HomeMy WebLinkAboutCity Council/HRA Packet 10-22-2020 SpecialCity Council 1 of 1 October 22, 2020
CITY OF PLYMOUTH
AGENDA
Special City Council
October 22, 2020, 5:00 PM
1.CALL TO ORDER
1.1 Instructions to participate in virtual City Council/Housing and Redevelopment
Authority Meeting
2.TOPICS
2.1 Joint discussion with the Housing and Redevelopment Authority's Strategic Plan
2020 HRA SWOT
HRA Priorities and Potential Tools and Strategies
Summary of peer city HRA-EDA activities
FlashVote Survey Results
Community Stakeholder Engagement Summary.docx
Outreach Development Corporation Correspondence
3.ADJOURN
1
Special City
Council
October 22, 2020
Agenda
Number:1.1
To:Dave Callister, City Manager
Prepared by:Sandy Engdahl, City Clerk
Reviewed by:Laurie Hokkanen, Administrative Services Director
Item:Instructions to participate in virtual City Council/Housing and
Redevelopment Authority Meeting
1.Action Requested:
The Mayor provides instructions for the public to observe the meeting by phone or online.
2.Background:
Council meetings will be conducted virtually (via Zoom webinar/conference call) due to the state of
local emergency for the COVID 19 pandemic.
To observe/listen to the meeting, please register in advance at:
https://us02web.zoom.us/webinar/register/WN_Ru0zgCHDQ8uaWUawc7pznQ
No public comments are taken at study sessions. Comments can be emailed to the Mayor and City
Council at council@plymouthmn.gov or to the City Manager at dcallister@plymouthmn.gov.
Contact City Clerk Sandy Engdahl at sengdahl@plymouthmn.gov with additional questions.
3.Budget Impact:
N/A
4.Attachments:
2
Special City
Council
October 22, 2020
Agenda
Number:2.1
To:Dave Callister, City Manager
Prepared by:James Barnes, HRA Manager
Reviewed by:Steve Juetten, Community Development Director
Item:Joint discussion with the Housing and Redevelopment
Authority's Strategic Plan
1.Action Requested:
Provide feedback on the progress of Housing and Redevelopment Authority (HRA) Strategic Plan.
Review and discuss strengths, weaknesses, opportunities, and threats analysis (SWOT); stakeholder
input and best practices focus areas.
2.Background:
Over the past 10 months, the HRA has been working with Bennett Community Consulting (BCC) to
update its Strategic Plan. Work completed includes a survey of councilmembers and HRA
commissioners, developers panel, SWOT, review of best practices and how other HRAs operate, and
stakeholder engagement.
At the last two HRA meetings, the commission has been working on identifying their SWOT and
discussing what areas of affordable housing and redevelopment they would like this strategic plan
to focus on over the next five years. The joint meeting with Council will provide an opportunity for
the Council to review the progress to date and offer their thoughts on the current Strategic Plan
direction. The attached SWOT analysis, stakeholder summary, best practices policies and program
focus areas and summary of peer community activities will assist in leading the discussion between
the council and HRA board. BCC will provide an overview and facilitate the discussion.
3.Budget Impact:
N/A
4.Attachments:
2020 HRA SWOT
HRA Priorities and Potential Tools and Strategies
Summary of peer city HRA-EDA activities
FlashVote Survey Results
Community Stakeholder Engagement Summary.docx
Outreach Development Corporation Correspondence
3
Plymouth HRA SWOT Summary – 8/23/20, update 10/14/2020
Internal Factors
Strengths Weaknesses
Your advantages
Sufficient reserve to support current efforts
- Increasing property values
- Strong market for development
Dedicated HRA board
- Volunteers who are appointed by the City Council includes a mix of
new and longtime resident members
- Commitment to make a difference in resident lives in the city
Motivated and experienced staff
- Deep knowledge of housing finance and program management
- Continuity and history in the city
- Good track record with two 90 plus unit senior housing projects; and
administration of existing housing programs and services including
CDBG funds and Housing Choice Vouchers.
Areas for improvement
Insufficient funding
- Additional funds needed to support expanded HRA efforts to address
current and future housing and redevelopment needs
- Complexity of financing for new/preservation developments that require
other funding support
Unclear support of the city council
- Not a clear understanding of the council’s willingness to invest in housing
and housing affordability
- Unclear of the HRA roles and responsibilities in supporting housing and
redevelopment
Limited diversity that could hinder economic growth
- Lack of diversity in population, incomes, housing types, and partners
(developers, contractors and service providers).
- Limited resources to serve households at the lowest incomes (retail and
health care workers, disabled, seniors)
Not proactive in fulfilling the mission of the HRA
- Respond to requests and monitor existing programs rather than being
proactive in evaluating new actions to support the changing housing and
redevelopment needs of the city. HRA’s previous lack of inertia to try new
initiatives.
Complexity of HRA powers and expansive options
- Complex rules & regulations of HRA powers make it difficult to act on the full
potential of an HRA to support its mission, particularly newer board members
where there may not be a unified understanding pf the tools and resources
the HRA can utilize to achieve the goals and priorities of the city
- Unclear understanding of community needs resulting in not serving those
residents most in need of assistance (internally and externally)
- Current zoning rules and regulations can be barrier to affordable
development and redevelopment.
4
Plymouth HRA SWOT Summary – 8/23/20, update 10/14/2020
External Factors
Opportunities Threats
Situations to apply your advantages
Clarity of roles and responsibilities supported by the city council
- Would increase HRA’s ability to meet the needs of residents
Additional capacity to meet the housing and redevelopment needs of the
city.
- Strong and growing market values to support new efforts
- Increase HRA levy to support strategic priorities
- Build on existing success to pursue new opportunities
- Provide additional affordable senior housing
- Redevelopment of older properties and areas of the City
- Increase the diversity in people and housing types
- Increase home ownership for low and moderate income households
Internal Education:
- Evaluate what successful tools and strategies are being utilized by
other cities to increase affordable housing
- Evaluate existing programs for the potential to expand/add/delete to
meet the future needs of the city
- Evaluate how modifying current planning and zoning requirements can
increase affordable housing investment
- Provide additional education to HRA members on current real estate
development and financing trends
External Education:
- Heightened awareness of the housing issues - opens the door to
increase the support for affordable housing by residents
- Increase knowledge of what the HRA has to offer to residents
- Access to development partners with innovative ideas; increase
marketing or proactively reach out to developers
Quality schools: Attracts residents and opportunity for new development
Where you are at risk
Lack of direction and support by the city council.
