HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 04-22-2021Housing and Redevelopment Authority 1 of 2 April 22, 2021
CITY OF PLYMOUTH
AGENDA
Regular Housing and Redevelopment Authority
April 22, 2021, 7:00 PM
1.CALL TO ORDER
1.1 Instructions to Participate in the Virtual HRA Meeting.
2.PUBLIC FORUM—Individuals may address the HRA about any item not contained on the regular
agenda. A maximum of 15 minutes is allotted for the Forum. If the full 15 minutes are not needed for the
Forum, the HRA will continue with the agenda. The HRA will take no official action on items discussed at
the Forum, with the exception of referral to staff for future report.
3.APPROVE AGENDA —HRA members may add items to the agenda for discussion purposes or staff
direction only. The HRA will not normally take official action on items added to the agenda.
4.CONSENT AGENDA —These items are considered to be routine and will be enacted by one motion.
There will be no separate discussion of these items unless HRA member or citizen so requests, in which
event the item will be removed from the Consent Agenda and placed elsewhere on the agenda.
4.1 Approve proposed HRA minutes
March 25 Regular
4.2 Accept Plymouth Towne Square monthly housing report
PTS March 2021 Report
PTS March Financials
4.3 Accept Vicksburg Crossing monthly housing report
Vicksburg Crossing March 2021 Report
Vicksburg Crossing March Financials
5.PUBLIC HEARINGS
6.NEW BUSINESS
6.1 HRA Strategic Plan - Tenant Protection Ordinance
Plymouth Renter Protection Ordinance Draft
Tenant Protection Ordinance Summaries
6.2 HRA Strategic Plan - Mixed Income Housing Policy
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Housing and Redevelopment Authority 2 of 2 April 22, 2021
Housing Policy Draft
Peer City Summaries
7.UPDATES
7.1 Receive updates on Element, Cranberry Ridge, Valor Place, and Vicksburg Crossing
window project
8.ADJOURNMENT
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Regular
Housing and
Redevelopment
Authority
April 22, 2021
Agenda
Number:1.1
To:Housing and Redevelopment Authority
Prepared by:Matt Lupini, Community Development Coordinator
Reviewed by:Steve Juetten, Executive Director of HRA
Item:Instructions to Participate in the Virtual HRA Meeting.
1.Action Requested:
The HRA Chair provides instructions to the public to participate in the Zoom meeting.
2.Background:
Housing and Redevelopment Authority meetings will be conducted virtually (via Zoom
webinar/conference call) due to the state of local emergency for the COVID-19 pandemic. Members
of the HRA and staff will participate in this meeting via telephone/video conference.
Watch the Meeting
The meeting will be live-streamed online via Zoom.
Public Comments
Written comments: Comments may be submitted for inclusion in the HRA packet by emailing city
staff at gdempsey@plymouthmn.gov. You may also request that comments of up to one page be
read into the record.
Speaking during the meeting: The public may address the HRA regarding an item on the agenda via
Zoom conferencing service at no cost. Those who wish to speak must register online via Zoom and
indicate that they wish to provide public comment on an agenda item. Register via Zoom at:
https://us02web.zoom.us/j/81290260480?pwd=bmRMWEp4dG1VMzZ5RzNPM0thQk05Zz09
Registration will remain open and be monitored for the duration of the meeting.
3.Budget Impact:
N/A
4.Attachments:
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Regular
Housing and
Redevelopment
Authority
April 22, 2021
Agenda
Number:4.1
To:Housing and Redevelopment Authority
Prepared by:Tina Beckfeld
Reviewed by:Steve Juetten, Executive Director of HRA
Item:Approve proposed HRA minutes
1.Action Requested:
Adopt attached minutes from regular HRA meeting held on March 25.
2.Background:
N/A
3.Budget Impact:
NA
4.Attachments:
March 25 Regular
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PROPOSED MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
March 25, 2021
MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Robert Huddleston,
Aqueelah Whitfield (arrived at 7:04 p.m.), Lucas Larson, James Williams, and Wayne
Peterson.
STAFF PRESENT: HRA Executive Director Steve Juetten, HRA Manager Jim Barnes,
Community Development Coordinator Matt Lupini, Support Services Manager Denise
Whalen and Permit Technician Michelle Bast.
OTHERS PRESENT: Council Member Jim Davis, Jody Boedigheimer of Grace
Management, Cathy Capone Bennett of Bennett Community Consulting
ABSENT: Commissioner Jeff Kulaszewicz
1. CALL TO ORDER
Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to
order at 7:01 p.m.
2. PUBLIC FORUM
Chair Soderberg opened and closed the Public Forum as there was no one present to
speak.
3. APPROVE AGENDA
MOTION by Commissioner Williams, seconded by Commissioner Huddleston, to
approve the Agenda. Roll Call Vote. 5 Ayes. MOTION passed unanimously.
4. CONSENT AGENDA
4A. Approve proposed minutes from February 25, 2021
4B. Plymouth Towne Square. Accept monthly housing reports
4C. Vicksburg Crossing. Accept monthly housing reports
4D. Housing Choice Voucher Program. Approve amendments to landlord
incentive pilot programs
4E. Scattered Site Housing Program. Approve Admission and Occupancy Policy
and Lease Agreement
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Proposed Minutes
Plymouth Housing and Redevelopment Authority
March 25, 2021
Page 2
MOTION by Commissioner Huddleston, seconded by Commissioner Peterson, to
approve the Consent Agenda. Roll Call Vote. 5 Ayes MOTION passed
unanimously.
