HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 07-22-2021Housing and Redevelopment Authority 1 of 2 July 22, 2021
CITY OF PLYMOUTH
AGENDA
Regular Housing and Redevelopment Authority
July 22, 2021, 7:00 PM
1. CALL TO ORDER
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
4.1.pdf
4.2 Accept Plymouth Towne Square monthly housing report
4.2.pdf
4.3 Accept Vicksburg Crossing monthly housing report
4.3.pdf
4.4 Vicksburg Crossing - Bond Refunding
Vicksburg Crossing 2021 Bond Refunding Pre Sale Report
Resolution 2021-12
5. PUBLIC HEARINGS
6. NEW BUSINESS
6.1 Renter Protection Ordinance - Summary of other Metropolitan Communities
Ordinances
Renter Protection City summary
Housing Policies Questionnaire
Plymouth Renter Protection Ordinance Draft
1
Housing and Redevelopment Authority 2 of 2 July 22, 2021
6.2 Mixed Income Housing Policy - Summary of other Metropolitan Communities Policies
Plymouth Mixed Income Housing Policy Draft
Housing Policies Questionnaire
Mixed Income Housing Policy City summary
6.3 HRA Funded Rehabilitation Loan Program - Replenish funding
Resolution 2021-12
7. UPDATES
8. ADJOURNMENT
2
Regular
Housing and
Redevelopment
Authority
July 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:
Approve the attached minutes from regular HRA meeting held on June 24, 2021.
2. Background:
N/A
3. Budget Impact:
NA
4. Attachments:
4.1.pdf
3
4
5
Regular
Housing and
Redevelopment
Authority
July 22, 2021
Agenda
Number:4.2
To:Housing and Redevelopment Authority
Prepared by:Tina Beckfeld
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:
4.2.pdf
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14
Regular
Housing and
Redevelopment
Authority
July 22, 2021
Agenda
Number:4.3
To:Housing and Redevelopment Authority
Prepared by:Tina Beckfeld
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:
4.3.pdf
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22
Regular
Housing and
Redevelopment
Authority
July 22, 2021
Agenda
Number:4.4
To:Housing and Redevelopment Authority
Prepared by:James Barnes, HRA Manager
Reviewed by:Steve Juetten, Community Development Director
Item:Vicksburg Crossing - Bond Refunding
1. Action Requested:
Adopt the attached resolution authorizing the sale of bonds to refund the Governmental Housing
Project Refunding Bonds, (Series 2012A) and request that the City re-affirm its General Obligation to
the refunding bonds.
2. Background:
Staff continually reviews ways to control expenditures in the two senior buildings owned and
operated by the Plymouth HRA. Earlier this year, the HRA refunded the bonds for Plymouth Towne
Square through an inter-fund loan with the City. Ehlers recently reviewed the outstanding bond
issue for Vicksburg Crossing to determine if there would be any benefit to the HRA in refunding the
bonds.
Ehlers has determined that it would be advantageous to refund the bonds for Vicksburg Crossing at
this time. The current projected savings for this refunding will range between $577,000 - $855,800
(6.7% - 9.9%).
The HRA will need the City to reaffirm their G.O. pledge of the bonds. Staff will bring this before the
Council on July 27th. Once the Council has approved the G.O. pledge, Ehlers will prepare the bond
offering documents and distribute them to the marketplace. it is anticipated that the sale award of
the bonds will be considered at the September HRA meeting.
3. Budget Impact:
There will be a positive budget impact between $577,000 - $855,800.