- Fiscally conservative city council and residents could limit HRA’s ability
to be proactive in addressing the housing and redevelopment needs of
the city
- Lowering of property tax support
- Maintaining Status Quo
Lack of support for more diversity - people and housing types
- Resident NIMBYs - difficult to gain support for housing and
redevelopment projects
- Lack of knowledge by residents on the benefits of affordable housing
and redevelopment
- Reliance on large single-family homes when future demand may not be
as high for this product type
- Loss of the younger generation due to lack of rental options or entry
level housing
High cost of land
Lack of off-peak and flexible transportation options to meet
employment needs
Competition for limited resources
5
Prepared by Bennett Community Consulting
Plymouth Housing and Redevelopment Authority
Draft Priorities and Potential Best Practice Tools and Strategies
HRA Strategic Plan
Preservation of Existing Housing and Tenant Protections.
The most affordable housing is within the existing older properties, referred to
as Naturally Occurring Affordable Housing (NOAH).
HRA Priority: Support preservation of existing rental housing and protect
vulnerable and low-income households
Potential Tools and Strategies to Consider:
Tenant Protection Ordinance:
o A tenant protection ordinance would require that any new owner of a property
provide tenants a three (or longer) months period where there is a pause on rent
increase, tenant re-screening, and non-renewal of leases without cause. If the
new owner chooses or does not comply with the pause spelled out in the
ordinance, the owner will be required to pay relocation benefits to tenants. The
goal is to protect the more vulnerable and lower income tenants from being
displaced due to increased rents without time to find alternate housing and it
allows the opportunity for those residents to be connected to potential tenant
housing assistance.
o Partial List of Peer Cities with Tenant Protection Ordinances
Golden Valley, St. Louis Park, Richfield, New Hope, Hopkins,
Brooklyn Park, Brooklyn Center, Bloomington, Minneapolis, St. Paul
4d Affordable Housing Incentive Program
o The program allows qualifying existing rental property owners to be eligible for
a rate reduction in property taxes from 1.25% to .75% per MN Statute in return
for restricted rents for those with incomes at or below 60% of the Area Median
Income (AMI). To trigger the program, the HRA is required to provide nominal
financial assistance to the property owner who then enters into a development
agreement which outlines the rent restrictions and terms and also requires a
covenant on the deed of the property to ensure owners comply with the
requirements. Typically, a minimum of at least 20% of the total units would
need to be restricted for those with incomes at or below 60% AMI.
o Partial List of Peer Cities Providing Local 4d Programs
Edina, Golden Valley, St. Louis Park, Minneapolis, St. Paul
NOAH Rehabilitation and Maintenance Program
o Program focused on providing public assistance to rental properties that need
renovation such as exterior, energy efficiency, fire suppression and other health,
safety, crime reduction and livability improvements in exchange for ensuring
that a portion of the rents are kept affordable at or below 60% of the Area
Median Incomes. Such a program could be structured as a loan or grant and
would require an agreement with the property owner, such as a covenant on the
deed of the property, to ensure the owners comply with the income
requirements.
o Partial List of Peer Cities with NOAH Rehab Programs
Bloomington, Richfield, Brooklyn Park, Minneapolis, St. Paul
6
Prepared by Bennett Community Consulting
Increase Housing Affordability to Diversify Housing Options and
Opportunity in the City.
Encouraging opportunities to diversify the housing options and support new
affordable housing including seniors, low income families and the younger
generation.
HRA Priority: Support more development of affordable housing and
increase housing options and opportunities in the city.
Potential Tools and Strategies to Consider:
Consider Adoption of a Mixed Income Housing Policy to Support New
Affordable Senior Housing and New Affordable Rental Housing
o A mixed income housing policy (sometime referred to as inclusionary housing
policy) would require that new housing developments (with definitions and
parameters of what would trigger the policy as determined by the City) must
include a percentage of affordable units as indicated in the policy plan. These
policies typically will include various triggers (city assistance, land use change,
number of units, etc.) that is identified when created and adopted. The policy
goal is to ensure that high quality housing in the city is accessible to households
with a variety of income levels, ages, and sizes.
o Partial List of Peer Cities with Mixed Income Housing Policies
Bloomington, Richfield, Brooklyn Park, Minnetonka, Edina, St. Louis
Park, Golden Valley, Minneapolis
Increase Options for Affordable First-Time Buyers
o Evaluate options to support affordable, first time home buyer options including
Community Land Trusts, down payment assistance and lower mortgage options.
Also, can include providing gap funding for buyers to purchase existing homes
from senior households to regenerate existing older single-family
neighborhoods.
7
Prepared by Bennett Community Consulting
Proactively Support Redevelopment Efforts of the City
HRA Priority: Assist in prioritizing redevelopment opportunities in the
City.
Potential Tools and Strategies to Consider where the HRA Could be
Proactive:
Identify and Priorizes Areas for Redevelopment
o Identify and agree upon key areas of the city that need redeveloping.
o Develop working relationships with developers to foster mutually beneficial trust
and collaboration and market redevelopment opportunity areas to the
development community.
o Participate and/or lead in identifying acceptable mixes of future land uses such
as affordable housing, ownership/rental mix and mix of uses. Support
redevelopment uses that provide clarity, consistency, and flexibility when
market demand and community vision align.
o Encourage fast-track approvals when the project meets certain requirements
o Encourage flexibility of parking requirements; particularly in areas with access
to transportation options or areas that are bikeable/walkable.
o Allow residential uses within commercial (re)development areas and small
commercial uses in multifamily residential zones.
o Invest in environmental studies and complete design standards and land use
requirements in advance of development interest.
