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HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 05-17-2022Housing and Redevelopment Authority 1 of 2 May 17, 2022 CITY OF PLYMOUTH AGENDA Regular Housing and Redevelopment Authority May 17, 2022, 5:00 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 Housing & Redevelopment Authority Minutes 02-24-2022 5.PUBLIC HEARINGS 6.NEW BUSINESS—Discussion of May 24, 2022 Joint HRA/City Council Meeting Agenda (attached) 6.1 Discuss May 24, 2022 Joint HRA/City Council Meeting Agenda Special Meeting Agenda - draft 6.2 HRA Strategic Plan Priorities HRA Strategic Plan DRAFT Moderate-Income Housing Policy - redline DRAFT Renter Protection Ordinance 6.3 HRA Priority 2022 Action Items HRA Priority 2022 Action Items Memo 7.UPDATES 7.1 Valor Place Update 1 Housing and Redevelopment Authority 2 of 2 May 17, 2022 8.ADJOURNMENT 2 Regular Housing and Redevelopment Authority May 17, 2022 Agenda Number:4.1 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, Community & Economic Development Director Item:Approve proposed HRA minutes 1.Action Requested: Approve the attached minutes from the HRA meeting held on February 24, 2022. 2.Background: N/A 3.Budget Impact: N/A 4.Attachments: Housing & Redevelopment Authority Minutes 02-24-2022 3 DRAFT MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY February 24. 2022 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Lucas Larson, Aqueelah Whitfield, James Williams and Wayne Peterson ABSENT: Commissioner Ronald Kelner STAFF PRESENT: HRA Executive Director Danette Parr, Support Services Manager Denise Whalen, and Permit Technician Michelle Bast OTHERS PRESENT: Council Member Jim Davis and Keith Dahl of Ehlers 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:00 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 Peterson, seconded by Commissioner Williams to approve the Agenda. Vote. 5 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approve proposed minutes from November 18 and December 8, 2021. 4.2. Plymouth Towne Square. Accept Monthly Housing Reports. 4.3. Vicksburg Crossing. Accept Monthly Housing/Marketing Reports. MOTION by Commissioner Larson, seconded by Commissioner Whitfield, to approve the Consent Agenda. Vote. 5 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS 5.1. Community Development Block Grant (CDBG) - Hold Public Hearing on FY 2022 Program Year Allocations Keith Dahl of Ehlers gave an overview of the staff report. 4 Draft Minutes Plymouth Housing and Redevelopment Authority February 24, 2022 Page 2 Chair Soderburg opened the public hearing. Three organizations were present to speak: Ellen Timmerman–Borer representing Hammer Residences, Inc.; Molly Boyam representing Treehouse; and, Jon Burkhow representing Senior Community Services (SCS). Each representative gave an overview of the services their agency provides through past CDBG funding and thanked the HRA for their continued support. Commissioner Williams asked what ages are served by Treehouse. Ms. Boyam replied the children are 14 years of age to either 18 or 19 years of age because there is a program called Next that assists older teenagers transitioning into adulthood. She said some come back to mentor the younger children. Commissioner Peterson inquired how the federal government determines the amount of funding for the CDBG and asked if population is a factor. Mr. Dahl answered there is a formula based on various factors, population is one of those factors. He also said Plymouth is an entitlement community and part of Hennepin County Consortium which means the funds are allocated without having to be applied for. Council Member Davis requested an explanation pertaining to Table 1:1 in the staff report. Mr. Dahl provided an explanation. Chair Soderberg closed the public hearing. MOTION by Commissioner Peterson, seconded by Commissioner Whitfield, to adopt HRA Resolution 2022-01 to approve the application and allocation of fiscal year 2022 Community Development Block Grant funds. Vote. 5 Ayes. MOTION passed unanimously. 6. NEW BUSINESS 6.1. Election of Officers. Chair, Vice-chair, Secretary. MOTION by Commissioner Williams, seconded by Commissioner Peterson, to nominate Chair Soderberg as HRA Chairman. Vote. 5 Ayes. MOTION passed unanimously. MOTION by Commissioner Williams, seconded by Commissioner Peterson, to nominate Commissioner Larson for HRA Vice-chair. Vote. 5 Ayes. MOTION 5 Draft Minutes Plymouth Housing and Redevelopment Authority February 24, 2022 Page 3 passed unanimously. MOTION by Commissioner Williams, seconded by Commissioner Peterson, to nominate Commissioner Whitfield for HRA Secretary. Vote. 5 Ayes. MOTION passed unanimously. 