4. Attachments:
Vicksburg Crossing 2021 Bond Refunding Pre Sale Report
Resolution 2021-12
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26
27
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•
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29
HRA of the City of Plymouth, Minnesota
$7,110,000 Gov Housing Project Refunding GO Bonds, Series 2012A
Existing Debt Service To Maturity And To Call
Date
Refunded
Bonds D/S To Call Principal Coupon Interest
Refunded
D/S
11/03/2021 ------
02/01/2022 7,110,000.00 7,110,000.00 ----
08/01/2022 ----98,300.00 98,300.00
02/01/2023 --470,000.00 2.000%98,300.00 568,300.00
08/01/2023 ----93,600.00 93,600.00
02/01/2024 --480,000.00 2.250%93,600.00 573,600.00
08/01/2024 ----88,200.00 88,200.00
02/01/2025 --490,000.00 2.500%88,200.00 578,200.00
08/01/2025 ----82,075.00 82,075.00
02/01/2026 --500,000.00 2.500%82,075.00 582,075.00
08/01/2026 ----75,825.00 75,825.00
02/01/2027 --515,000.00 2.500%75,825.00 590,825.00
08/01/2027 ----69,387.50 69,387.50
02/01/2028 --525,000.00 2.750%69,387.50 594,387.50
08/01/2028 ----62,168.75 62,168.75
02/01/2029 --540,000.00 2.750%62,168.75 602,168.75
08/01/2029 ----54,743.75 54,743.75
02/01/2030 --555,000.00 2.750%54,743.75 609,743.75
08/01/2030 ----47,112.50 47,112.50
02/01/2031 --570,000.00 3.000%47,112.50 617,112.50
08/01/2031 ----38,562.50 38,562.50
02/01/2032 --590,000.00 3.000%38,562.50 628,562.50
08/01/2032 ----29,712.50 29,712.50
02/01/2033 --605,000.00 3.000%29,712.50 634,712.50
08/01/2033 ----20,637.50 20,637.50
02/01/2034 --625,000.00 3.250%20,637.50 645,637.50
08/01/2034 ----10,481.25 10,481.25
02/01/2035 --645,000.00 3.250%10,481.25 655,481.25
Total $7,110,000.00 $7,110,000.00 $7,110,000.00 -$1,541,612.50 $8,651,612.50
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation 11/03/2021
Average Life 7.616 Years
Average Coupon 2.9355166%
Weighted Average Maturity (Par Basis) 7.616 Years
Weighted Average Maturity (Original Price Basis) 7.616 Years
Refunding Bond Information
Refunding Dated Date 11/03/2021
Refunding Delivery Date 11/03/2021
2012A HRA GO Housing Proj | SINGLE PURPOSE | 7/14/2021 | 8:49 AM
30
HRA of the City of Plymouth, Minnesota
$7,235,000 Governmental Housing Project Refunding Bonds, Series 2021
(City of Plymouth, MN - G.O.) - Current Refunding of Series 2012A
Estimated Sources & Uses
Dated 11/03/2021 | Delivered 11/03/2021
Sources Of Funds
Par Amount of Bonds $7,235,000.00
Total Sources $7,235,000.00
Uses Of Funds
Underwriter's Discount Allowance (0.80%)57,880.00
Estimated Costs of Issuance 63,500.00
Deposit to Current Refunding Redemption Fund 7,110,000.00
Rounding Amount 3,620.00
Total Uses $7,235,000.00
Series 2021 Govt Hsing Re | SINGLE PURPOSE | 7/14/2021 | 8:48 AM
31
HRA of the City of Plymouth, Minnesota
$7,235,000 Gov Housing Project Refunding GO Bonds, Dated November 3, 2021
Proposed Current Refunding of Series 2012A
Assuming G.O. BQ "AAA" Current Market Rates (No cushion)
Estimated Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
11/03/2021 -----
08/01/2022 --46,071.81 46,071.81 -
02/01/2023 525,000.00 0.200%30,943.75 555,943.75 602,015.56
08/01/2023 --30,418.75 30,418.75 -
02/01/2024 540,000.00 0.300%30,418.75 570,418.75 600,837.50
08/01/2024 --29,608.75 29,608.75 -
02/01/2025 540,000.00 0.400%29,608.75 569,608.75 599,217.50
08/01/2025 --28,528.75 28,528.75 -
02/01/2026 540,000.00 0.500%28,528.75 568,528.75 597,057.50
08/01/2026 --27,178.75 27,178.75 -
02/01/2027 545,000.00 0.650%27,178.75 572,178.75 599,357.50
08/01/2027 --25,407.50 25,407.50 -
02/01/2028 550,000.00 0.750%25,407.50 575,407.50 600,815.00
08/01/2028 --23,345.00 23,345.00 -
02/01/2029 555,000.00 0.850%23,345.00 578,345.00 601,690.00
08/01/2029 --20,986.25 20,986.25 -
02/01/2030 555,000.00 0.950%20,986.25 575,986.25 596,972.50
08/01/2030 --18,350.00 18,350.00 -
02/01/2031 565,000.00 1.050%18,350.00 583,350.00 601,700.00
08/01/2031 --15,383.75 15,383.75 -
02/01/2032 570,000.00 1.200%15,383.75 585,383.75 600,767.50
08/01/2032 --11,963.75 11,963.75 -
02/01/2033 575,000.00 1.300%11,963.75 586,963.75 598,927.50
08/01/2033 --8,226.25 8,226.25 -
02/01/2034 585,000.00 1.350%8,226.25 593,226.25 601,452.50
08/01/2034 --4,277.50 4,277.50 -
02/01/2035 590,000.00 1.450%4,277.50 594,277.50 598,555.00