Assist with Assembly of Land for Redevelopment
o Identify site acquisition tools and financing options to support assemblage of
key (re)development sites under multiple ownership; in some cases, enable a
long-term hold.
o Create a policy for disposition of publicly owned land for redevelopment that
includes a mix of uses and prioritize inclusion of affordable housing as a
requirement in exchange for HRA assistance or reduced land price when
property is owned.
Educate the Community and Policy Leaders on the Benefits of Investing
in Redevelopment
o Provide ongoing education for local government leadership on current market
realities, redevelopment goals, and plans.
o Create an education plan when turnover of elected and appointed policy leaders
occurs.
o Conduct site visits and tours of other successful projects for policy leaders.
o Conduct stakeholder engagement sessions/neighborhood meetings; engage
underrepresented populations.
o Achieve and document stakeholder support for the redevelopment plan or
plans.
8
Prepared by Bennett Community Consulting
Coordinating Funding Sources and Financial Strategies to
Support an HRA Strategic Plan
HRA Priority: Proactively meet the housing and redevelopment needs of
the city and be a partner with the private sector in development and
redevelopment that achieves the HRA mission.
Potential Tools and Strategies to Consider:
Increase HRA Levy Dollars
The primary method of financing the delivery and administration of housing and
redevelopment programs is to utilize the HRA authority provided through
Minnesota State Statute to levy a tax to give, sell, buy, transfer, or convey
properties as necessary to remove blight and promote affordable, safe and decent
housing. Understanding community needs and dedicating adequate funding
utilizing Levy funds is one of the best strategies to connect resource needs to the
stabilization and increase in property values.
An HRA levy provides a dedicated source of funds focused on housing and
redevelopment needs of the City and helps to build a financial foundation to
enable the delivery of the goals and policies outlined in the Housing
Strategic Plan.
An increase in the HRA levy supports staff, and more proactive housing and
redevelopment programs as identified in the Housing Strategic Plan.
The HRA levy is evaluated and set annually by the City Council upon the
recommendation of the HRA.
Adopt a Public Subsidy Policy
To be successful in achieving the priorities of a City for housing and
redevelopment, it is important for the HRA and City Council to clearly outline the
goals and objectives of providing public funds toward that effort. This includes
identifying policies related to use of an HRA Levy, Tax Increment Financing, Tax
Abatement and any funds accepted and utilized for the purpose of implementing an
HRA Strategic Plan.
The benefits of establishing and/or modifying City Public Subsidy Policy with a
clear, strong public finance policy that outlines the goals and objectives of the City
includes the following:
Ensure that the City/HRA leaders are accountable to their residents with
regards to how public resources are utilized.
Send a strong message to the development community regarding the
methods that the City/HRA is willing to support and partner to achieve
community goals.
Provide clarity to residents as well as the development community that in
turn decreases uncertainty and risk resulting in lower affordable/market rate
housing and redevelopment project costs.
9
SUMMARY OF LOCAL HOUSING AND REDEVELOPMENT AUTHORITIES (HRAs)
AND ECONOMIC DEVELOPMENT AUTHORITIES (EDAs)
City Current Priorities and Projects HRA/EDA Levy
Amount
HRA/EDA or City Budget
for Affordable Housing-
related Programs
Staffing Future Projects
Plymouth HRA
The HRA administers 8 active TIF Districts, manages
the City’s housing and community development
programs, and manages federal, state, and local
grants for housing programs. Programs include:
First lime Homebuyer Program
Emergency Repair Grants for Seniors
Owner-occupied Rehab Loans
Section 8 Rent Assistance
Owns and manages two senior housing
apartment buildings (Plymouth Towne
Square and Vicksburg Crossing)
$580,519 (2018
levy),
which is 27.65%
of allowable levy
Plymouth receives CDBG
funding directly from HUD
and is part of the Hennepin
Consortium. The HRA
receives administrative
funds for staff time to carry
out the Housing Choice
Voucher program
2.5 FTE (Housing staff) paid
with HUD funds
1 FTE (HRA Manager) funded
by levy
1 Specialist funded .5 by CDBG
and .5 by HRA levy
Brooklyn Center
HRA and EDA
The HRA utilizes its taxing authority to fund the
operations of the EDA, which is focused on:
Strategicacquisitionofunderutilized/vacant
propertyfor redevelopment
neighborhood stabilization program; acquiring,
demolishing poor-quality single-familyhomesfor
resalefor reconstruction as new for sale homes.
Fix-Up Fund (home rehab up to 110% AMI)
(administered by Center for Energy &
Environment — CEE)
Remodeling Advisor(homerehab,noincome
restrictions) (administered by Center for Energy &
Environment – CEE)
DownPayment Assistance(New program in
2019—funded with CDBG)
HousingRehabProgram(Administeredby
Hennepin County — funded with CDBG)
NOAHmulti-family preservation—4Dproperty tax
status
Home Energy Squad (administered by CEE) to
install energy-efficiencyproducts andconduct
energyaudits
RevolvingLoanFundforbusiness attractionand
expansion activities
HRA/EDA Administrative Role:
TIF district management
Buy,own,market,promote,andselllandfor
housingand economic development purposes
Section8isadministeredbyMetro HRA.
HRA/EDA 2019 Priorities and Initiatives:
Resident Empowerment Collaborative (training for
underserved residents)
$345,978 (2018
HRA levy),
which is the
maximum
allowable levy
HRA levy transferred to EDA.
EDA revenue includes HRA levy,
interest earnings, and grants.
Majority of EDA expenses are
staff time and professional
services.
Housing programs and property
acquisition funded by TIF
revenues. Planning studies for
redevelopment funded by TIF
pooling
Brooklyn Center receives CDBG
funding directly from HUD via
Hennepin County;
approximately $370,000/year.
The City generates
approximately $450,000
annually in TIF revenue which
must be spent on affordable
housing activities.
2.5 FTEs funded by HRA
Levy: Community
Development Director (.75),
Deputy Director (.25),
Business and Workforce
Development Specialist
(.75), Administrative
•Create a Business Expansion and
Retention Program including a
businessdatabase,businesspackets,
and site visits.