5. NEW BUSINESS
5A. Strategic Plan. Adopt the Strategic Plan
Cathy Capone Bennett of Bennett Community Consulting provided an overview of the
City Council’s discussion of the HRA Strategic Plan, including their comments and
suggested changes. She stated the City Council agreed collecting and distributing
information may be the better way to describe the role of the HRA in terms of advocating
for various housing program initiatives.
Commissioner Huddleston asked with whom information is shared, since the sentence as
written did not specify a measure.
Ms. Bennett stated that although the first bullet point is broad, the action itself is specific.
Commissioner Williams asked what was the prevailing issue that necessitated this change
to the language.
Ms. Bennett said the conversation was around not wanting to have the HRA be an
advocate for or against any specific policy.
Commissioner Larson inquired about the HRA’s discretion in accepting or rejecting
changes suggested by the City Council.
Ms. Bennett stated that the Strategic Plan is an HRA-approved draft that was presented to
the City Council for their opinions and suggestions. The purpose of this discussion is to
take into consideration Council’s suggestions before the HRA adopts the Strategic Plan.
Chair Soderberg stated that the Strategic Plan is the HRA’s document.
HRA Manager Barnes affirmed this is the HRA’s document and it does not need to go
back before the City Council before being adopted. The changes made will address
concerns but will not change the HRA’s plan for the next three to five years.
Ms. Bennett moved to the next change made which was on Page 11 regarding the
phrase “adequate funding”.
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Proposed Minutes
Plymouth Housing and Redevelopment Authority
March 25, 2021
Page 3
Commissioner Huddleston asked if the funds for strategic plan initiatives are to be
solely from dedicated sources, as well as which funds are under the control of the
City Council versus the HRA.
HRA Manager Barnes explained the HRA has three budgets. The first is the HRA
general fund which is supported almost entirely by the HRA property tax levy.The
City Council decides based on the HRA recommendation how much to levy every
year. The second budget is the Community Development Block Grant (CDBG)
program that is 97% supported by federal dollars. Those federal dollars are awarded
to the City of Plymouth not the HRA. There is an agreement with the city to pass the
daily operations of the CDBG program to the HRA and its staff for
administration.The third budget, which the HRA has the most control over is the
Housing Choice Voucher program. However, that budget is dictated by the U.S.
Department of Housing and Urban Development.
Commissioner Larson stated he felt the word ‘adequate’ on Page 12 was
unnecessary.
Chair Soderberg suggested taking a vote regarding keeping the sentence in question.
Roll Call Vote. 2-4. (Commissioners Larson, Peterson, Whitfield, and Williams
voted Nay. MOTION failed. The sentence was removed.
Commissioner Williams asked why the word ‘all’ was stricken from the Action
sentence on Page 13.He said he wanted to be sure all options remained open to the
HRA.
Commissioner Huddleston said he was not sure if the HRA would have the resources
to investigate all possibilities.
MOTION by Commissioner Larson, seconded by Commissioner Huddleston, to
adopt the Strategic Plan as amended. Roll Call Vote. 6 Ayes. MOTION passed
unanimously.
5B. Plymouth Towne Square. Approve replacement of zone values in the building.
HRA Manager Barnes gave an overview of the staff report.
Commissioner Williams asked if insurance can be used to pay for the valves or the
damage incurred.
HRA Manager Barnes replied the senior buildings are insured through the League of
Minnesota Cities, which will cover the damage, but not the valve replacement.
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Proposed Minutes
Plymouth Housing and Redevelopment Authority
March 25, 2021
Page 4
Council Member Davis asked what the valves regulate.
HRA Manager Barnes replied the valves regulate heat in each unit.
Council Member Davis clarified whether they regulate radiant heat.
HRA Manager Barnes confirmed the valves regulate radiant heat.
MOTION by Commissioner Williams, seconded by Commissioner Huddleston, to
approve replacement of zone values in the building. Roll Call Vote. 6 Ayes.
MOTION passed unanimously.
6. UPDATES
Cranberry Ridge
Element
Four Seasons Mall Project
Valor Place
Senior Apartment Building on Harbor Lane
Dundee Nursery Redevelopment
7. ADJOURNMENT
MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:00 p.m.
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Regular
Housing and
Redevelopment
Authority
April 22, 2021
Agenda
Number:4.2
To:Housing and Redevelopment Authority
Prepared by:James Barnes, HRA Manager
Reviewed by:Steve Juetten, Community Development Director
Item:Accept Plymouth Towne Square monthly housing report
1.Action Requested:
Accept attached Plymouth Towne Square monthly housing report.
2.Background:
Plymouth Towne Square Monthly Report.
3.Budget Impact:
NA
4.Attachments:
PTS March 2021 Report
PTS March Financials
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Regular
Housing and
Redevelopment
Authority
April 22, 2021
Agenda
Number:4.3
To:Housing and Redevelopment Authority
Prepared by:James Barnes, HRA Manager
Reviewed by:Steve Juetten, Community Development Director
Item:Accept Vicksburg Crossing monthly housing report
1.Action Requested:
Accept attached Vicksburg Crossing monthly housing report.
2.Background:
Accept Vicksburg Crossing monthly housing report.
3.Budget Impact:
NA
4.Attachments:
Vicksburg Crossing March 2021 Report
Vicksburg Crossing March Financials
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MEMORANDUM
To: Jim Barnes
From: Sara Paquette
Date: April 7, 2021
RE: Vicksburg Crossing Monthly Report for March 2021
Rentals:
As of March 31st, we have 93 occupied apartments, with 2 vacant apartments, and 2 deposits at this time.