Total $7,235,000.00 -$564,365.56 $7,799,365.56 -
Yield Statistics
Bond Year Dollars $53,303.56
Average Life 7.367 Years
Average Coupon 1.0587766%
Net Interest Cost (NIC)1.1673622%
True Interest Cost (TIC)1.1673774%
Bond Yield for Arbitrage Purposes 1.0531242%
All Inclusive Cost (AIC)1.2941670%
IRS Form 8038
Net Interest Cost 1.0587766%
Weighted Average Maturity 7.367 Years
Proposed CR of 2012A HRA | SINGLE PURPOSE | 7/13/2021 | 10:40 AM
32
HRA of the City of Plymouth, Minnesota
$7,235,000 Gov Housing Project Refunding GO Bonds, Dated November 3, 2021
Proposed Current Refunding of Series 2012A
Assuming G.O. BQ "AAA" Current Market Rates (no cushion)
Debt Service Comparison
Date Total P+I Net New D/S Old Net D/S Savings
02/01/2022 -(3,620.00)-3,620.00
02/01/2023 602,015.56 602,015.56 666,600.00 64,584.44
02/01/2024 600,837.50 600,837.50 667,200.00 66,362.50
02/01/2025 599,217.50 599,217.50 666,400.00 67,182.50
02/01/2026 597,057.50 597,057.50 664,150.00 67,092.50
02/01/2027 599,357.50 599,357.50 666,650.00 67,292.50
02/01/2028 600,815.00 600,815.00 663,775.00 62,960.00
02/01/2029 601,690.00 601,690.00 664,337.50 62,647.50
02/01/2030 596,972.50 596,972.50 664,487.50 67,515.00
02/01/2031 601,700.00 601,700.00 664,225.00 62,525.00
02/01/2032 600,767.50 600,767.50 667,125.00 66,357.50
02/01/2033 598,927.50 598,927.50 664,425.00 65,497.50
02/01/2034 601,452.50 601,452.50 666,275.00 64,822.50
02/01/2035 598,555.00 598,555.00 665,962.50 67,407.50
Total $7,799,365.56 $7,795,745.56 $8,651,612.50 $855,866.94
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings.....................792,854.34
Net PV Cashflow Savings @ 1.053%(Bond Yield).....792,854.34
Contingency or Rounding Amount....................3,620.00
Net Present Value Benefit $796,474.34
Net PV Benefit / $8,027,854.34 PV Refunded Debt Service 9.921%
Net PV Benefit / $7,110,000 Refunded Principal...11.202%
Net PV Benefit / $7,235,000 Refunding Principal..11.009%
Refunding Bond Information
Refunding Dated Date 11/03/2021
Refunding Delivery Date 11/03/2021
Proposed CR of 2012A HRA | SINGLE PURPOSE | 7/13/2021 | 10:40 AM
33
HRA of the City of Plymouth, Minnesota
$7,235,000 Governmental Housing Project Refunding Bonds, Series 2021
(City of Plymouth, MN - G.O.) - Current Refunding of Series 2012A
Assuming Conservative G.O. BQ "AAA" Market Rates + 50 bps
Estimated Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
11/03/2021 -----
08/01/2022 --73,437.58 73,437.58 -
02/01/2023 500,000.00 0.700%49,323.75 549,323.75 622,761.33
08/01/2023 --47,573.75 47,573.75 -
02/01/2024 530,000.00 0.800%47,573.75 577,573.75 625,147.50
08/01/2024 --45,453.75 45,453.75 -
02/01/2025 530,000.00 0.900%45,453.75 575,453.75 620,907.50
08/01/2025 --43,068.75 43,068.75 -
02/01/2026 535,000.00 1.000%43,068.75 578,068.75 621,137.50
08/01/2026 --40,393.75 40,393.75 -
02/01/2027 540,000.00 1.150%40,393.75 580,393.75 620,787.50
08/01/2027 --37,288.75 37,288.75 -
02/01/2028 545,000.00 1.250%37,288.75 582,288.75 619,577.50
08/01/2028 --33,882.50 33,882.50 -
02/01/2029 550,000.00 1.350%33,882.50 583,882.50 617,765.00
08/01/2029 --30,170.00 30,170.00 -
02/01/2030 560,000.00 1.450%30,170.00 590,170.00 620,340.00
08/01/2030 --26,110.00 26,110.00 -
02/01/2031 570,000.00 1.550%26,110.00 596,110.00 622,220.00
08/01/2031 --21,692.50 21,692.50 -
02/01/2032 580,000.00 1.700%21,692.50 601,692.50 623,385.00
08/01/2032 --16,762.50 16,762.50 -
02/01/2033 585,000.00 1.800%16,762.50 601,762.50 618,525.00
08/01/2033 --11,497.50 11,497.50 -
02/01/2034 600,000.00 1.850%11,497.50 611,497.50 622,995.00
08/01/2034 --5,947.50 5,947.50 -
02/01/2035 610,000.00 1.950%5,947.50 615,947.50 621,895.00
Total $7,235,000.00 -$842,443.83 $8,077,443.83 -
Yield Statistics
Bond Year Dollars $53,853.56
Average Life 7.443 Years
Average Coupon 1.5643235%
Net Interest Cost (NIC)1.6718002%
True Interest Cost (TIC)1.6718524%
Bond Yield for Arbitrage Purposes 1.5559946%
All Inclusive Cost (AIC)1.8004315%
IRS Form 8038
Net Interest Cost 1.5643235%
Weighted Average Maturity 7.443 Years
Series 2021 Govt Hsing Re | SINGLE PURPOSE | 7/14/2021 | 8:48 AM
34
HRA of the City of Plymouth, Minnesota
$7,235,000 Governmental Housing Project Refunding Bonds, Series 2021
