Adopt Resolution #19-052 Authorizing the Request for a Comprehensive Housing Market Study and Use of Anoka County HRA Funds

The purpose of this case is to review a potential Comprehensive Housing Market Study proposal from Maxfield Research & Consulting. City Staff has received feedback from the City Council previously that data on the demand and need for housing in the City is necessary in order to make informed decisions about proposed developments and land use decisions. The purpose of this case is to authorize the City to request funds from Anoka County HRA in an amount not to exceed $20,000.

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Purpose of Study

The Housing Study (proposal attached) will provide the City a comprehensive look at its housing stock, and provide data to better allow the City to respond to requests and questions from residents and developers. The last housing study was completed more than five (5) years ago and is need of update with the recent additions to the housing market. This study will provide  quantitative data on the housing types available in the City, if there is a demand or need for additional housing types, and if the market is strong or slowing. For example, the housing study will provide information on the senior housing market, workforce housing market, and detached villas. The City continues to see requests come in for residential subdivisions, and the City wants to make sure that the way we guide our land uses is based on data and demand. The Housing Study would act as a supplement to the comprehensive plan, and focus on a more niche area. This is a common study completed after a comprehensive plan by cities in the area. A list of similar studies is included in the proposal (attached).

The City has heard from residents througout the comprehensive planning process that they want more retail, especially near the COR. The City has heard that Ramsey is building too much multifamily and there is not a demand for that type of housing. This study would provide answers to those types of questions with market analysis and demographic analysis. Additionally, the housing study will provide an up-to-date, comprehensive look at our housing market, and will be used after as a marketing tool for future retail developments. The City has heard from retailers that a strong residential base is needed before they will come to the City of Ramsey; this study will provide that necessary data to retailers.

Finally, the study will allow the City to make data-driven decisions. For example, the City has received requests from developers to allow smaller lots and villas, and will likely receive future requests for comprehensive plan amendments. The City has a goal of providing housing options for residents at all ages and stages of their lives - so they can stay in Ramsey from birth to retirement. This housing study will provide the City information on what types of housing are needed to complete this goal.

Economic Development Benefits

• Use as a marketing tool for retail -- quantify the number of households in given area to attract retail
• Clearly identify trade area for retail
• Determine availability of housing for employees

How the Study Will Be Used

City Staff anticipates that this study will be helpful and allow the City to make informed, data-driven decisions about land use applications, potential developments, and get ahead of requests. Just because there is a demand does not mean the City has to plan for a particular housing style; however, this study would help avoid planning for a style without sufficient demand and potentially oversaturating the market. This allows the City to gather necessary information in advance and prepare for requests that will likely come in. Additionally, City Staff does not want to overguide areas for certain housing types of the demand is inflated currently. This housing study should provide clarity on the long-term demand for certain housing types, and provide guidance to the City on land use changes, especially as they relate to increasing density. The study will also provide information that could lead to the creation of new housing policies to keep up with demand and follow best practices.  With the aging housing stock in City, a policy related to housing maintenance and upkeep could be helpful to homeowners.

City of Ramsey's Anoka County HRA Funds.

Staff recommends adoption of Resolution #19-052 Authorizing the Request for a Comprehensive Housing Market Study and Use of County HRA Funds .

Motion to Adopt Resolution #19-052 Authorizing the Request for a Comprehensive Housing Market Study and Use of HRA Funds .