7. UPDATES Valor Place Cranberry Ridge Element 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 7:31 p.m. 6 Regular Housing and Redevelopment Authority May 17, 2022 Agenda Number:6.1 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, Community & Economic Development Director Item:Discuss May 24, 2022 Joint HRA/City Council Meeting Agenda 1.Action Requested: Review draft agenda (attached) and provide feedback. 2.Background: In anticipation of the annual joint meeting with the City Council, staff would like to solidify the upcoming agenda topics for May 24, 2022. 3.Budget Impact: N/A 4.Attachments: Special Meeting Agenda - draft 7 City Council 1 of 1 May 24, 2022 CITY OF PLYMOUTH AGENDA Special City Council May 24, 2022, 5:00 PM 1.CALL TO ORDER 2.TOPICS 2.1 Overview of TIF Uses to Support Affordable Housing 2.2 HRA Strategic Plan Priorities HRA Strategic Plan DRAFT Renter Protection Ordinance DRAFT Moderate-Income Housing Policy - redline 2.3 HRA Priority 2022 Action Items HRA Priority 2022 Action Items Memo 3.ADJOURN 8 Regular Housing and Redevelopment Authority May 17, 2022 Agenda Number:6.2 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, Community & Economic Development Director Item:HRA Strategic Plan Priorities 1.Action Requested: Revisit the previously approved Strategic Plan and discuss two priorities: a draft ordinance and new draft proposed housing policy. 2.Background: The HRA began development of the Strategic Plan with the support and input from the HRA and City Council in 2020-2021. Input from stakeholders was obtained through a variety of engagement methods with HRA and City Council members, community stakeholder interviews, analysis of other local government policies and practices, and through a public comment period. In March of 2021 the City Council adopted the Strategic Plan. Staff now seeks to discuss next steps related to these two key housing items. 3.Budget Impact: N/A 4.Attachments: HRA Strategic Plan DRAFT Moderate-Income Housing Policy - redline DRAFT Renter Protection Ordinance 9 Plymouth HRA Strategic Plan City of Plymouth Housing and Redevelopment Authority Adopted: March 9, 2021 10 Plymouth HRA Strategic Plan PAGE 2 Table of Contents Background…………………………………………………………………Page 3-4 The Process…………………………………………………………………Page 5 HRA Housing Priorities and Actions to Consider ………… ………Pages 6-13 Implementation……………………………………………………………Pages 14-15 Plymouth HRA Mission & Values Mission. The Plymouth Housing and Redevelopment Authority promotes and contributes to the economic health of the community through the creation and maintenance of affordable, workforce and life-cycle housing, and active participation in the City’s development and redevelopment processes. Values. The Plymouth Housing and Redevelopment Authority is a facilitator and significant contributor to creating an economically healthy and diverse community: •Which is supportive of quality affordable and workforce housing for all incomes and family sizes. •That promotes a variety of affordable, workforce and life-cycle housing choices dispersed throughout the City to meet the needs of a diverse population, local employment needs, household stability and educational success of children. •Where the existing housing stock is well maintained. •Where some older commercial buildings and areas of the community are redeveloped in a timely fashion. •Which acquires additional resources to proactively address affordable housing shortages and redevelopment needs. •Where the HRA works in partnership with citizens, businesses, the City Council and other City departments, and other organizations. •Where the social services necessary to support housing and jobs in the community are available and coordinated. •Where the HRA is committed to promoting Fair Housing and equal access and opportunity in housing. 11 Plymouth HRA Strategic Plan PAGE 3 Background The Plymouth Housing and Redevelopment Authority (HRA) has been an independent governmental entity since its initial creation by the City Council in 1975. The HRA is governed by a board of commissioners appointed by the City Council. Commissioners serve five-year staggered terms. HRA members who participated in development of the HRA Strategic Plan include the following: • Michelle Soderberg, HRA Chair • Jeff Kulaszewicz • Lucas Larson • Aqueelah Whitfield • Bob Huddleston • Jim Davis, City Council Representative to the HRA The HRA’s charge is to oversee and guide in the implementation of Plymouth’s housing programs and collaborate on redevelopment efforts of the City. They manage federal, state, and local grants for housing programs and administer eight active Tax Increment Financing (TIF) Districts. Funding for the HRA programs comes from the Federal Department of Housing and Urban Development (HUD) and Community Development Block Grants (CDBG), and an annual HRA levy. These funding sources support staff, existing program implementation, and the maintenance, management and administration of two HRA owned senior housing properties; Plymouth Towne Square and Vicksburg Crossing. 