•Develop economic planand master
development plan for 3 targeted
areas.
•Identify economic assistance
programs that promote private
investment in
development/redevelopment
projects which generate
employment.
•Identification of redevelopment
opportunities and planningactivities
and preparation of a planning and
activities map for targeted
redevelopment.
10
Entrepreneur Support (support existing and start-up
local businesses by identifying service gaps,identify
resources, reduce barriers particularly for
underserved entrepreneurs)
Business Expansion and Retention Program (develop
relationships,Revolving Loan Program)
Policies, ordinances and partnerships to increase resident
wealth creation and financial literacy, provide
tenant protections,preserveaffordablehousing,
createnew affordable units
Brooklyn Park
HRA and EDA
EDA:create and keep jobs,grow City’s tax base and
lead development activities within the City
Section 8 is administered by Metro HRA.
Budget funds: EDA staff, training, and supplies;
development related costs including financial and legal
services;neighborhood and housing preservation
(home improvement loan,townhome load fund, home
rehabilitation program); direct development costs
suchasinfrastructure;reservestocover
unanticipated project costs or to take advantage of
development opportunities
The HRA administers 10 active TIF Districts
$781,593 (2019
HRA levy),
which is 61%
allowable levy
$1,253,949 (2019
EDA levy), which is
max. allowable
levy
Brooklyn Park receives CDBG
funding directly from HUD via
Hennepin County
Economic Development and
Housing Director,
Development Project
Coordinator, Project
Facilitator, Senior Project
Manager, interns
New initiatives for 2019:
Edinburgh USA Clubhouse renovations
Overhead utility burial on Brooklyn Blvd to
supportLRT
Hwy 252 and Hwy 169/101" Ave projects
BusinessRetentionandExpansion
Bloomington
HRA
The HRA provides affordable housing opportunities
for those who are not adequately served by the
marketplace,coordinates the City’s efforts to
preserve existing neighborhoods and promotes
developmentandredevelopment. Programs
include:
•Housing Rehabilitation Loan Program -up to
$35,000 in a below market-rate loan to
maintain condition of housing and
neighborhoods
•Rental Home for Future Homebuyers -helps
families save money for a down payment while
renting a single-family home inBloomington
•Administration of the Section 8 Housing
Voucher Program with funding from HUD.
• Bloomington HomeImprovement Fair—
free eventwith vendors and seminarsRedevelopment activities include:
• Provide land for the private development of
affordable housing (rental and homeownership)
•Purchase substandard residential properties,
demolish, and reselllotstobuildersforthe
constructionofnewhomes- improves
neighborhoods by eliminating blight and
increasing tax base.
•Acquire parcels, select developers, facilitate
infrastructure improvements in several
commercial districts to ensure that
commercial areas remain vital as the
community ages
$2,234,825
(2018 levy)
Bloomington receives CDBG
funding directly from HUD via
Hennepin County.
11
City Current Priorities and Projects HRA EDA
Levy
Amount
HRA/EDA or City Budget
for Affordable Housing-
related Programs
Staffing Future Plans and Projects
CrystalHRAand
EDA
Demolition and lot resales,home improvement
rebates,deferred home improvement loans,
CPRR Train Horn Quiet Zone, Community
Branding and Image Enhancement, blight removal.
Section 8 is administered by Metro HRA.
• Scatteredsitedemolitionandlotsalesfor
newhome construction (depends on market
conditions,right now thereare notany
blightedhomestoacquire)
•Home improvement grants for 20% of
eligible project costs,max HH income 110%
AMI (administered by CEE)
•Interest rate buy-down for Community Fix-
Up Fund home improvement loans, max.
HH income 110% AMI (administered by
CEE)
• Housing Rehab Program (administered by
Hennepin County and funded with CDBG from
the Consolidated Pool)
•Open to Business -advisory and financing
services for small businessesandsole
proprietors(citypayshalf,HennCo pays
half)
HRA/EDA Administrative Role:• TIF districtmanagement
•Promote the city for business and residential
development
•Provide technical assistance for potential
development or redevelopment (info gathering,
regulatory steps, etc. regarding potential
uses/properties/sites)
• Community branding and beautification
Crystal’s HRA/EDA does not own or operate any
housing.
$277,200 (2018 levy),which is about 75% allowable levy
Crystal receives CDBG funding in a
consolidated pool of cities that
include Golden Valley, which
requires a competitive process for
project selection.
Community Development
Director; City Manager
12
City Current Priorities and Projects HRA EDA
Levy
Amount
HRA/EDA or City Budget
for
Affordable Housing-related
Programs
Staffing Future Plans and Projects
Eden Prairie
HRA
The City has a robust set of projects and initiatives
in Housing and Economic Development. They are
funded primarily by the City’s EDA fund, TIF,
Pooled TIF and grants. The HRA levy funds staff to
support this work. Programs include:
NOAH PreservationInitiative
Incentives to create new affordablehousing
First Time Homebuyer Program
Housing Rehabilitation Loan and Grant Programs
Housing Improvement Areas (HIA)
Eden Gardens Green NeighborhoodProject
On-TrackHousingConceptfortransitional
housing
Quality of Life Investments focused on multifamily
buildings
Light RailStation Area Improvements
Business Retention and Expansion
Open to Business
City Entry Monument SignageProgram
Various Streetscape Projects
Co-working/Collaborative Business Center and
Business Incubator
Business Façade Program
Section 8isadministered byMetro HRA.
$200,000 (2018
levy)
Most activities funded by City
General Fund, Economic
Development Fund, TIF, Pooled TIF,
and grants.
The Levy funds staff.
Eden Prairie receives CDBG
funding directly from HUD via
Hennepin County
1 FTE funded with levy:
Housing and Community
Services Manager
Edina HRA
The HRA administers 7 active TIF Districts; 4 of
which are used to support affordable housing
efforts.
TheHousingdivisionoftheCity,OpenDoors
Edina,offersa4D Property Tax Reduction and
Rehab Grant Program,which includes a tax break
and energy efficiency grants in exchange for a 15-
year declaration forrentrestriction at60% AMI.