We have a total of 0 apartments available to rent. The affordable apartment waiting list now has 86
names and we have been adding interested people to the list. We have 25 people on our moderately
priced one-bedroom wait list and 17 people on our moderately priced 1+ and two-bedroom wait list.
Style (Total #)Square Feet Bedrooms Occupied Vacant Deposits Est’d Move in
Style A (23)850 Sq Ft 1 Bedroom 23 0
0
Style C (8)884 Sq Ft 1 + Den 8 0 0
Style C2 (8)950 Sq Ft 1 + Den 8 0 0
Style D (8)1187 Sq Ft 2 Bedroom 8 0 0
Style D2 (4)1281 Sq Ft 2 Bedroom 3 1 1 5/1/2021
Style E (8)1055 Sq Ft 2 Bedroom 8 0 0
Style E2 (3)1055 Sq Ft 2 Bedroom 3 0 0
Affordable
(33)725 Sq Ft 1 Bedroom 32 1 1 4/1/2021
TOTALS 93 2 2
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Move-Ins/Move-Outs:
This month we had residents move into a 1+Den (style C) and an affordable apartment. We had a
resident move out of a large 2-bedroom (style D2).
Marketing
As people anticipate spring, we have seen a slight increase in inquiries from prospective residents.
Resident Services
In March we continued to add resident activities to our calendar. At this time, we are not having resident
parties, our regular birthday party or our resident meeting, these activities require more seating in our
community room than is recommended.
On St. Patrick’s Day we gave out box lunches for the residents to take home. Included in the box lunch
was, half of a Potbelly sandwich, chips, a buntini cake and a “pot of gold” chocolates.
We are still having our resident birthday party to go. The residents pick up their cupcakes outside my
office and take them home. We use our birthday plates and napkins.
Building Issues
We had no building issues in March.
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Regular
Housing and
Redevelopment
Authority
April 22, 2021
Agenda
Number:6.1
To:Housing and Redevelopment Authority
Prepared by:James Barnes, HRA Manager
Reviewed by:Steve Juetten, Community Development Director
Item:HRA Strategic Plan - Tenant Protection Ordinance
1.Action Requested:
Review and discuss the draft ordinance and provide guidance to staff.
2.Background:
The Housing and Redevelopment Authority (HRA) approved the current Strategic Plan in March of
2021. The plan includes a number of policies and priorities the HRA will look at over the next few
years to determine if they need revising or should be adopted.
One such policy is the Tenant Protection Ordinance. This type of ordinance is often enacted to
protect vulnerable low income residents from being displaced due to rent increases without the
necessary time to find alternative housing. State law currently requires a minimum of 31 days
notice by either party to end a periodic (month-to-month) lease. This short period of time can make
it difficult for residents to find alternative living arrangements given the shortage of decent safe
affordable housing options in the Twin City metro area.
A number of communities have adopted Tenant Protection ordinances including Richfield, Golden
Valley, St. Louis Park and Bloomington. Staff has reviewed these various policies, and created a
draft policy (attached) that we are of the opinion will work best for Plymouth.
Staff is requesting the HRA Board review the draft ordinance and provide feedback prior to
submission to the city council for review and discussion.
3.Budget Impact:
There is no budgetary impact to either the City or the HRA at this point.
4.Attachments:
Plymouth Renter Protection Ordinance Draft
Tenant Protection Ordinance Summaries
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Section 4XX – Protection of Tenants in Affordable Housing
4XX.00 Purpose. It is the purpose of this Section to provide housing stability and protection to
tenants in affordable rental housing who are facing displacement by providing for notice to the city and
tenants when transitions from current affordable housing uses are planned, and providing tenant
relocation assistance when affordable housing is converted and tenants are required to move without
adequate time to find new housing.
4XX.05 Definitions. For the purposes of Section 4XX.00 et. seq., the terms defined in this
section shall have the meanings given them in the subdivisions as follows:
Subd. 1. Affordable housing building. As used in this ordinance, the term “affordable housing
building” shall mean a multi-family rental housing building having fifteen (15) or more housing units,
where at least 20% of the units rent for an amount that is affordable to households at or below 60
percent of area median income, as median income was most recently determined by the United States
Department of Housing and Urban Development for the Minneapolis-St. Paul-Bloomington, Minnesota-
Wisconsin Metropolitan Statistical Area, as adjusted for household size and number of bedrooms.
Subd. 2. Affordable Housing Unit. As used in this ordinance, the term “affordable housing unit”
shall mean a rental unit in an affordable housing building that rents for an amount that is affordable to
households at or below 60 percent of area median income, as median income was most recently
determined by the United States Department of Housing and Urban Development for the Minneapolis-
St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for household size
and number of bedrooms.
Subd. 3. Cause. As used in this ordinance, the term “cause” shall mean the tenant or a member
of the tenant’s household materially violated a term or the lease or rental agreement, or violated an
applicable federal, state, or local law or regulation.
Subd. 4. Relocation Assistance. As used in this ordinance, the term “relocation assistance” shall
mean a payment in the amount equal to three months of the current monthly contract rent.
Sudb. 5. Tenant protection period. As used in this ordinance, the term “tenant protection
period’ shall mean the period that commences on the date when a real estate closing transfers
ownership of an affordable housing building and ends on the last day of the third calendar month
following the month in which written notice of the transfer is sent to each affordable housing unit
tenant pursuant to this Section.