(City of Plymouth, MN - G.O.) - Current Refunding of Series 2012A
Assuming Conservative G.O. BQ "AAA" Market Rates + 50 bps
Debt Service Comparison
Date Total P+I Net New D/S Old Net D/S Savings
02/01/2022 -(3,620.00)-3,620.00
02/01/2023 622,761.33 622,761.33 666,600.00 43,838.67
02/01/2024 625,147.50 625,147.50 667,200.00 42,052.50
02/01/2025 620,907.50 620,907.50 666,400.00 45,492.50
02/01/2026 621,137.50 621,137.50 664,150.00 43,012.50
02/01/2027 620,787.50 620,787.50 666,650.00 45,862.50
02/01/2028 619,577.50 619,577.50 663,775.00 44,197.50
02/01/2029 617,765.00 617,765.00 664,337.50 46,572.50
02/01/2030 620,340.00 620,340.00 664,487.50 44,147.50
02/01/2031 622,220.00 622,220.00 664,225.00 42,005.00
02/01/2032 623,385.00 623,385.00 667,125.00 43,740.00
02/01/2033 618,525.00 618,525.00 664,425.00 45,900.00
02/01/2034 622,995.00 622,995.00 666,275.00 43,280.00
02/01/2035 621,895.00 621,895.00 665,962.50 44,067.50
Total $8,077,443.83 $8,073,823.83 $8,651,612.50 $577,788.67
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings.....................516,400.27
Net PV Cashflow Savings @ 1.556%(Bond Yield).....516,400.27
Contingency or Rounding Amount....................3,620.00
Net Present Value Benefit $520,020.27
Net PV Benefit / $7,751,400.27 PV Refunded Debt Service 6.709%
Net PV Benefit / $7,110,000 Refunded Principal...7.314%
Net PV Benefit / $7,235,000 Refunding Principal..7.188%
Refunding Bond Information
Refunding Dated Date 11/03/2021
Refunding Delivery Date 11/03/2021
Series 2021 Govt Hsing Re | SINGLE PURPOSE | 7/14/2021 | 8:48 AM
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CERTIFICATION OF MINUTES RELATING TO
GOVERNMENTAL HOUSING PROJECT REFUNDING BONDS (CITY OF PLYMOUTH,
MINNESOTA, GENERAL OBLIGATION), SERIES 2021
Issuer: Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota
Governing body: Board of Commissioners
Kind, date, time and place of meeting: A regular meeting held on July 22, 2021 at 7:00 p.m. at
City Hall.
Members present:
Members absent:
Documents attached:
Minutes of said meeting (pages):
RESOLUTION NO. _______
RESOLUTION RELATING TO GOVERNMENTAL HOUSING
PROJECT REFUNDING BONDS (CITY OF PLYMOUTH,
MINNESOTA, GENERAL OBLIGATION), SERIES 2021;
AUTHORIZING THE ISSUANCE; CALLING FOR THE SALE
THEREOF AND REQUESTING THE REAFFIRMATION OF
THE CITY OF PLYMOUTH’S GENERAL OBLIGATION
PLEDGE
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the obligations referred to in the title of this certificate, certify that the
documents attached hereto, as described above, have been carefully compared with the original
records of the corporation in my legal custody, from which they have been transcribed; that the
documents are a correct and complete transcript of the minutes of a meeting of the governing
body of the corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at the meeting, insofar as they relate
to the obligations; and that the meeting was duly held by the governing body at the time and
place and was attended throughout by the members indicated above, pursuant to call and notice
of such meeting given as required by law.
WITNESS my hand officially as such recording officer on July 22, 2021.
Secretary
36
-2-
RESOLUTION NO. ________
RESOLUTION RELATING TO GOVERNMENTAL
HOUSING PROJECT REFUNDING BONDS (CITY OF
PLYMOUTH, MINNESOTA, GENERAL OBLIGATION),
SERIES 2021; AUTHORIZING THE ISSUANCE; CALLING
FOR THE SALE THEREOF AND REQUESTING THE
REAFFIRMATION OF THE CITY OF PLYMOUTH’S
GENERAL OBLIGATION PLEDGE
BE IT RESOLVED by the Board of Commissioners (the “Board”) of the Housing and
Redevelopment Authority in and for the City of Plymouth, Minnesota (the “Authority”), as
follows:
SECTION 1.AUTHORIZATION. The Authority proposes to issue its Governmental
Housing Project Refunding Bonds (City of Plymouth, Minnesota, General Obligation),
Series 2021 (the “Bonds”), in the approximate principal amount of $7,250,000, pursuant to
Minnesota Statutes, Chapters 469 and 475, the proceeds of which will be used to refund in
advance of maturity, on February 1, 2022, the 2023-2035 maturities of the Authority’s
Governmental Housing Project Refunding Bonds (City of Plymouth, Minnesota, General
Obligation), Series 2012A, dated, as originally issued, as of April 5, 2012.