2040 City Comprehensive Plan Value Statements •Maintain and enhance housing quality and diversity. Plymouth values housing that is attractive, well-constructed and maintained to ensure quality of life for all residents. Plymouth also values diverse housing opportunities in neighborhoods throughout the community, including affordable housing, renter and owner- occupied housing, senior housing and lifecycle housing. •Meet the needs of all age groups within the City, with a particular focus on young people and the aging population. Plymouth recognizes that the nation is aging. And the City is no exception. Plymouth will pay increased attention to the special needs of its aging population in all aspects of community life – housing, all forms of transportation, services and facilities and especially, sense of community. 12 Plymouth HRA Strategic Plan PAGE 4 Existing programs supported by the HRA include the following: 1. CDBG Programs: a. First Time Homebuyer Program b. Owner Occupied Home Rehabilitation Program c. Owner Occupied Emergency Repair Program d. Social Services e. Rental Rehab Program 2. Housing Choice Voucher Program 3. Senior Rental Housing 4. Architectural Design Program 5. Home Energy Squad Plus 6. Multi-Family Fire Suppression Program 7. Housing Improvement Area Program 8. Community Land Trust Program 9. Scattered Site Rental Program 10. Private Utility Repair Program 2040 City Comprehensive Plan Housing Goals •Promote the development and preservation of a supply of quality housing that is affordable at all income levels and at all stages of the life cycle. •Encourage and ensure that all housing and neighborhoods in Plymouth are well maintained. •Promote development patterns that link housing with services and employment centers by all forms of transportation, particularly public transit and non-motorized forms of transportation. •Metropolitan Council identifies that Plymouth’s share of the regions need of affordable housing between 2021-2030 is 679 additional units, of which 87% should be affordable to those with incomes at or below 50% of the area median income. •Plymouth has guided vacant land in the City to accommodate the construction of 736 affordable units. 13 Plymouth HRA Strategic Plan PAGE 5 The Process The HRA completed a process over the course of several months to develop a strategic plan that will solidify key HRA goals, priorities, actions and funding needs for the City and to gain consensus on the role of the HRA in supporting the housing and redevelopment needs of the City. The outreach and engagement process was conducted in a virtual format due to the limitation brought on by the Covid-19 pandemic. The strategic planning process identified the priorities and actions outlined in this plan based upon review and evaluation of the following: • 2040 Comprehensive Plan • Comprehensive Rental Housing Market Study dated April 4, 2018 • Plymouth Hennepin County Consortium Consolidated Plan FY2020-2024 • 2013 Plymouth HRA Strategic Plan • Strengths, Weaknesses, Threats and Opportunities Summary completed by the HRA and dated October 14, 2020 • Stakeholder input through Zoom and phone interviews and online surveys by residents, the City Council and HRA members. • Stakeholder interviews including representatives from Interfaith Outreach Community Partners, Outreach Development Corporation (ODC) Board of Directors, RE/MAX, former Wells Fargo Community Lender, Summit Mortgage, Plymouth Covenant Church, Mount Olivet Church of Plymouth, Messiah Church and Wayzata Schools (Community Engagement and Partnership Coordinator, Academic Interventionist, Director of Community Education and Principal on Special Assignment.) • A developer work session of the HRA and City Council on July 23, 2020 which included representatives from Doran Companies, Ryan Companies and CommonBond • HRA and City Council online survey of priorities and needs completed by 80 percent of the members • City of Plymouth flash vote completed by 1,042 Plymouth residents – 1,197 total participants which included 1,139 responding (62%) of the 1852 initially invited and 58 new participants Stakeholder Comments •As the gap between housing costs and incomes increases there is a higher risk of families and children becoming homeless – ODC •There is a need for larger (3 and 4 bedroom) affordable