Subd. 6. Transfer of Ownership. As used in this ordinance, the term “transfer of ownership’
means any conveyance of title to an affordable housing building, whether legal or equitable, voluntary
or involuntary, resulting in a transfer of control of the building, effective as of the earlier of the date of
delivery of the instrument of conveyance or the date the new owner takes possession.
4XX.10 Transfer of Ownership.
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Subd. 1. Notice. Within thirty (30) days after the transfer of ownership of an affordable housing
building, the new owner shall give written notice to each affordable housing unit tenant of the building
that the property is under new ownership. This notice must include the following information:
(a) The name, mailing address, and telephone number of the new owner.
(b) City Code Section 4XX provides for a three-month tenant protection period for affordable
housing unit tenants after an affordable housing building is transferred to a new owner.
Under this Section, affordable housing unit tenants are entitled to relocation assistance
from the new owner if, during the tenant protection period, the new owner:
(1) Without cause, terminates or does not renew the tenant’s rental agreement;
(2) Raises the rent and the tenant submits a written notice of termination of their
rental agreement; or,
(3) Requires existing affordable housing unit tenants to comply with new residency
screening criteria and the owner or tenant terminates or does not renew the
tenant’s rental agreement.
(c) Whether there will be any rent increase during the tenant protection period, the amount of
the rent increase, and the date the rent increase will take effect.
(d) Whether the new owner will require existing affordable housing unit tenants to comply with
new residency screening criteria during the tenant protection period and, if so, a copy of the
new screening criteria.
(e) Whether the new owner will, without cause, terminate or not renew the tenant’s rental
agreement during the tenant protection period, and if so, the date the rental agreement will
terminate and the amount of relocation assistance that will be provided.
(f) The date the tenant protection period will expire.
(g) Whether the new owner, on the day immediately following the tenant protection period,
intends to: increase rent; require existing affordable housing unit tenants to comply with
the new residency screening criteria; or, without cause, terminate or not renew affordable
housing unit rental agreements.
Subd. 2. Copy of Notices to City. The new owner shall provide a copy of the notices required by
this subsection to the City at the same time notice is provided to the tenant or tenants.
Subd. 3. Copy of Rent Roll to City. If the new owner claims the property or the unit does not
meet the definition of Affordable Housing Building or Affordable Housing Unit, the owner shall provide a
copy of the rent roll, including the amount of contract rents paid by tenants, to the City.
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Subd. 4. Language Requirement. Each notice required by this subsection shall contain an
advisory that reads: “This is important information about your housing. If you do not understand it,
have someone translate it for you now, or request translation from your landlord.” This advisory must
be stated in the notice in the following languages: Spanish, Somali, and Hmong. Upon request by the
tenant, the owner must provide a written translation of the notice into the tenant’s native language.
4XX.15.Relocation Assistance.
Subd. 1. When Required. A new owner of an affordable housing building must pay relocation
assistance to affordable housing unit tenants when, during the tenant protection period, the new
owner:
(a) Without cause, terminates or does not renew the tenant’s rental agreement; or,
(b) Raises the rent and the tenant submits a written notice of termination of their rental
agreement; or
(c) Requires existing tenants to comply with new residency screening criteria and the owner or
tenant terminates or does not renew the tenant’s rental agreement.
Subd. 2. When Paid. The new owner must pay the relocation assistance to the tenant within 30
days after receiving tenant’s written notice of termination of the rental agreement or with 30 days after
the owner notifies the tenant that the rental agreement will be terminated or not renewed.
4XX.20 Penalty.
Subd.1. A violation of subsection 4XX.15 is an administrative offense that may be subject to an
administrative citation and civil penalties as provided in City Code Section 2000.01. Notwithstanding
any provision of City Code Section 2000.01, the penalty for a violation of subsection 409.15 shall be the
sum of the applicable amount of relocation assistance plus $500.
Subd. 2. A violation of subsection 4XX.10 is an administrative offense that may be subject to an
administrative citation and civil penalties as provided in City code Section _______.
Subd. 3. A violation of this Section as to each dwelling unit shall constitute a separate offense.
4XX.25 Payment by City to Displace Tenant. Within 30 days after a person pays the penalty
provided for in subsection 4XX.20, subd. 1, the city shall pay to the displaced tenant of the affordable
housing unit for which the violation occurred, the applicable amount of relocation assistance.
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Tenant Protection Ordinance Summaries
City of Golden Valley:
1.Defined as having three or more housing units where at least 15% of the units rent for an
amount that is affordable to households at or below 60% AMI. The tenant protection period
commences on the date when a real estate closing transfers ownership and ends on the last
day of the third calendar month following the month in which written notice of the transfer is
sent to each affordable housing unit tenant.
2.For relocation assistance to activate the new owner must terminate or refuse to renew any
affordable housing unit rental agreement without cause during the tenant protection period.
Other activation will include if there is a rent increase during the tenant protection period if
the new owner does a rescreen of existingtenants.
3.Relocation assistance is based on the size of the unit (#of bedrooms)plus moving expenses
set forth by the Federal Highway Administration Fixed Payment for Moving Expenses for the
state of Minnesota as published in the Fixed Residential Moving Cost Schedule pursuant to
Section 202(b)of the Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970.
4.Notice will be given to tenants within 30 days of the sale of the building. The notice will need
to include the name, mailing address, & telephone number of the new owner. The notice will
also include whether the owner will be renewing the lease, whether the rent will be raised,
what the rent increase will be, whether there is a re-screening process with screening criteria,
whether the new owner will terminate or not renew rental agreements without cause during
the protection period. If so, notice to the affected affordable housing unit tenants whose
rental agreements will terminate, including the date of termination. Notice will be given to
the City at the same time as the tenants.