SECTION 2. SALE OF BONDS. The Authority has retained Ehlers & Associates, Inc.
(“Ehlers”), as independent financial advisor in connection with the sale of the Bonds. Ehlers is
hereby authorized to solicit on behalf of the Authority proposals in accordance with Minnesota
Statutes, Section 475.60, Subdivision 2(9). The Board shall meet at a time to be determined in
consultation with Ehlers for the purpose of considering proposals for and awarding the sale of
the Bonds.
SECTION 3. OFFICIAL STATEMENT. In connection with the sale of the Bonds, the
officers or employees of the Authority are hereby authorized to cooperate with Ehlers and
participate in the preparation of an official statement for the Bonds and to execute and deliver it
on behalf of the Authority upon its completion.
SECTION 4. GENERAL OBLIGATION PLEDGE OF CITY OF PLYMOUTH. The
Authority hereby requests that the City of Plymouth (the “City”) reaffirm its authorization of the
pledge of the City’s full faith and credit to the payment of principal and interest on the Bonds.
Upon vote being taken thereon, the following Commissioners voted in favor:
and the following voted against the same:
whereupon the resolution was declared passed and adopted on July 22, 2021.
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Regular
Housing and
Redevelopment
Authority
July 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:Renter Protection Ordinance - Summary of other Metropolitan
Communities Ordinances
1. Action Requested:
Review existing ordinances from other local communities and provide staff with direction.
2. Background:
At the May HRA meeting, the Board reviewed the first draft of a Renter Protection Ordinance
(attached). The Board directed staff to learn more about existing ordinances in other local
communities. Staff sent a survey (attached) out to thirteen cities and received eight completed
surveys back.
The attached spread sheet provides a summary of each of the city's ordinances and additional
responses asked in the survey. Some common themes in the responses included multiple
stakeholder consultation and a 90-day notification period. Additional, many of the respondents
indicated they had little pushback and that they have not experienced any unintended
consequences as a result of the ordinance.
Staff requests the HRA Board review and discuss the Draft Renter Protection Ordinance and provide
staff with feedback.
3. Budget Impact:
There is no impact to the HRA budget.
4. Attachments:
Renter Protection City summary
Housing Policies Questionnaire
Plymouth Renter Protection Ordinance Draft
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Has Renter
Protection
Ordinance
Ordinance Summary Stakeholders
Consulted
Push back from
stakeholders
Has used
the
ordinance
Changes
since
adoption
Unintended consequences
or adverse effects
Brooklyn Park Yes New owner must provide 30-day
notice about sale
90-day notification period
New owner may need to pay
relocation costs if rent is increased
or non-renewal of lease without
cause.
City staff
Residents
Housing
advocates
Rental
property
owners
Developers
No No No Difficult to monitor.
Stakeholders consulted
indicated they would wait the
3-months until making any
changes.
Edina Considering Draft includes:
90-day notification period
Relocation costs if rent is
increased or lease not renewed
without cause
City staff
Residents
Housing
advocates
Rental
property
owners
Developers
Trade groups
Nothing listed Not adopted N/A N/A
Golden Valley Yes 90-day notification period
Affects buildings with 15% of the
units or more at 60% AMI
Relocation costs if rent is
increased, lease not renewed
without cause or rescreening
City staff
Residents
Housing
advocates
Rental
property
owners
Minnesota
Multi-Housing
Association
No No No
Hopkins Yes 90-day notification period
Relocation costs if rent is
increased, lease not renewed
without cause or rescreening
City staff
Housing
advocates
Rental
property
owners
One property
owner called
staff to
complain, but
did not submit
any written or
oral comments
No No No
39
Has Renter
Protection
Ordinance
Ordinance Summary Stakeholders
Consulted
Push back from
stakeholders
Has used
the
ordinance
Changes
since
adoption
Unintended consequences
or adverse effects
Minneapolis Yes Tenant screening criteria
Limit on amount of security
deposit
Current owner must give 60-day
notice before making property
available for purchase
Targeted at NOAH properties 5
units or more with 20% of the
units at 60AMI or below
3-months relocation assistance if
new owner increases rent,
terminates lease without cause or
rescreening causes non-lease
renewal
City staff
Residents
Housing
advocates
Minnesota
Multi-Housing
Association
Yes –This is a
complaint-
based
ordinance
and they have
received very
few to date
No Too early to tell
Minnetonka Considering
Currently include
renter protections in
their Development
Agreements
N/A N/A N/A N/A N/A N/a
New Hope Yes New owner must provide 30-day
notice about sale
90-day notification period
New owner may need to pay
relocation costs if rent is increased
or non-renewal of lease without
cause.
City staff
Housing
advocates
Rental
property
owners
Rental
property
managers
No No No No
Richfield Yes New owner must provide 30-day
notice about sale
90-day notification period
New owner may need to pay
relocation costs if rent is increased
or non-renewal of lease without
cause.
