.33 10 1.69 2.31 low
Burlewood 5.17 1.75 3.42 9 1.74 2.63 low
Walnut Grove 2nd 3.09 0.5 1.1 1.49 4 1.29 2.68 low
Settlers West 44.56 4.17 0 16.13 24.26 48 1.08 1.98 low
Kenyon Bluff 2.16 0.24 0.37 1.55 3 1.39 1.94 low
Lotus View Addition 2.83 2.83 2 0.71 0.71 low
Frontier 2nd Addition 2.61 0 0 2.61 5 1.92 1.92 low
Hidden Creek Meadows 19.24 2.02 5.96 11.26 21 1.09 1.87 low
Pinehurst 27.62 4.28 0.14 23.2 41 1.48 1.77 low
Yoberry Farm (Hi hcrest) 35.79 5.54 4.53 0.39 25.33 57 1.59 2.25 low
Crestview 3.36 0.6 2.76 5 1.49 1.81 low
John Henry 1.19 1.19 3 2.52 2.52 low
Fox Den 2.77 0.64 2.13 6 2.17 2.82 low
Lake Harrison 62 6.17 20.9 1.53 4.42 28.98 38 0.61 1.31 low
Frontier 3rd Addition 0.77 1 0.77 21 2.60 1 2.60 1 low
21
GROSS ROW WETLAND/ MISC. PARK NET TOTAL GROSS NET Land Use
PROJECT NAME ACRES ACRES PRIMARY/ ACRES LAND ACRES UNITS DENSITY DENSITY Density
POND ACRES
Minnewahsta Creek Hills 1.4 1.4 3 2.14 2.14 low
Harvieux Addition 1.99 0 0 0 0 1.99 3 1.51 1.51 low
Stonefield 17.63 2.23 15.4 30 1.70 1.95 low
Christianson Sub #05-44 1.05 1.05 2 1.90 1.90 low
Eidness Metes & Bounds 2.18 2.18 2 0.92 0.92 low
Boulder Cove 13.69 1.95 1.23 10.51 39 2.85 3.71 low
The Arbors 19.83 3.05 0.9 15.88 22 1.11 1.39 low
Fox Hill 1.69 0.3 1.39 3 1.78 2.16 low
Gauer 1.09 1.09 2 1.83 1.83 low
Lotus Woods 7.6 0.9 0.29 0.5 5.91 11 1.45 1.86 low
Apple Tree Estates 7.43 1.04 0.65 5.74 7 0.94 1.22 low
Senn Metes & Bounds 3.66 3.66 2 0.55 0.55 low
Pioneer Pass 63.4 10.52 17.58 0 8.71 26.59 94 1.48 3.54 low
Lakeview (Reflections at Lake Riley) 50.48 6.86 19.85 4.83 18.94 66 1.31 3.48 low
Wynsong 9.37 2.3 7.07 4 0.43 0.57 low
Fretham 15th Addition 2.29 0.1 2.19 4 1.75 1.83 low
Bluff Creek Woods 3.57 0.78 2.79 3 0.84 1.08 low
Preserve at Rice Lake 13.22 1.66 7.56 4 16 1.21 4.00 low/medium
Camden Ride 22.93 4.62 1.27 3.5 13.54 58 2.53 4.28 medium
Lake St. Joe's Cove 4.04 0.97 0.15 2.92 8 1.98 2.74 low
Hummingbird Heights 1.667 0.93 0.737 2 1.20 2.71 low
Arbor Cove 3.26 3.26 4 1.23 1.23 low
Fretham 19th Addition 1.51 1.51 4 2.65 2.65 low
Boulder Cove 13.38 2.42 2.86 8.1 31 2.32 3.83 low
Black Walnut Acres 2nd 2.4 0.37 2.03 1 0.42 0.49 low
Vistas at Bentz Farm 19.645 2.04 7.88 9.725 15 0.76 1.54 low
2061 W. 65th Street Metes & Bounds 0.69 0 0 0 0.69 2 2.90 2.90 low
2631 Forest Avenue Metes & Bounds 2.57 2.57 2 0.78 0.78 low
Redstone Ride 2.74 2.74 4 1.46 1.46 low
Glaccum 3.12 0.86 0.44 1.82 4 1.28 2.20 low
Anthem on the Park 8.96 1.81 1.84 5.31 12 1.34 2.26 1 low
Foxwood 43.55 4.68 20.86 1 18.015 46 1.06 2.55 low
SUBTOTAL 1,766 240.1 320.77 7.65 70.5 1,127 2,271
PERCENT 100.0 133.6 3.2 29.4 469.5 AVG 1.29 2.01
22
MULTI-FAMILY
Mission Hills/Multi-family 47.18 11.6 5.87 0 29.71 208 4.41 7.00 medium
Autumn Ride 28.13 4.29 0 0 23.84 140 4.98 5.87 medium
Oak Pond/Oak Hills 24.19 2.09 1.8 0 20.3 141 5.83 6.95 medium
Prairie Creek Townhomes 4.6 0 0 0 4.6 24 5.22 5.22 medium
Powers Place 9.7 0 0 0 9.7 48 4.95 4.95 medium
Lake Susan Hills Townhomes 7.29 0 0 0 7.29 34 4.66 4.66 medium
Centennial Hills 2.2 0 0 0 2.2 65 29.55 29.55 high
North Bay 52.1 2.92 8.66 26.38 14.14 76 1.46 5.37 high
Townhomes at Creekside 7.03 2.18 1 0.21 3.64 25 3.56 6.87 medium
Walnut Grove (sf, sm lot+twnhouses) 49.8 6.81 0.2 0 42.79 247 4.96 5.77 medium
Lake Susan Apartment Homes 9.9 0 0 0 9.9 162 16.36 16.36 mixed
Powers Ridge Apartments 21.34 0 1 0 20.34 344 16.12 16.91 high
Arboretum Village 120.93 21.59 26.29 2.9 16.9 53.25 342 2.83 6.42 medium