5.Penalty will be assessed based on City Code administrative sections and violations will
have monetary penalty.
City of Richfield:
1.Defined as having three or more housing units where at least 20% of the units rent for an
amount that is affordable to households at or below 60% AMI. The tenant protection period
commences on the date when a real estate closing transfers ownership and ends on the last
day of the third calendar month following the month in which written notice of the transfer is
sent to each affordable housing unit tenant.
2.Relocation assistance is defined as a payment in the amount equal to three months of
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the current contract rent charged to the tenant.
3.Notice will be given to tenants within thirty days after the date on which a real estate closing
transfers ownership of the affordable housing building. The notice must include the name,
mailing address, and telephone number of the new owner. The following statement: Richfield
City Code Section 409 provides for a three-month tenant protection period for affordable
housing unit tenants after an affordable housing building is transferred to a new owner.
Under Section 409, affordable housing unit tenants are entitled to relocation assistance from
the new owner if, during the tenant protection period, the new owner: (1) Without cause,
terminates or does not renew the tenant's rental agreement; (2) Raises the rent and the
tenant submits a written notice of termination of their rental agreement; or, (3) Requires
existing affordable housing unit tenants to comply with new residency screening criteria and
the owner terminates the tenant's rental agreement. Whether there will be any rent
increase during the tenant protection period, the amount of the rent increase, and the date
the rent increase will take effect. Whether the new owner will require existing affordable
housing unit tenants to comply with new residency screening criteria during the tenant
protection period and, if so, a copy of the new screening criteria. Whether the new owner
will, without cause, terminate or not renew the tenant's rental agreement during the tenant
protection period, and if so, the date the rental agreement will terminate and the amount of
relocation assistance that will be provided. The date the tenant protection period will expire.
Whether the new owner, after the tenant protection period expires, intends to: increase
rent; require existing affordable housing unit tenants to comply with new residency screening
criteria; or, without cause, terminate or not renew affordable housing unit rental agreements
and, if so, when the new owner intends to take such actions. The City must receive notice at
the sametimeasresidents.
4.Penalty willbeassessedinthesumoftheapplicable amount ofrelocation assistance plus$500.
City of St Louis Park:
1. Defined as having three or more housing units where at least 18% of the units rent for an
amount that is affordable to households at or below 60% AMI. The tenant protection period
commences on the date when a real estate closing transfers ownership and ends on the last day
of the third calendar month following the month in which written notice of the transfer is sent
to each affordable housing unit tenant.
2. Relocation assistance will be in set amounts based on unit bedroom size. $2600 for a studio,
$3,000 for a 1 bedroom, $3,600 for a 2 bedroom, $4,100 for a 3 bedroom. Notice includes
name, address, and phone number of new owner, references St. Louis Park City code section 8-
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336, whether there will be rent increases during tenant protection, Whether the new owner will
require existing affordable housing unit tenants to comply with new residency screening criteria
during the tenant protection period and, if so, a copy of the new screening criteria. Whether the
new owner will, without cause, terminate or not renew the tenant's rental agreement during
the tenant protection period, and if so, the date the rental agreement will terminate and the
amount of relocation assistance that will be provided. The date the tenant protection period will
expire. Whether the new owner, after the tenant protection period expires, intends to: increase
rent; require existing affordable housing unit tenants to comply with new residency screening
criteria; or, without cause, terminate or not renew affordable housing unit rental agreements
and, if so, when the new owner intends to take such actions. The City must receive notice at the
same time as residents.
3. Penalty will be the sum of the relocation assistance as well as $500 payable within 30days.
City of Bloomington:
1. The policy applies to any multi-family rental building where at least 9% of the units rent for an
amount that is affordable to households at or below 60% of the area median income as
determined and adjusted from time-to-time by the United States Department of Housing and
Urban Development (HUD).
2. Bloomington City Code Section 9.45 provides for a three (3) month tenant protection period for
affordable housing unit tenants. Under Section 9.45, an affordable housing unit tenant may be
entitled to relocation assistance from the new owner if the new owner terminates or does not
renew the tenant’s rental agreement without cause within the three (3) month tenant
protection period. An affordable housing unit tenant may also be entitled to relocation
assistance from the new owner if the tenant terminates his or her rental agreement because the
new owner raises the rent or initiates a tenant rescreening process within the three-month
tenant protection period.
3. If during the tenant protection period the new owner of an affordable housing building
terminates or refuses to renew any affordable housing unit tenant’s rental agreement without
cause, then upon terminating or refusing to renew the tenant’s lease, the new owner must pay
to the tenant the equivalent of three months’ rent, as relocation assistance, no later than the
day upon which the tenant vacates the unit. If during the tenant protection period the new
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owner of an affordable housing building raises any affordable housing unit tenant’s rent, or
rescreens an existing affordable housing unit tenant, and the tenant gives written notice to the
new owner to terminate the rental agreement, the new owner, must within 30 days of receiving
tenant’s written notice of termination of the rental agreement, pay to the tenant the equivalent
of three months’ rent as relocation assistance.
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Regular
Housing and
Redevelopment
Authority
April 22, 2021
Agenda
Number:6.2
To:Housing and Redevelopment Authority
Prepared by:James Barnes, HRA Manager
Reviewed by:Steve Juetten, Community Development Director
Item:HRA Strategic Plan - Mixed Income Housing Policy
1.Action Requested:
Review and discuss the draft ordinance and provide guidance to staff.