City staff
Housing
advocates
Rental
property
owners
No –Landlords
are not thrilled
with new
requirements,
but have not
complained that
much
Yes No No –Difficult to know about
sales before they occur so
notices go out late or are
missing key information
40
Plymouth Considering (in draft
form) with HRA
Rental apartments with 15 units+
with at least 20% of the units
affordable to households at 60%
of AMI
Owner to provide notice within 30
days of sale to tenants
90-days protection period
New owner may need to pay
relocation costs if rent is
increased, non-renewal of lease
without cause or rescreening
City staff
HRA Board
N/A N/A N/A N/A
41
Plymouth Housing and Redevelopment Authority
Renter Protection Ordinance and Mixed Income
(Inclusionary) Housing Policy
Questionnaire
Purpose:
The Plymouth HRA and the City of Plymouth are considering adopting a renter protection ordinance and
a mixed income housing policy. As part of the process, staff is collecting information from other cities to
learn about their experiences with these ordinances/policies and we would greatly appreciate your time
in completing this short questionnaire.
Contact:
Please return your completed survey to Jim Barnes, HRA Manager at jbarnes@plymouthmn.gov or if you
have questions, please call 763-509-5412
Name:
Email:
City:
Phone:
Renter Protection Ordinance:
1.Has your City enacted or considered enacting a Renter Protection Ordinance?
a.Yes
b.No
c.Considering
If yes, please complete the following questions:
1.Who was included in the creation of this ordinance? (check all that apply)
a.City Staff
b.Residents
c.Housing advocates
d.Rental Property Owners
e.Developers
f.Other (list)
42
2.Please briefly summarize your ordinance.
3.Has the ordinance been used by any of the triggering actions within the ordinance?
Yes No
If yes, has it work as intended?
4.Was there any push back from any particular group in adopting this ordinance?
Yes No
If yes, please list.
5. Have you amended your ordinance since adoption? Yes No
If yes, please explain why.
6.Have there been any unintended consequences or adverse effects to adopting this
ordinance?
Yes No
If yes, please explain.
43
Mixed Income (Inclusionary) Housing Policy
1.Has your City enacted or considered enacting a Mixed Income Housing Policy?
a.Yes
b.No
c.Considering
If yes, please complete the following questions:
1.Who was included in the creation of this policy? (check all that apply)
a.City Staff
b.Residents
c.Housing advocates
d.Rental Property Owners
e.Developers
f.Other (list)
2.Please briefly summarize your policy.
3.Has the policy been used by any of the triggering actions within the policy?
Yes No
If yes, has it work as intended?
4.Was there any push back from any particular group in adopting this policy?
Yes No
If yes, please list.
5.Have you amended your policy since adoption? Yes No
If yes, please explain why.
44
6.Have there been any unintended consequences or adverse effects to adopting this policy?
Yes No
If yes, please explain.
7.Have you lost any projects or have developers decided not pursue opportunities as a result
of this policy?
Yes No
If yes, please explain.
45
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.
46
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.
47
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.
48
Regular
Housing and
Redevelopment
Authority
July 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:Mixed Income Housing Policy - Summary of other Metropolitan
Communities Policies
1. Action Requested:
Review existing policies from other local communities and provide staff with direction.
2. Background:
At the May HRA meeting, the Board reviewed the first draft of a Mixed Income Housing Policy
(attached). The Board directed staff to learn more about existing policies in other local
communities. Staff sent a survey (attached) out to thirteen cities and received eight completed
surveys back.
The attached spread sheet provides a summary of each of the city's policy and additional responses
asked in the survey. All of the policies are triggered when local financial assistance is provided and
most of them are also in effect when a change in the Comprehensive Plan, guiding or zoning
ordinance is requested. Additionally, many of the respondents indicated they had little push back
and that they have not experienced any unintended consequences as a result of the policy. The
exception to this was Minneapolis where the push back came from local developers. The out of
state developers seem to assume there would be some type of policy and built it into their
proformas.
Staff requests the HRA Board review and discuss the Draft Mixed Income Housing Policy and provide
staff with feedback.
3. Budget Impact:
There is no impact to the HRA budget at this time. However, if enacted, there may be an impact in
the future.
4. Attachments:
Plymouth Mixed Income Housing Policy Draft
Housing Policies Questionnaire
Mixed Income Housing Policy City summary
49
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:
50
2
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.
51
3
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:
52
4
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.
53
5
(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.
54
6
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:
55
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.
56
Plymouth Housing and Redevelopment Authority
Renter Protection Ordinance and Mixed Income
(Inclusionary) Housing Policy
Questionnaire
Purpose:
The Plymouth HRA and the City of Plymouth are considering adopting a renter protection ordinance and
a mixed income housing policy. As part of the process, staff is collecting information from other cities to
learn about their experiences with these ordinances/policies and we would greatly appreciate your time
in completing this short questionnaire.