housing units for families – ODC •Support higher densities to provide more opportunities for the private sector to develop new housing and commercial options desired by residents – Developer Roundtable •Support zoning land for higher densities and being more flexible in local land use, building requirements and processing time is important – Developer Roundtable •The top three Flashvote responses on what residents (986) would like to see more of included: -55% renovate older buildings -45% mixed use housing -42% first time homebuyer assistance 14 Plymouth HRA Strategic Plan PAGE 6 HRA Priorities 1. Preservation of Existing Housing and Tenant Protections The most affordable housing is within the existing older properties, referred to as Naturally Occurring Affordable Housing (NOAH). HRA Priority: Support preservation of existing rental housing and protect vulnerable and low-income households. • Tenant Protection Ordinance: o Goal: Protect vulnerable and lower income residents from being displaced due to rent increases without time to find alternate housing and provided an opportunity for residents at risk of losing housing to be connected to housing and social assistance. o Action: Consider adoption of a tenant protection ordinance that would outline requirements to protect tenants from being displaced when properties change ownership. Best practices include providing tenants a three (or longer) months period where there is a pause on rent increases, tenant re-screening, and non-renewal of leases without cause. An ordinance can spell out options where a new owner chooses or does not comply with the pause that can include a requirement to pay relocation benefits to tenants. The Facts: Need for Preservation and Protection of Tenants •The City’s existing rental housing stock is aging - 47% of the rental housing in the City was built in the 1970s and 1980s. •28% of the City’s residents live in rental housing. •43% (3,736) of renter households, are paying more than 30% of their income on housing cost, increasing the risk of residents choosing between paying rent, eating, covering healthcare costs and other critical life and safety needs. •Median rent increased 18% from 2010 to 2018; at the same time there was less available housing with a 29% reduction in the vacancy rate from 5.5% to 3.9%. •From 2010 to 2018, 10 apartment properties sold representing 3,456 units in the City. •In-demand jobs in the Twin Cities do not pay enough to afford the median rent or mortgage in Plymouth. These include critical workers to support business vitality and resident services such as cashiers, retail workers, personal care aides, nursing assistants, janitors and customer service representatives. Sources: Plymouth Maxfield Study, Plymouth 2040 Comprehensive Plan, MHP’s Plymouth Rental Snapshot, MHP’s Market Watch; Hennepin County Report 15 Plymouth HRA Strategic Plan PAGE 7 • Local 4d Affordable Housing Incentive o Goal: Protect vulnerable and lower income residents by preserving existing unsubsidized affordable rental units in exchange for a lower tax applied to those units. In many cases, existing properties are already providing rents at or below 60% of the area median income. However, those units are most at risk of rent escalation as vacancy rates lower and the availability of lower rental housing is reduced. o Action: Evaluate adoption of a local 4d Affordable Housing Incentive that would provide qualifying existing rental property owners a rate reduction in property taxes from the current 1.25% to .75% per MN Statute 273.128 for qualifying rent restricted units. Per the state statute a minimum of 20% of the total units would need to have rent and income restrictions for those at or below 60% of the current area median income to be eligible for the reduced tax rate on those units. To trigger the program, the HRA, as the local unit of government, would provide nominal financial assistance to the property owner who then enters into a development agreement which outlines the rent restrictions and terms . The total amount of the reduction would be evidenced by a document recorded against the property. • NOAH Rehabilitation and Maintenance Program o Goal: Encourage property improvements that increase property values while protecting vulnerable and lower income residents by ensuring that a portion of a property’s rents remains affordable when these properties are improved to protect the health, safety and livability of the City’s older rental properties. o Action: Consider expanding funding and criteria for restricting rents focused on providing assistance to existing older rental properties that are in need of renovation such as exterior improvements, energy efficiency upgrades, fire suppression systems and other health, safety, crime reduction and livability improvements. The assistance would be provided to help finance improvements in exchange for ensuring that a portion of the rents are kept affordable at or below 60% of the current area median incomes. The financial assistance could be structured as a loan or grant. A development agreement with the property owner that would include a covenant on the deed of the property, would be required to ensure the owners comply with the income requirements. 