2.Background:
The Housing and Redevelopment Authority (HRA) approved the current Strategic Plan in March of
2021. The plan includes a number of policies and priorities the HRA will look at over the next few
years to determine if they need revising or should be adopted.
One such policy is the Mixed Income Housing Policy. This type of policy is often enacted to ensure
quality housing in the City is accessible to households with a variety of incomes, ages,
A number of communities have adopted mixed income/inclusionary housing policies including
Richfield, Golden Valley, St. Louis Park and Bloomington. Staff has reviewed these various policies,
and created a draft policy (attached) that we are of the opinion will work best for Plymouth.
Staff is requesting the HRA Board review the draft ordinance and provide feedback prior to
submission to the city council for review and discussion.
3.Budget Impact:
There is no budgetary impact to either the City or the HRA at this point.
4.Attachments:
Housing Policy Draft
Peer City Summaries
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1
Inclusionary Housing Policy
Inclusionary housing is a tool that encourages new developments to make a certain percentage of
new housing units affordable. The goal of this policy is to promote high quality housing located
throughout the community for a variety of income levels, ages, and household sizes in order to
meet the City's goal of preserving and promoting economically diverse housing options within the
community.
The City recognizes the need to provide affordable housing for a broad range of income levels to
maintain a diverse population and attract residents to live or work in the City. This Policy has
been created to ensure that a reasonable proportion of each new development receiving City
financial assistance include units affordable to low and moderate income households and working
families.
The requirements set forth in this Policy further the City’s Housing Goals and the City’s
Comprehensive Plan to create and preserve affordable housing opportunities. These requirements
are intended to provide a structure for participation by both the public and private sectors in the
production of affordable housing.
I.Applicability and Minimum ProjectSize
Market Rate Multi-Family Development Receiving City Financial Assistance
This Policy applies to market rate multi-family residential developments that receive financial
assistance from the City and includes:
(1)new developments that create at least 10 multi-family dwelling units;or
(2)any mixed use building that creates at least 10 multi-family dwelling units;or
(3)renovation or reconstruction of an existing building that contains multi-family
dwelling units that includes at least 10 dwelling;or
(4)any change in use of all or part of an existing building from a non-
residential use to a residential use that includes at least 10 dwellingunits.
II.Affordable Dwelling Units
General requirement
A development that is subject to this Policy shall provide a number of affordable dwelling units
equal to at least ten (10%) to twenty percent (20%) of the total number of dwelling units in the
development. The units designated as affordable will besubject to the requirements listed below.
Calculation of units required.
(1)For development of multi-family dwellingunits:
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A.The required number of affordable dwelling units is based on the total
number of dwelling units that are approved by theCity.
B.To calculate the number of affordable dwelling units required in a
development the total number of approved dwelling units shall be multiplied
by ten percent (10%) or twentypercent (20%) depending on the affordability
standard.Ifthefinalcalculationincludesafraction,thefraction of a unit shall
be rounded to the nearest whole number.
C.Properties that are remodeled or expanded will be subject to this policy.
Affordable dwelling units will be calculated based on the total number of
units after renovation or expansion is complete. At least ten percent (10%)
or twenty percent (20%) shall be affordable, depending on the affordability
standard.
Affordability Level
The required affordable dwelling units within a residential project subject to this policyshall meet
an income eligibility and rent affordability standard for the term of the restriction asfollows:
(1)Rental Projects:
A.At least twenty percent (20%) of the units shall be affordable for households
at sixty percent (60%) Area Median Income (AMI),or
B.At least ten percent (10%) of the units shall be at available affordable for
households at fifty percent (50%) Area MedianIncome.
(2)For-Sale Projects:
A.At least fifteen percent (15%) of the units shall be affordable for households
at eighty percent (80%) Area Median Income(AMI).
Rent and Sale Price Level
Rental Unit: The monthly rental price for affordable dwelling units shall include rent and utility
costs and shall be based on fifty percent (50%) and/or sixty percent (60%) for the metropolitan
area that includes Plymouth adjusted for bedroom size and calculated annually by Minnesota
Housing Finance Agency for establishing rent limits for the Housing Tax Credit Program.
For-Sale Projects: The qualifying sale price for an owner-occupied affordable dwelling unit shall
include property taxes, homeowner’s insurance, principal payment and interest, private mortgage
insurance, monthly ground lease, and shall be based on eighty percent (80%) AMI for the
metropolitan area that includes Plymouth adjusted for bedroom size and calculated annually by the
Department of Housing and Urban Development.
Period of Affordability
In developments subject to this Policy, the period of affordability for the affordable dwelling units
shall be at least twenty-five (25) years.
Location of Affordable Dwelling Units
Except as otherwise specifically authorized by this Policy, the affordable dwelling units
shall be located within the development.
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III.Standards for Inclusionary RentalUnits
Size and Design of Affordable Units
The size and design of the affordable dwelling units should be consistent and comparable with the
market rate units in the project and aresubject to the approval of the City. The interior of affordable
dwelling units do not need to be identical to the market rate units but if units are smaller than the
market rate units with the same number of bedrooms in the development, City approval must be
obtained.
Exterior/Interior appearance.
The exterior materials and design of the affordable dwelling units in any development subject to
these regulations shall be indistinguishable in style and quality with the market rate units in the
development. The interior finish and qualityof construction of the affordable dwellingunits shall
at a minimum be comparable to entry level rental or ownership housing in the City. Construction
oftheaffordabledwellingunitsshallbeconcurrentwithconstructionofmarket ratedwellingunits.