Presbyterian Homes 5.11 0 0.3 0 0 4.81 161 31.51 33.47 mixed use
Highlands of Bluff Creek 6.52 0.86 1.8 3.86 16 2.45 4.15 medium
Liberty on Buff Creek 91.02 11.45 40.06 39.51 407 4.47 10.30 medium
The Preserve 79.86 10.85 34.31 0.35 34.35 153 1.92 4.45 low/medium
Gateway Place 6.2 0.25 0.38 0 5.57 48 7.74 8.62 mixed
Southwest Village 2.773 1.547 0 0 0 1.226 36 12.98 29.36 mixed
Lakeside 26.29 1.74 4.06 1.44 19.05 101 3.84 5.30 high
Mission Hills Senior Housing 8.64 8.64 152 17.59 17.59 mixed
SUBTOTAL 610.8 78.1 125.73 3.25 44.9 358.7 2,930
PERCENT 100 160.8 4.2 57.5 458.9 AVG 4.80 8.17
TOTALS 2,377 318 446.50 10.9 115 1,485 5,201
PERCENT 100. 140.3 3.4 36.3 466.9 AVG 2.19 3.50
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2.5 ACTION PLAN
The city will continue to uphold the housing goals and policies of the comprehensive plan. The
Following is the city's Action Plan:
2.5.1 City Ordinance
The city will continue to evaluate the existing development ordinance and its impact on
development costs, especially the PUD ordinance and lot size/s back and design standards.
The city is also working to amend the City Code to permit ine the development process
associated with Senior Group Homes.
2.5.2 City EDA/HRA
The city will continue to the use of Tax Incre `t Financing to as is st in the development of
affordable housing. When appropriate, the cit ay also increase the peNitted density of a
project by 25%to encourage the development o dable housing.
The city will continue to participate in the Livable Co es Local net,
Program to access funding resources through the Local g Incentives Account, Livable
Communities Demonstration Account, and Tax Base Revita on Account.
2.5.3 Carver County Community Development Agency
Low Income Housing Tax Credits
Tax Exempt Bonds Carver County HRA
Carver County Community Land Trust
Homebuyer education
Foreclosure prevention counseling and financial assistance to all County residents
Partner with County for additional affordable rental units
Transitional housing
Rental Rehabilitation Grants
2.5.4 Minnesota Housing Finance Agency
Section 8 Vouchers
Minnesota Mortgage Program
Community Activity Set Aside(CASA) Program
Homeownership Assistance Fund
HOME HELP
Homeownership Opportunity Program
Land Acquisition for Affordable New Development Initiative
Housing Trust Fund Rental Assistance
Housing Tax Credit Program
Low and Moderate Income Rental Program
Economic Development and Challenge Program
Preservation Affordable Investment Fund
24
Publicly Owned Housing Program
Ending Long Term Homelessness Initiative Fund
Flexible Financing for Capital Costs
MHFA Community Fix-up Fund
MHFA Community Rehab Fund
MHFA Revolving Loan Program
MHFA Accessibility Loan Program
MHFA Purchase Plus Program
2.6 HOUSING GOALS AND POLICIES
1. 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
impro ent of access to a linkage between housing and employment.
Policie
tinue to en fo he City Code regarding property maintenance to maintain the
ext housing sto
• As sta federal fii ing permits, efforts should be made to provide low and
moderate h g wher eded, to provide balance to the generally high cost of new
housing.
• The city should p to 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.
• 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
25
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
I
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.
G:\PLAN\2040 comp Plan\Housing Draft
26