16 Plymouth HRA Strategic Plan PAGE 8 HRA Housing Priorities (continued) 2. Increase Housing Affordability to Diversify Housing Options and Opportunity in the City To achieve the mission of the HRA, it is important to provide opportunities to diversify the housing options and support new affordable housing including seniors, low-income families and the younger generation. HRA Priority: Support more development of affordable housing and increase housing options and opportunities in the City. • Mixed Income Housing Policy o Goal: Ensure high quality housing in the City is accessible to households with a variety of incomes, ages, and sizes and to increase the supply of new affordable senior and rental housing options. o Action: Consider and evaluate options for adoption of a mixed income housing policy. Mixed income housing policy (referred to as inclusionary housing policy) can tie financial or land use assistance for new housing to include a certain percentage of the total units as affordable. Some policies allow a financial contribution rather than providing units within the proposed development. Evaluations would consider the parameters that trigger the policy and outline the percentage of affordable units and/or cash contribution formula. Mixed income policy options include various triggers (city assistance, land use change, number of units, etc.) that is outlined when created and adopted. The Facts: Importance of Diversifying Housing Options •Only 1% (18 units) of the new housing constructed in the City between 2015-18 can be considered “affordable” to a household earning less than 60 percent of the area median income which is $60,000 for a family of four. •Senior Housing Need: The population growth from 2017 to 2022 for those age 75 to 84 is projected to have the greatest percentage growth at 32%. Incomes of current older residents are lower than the median incomes in the City. In 2017, 10% of those senior households had incomes below $15,000 per year. Many City senior households wish to remain within their existing homes or may wish to move out but cannot afford other alternatives. •Entry Level Housing Need: The population of 18 to 34-year old’s is expected to increase slightly 445 people (+1.4%) between 2017 and 2022. These are the residents that tend to rent and may be looking to put down roots in the community by purchasing their first home. •Through October of 2020, 1,300 homes were sold with a median sales price of $392,000: up 3% from the previous year; an unaffordable option for many first-time buyers. Sources: Plymouth Maxfield Study, MHP’s Plymouth Rental Snapshot, Realtor Association Sale Data 17 Plymouth HRA Strategic Plan PAGE 9 • Affordable First-Time Buyers Options o Goal: Increase the opportunity of affordable first-time homebuyers and to revitalize existing older single-family neighborhoods. o Action: Evaluate expanding program criteria and policies to support the purchase and/or development of affordable, first time home buyer options. Programs and policies to be evaluated will include the enhancement of existing support for Community Land Trusts, down payment assistance and lower mortgage options. In addition, innovative program options to consider can include partnering with non-profit housing providers by providing gap funding to facilitate the connection with first time buyers to purchase existing homes from senior households who wish to sell their home. • Collect and Share Information on the Importance of Addressing the City’s Affordable Housing Needs o Goal: Identify the economic and social benefits of a diverse and inclusive community that provides housing affordability options to all residents and workers in the City. o Action: Collect and share data with residents, property owners, landlords, property managers, and government leadership on market realities, educational attainment impacts, worker recruitment and retention and health benefits of a diverse and inclusive community with a full range of housing options. 