IV.Integration of Affordable Dwelling Units
Distribution of affordable housing units.
The affordable dwelling units shall be incorporated into the overall project unless expressly
allowed to be located in a separate building or a different location approved by the City Council.
Affordable dwelling units shall be distributed throughout the building.
Number of bedrooms in the affordable units.
The affordable dwelling units shall have a number of bedrooms in the approximate proportion as
the market rate units. The mix of unit types, both bedroom and accessible units, of the affordable
dwelling units shall be approved by the City.
Tenants
Rental affordable dwelling units shall be rented only to income eligible families during theperiod
of affordability. An income eligible family may remain in the affordable dwelling unit for
additional rental periods as long as the income of the family does not exceed one-hundred twenty
five percent (125%) of the applicable AMI. If the family income exceeds this amount they must
be moved to the first available non-affordable unit.
V.Alternatives to On-Site Development of Affordable DwellingUnits
This section provides alternatives to the construction of onsite affordable dwelling units as a
way to comply with this Policy. The alternatives are listed in subsection (3), below.
(1)The alternatives must be:
A.Approved by the City Council, and
B.Agreed to by the applicant in an Affordable Housing Performance
Agreement.
C.Applicant must show the City acceptable documentation that a formal
commitment to the proposed alternative is in place.
(2)This Section does not apply unless the applicantdemonstrates:
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A.The alternative provides an amount of affordable dwelling units equivalent
or greater to onsite units in a way that the City determines better achieves
the goals, objectives and policies stated in the Housing Goals and
Comprehensive Plan; and
B.Will not cause the City to incur any net cost as a result of the alternative
compliance mechanism.
(3)If the conditions in (2) are met, the City may approve one or more of thefollowing
options to providing affordable dwelling units that are required by thisPolicy.
A.The dedication of existing market rate units to permanently affordable
dwelling units that are of equivalent quality and size. Existingdwellingunits
are approved as suitable affordable housing dwelling units through
covenants, contractual arrangements, or resale restrictions.
B.Offsite construction of affordable dwelling units within the City. Offsite
construction of units should be located in proximityto public transit service
at a site approved by the City.
C.Participation in the construction of affordable dwelling units by another
developer on a different site within theCity.
D.An alternative proposed by the applicant that directly provides or enables
the provision of affordable housing units within the City. The alternative
must be approved by the City and made a condition of approval of the
Affordable Housing PerformanceAgreement.
VI.NON-DISCRIMINATION BASED ON RENTSUBSIDIES:
Developments covered by the policy must not discriminate against tenants paying rentwith
federal, state or local public assistance, including, but not limited to rental assistance, rent
supplements, and Housing Choice Vouchers.
VII.Affordable Housing Plan
(1)Applicability
Developments that are subject to this Policy shall include an Affordable Housing Plan as
described below. An Affordable Housing Plan describes how the developer complies
with each of the applicable requirements of thisPolicy.
(2)Approval
The Affordable Housing Plan shall be approved by theCity.
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(3)Contents.
The Affordable Housing Plan shall include at least the following:
A.General information about the nature and scope of the development subject
to these regulations.
B.For requests to an alternative to on-site provision of affordable housing,
evidence that the proposed alternative will further affordable housing
opportunities in the City to an equivalent or greater extent than compliance
with the otherwise applicable on-site requirements of thisPolicy.
C.The total number of market rate units and affordable dwelling units in the
development.
D.The floor plans for the affordable dwelling units showing the number of
bedrooms and bathrooms in each unit.
E.The approximate square footage of each affordable dwelling unit and
average square foot of market rate unit bytypes.
F.Building floor plans and site plans showing the location of each affordable
dwelling unit.
G.Thepricingforeach affordableownershipdwellingunit.Thepricingof each
unit shall be determined at time of approval. At time of sale this price may
be adjusted if there has been a change in the median income or a change in
the formulas used in this ordinance.
H.Proposed schedule of individual unit development (market rate vs.
affordable units).
I.Documentation and specifications regarding the exterior appearance,
materials and finishes of the development for each of the affordable
dwelling units illustrating that the appearance of affordable units are
comparable to the appearance of the market-rateunits.
J.An Affordable Dwelling Unit Management Plan documenting policies and
procedures for administering the affordable dwelling units in accordance
with the Affordable Housing PerformanceAgreement.
K.Any and all other information that City staff may request to achieve the
Council’s affordable housinggoals.
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VIII.Recorded Agreements, Conditions andRestrictions
(1)An Affordable Housing Performance Agreement shall be executed between the
City and Developer, in a form approved by the City Attorney, based on the
Affordable Housing Plan described in Section VII, which formally sets forth
development approval and requirements to achieve affordable housing in
accordance with this policy and location criteria. The Agreement shallidentify:
a.the location, number, type, and size of affordable housing units to be
constructed; and
b.sales and/or rental terms; occupancyrequirements; and
c.a timetable for completion of the units; and
d.restrictions that will be placed on the units to ensure affordability; and
e.any terms contained in the approval resolution by the City asapplicable.
(2)The applicant or owner shall execute any and all documents deemed necessary by
the City Manager, including, without limitation, restrictive covenants and other
related instruments, to ensure the affordability of the affordable housing units in
accordance with thisPolicy.
