Review Draft Housing Assistance Policies and Forward Recommendation to City Council

The purpose of this report is to update the Planning Commission on the status of the progress on the Housing Assistance Policy since the draft policy and scoring matrix was last presented to the Planning Commission on October 3, 2013.
 
As a reminder, this effort is a result of a request by the City Council to form an ad-hoc sub-committee of the Planning Commission to 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 forms 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 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

Framework
The sub-committee agreed to a framework of the policy as follows:

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

Since this meeting, Staff has updated each scoring matrix: (Affordable and Market Rate) by clarifying some of the questions as well as added a table of contents and cover page. Additionally, financial readiness information has also been added to the end of each policy.

Housing Product Priorities
The first effort of the sub-committee was to establish housing product priorities. It is important to note that this priority list is an evolving document that would need to be reviewed and 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.

Minimum Thresholds
The sub-committee agreed to utilize the existing Housing Goals and Implementation Strategies of the Comprehensive Plan as Minimum Thresholds. 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
Since the October 3^rd Planning Commission meeting, Staff has updated each scoring matrix: Affordable and Market Rate by clarifying some of the questions that an applicant will be responding to, added a table of contents and cover page.

The scoring matrix is divided between affordable (aimed at units priced below 80% of area medium income) and market rate (units priced above 80% AMI).  A Metropolitan Council ownership and rent affordability limits for 2013 is attached to provide example rents and ownership prices that would fall within certain affordability thresholds.  

The scoring matrix then provides points based on each individual project. Points can be awarded for additional affordability levels, construction of senior housing, and provision of specialized senior housing, inclusion of development amenities, amount of private financing, redevelopment, architectural standards, development standards and energy efficiency.

Staff has used multiple past projects to ensure that the draft policies will remain market relevant and help the City achieve its housing goals. Staff will present these results as part of the presentation to the Planning Commission.

No public hearing is required for this item.

All costs associated with preparing the housing assistance policy are included within the Community Development Department consulting budget.

City Staff requests approval of the Housing Assistance Policy and scoring matrix.

Motion to recommend the City Council to approve the Housing Assistance Policy and scoring matrix.