18 Plymouth HRA Strategic Plan PAGE 10 HRA Housing Priorities (continued) 3. Proactively Support Redevelopment Efforts of the City As the City of Plymouth becomes fully developed, reuse and redevelopment of property will become more important to ensure that property values remain stable and to increase options and opportunities for residents and businesses. Reuse of land that includes a mix of uses and more compact development provides options for active living, such as walking or biking, within proximity to retail, services and other amenities. HRA Priority: Assist in prioritizing redevelopment opportunities and future land uses to support a mix of land uses and options for compact living. • Identify and Prioritize Areas for Redevelopment o Goal: Provide clarity, consistency, and flexibility to attract private investment in redevelopment areas of the City and ensure that market demand and community vision align. o Actions: In cooperation with the City Council and other City departments, the HRA will assist with the following redevelopment efforts, where appropriate. ▪ Provide input on and identify key areas of the City that need redeveloping. ▪ Identify acceptable mixes of future land uses such as affordable housing, ownership/rental mix and mix of uses for redevelopment areas. ▪ Identify best practices and policies for fast-track approvals and flexibility when the project meets certain requirements. 19 Plymouth HRA Strategic Plan PAGE 11 • Assist with Assembly of Land for Redevelopment o Goal: Increase partnerships and opportunities in the redevelopment of land by leveraging property control to support community goals, facilitate and promote private investment and increase availability of affordable housing. o Action: Provide assistance in identifying site acquisition tools and financing options to support assemblage of key (re)development sites under multiple ownership. • Identify and Share the Benefits of Investing in Redevelopment o Goal: Facilitate and support agreement on redevelopment priorities through education, collaboration and increased engagement of residents to support a healthy and vibrant community. o Actions: Collect and share information on current market realities, redevelopment goals, and plans including: ▪ Providing information to newly elected and appointed policy leaders on HRA mission, values, priorities and goals. ▪ Offering site visits and tours of successful regional redevelopment projects. ▪ Conducting stakeholder engagement sessions/neighborhood meetings and engaging underrepresented populations. ▪ Clearly document stakeholder support for the redevelopment plan(s). 20 Plymouth HRA Strategic Plan PAGE 12 HRA Housing Priorities (continued) 4. Coordinate Funding Sources and Financial Strategies To adequately support the HRA Strategic Plan, additional and aligned funding resources will be important. As federal and state resources become more constricted, local sources of funding for housing and redevelopment will become more important to ensure that the priorities and goals of the City and HRA are achieved. As projects are considered by the HRA adequate funding will need to be identified for implementation. HRA Priority: Proactively meet the housing and redevelopment needs of the City and be a partner with the private sector in development and redevelopment that achieves the HRA mission. • Assist in Identifying Adequate Funding Sources in the Support of the HRA Mission, Values and Priorities o Goal: Annually review options and opportunities to support the programs and policies outlined in the HRA Strategic Plan through the City budgeting process. o Action: Evaluate local, federal, state, and county resources to implement the priorities and programs identified in the HRA Strategic Plan. Work with City administration on incorporating and analyzing the effects on utilizing local resources on the City’s 10-Year Financial Plan. ▪ HRA Levy: The primary method of financing the delivery and administration of housing and redevelopment programs is through the HRA authority provided through Minnesota State Statute 469. The statute allows the HRA, with approval by the City Council, to levy a tax to give, sell, buy, transfer, or convey properties as necessary to remove blight and promote affordable, safe and decent housing. The HRA levy is evaluated and set annually by the City Council upon the recommendation of the HRA. ▪ Pooled Tax Increment Financing: Tax Increment Financing is a local government tool that can be utilized to support redevelopment and affordable housing as allowed by Minnesota State Statute 469. A portion of tax increments can be pooled and utilized outside of the boundaries of the district from which they were collected and can be a source to support priorities outlined in the HRA Strategic Plan. 21 Plymouth HRA Strategic Plan PAGE 13 • Adopt a Public Subsidy Policy To be successful in achieving the priorities for housing and redevelopment, it is important for the HRA and City Council to clearly outline the goals and objectives of providing public funds toward that effort. This includes identifying public subsidy policies accepted and utilized for the purpose of implementing the HRA Strategic Plan. Clarity and consistency in how the HRA and City respond to requests for assistance for development proposals decreases uncertainty and risk resulting in lower costs to preserve and build affordable and market rate housing and redevelopment projects. o Goal: Ensure that the City and HRA leaders are accountable to City residents on the utilization of public resources and provide clarity to the development community on what is acceptable public support to achieve the mission and vision of the City. o Action: In partnership with the City Council and other City departments, seek financial consulting assistance to adopt a clear and strong public finance policy. Implementation 22 Plymouth HRA Strategic Plan PAGE 14 The four priorities outlined in the HRA strategic plan and implementation of the action steps will require the HRA to prioritize their time, staff capacity and financial resources to be successful. The following is a schedule to help guide the HRA and staff in the successful planning and implementation of the HRA Strategic Plan action steps. Priority Actions Steps Timing Financial Resources Impact on HRA Mission 1.a Tenant Protection Ordinance $ ✪✪ 1.b Local 4d Affordable Housing Incentive $$ ✪✪✪ 1.c NOAH Rehabilitation and Maintenance Program $$ ✪✪✪ 2.a. Mixed Income Housing Policy $$ ✪✪✪ 2.b. Increase Options for Affordable First-Time Buyers $$ ✪✪ 3.a Identify and Prioritize Areas for Redevelopment $$ ✪✪ 3.b Assist with Assembly of Land for Redevelopment $$ ✪✪ 3.c. Educate the Community and Policy Leaders on the Benefits of Investing in Redevelopment $ ✪✪ 4.a Increase HRA Levy Dollars $$ ✪✪✪ 4.b. Adopt a Public Subsidy Policy $ ✪✪ 23 Plymouth HRA Strategic Plan PAGE 15 Timing Key Short Term Median Term Longer Term Work on Immediately and will have the most substantive impact on achieving the HRA mission. Policies and programs that require additional research and collaboration Outside resources, stakeholder input and collaboration required to fully understand the implication of the policy or program Complete in 2021 Complete within 1-3 years Complete within 3-5 years Financial Resources Key Low Cost Medium Cost High Cost $ $$ $$$ Ability to complete with existing resources A modest increase in the HRA levy and budget would be required A substantial increase in the HRA Levy and budget would be required Impact in Achieving HRA Mission Low Impact Medium Impact High Impact ✪ ✪✪ ✪✪✪ Limited number of residents benefit and little to no property value increase from implementation of program or policy Several residents benefit and/or increased property value results from implementation of program or policy Many residents benefit and/or larger property value increase resulting from implementation of program or policy 24 1 DRAFT Inclusionary Moderate Income Housing Policy Inclusionary A moderate-income housing is a tool thatpolicy 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 r eceiving 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 Project Size 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 dwelling units. II. Affordable Moderate Income Dwelling Units General requirement A development that is subject to this Policy shall provide a number of affordable moderate- income dwelling units equal to at least ten (10%) to twenty percent (20%) of the total number 25 2 of dwelling units in the development. The units designated as moderate-income will be subject to the requirements listed below. Calculation of units required. (1) For development of multi-family dwelling units: A. The required number of affordable moderate-income dwelling units is based on the total number of dwelling units that are approved by the City. B. To calculate the number of affordable moderate-income dwelling units required in a development the total number of approved dwelling units shall be multiplied by ten percent (10%) or twenty percent (20%) depending on the affordability standard. If the final calculation includes a fraction, the fraction 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 moderate-income 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 moderate- income, depending on the affordability standard. Affordability Level The required affordable dwelling units within a residential project subject to this policy shall meet an moderate-income eligibility and rent affordability standard for the term of the restriction as follows: (1) Rental Projects: A. At least twenty percent (20%) of the units shall be affordable to moderate- income 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 moderate-income households at fifty percent (50%) Area Median Income. (2) For-Sale Projects: A. At least fifteen percent (15%) of the units shall be affordable for moderate- income 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 Twin Cities 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. Commented [DP1]: 80% AMI = $89,400 for a hh of 4. Median family income is $118,200. 