Contact:
Please return your completed survey to Jim Barnes, HRA Manager at jbarnes@plymouthmn.gov or if you
have questions, please call 763-509-5412
Name:
Email:
City:
Phone:
Renter Protection Ordinance:
1.Has your City enacted or considered enacting a Renter Protection Ordinance?
a.Yes
b.No
c.Considering
If yes, please complete the following questions:
1.Who was included in the creation of this ordinance? (check all that apply)
a.City Staff
b.Residents
c.Housing advocates
d.Rental Property Owners
e.Developers
f.Other (list)
57
2.Please briefly summarize your ordinance.
3.Has the ordinance been used by any of the triggering actions within the ordinance?
Yes No
If yes, has it work as intended?
4.Was there any push back from any particular group in adopting this ordinance?
Yes No
If yes, please list.
5. Have you amended your ordinance since adoption? Yes No
If yes, please explain why.
6.Have there been any unintended consequences or adverse effects to adopting this
ordinance?
Yes No
If yes, please explain.
58
Mixed Income (Inclusionary) Housing Policy
1.Has your City enacted or considered enacting a Mixed Income Housing Policy?
a.Yes
b.No
c.Considering
If yes, please complete the following questions:
1.Who was included in the creation of this policy? (check all that apply)
a.City Staff
b.Residents
c.Housing advocates
d.Rental Property Owners
e.Developers
f.Other (list)
2.Please briefly summarize your policy.
3.Has the policy been used by any of the triggering actions within the policy?
Yes No
If yes, has it work as intended?
4.Was there any push back from any particular group in adopting this policy?
Yes No
If yes, please list.
5.Have you amended your policy since adoption? Yes No
If yes, please explain why.
59
6.Have there been any unintended consequences or adverse effects to adopting this policy?
Yes No
If yes, please explain.
7.Have you lost any projects or have developers decided not pursue opportunities as a result
of this policy?
Yes No
If yes, please explain.
60
Has Inclusionary
Zoning policy
Policy summary Stakeholders
Consulted
Push back from
stakeholders
Has used the
policy
Changes since
adoption
Unintended consequences
or adverse effects
Brooklyn Park Yes Ten or more rental units
City financing
Zoning map changes
Comp Plan amendments
Planned development overlay
amendments
City staff
Residents
Housing
advocates
Rental
property
owners
Developers
City Council
No Yes –Several
projects
currently
going through
process
Yes –Amended
to apply to all
projects
located within
TOD zoning
areas
No –However a senior project
originally applied for City
financing and then restructured
their financing, so they did not
need City assistance.
Edina Yes City financial assistance
City owned land
Zoning change
Comp Plan amendment
Payment in lieu $125K
New multifamily projects with 20+
units
10% at 50% AMI
20% at 60% AMI
New for-sale projects
10% sold to households earning at
or below 80% AMI
City staff
Residents
Housing
advocates
No Yes Yes –Added
clarity to
payment in lieu
provision
No
Golden Valley Yes Rental and Ownership (Market Rate)
with 10+ units
Conditional use permit
Zoning map change
Comp Plan amendment
Planned Unit Development
City financial assistance
New multifamily projects
15% at 60% AMI
10% at 50% AMI
New for-sale projects
10% at 80% AMI
City staff
Residents
Housing
advocates
Rental
property
owners
Developers
No No No No
Hopkins Considering N/A N/A N/A N/A N/A N/A
61
Has Inclusionary
Zoning Policy
Ordinance Summary Stakeholders
Consulted
Push back from
stakeholders
Has used the
Policy
Changes since
adoption
Unintended consequences
or adverse effects
Minneapolis Yes Rental projects with 20+ units
8% at 60% AMI (no City assistance)
4% at 30% AMI (no city assistance)
20% at 50% AMI (City financial
assistance)
For-sale (condo) projects
4%-8% at 80% AMI
Payment in lieu
Offsite option
Donate Land
City staff
Housing
advocates
Rental
property
owners
Developers
Consultants
Yes –Some local
developers
pushed back.
National
developers seem
to assume there
will be some sort
of policy
Yes –in 2020
of the 357
units
constructed
18 are
affordable
and 95
affordable
units will be
built off-site
at a later date
No –Will be
bringing
changes later
in the year
related to
PUDs
No –Staff continues to review
but so far, no adverse effects.