The City supports the Edina Housing Foundation to
offer a second mortgage program with below
market-rate loans, which are funded by a TIF
District.
Section 8 is administered by Metro HRA.
$125,000 (2018
levy),
$160,000 (2019
anticipated levy)
HRA budget includes activities in
each of the active TIF Districts
Inclusionary Housing Policy
includesafundforpayments in-
lieu.
Edina receives CDBG funding
directlyfromHUDvia
Hennepin County
1 FTE. - Economic
Development Manager
The Affordable Housing
Development Manager is
funded separately but
makes major contributions
to the efforts of the HRA.
Other City staff members
contribute to HRA work on a
limited but regular basis:
City Manager, Finance
Director, City Clerk,
Community Development
Director, and part-time
Project Liaison.
Plan to increase HRA levy incrementally
over time as TIF funds decrease and
expire.
Many projects anticipated in the future
including housing retention, new
housing, new mixed-use, new
redevelopment, sale and/or
redevelopment of City-owned property
13
City Current Priorities and Projects
HRA EDA Levy
Amount
HRA/EDA or City Budget for
Affordable Housing-related
Programs
Staffing Future Plans and Projects
Golden Valley
HRA
The HRA administers 4 active TIF Districts.
No housing programs are administered by the City
or HRA.
Section 8 is administered by Metro HRA.
No levy, but
considering in
2021
HRA Housing Fund is a Special
Revenue Fund established in
1999 for single-family
homeownership opportunities.
Current balance is
approximately $100,000.
The City receives CDBG funding
in a consolidated pool of cities,
which requires a competitive
process for project selection.
No FTEs are funded by HRA
levy. Approximately 6 staff
members contribute to HRA
work on a regular basis (City
Manager, Finance Director,
City Attorney, City Clerk,
Physical Development
Director, Planning
Manager). Senior Planner
has conducted Affordable
Housing Policy work for City.
Utilize HRA authority to carry out City
Council organization priorities:
Community Affairs: considering policies
that benefit society at large
Strategic Development and
Redevelopment: focus on four planning
districtsidentified inthe 2040
Comprehensive Plan
Infrastructure Maintenance and
Enhancement: prioritizing areas of need
andplanningfor futuregrowth
Implementation of the2040
Comprehensive Plan.
Hopkins HRA
The HRA administers five active TIF Districts.
Programs include a housing rehabilitation grant
program, commercial facade grant program and
Open to Business. Activitiesincludeproperty
acquisition,HousingImprovement Areas and misc.
redevelopment projects. The HRA owns and
manages a 76-unit public housing development.
Section 8 is administered by Metro HRA.
$331,337 (2018
levy), allowable
levy.Hopkins receives CDBG funding
directly from HUD via Hennepin
County
2.0 FTE funded by levy
including Admin Assistant,
Community Dev
Coordinator,
Communications, Director of
Planning & Development
Continued redevelopment focused on the
downtownandthreeLRTstationareas.
Minnetonka
EDA
Levy funds affordable housing and economic
development efforts such as:
WHAHLT partnership for single-family homes
in land trust
Green Line Extension (SWLRT)activities
Minnetonka Home Enhancement Program
Welcome to Minnetonka Program
TIF Pooling,Development Fund from a former TIF
District,CDBG, and Livable Communities Fund also
utilized for:
TIF administration, Housing Improvement
Areas, Small Projects Program, Fair Housing,
and other Economic Development, TIF, and
Redevelopment activities/programs
TheHRA administers7active TIFDistricts.
Section 8 is administered by Metro HRA.
$300,000 (2019
levy›, which is
about 18% of
allowable levy
The City’s Economic Improvement
Program (EIP)is modeled after the
CIP. The totalbudgetfor2019is
$6.79 million.The majority of the
budgetisusedforhousing.
Minnetonka receives CDBG
funding directly from HUD via
Hennepin County.
The Economic Development
Division (2 FTEs) are focused
on activities associated with
the EDA. They are not
funded by the levy.
Mixed-Income HousingPolicy
Tenant Protections
NOAH Strategies
14
City Current Priorities and Projects HRA/ED
A Levy
Amount
HRA/EDA or City Budget
for Affordable Housing-
related Programs
Staffing Future Plans and Projects
New Hope
EDA
Promotes and facilities business development
activities,considers proposals on a case-by-case
basis and utilizes a wide range of public financing
options, scattered Site Housing Program,purchase and
redevelopment agreements.
Section 8 is administered by MetroHRA.
TheHRAadministers7activeTIFDistricts.
$200,000 (2018
levy),
which is 62% of
allowable levy
New Hope receives CDBG
funding directly from HUD via
Hennepin County.
2.5 FTs supported by the EDA
budget, including the
Community Development
Director and the Community
Development
Coordinator/Management
Analyst.
2019 initiatives include continual
concentrated efforts in the Scattered Site
Housing Program, a look at future
redevelopment opportunities throughout the
city, and assisting with small business
opportunities.
Richfield HRA
and EDA
HRA funds and administers the following programs:
Deferred Loan Program for health/safety or
maintenance (home rehab, 80% AMI or below)
(partially funded by CDBG)
Acquisition/Rehab (80% AMI or below)
Fix-UpFund (home rehab up to110% AMI)
(administered by Center for Energy &
Environment — CEE)
Remodeling Advisor (home rehab, no income
restrictions) (administered by Center for Energy
& Environment - CEE)
Architectural Consultant (home rehab, no income
restrictions) ($25 visit for 2-hour in-home
consult by licensed architect)
New Home Program (New construction, Land
Trust, HFH, up to 80% AMI) (partially funded by
CDBG)
Down Payment Assistance (up to 80%AMI)
Richfield Rediscovered (new construction, no income
restrictions)
Apartment Remodeling (NOAH preservation)
Home Energy Squad (administered by CEE) to
install energy-efficiency products and conduct
energy audits
Section 8 Housing Choice Voucher Program (for up
to 50% AMI, funded byHUD)
Support redevelopment projects such as Plaza 66,
The Chamberlain, and LyndaleGardens
The EDA was established in 2017.It funds and
administers the following programs:
Kids @ Home (rental assistance and support
services for families at 50% AMI orbelow)
Transformation Home Loans (major home rehab no
income restrictions)
Apartment Rehab Loans and Grants
Business development support
Open toBusiness
$571,905 (2018
HRA levy),
which is the
maximum
allowable levy
$554,860 (2018
EDA levy)
The 2018 HRA budget was
$3,969,610.
