FOR DISCUSSION ONLY: Receive Update on Housing Assistance Policy Progress by Ad-Hoc Planning Commission Sub-Committee

The purpose of this Topic Report is to update the City Council on the status of the progress on the Housing Assistance Policy work by the Planning Commission (ad-hoc sub-committee). No formal action or feedback is being requested, other than to review the Interim Policy Statement.

In 2013, the City Council directed Staff to form an ad-hoc sub-committee of the Planning Commission for formulate a Housing Assistance Policy. The purpose of the policy is to establish a framework in which to review requests for financial assistance (or other form of assistance) for housing projects. These requests could include, but are not limited to City financing options, third-party financing options, and grant opportunities available to the City. Given the number of requests the City has been receiving related to housing projects and the forecasted housing growth of the community, the City Council felt that a policy was necessary in order to ensure an equitable and fiscally responsible application to housing assistance.

The Planning Commission did establish an ad-hoc subcommittee and has met on two (2) occasions. A majority of this initial work was providing and reviewing necessary demographic and market conditions to frame the development of the remainer of the policy. The sub-committee has reviewed the following:

1. Current Housing Plan, Goals, and Implementation Strategies
2. Current housing and population demographics (Census data)
3. Current housing and population forecasts (2030 Comprehensive Plan)
4. Current employment demographics
5. Current employment forecasts

The sub-committee also has completed the following deliverables:

1. Framework of Policy
2. Interim Policy Statement
3. Housing Product Priority List

No notification is required at this time.

Interim Policy Statement

The sub-committee first established an Interim Policy Statement to help guide requests that potentially may come to the City before final adoption of the Housing Assistance Policy. The sub-committee utilized much of the feedback from the City Council Work Session that directed Staff to begin final preparation of the Policy. The proposed Interim Policy Statement is as follows:

It is hereby the Interim Policy of the City of Ramsey that assistance to housing projects will be considered for the following criteria:

1. Tax Increment Financing (TIF) will not be considered except for rehabilitation projects or redevelopment projects. In addition, any housing project that meets the criteria of the preceding statement must provide a quantifiable increase to the taxable market value of the community (amount to be determined).
2. The City will consider use of third-party funding such as grants or third-party fund balances
3. The project must demonstrate that it will achieve at least one (1) goal of the City's Housing Plan (Chapter 7 of the Comprehensive Plan). Successful achievement of the Housing Goal must be illustrated by the successful completion of at least one (1) implementation strategy of the identified Housing Goal.
4. The project must demonstrate its credit-worthiness. The Developer must submit a project pro-forma and a summarized Sources and Uses table.
    

Framework

The sub-committee agreed to a framework of the policy as follows (similar to the framework presented to the City Council in Work Session):

1. Housing Product Priorities
2. Minimum Thresholds
3. Scoring Matrix

Housing Product Priorities

An initial request of the sub-committee was to establish housing product priorities. For this Topic Report this evening, the intent is to provide a broad overview. A final report will provide a full, detailed analysis on how the sub-committee arrived at these recommendations. It is important to note that this priority list is an evolving document that would need to be reviewed an updated on a regular basis and was based on current demographic data (see attachment to this case). With every housing development that is completed, the assumptions that went into formulating this list change, and the list needs to be amended. When the City accomplishes a single housing goal, the priority likely shifts, at least in part, to a different priority.

It should further be noted that the list includes priorities of housing types that City assistance should be focused. This is not a list that would indicate how to guide our future land use map or a reflection as to the number of units per housing type forecasted. The focus was on those housing types that met the City's housing goals, but presented the highest need for assistance to acheive a particular goal. For example, the sub-committee did not rank general, market-rate single-family high on the priority list, as standard market conditions appear to be sufficient to make this style successful. The sub-committee focused on those developments, which could include single-family, that brought other aspects such is high degree of architecture, a high amount of amenities, etc. The Priority List is as follows:

1. Senior Independent
2. Affordable/Workforce
3. Redevelopment
4. Energy Efficient
5. Rehabilitation of Existing
6. Amenity Rental
7. 3+ Unit Rental
8. Accessory Dwelling Unit
9. Executive Single-Family
10. Senior Skilled Nursing
11. Assisted Living/Memory Care
12. Condominium
13. Single-Family Detached
14. Single-Family Attached
15. Apartment (general [note: apartments with other amenities would score higher-see above])

Minimum Thresholds

As previously discussed in City Council Work Session, the sub-committee agreed to utilize the existing Housing Goals and Implementation Strategies of the Comprehensive Plan as Minimum Thresholds. However, the next deliverable for the sub-committee is to update these goals and strategies. It is recommended that each development requesting housing assistance identify at least one existing goal/implementation strategy as Step #1. A development requesting assistance would need to be able to prove successful achievement of an implementation strategy in order to move to the formal review.

Scoring Matrix

The sub-committee has agreed that a scoring process should be part of the policy, but has not yet developed this scoring matrix. This step would help assist in reviewing the quality of the proposal, especially in the event of multiple or similar requests. This would take the Minimum Threshold a step further to ensure quality implementation.

This item is for update only. There is no recommendation necessary at this time.

Preparation of this update is being handled as part of normal staff duties.

This item is for discussion only. There is no action or direction necessary.