(3)The applicant or owner must prepare and record all documents, restrictions,
easements,covenants,and/oragreementsthatarespecifiedbytheCityasconditions
of approval of the application prior to issuance of a building Permit for any
development subject to thisPolicy.
(4)Documents described above shall be recorded in the Hennepin
County Registry of Deeds as appropriate.
IX.Definitions
1.Affordable Dwelling Unit: The required affordable dwelling units within a residential
project subject to this policyshall meet anincome eligibilityand rent affordabilitystandard
for the term of the restriction asfollows:
(1)Rental Projects:
A.At least twenty percent (20%) of the units shall be affordable for
households at sixty percent (60%) Area Median Income (AMI),or
B.At least ten percent (10%) of the units shall be at available affordable for
households at fifty percent (50%) Area Median Income.
(2)For-Sale Projects:
A.Atleastfifteenpercent(15%)oftheunitsshallbeaffordableforhouseholds
at eighty percent (80%) Area Median Income(AMI).
2.Financial Assistance: This Inclusionary Housing Policy applies to all new and renovated
multifamily residential buildings receiving City financialassistance.
Financial Assistance is defined as funds derived from the City and includes but is not
limited to the following:
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7 O:\HOUSING\PlansPoliciesProcedures\Inclusionary Zoning Policy
A.City of Plymouth
B.Community Development Block Grant(CDBG)
C.Housing Rehabilitation Fund
D.Revenue Bonds (private activity bonds arenegotiable)
E.Tax Increment Financing (TIF)
F.TaxAbatement
G.Housing and Redevelopment Authority (HRA) Funds
H.Land Write Downs
3.Affordable Housing Plan: Aplanthatdocumentspoliciesandproceduresfor administering
the affordable dwelling units in accordance with the Affordable Housing Performance
Agreement.
4.Affordable Housing Performance Agreement: Agreement between the City and the
developer which formally sets forth development approval and requirements to achieve
Affordable Housing in accordance with this policy.
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Mixed Income Housing Policy (Inclusionary Housing Policy)
Richfield:
1. Applicable to projects containing at least five new units that receive financial assistance from
the City, HRA or EDA.
2. Must provide at least 20% of the rental units affordable to households at 60% AMI or below for
at least 10 years.
3. Must provide at least 20% of owner-occupied units to households at 115% AMI or below for the
initial purchaser.
4. Must provide at least 20% of the total housing units at the above limits in a mixed owner/rental
development.
5. In lieu of affordable units, a developer may contribute up to 15% of the “net present value” of
Tax Increment generated by the project for at least a 10-year period. Must agree to provide a
90-day advance notice of sale of the property. Must accept Housing Choice Vouchers (Section
8).
6. Provisions for Non-Housing related projects that result in the loss of affordable housing.
7. Provides incentives regardless of City/HRA/EDA financial assistance in the following areas.
a. Reduced building permit fees
b. 4d property tax reduction
c. Consideration of code flexibility (e.g., reduced setbacks, excessive impervious surface,
etc.) in Planned Unit Developments
d. Density bonus of 5-15%
8. Flexibility to the policy provided to projects on a case-by-case basis.
Golden Valley:
1. Applicable to rental projects that create ten or more units and receive approvals under a CUP,
Zoning Map amendment, Planned Unit Development or receives financial assistance from the
City. Must make at least 15% of the units affordable to households at 60% AMI or 10% of the
units affordable to households at 50% AMI.
2. Applicable to for-sale residential developments that add or create 10 or more units. Must make
at least 10% of the units affordable to households at 80 AMI.
3. May dedicate existing “off-site” units in lieu of making the new ones affordable
4. Alternative proposal by the developer that provides of enables affordable units in the city.
5. Incentives may include a minimum of 33% reduction in required parking spaces and a ten
percent density bonus.
St. Louis Park:
1. Applicable to market rate multi-unit residential developments that receive financial assistance
from the City, seek PUD land use approvals or requests a Comprehensive Plan change that
creates ten or more units. At least 20% of the units are affordable to households at 60 AMI; or
ten percent of the units are affordable to households at 50% AMI; or five percent of the units
are affordable to households at 30% AMI.
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2. Twenty-five-year minimum affordability period.
3. Allows for payment in lieu of new affordable units.
4. Allows for off-site alternatives.
Bloomington:
1. Appicable to new residential construction regardless of type of dwelling unit. For multi-family or
townhome developments with 20 or more units there must be at least 9% of the units
affordable to households at 60% AMI. For single family developments with 20 or more units
there must be at least 9% of the units affordable to households at 115% AMI.
2. When a NOAH property with 20 or more units receives financial assistance from the City or HRA
then at least 9% of the units must be affordable to households at 60% AMI.
3. Allows for in-lieu of payment instead of units.
4. Allows for off-site conversion to meet affordability requirement.
5. Provides incentives such as financial assistance, reduced fees, density bonuses, reduced
setbacks, reduced parking requirements etc.
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Regular
Housing and
Redevelopment
Authority
April 22, 2021
Agenda
Number:7.1
To:Housing and Redevelopment Authority
Prepared by:James Barnes, HRA Manager
Reviewed by:Steve Juetten, Executive Director of HRA
Item:Receive updates on Element, Cranberry Ridge, Valor Place, and
Vicksburg Crossing window project
1.Action Requested:
Staff will provide updates on Element, Cranberry Ridge, Valor Place, and Vicksburg Crossing window
project.
2.Background:
Staff will provide updates on Element, Cranberry Ridge, Valor Place, and Vicksburg Crossing window
project.
3.Budget Impact:
N/A
4.Attachments:
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