Budget includes HUD funding to
administerSection8program
Richfield receives CDBG funding
directly from HUD via Hennepin
County
Community Development
Director is the HRA and EDA
Director. HRA pays more
than 1/3 of the salary of 10
employees (Community
Development Director,
Assistant Community
Development Director,
Housing Manager, 2 Housing
Specialists, Accountant,
Administrative Assistant,
Multifamily Housing
Coordinator; 2 Section 8
Technicians funded by HUD)
New initiatives for 2019:
•Pedestrian improvements, wayfinding
signage, kiosks, and other streetscape
improvements at Lakes at Lyndale area
•Researchandplanningforthe
continuance of the Cedar Corridor and
the TH 77 underpass area
•Down payment Assistance Program for
Richfield renters created for2019
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City Current Priorities and Projects HRA EDA
Levy
Amount
HRA/EDA or City Budget
for
Affordable Housing-
related Programs
Staffing Future Plans and Projects
Robbinsdale
EDA
HRA taxing authority to fund operations of REDA
Priorities
Remove blighted homes in neighborhoods to
make way for “nextstep “homestohelplarger
families(address overwhelming number of starter
homes and very few 3-4 bedrooms). REDA
acquireshome —highdegreeofdeferred
maintenance-often including broken pipes/mold
or fire damage, too small tomake sense to
renovate; clears lots - and advertisesavailability;
Sells lots - price subsidized in exchange for
higher quality construction elements.Home buyer
must be or work with experienced in-fill home
contractor; Collects into a scattered site TIF
district when practical to reimburseinvestment.
UtilizeTIFastooltofacilitateredevelopmentof
blighted areas.Current option:Pay as you go TIF,
privately financed TIF loan,developer pays all
upfront costs.Housing priority isforhousingtypes
whichdonotexistinRobbinsdale-including
market rate apartments with amenities.TIF used for
acquisition,siteclearanceincluding
environmental cleanup.
Strategic acquisitions in LRT station area
supplemented by grant funding.
Downtown (Main Street)Façade enhancement —
based on MAJOR renovation of business interior,
provides a 15-year 0%forgivableloanwithfunds
availableonlyforuseon West Broadway façade
updates.
Recently completed coordination downtown façade
incentive (1/3 grant forupdates)
Support Open to Business —consultation for local
entrepreneurs
The HRA administers 12 active IIFDistricts.
Section 8isadministered byMetro HRA.
$194,078 (2019
levy),
which is the
maximum
allowable levy.
HRA/EDA levy supplemented from
previous interfund loan
reimbursements and
occasional
grants.
A handful of lots were sold at
subsidized rates to Habitat for
Humanity projects.
Robbinsdale receives CDBG
funding in a consolidated pool of
cities that include Golden Valley,
which requires a competitive
process for project selection.
REDA Executive Director is the
City Manager (.25FTE funded
by levy); Community
Development Coordinator
spends 10-15% of time on REDA
activities
•Robbinsdale is over 90%
affordable.Priority is to bring
variety ofhousing.
•Continue to monitor opportunity
acquisitionsinlightrailstation are
•Establish new PAYG TIF districts as
needed
•acquire blighted homes in
neighborhood(oneortwo/year - not
as many as their used tobe)
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Plymouth HRA Strategic Plan
Summary of Stakeholder Conversations
Summary of Housing Needs/Issues:
High Cost of Housing:
Ownership Housing in Plymouth has been rising and is too expensive for this
market segment without additional assistance.
There are multiple offers for homes which drives the price up; particularly for those
lower value homes within the Wayzata School District under $300,000. Not seeing
any listings in the City under $200,000.
Demand exceeds supply which impacts vacancy rates and drives up rents. New
rental options across the entire spectrum will help alleviate that pressure.
Rents are rising higher than incomes. From 2010 to 2018, median rent increased
8%, vacancy rates declined from 5.5 to 3.9 percent and median renter income
decreased by 5%.
Housing Stability and Homelessness:
The struggle with housing stability has increased in the last few years.
NOAH housing is where the lowest incomes and those most at risk live and it
should be protected. This includes the manufactured home park which is some of
the most affordable housing in the city.
Residents need more than one job to afford to live in Plymouth and are seeking rent
assistance even when they have a full-time job.
Increased calls for assistance (living necessities, utilities, security deposits, gas
money, etc.) tie back to housing and paying too much of their income on rent. This
forces families to make many tradeoffs on a monthly basis just to survive.
People (and their children) are forced to leave the City because they are unable to
find housing that they can afford.
Significant challenge in coming up with first and last month rent when forced to
move from existing home.
Observing an increase in homelessness and challenges with finding a job becomes
even more difficult when a person does not have a home.
There is an increase in seniors who are experiencing housing instability.
Development Challenges:
Low density of land creates challenges in developing and acquiring properties for
new affordable housing since the land prices are so high.
43
An unintended consequence of the lack of affordable housing is it becomes more
difficult to attract retail, services and business development options.
Limited transit creates challenges in attracting workers for lower skilled jobs in the
city – they need the housing in the community to get to those jobs for services that
residents desire – restaurants, health care, retail workers, etc.
Building costs (labor, land and lumber) are on the rise which adds to the difficulty
of developing housing at an affordable price
Impact on Children/Education:
School boundaries are not equitable. Some districts are more diverse with a range
of incomes; others are very homogenous.
The lack of housing options also impacts attracting teachers to the school districts.
School achievement success is directly connected to housing stability. Kids who
move more than one time per year have lower test scores. When there is housing
instability, children experience mental stress and are unable to think and learn.
