Review Current Draft of Housing Assistance Policy and Provide Feedback Prior to Final Draft Form

The purpose of this Topic Report is to provide a first reading of the draft Housing Assistance Policy to prepare for the final draft preparation.

The City Council authorized the formation of an ad-hoc sub-committee of the Planning Commission to focus on the creation of a Housing Assistance policy 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.

During the course of several meetings 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

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

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

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.

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

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

The scoring matrix is divided between affordable (aimed at units prices below 80% or area medium income) and market rate (units priced above 80% AMI). A report regarding affordable housing thresholds from the Metropolitan Council is attached for comparison purposes.

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 been reviewing this policy against previous projects and has had the draft reviewed by peer communities that have similar policies and/or programs. Before bringing forward to final adoption by the City Council, Staff is bringing this topic to the EDA for review, comment, and recommendation as it relates to the financial component of this policy.

30 minutes

General Fund (Planning and Zoning)

Development Services Manager

The desired outcome of this topic report is to provide feedback on the current draft Housing Assistance Policy to help guide to final completion of this policy. The Planning Commission recommends approval of the policy. Additionally, the City Council reviewed this topic at their January 28, 2014 Work Session and indicated general support, and directed Staff to receive a recommendation from the EDA.