As expected, a few projects are
going back to the sellers to
renegotiate the land price to
off-set the cost of the
requirements
Minnetonka Yes New rental and for-sale multifamily
projects with 10+ units
Existing properties that add 10+ units
Rental projects
5% at 50% AMI w/o city assistance
or change in guiding/zoning
10% at 60% AMI w/o city assistance
but with guiding/zoning changes
20% at 50% AMI or 40% at 60%
AMI with City financial assistance
For-sale projects
10% at 80% AMI
City staff
Developers
No Yes –A few
recent
projects
provided
more
affordable
units than the
policy
required
No No
New Hope Considering N/A N/A N/A N/A N/A N/A
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Has Inclusionary
Zoning Policy
Policy Summary Stakeholders
Consulted
Push back from
stakeholders
Has used the
policy
Changes since
adoption
Unintended consequences
or adverse effects
Richfield Yes New rental and for-sale projects with
5+ units that receive City financial
assistance
Payment in lieu option
Incentives offered
Building permit fee reduction
4d property tax reduction
Code flexibility
Density bonus of 5-15%
Rental projects
20% at 60% AMI
15% at 50% AMI
10% at 30% AMI
For-sale projects
20% at 115% AMI
15 % at 100% AMI
10 % at 80% AMI
City staff
Residents
Housing
advocates
Rental
property
owners
Developers
No Yes Yes –Policy
makers wanted
to encourage
more deeply
affordable
units and
larger
bedroom sizes
so we allow
less units for
deeper
affordability
No
Plymouth Considering (in
draft form) with
HRA
New or existing projects that add 10+
units and receive City financial
assistance
Rental
20% at 60% AMI
10% at 50% AMI
For-sale
15% at 80%AMI
City Staff
HRA Board
N/A N/A N/A N/A
63
Regular
Housing and
Redevelopment
Authority
July 22, 2021
Agenda
Number:6.3
To:Housing and Redevelopment Authority
Prepared by:Haily Hedblom, Community Development Coordinator
Reviewed by:Jim Barnes, Housing Manager
Item:HRA Funded Rehabilitation Loan Program - Replenish funding
1. Action Requested:
Approve additional funding for the HRA funded Rehabilitation Loan Program.
2. Background:
The HRA has operated the Community Development Block Grant (CDBG) Rehab Program since 1975.
Since 1988 (the most recent year for which digitized records are available) the program has assisted
237 households, resulting in over $2.6 million invested in improvements to the Plymouth housing
stock.
The Rehab Program offers a zero interest, 20-year deferred loan of up to $40,000 to assist low to
moderate income Plymouth homeowners with needed home repairs. Loans are forgivable after
twenty years if the loan recipient continues to own and reside in the property, otherwise loans are
repaid at the time of sale or if the property is no longer their primary residence. Only households
with annual gross income at or below 80% of the area median are eligible to participate. The current
income limit for a household of four in the Twin Cities is $83,920. Eligible improvements through the
program include repairs necessary to preserve the structure or improve the safety and energy
efficiency of the home, such as roofing, siding, windows, electrical, plumbing, heating, and
insulation. Cosmetic remodeling and building additions are generally not eligible for funding
through the program.
The Rehab Program is funded through an annual CDBG grant from the Department of Housing and
Urban Development (HUD). Over the last five years, the average annual budget for the Rehab
Program has been approximately $146,000 which has been used to assist a growing average of 7
households per year. The current CDBG rehab budget is less than $20,000; leaving HRA staff unable
to assist eligible households until the 2021 annual allocation is dispersed. A waitlist has been
generated, with two applications currently under review.
In 2016 the HRA approved setting aside $150,000 in HRA General Fund reserves to supplement the
CDBG Rehab Program. The HRA Funded Rehabilitation Program has assisted 4 households; two of
which have active projects in 2021. The remaining HRA Rehab Program funds is $38,431 which is
below the $40,000 maximum loan amount per household.
Due to the increased need for the owner-occupied rehab programs, staff is requesting the Board
approve a transfer of $150,000 from the HRA General Fund Reserves.
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3. Budget Impact:
There will be an impact to the HRA budget. The $150,000 will come from the HRA General Fund
Reserves, Which has a current unrestricted fund balance of $1.3 million.
4. Attachments:
Resolution 2021-12
65
HOUSING AND REDEVELOPMENT AUTHORITY OF THE
CITY OF PLYMOUTH, MINNESOTA
RESOLUTION NO. 2021-
RESOLUTION APPROVING
SUPPLEMENTAL HOUSING REHABILTATION LOAN PROGRAM FUNDING
WHEREAS, the Housing and Redevelopment Authority in and for the City of Plymouth,
Minnesota (“HRA”) allocated $150,000 in January of 2016 to assist moderate income residents in
Plymouth to rehabilitate their homes when Community Development Block Grant (“CDBG”)
funds specified for the Housing Rehabilitation Loan Program were either not available or
applicable; and
WHEREAS, the original $150,000 allocated for supplemental rehabilitation loans has since
been expended; and
WHEREAS, the need for additional Rehabilitation Loan Program funding remains consistent to
what was seen in 2016 with several more applications than available funds.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and Redevelopment Authority
in and for the City of Plymouth, Minnesota that:
1. The HRA will allocate an additional $150,000 from its reserves to supplement the
Community Development Block Grant (“CDBG”) Housing Rehabilitation Loan Program.
APPROVED AND ADOPTED this day of , 2021, by the Housing and
Redevelopment Authority in and for the City of Plymouth, Minnesota.
Michelle Soderberg, Chair
Steve Juetten, Executive Director
66