School intervention programs work when there is a strong relationship with
property managers. There are gaps in the system which results in more kids
moving into special needs categories at an increased cost to the district
A key success for school family intervention programs is building relationships and
trust. Turnover in housing breaks down the trusted relationships and limits the
intervention success.
When family is forced into homelessness transportation costs increase to ensure
the children have school stability.
Condition of housing options is directly associated to the physical and mental
health of children; experience more issues with absenteeism and asthma due to
children living in older, unsafe housing in the City.
Seeing success when a lower income family becomes an owner as it creates stability
and increases a child’s ability to learn.
44
Overview of Suggestions:
Increase Opportunities for Low Income Residents:
Increase flexibility for multifamily affordable housing options.
o Allow higher densities in certain locations that are appropriate for rental
housing
o Allow parking flexibility – not higher than 1.5 per unit
o Consider waiving fees (SAC/WAC, Park Dedication)
o Be flexible on exterior finishes for affordable projects
o Increase development that offer more bedrooms per unit
o Relax regulations to allow smaller homes.
o Modify city fee structure and include a policy that provides concessions for
housing that is affordable.
Tools:
o Adopt an Inclusionary Housing Policy to capture some affordable units within
new market rate developments. This also sends a message to the development
community that this is a priority and the HRA will be a partner in achieving some
affordability.
o Consider providing a fee rebate that would be retuned at a later date once the
development is up and running.
o Support proactive use of TIF to help with affordability – tax credit applications
are scored higher when there is local participation.
o Adopt Non-Discrimination of Section 8 Policy – Sends a message that rental
property owners cannot deny a tenant that meets all other requirements to rent
a unit with a Section 8 Voucher. During COVID landlords who have accepted
Section 8 vouchers are still getting rent payments – there may be an opportunity
to build from the success in the program.
o Increase section 8 voucher amounts for larger units where rents are too high.
Currently, cannot even use the voucher even if the family is able to pay the
difference. Example: Family of 3 is only able to access a 2-bedroom unit even if
there is a brother, sister and parent that all should have their own space.
o Require flexibility in tenant screening for past criminal background that is
non-violent and over a certain time period.
o Provide an “insurance fund”for landlords who accept tenants who have
criminal history or issues with non-payment of rent.
o Review innovative tenant protection policies: tenant opportunity to purchase,
advance notice of sale and/or tenant protection ordinance.
o Increase emergency funding to help residents in need particularly to cover first
and last month’s rent which in some cases can be as high as $5,000.
45
o Leverage project-based vouchers as a resource to meet the deeply affordable
needs of residents in the City.
o Increase code compliance in rental housing; particularly areas where there is a
high rate of lower income children.
Other:
o Evaluate key redevelopment opportunities to incorporate a mix of housing
choices such as the Holiday Golf Course site.
o Proactively support proposed affordable housing development; HRA lobby for
their approval with residents and other policy leaders.
Enhance Homebuyer Options:
Increase marketing of first-time homebuyer program, work directly with realtors
and banks
Modify the “divorce clause”
Create a local program that would target a slightly higher incomes than the state
program
Increase housing options - smaller homes, less expensive options – need to be
added to the housing stock to attract first time younger buyers.
Add more funding to the first time buyer program
Create a better connection between renters and their pathway to ownership
Increase Education and Partnerships
Enhance partnerships with developers
Partner directly with ODC to help guide in the evaluation of effective tools and
policies that will leverage the HRAs ability to deliver affordable options in the city.
Provide housing information in multiple languages or have access to a translating
service when needed.
Enhance first time homebuyer opportunities (education, target marketing) by
connecting to existing tenants in rental housing.
Provide equity training for landlords/management staff that includes:
o cultural sensitivity training
o resources for mental illness
o de-escalation response to issues – decrease obstacles and adjust when
needed
o resources to provide to tenants for employment opportunities
o encourage acceptance of tenants with past criminal or non-payment of rent
histories.
o Add information regarding the value of school intervention programs within
rental developments.
Increase partnership between HRA housing staff and school intervention staff
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Provide public education regarding systematic racism, connecting the dots
regarding its connection to poverty, housing and economic security. Support
community forums on why people are homeless and its challenges and how
addressing homeless build up the entire community. An example is the church
congregation that organized around Cranberry Ridge development. This process
helped many members of the congregation understand low income resident issues
and the importance of affordable housing options.
List of Stakeholders
Realtors/Bankers: Cristina Edelstein-Skurat, RE/MAX Kerby & Cristina, Rochelle Dotzenrod, resident and
former Wells Fargo Community Development Leader, Jeff Scherber, Summit Mortgage Corp
Interfaith Outreach Community Partners - Lani Willis, Director of Advancement; Wendy Geving,
Program Director; Katie Shepard, Associate Program Director; Yvette Childs, Director of Case
Management; Wendy Thomas, Database and Support; Fatuma Irshat, Neighborhood Program
Coordinator (Lakeview Commons); Ruth Othoff, Case Manager and Project Success Program.
Outreach Development Corporation Board of Directors –John Adams, Ken Dayton, Ed Goldsmith,
Ladonna Hoy, Jeff Huggett, Cherrie Shoquist, Joel Spoonheim
Faith Leaders - Charlene Williams, Plymouth Covenant Church; Joe Bergeland, Mount Olivet Church of
Plymouth; Steve Richardson, Messiah Church.
Wayzata Schools - Jodi Olson, Community Engagement and Partnership Coordinator, Beth Van Orsow:
Academic Interventionist, Susan Strom-Academic Interventionist; Elementary, Jenni Ebert; Director of
Community Education, Sam Fredrickson; Principal on Special Assignment
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Outreach Development Corporation
1605 County Road 101 N, Plymouth, MN 55447
Page 1
Outreach Development Corporation
Preserve, acquire and develop affordable housing with services
Dear Plymouth City Council and Housing and Redevelopment Authority Members,
We are writing to share ideas related to the current work of the Housing and Redevelopment Authority
(HRA) to update the HRA Strategic Plan. We represent the Board of the Outreach Development
Corporation (ODC), a Plymouth-based 501C3 nonprofit corporation whose mission is to work in
partnership with public, for-profit, and nonprofit entities and local residents to preserve, acquire, and
develop quality affordable housing in Plymouth and the other communities served by Interfaith
Outreach and Community Partners (IOCP).
As Plymouth residents and employers who volunteer to serve on the ODC Board, we are keenly aware of
the growing impact of limited housing options in Plymouth, an impact exacerbated by the Covid-19
pandemic and economic fallout. Our community will be most resilient if city leaders adopt proactive
and successful best practices for a healthy community. The evidence is clear that the strongest cities
adopt policies, implement practices, and collaborate with the development community to deliver a
range of housing types and prices in order to meet the needs of employers, schools, and residents as
they go through all of the stages of life.
More diverse housing will strengthen Plymouth
The City faces challenges that would be addressed by increased availability of more housing across more
price points. The following outlines a few of the important reasons to add more diversified housing
options in Plymouth.
1. The results of the June 2020 Flash Vote about Plymouth City Center demonstrate that Plymouth
residents seek retail commercial services that are not or are insufficiently available locally. This
is in comparison to other cities with similar income levels, where higher residential densities are
sufficient to support the greater variety of retail commercial services.
2. People seeking support for food and housing assistance at IOCP include many who due to
economic downturn, and current housing market trends, may be forced to leave the
community, disrupting community connections, school advancement for kids, and more.
3. Primary care providers at Plymouth clinics, who under state and federal measures are evaluated
on their ability to complete well-child protocols, identified the lack of stable affordable housing
as contributing to children moving around too much to ensure proper preventive health
treatments.
4. The School Districts in Plymouth face additional and costly challenges in meeting the
educational needs of students adversely affected by insufficient stable and affordable housing.
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Outreach Development Corporation
1605 County Road 101 N, Plymouth, MN 55447
Page 2
5. Many people working in Plymouth can no longer afford to live in Plymouth. More affordable
workforce housing is needed in Plymouth to meet the need for a more accessible and stable
labor force to support Plymouth businesses and to promote future economic growth in the City.
Who Needs Affordable Housing in Plymouth?
Affordable housing remains misunderstood by many. For some time, housing costs have been rising
much faster than incomes for those with lower-, moderate-, and middle incomes. Because of this, the
following typical employees working in Plymouth, who annually earn less than $78,500, qualify for
affordable housing:
1. Teachers
2. Medical service providers such as medical assistants
3. Retail/restaurant workers
4. Child and senior care workers
5. Lower to moderate skill manufacturing workers
6. Entry level professional service workers
The Demand for Affordable Rental Housing in Plymouth
According to the HRA’s 2018 Maxfield Plymouth Rental Housing Study, of 6,372 private market rental
units surveyed, 45.9% of Plymouth’s private market rental housing (not receiving housing subsidies) was
identified as Naturally Occurring Affordable Housing (NOAH) at 50-60% of area median income. In
addition, there were 600 affordable units that received direct housing subsidies. The study projected
that through 2030, there would be a demand for a total of 1,568 additional rental units in Plymouth. Of
these 596 should be subsidized affordable units and 972 should be market rate units. On pages 131-133
of the study there is a significant listing of housing resources and programs that can be utilized in
preserving and expanding the city’s diverse and stable housing stock.
Recommendations
We recommend the City of Plymouth and Plymouth HRA, as part of the HRA’s Updated Strategic Plan
consider, as soon as possible the adoption of the necessary ordinances, policies, practices, procedures,
plans, and/or other necessary actions, as appropriate, to implement the recommendations in the City of
Plymouth’s 2040 Comprehensive Plan regarding development and maintenance of a diverse and stable
housing stock, affordable housing, rental housing, first time homeownership, tenant protections, and
fair housing.
Such actions should include, but not be limited to, consideration of the following:
1. A statement explaining how residential density is a driver of economic development goals
including creating the optimal economic environment for retail commercial services desired by
residents of the City. Undertake a study of the real, as opposed to the perceived or anticipated
effects, raised as opposition to actual developments that have been built in Plymouth at higher
densities.
2. Providing greater opportunities for developers by increasing land guided and zoned to
accommodate housing at sustainably higher densities.
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Outreach Development Corporation
1605 County Road 101 N, Plymouth, MN 55447
Page 3
3. Aggressively support securing grants from other governmental, philanthropic, and nonprofit
entities and locally available resources for affordable housing gap financing.
4. Allocate and utilize all available excess Tax Increment District revenues that can be repurposed
for affordable housing gap financing.
5. Set goals with realistic implementation plans to achieve meeting at minimum the City’s 2040
Comp Plan’s goal for 679 units of affordable housing in Plymouth within 5 years.
6. Move quickly to consider City actions that would provide clear mandates to all residential
developers to propose development that meets the City’s objectives for a diverse and dynamic
housing stock that meets the housing goals set-out in the City’s Comprehensive Plan and other
City plans and policies.
Please note that with further review of the proposed HRA Strategic Plan we may provide additional
suggestions.
We appreciate and commend all the City and HRA have done in the past and continue to do to support a
diverse and stable housing stock in Plymouth, including the development and preservation of affordable
housing. We hope that you will affirmatively consider the suggestions that we are presenting to you.
We also offer our continuing commitment to work cooperatively with the City and HRA in addressing the
City’s housing needs.
Thank you for your consideration and we look forward to further discussions of these issues with you.
Sincerely,
Joel Spoonheim, ODC Policy Committee – Chair, Plymouth resident, HealthPartners
Ed Goldsmith, ODC Board Member, Plymouth resident, Former City of Plymouth Housing and
Redevelopment Supervisor
LaDonna Hoy, ODC Board Member, Plymouth resident, Interfaith Outreach and Community Partners
(IOCP) Founder and Executive Director Emerita
Ken Dayton, ODC Board Chair, Jones Lang LaSalle Mutlifamily, LLC
Jeff Huggett, ODC Board Member, Dominium
Cherie Shoquist, ODC Board Member
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