26 3 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. III. Standards for Moderate-Income Rental Units Size and Design of Affordable Moderate-Income Units The size and design of the affordable moderate-income dwelling units should be consistent and comparable with the market rate units in the project and are subject to the approval of the City. The interior of affordable moderate-income 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 moderate-income 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 quality of construction of the affordable moderate-income dwelling units shall at a minimum be comparable to entry level rental or ownership housing in the City. Construction of the affordable moderate-income dwelling units shall be concurrent with construction of market rate dwelling units. IV. Integration of Affordable Moderate-Income Dwelling Units Distribution of affordable moderate-income housing units. The affordable moderate-income 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 moderate-income dwelling units shall be distributed throughout the building. Number of bedrooms in the affordable moderate-income units. The affordable moderate-income 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 moderate-income dwelling units shall be approved by the City. Tenants Moderate-income Rrental affordable dwelling units shall be rented only to income eligible families during the period of affordability. An income eligible family may remain in the affordable moderate-income 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-moderate-income affordable unit. V. Alternatives to On-Site Development of Affordable Moderate-Income Dwelling Units Commented [DP2]: This will require annual income certification which may be perceived as onerous by the developer. 27 4 This section provides alternatives to the construction of onsite affordable moderate- income 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 applicant demonstrates: A. The alternative provides an amount of affordable moderate-income 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 the following options to providing affordable moderate-income dwelling units that are required by this Policy. A. The dedication of existing market rate units to permanently affordable moderate-income dwelling units that are of equivalent quality and size. Existing dwelling units 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 proximity to public transit service at a site approved by the City. C. Participation in the construction of affordable dwelling units by ano ther developer on a different site within the City. 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 Performance Agreement. VI. NON-DISCRIMINATION BASED ON RENT SUBSIDIES: Developments covered by the policy must not discriminate against tenants paying rent with federal, state or local public assistance, including, but not limited to rental assistance, rent supplements, and Housing Choice Vouchers. 28 5 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 this Policy. (2) Approval The Affordable Housing Plan shall be approved by the City. (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 this Policy. C. The total number of market rate units and affordable d welling 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 by types. F. Building floor plans and site plans showing the location of each affordable dwelling unit. G. The pricing for each affordable ownership dwelling unit. The pricing of 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 Commented [DP3]: When must the plan be submitted for approval? Concept approval? Do we permit a phase-in period for application of this proposed policy? How much time – 6 months? 29 6 comparable to the appearance of the market-rate units. J. An Affordable Dwelling Unit Management Plan documenting policies and procedures for administering the affordable dwelling units in accordance with the Affordable Housing Performance Agreement. K. Any and all other information that City staff may request to achieve the Council’s affordable housing goals. VIII. Recorded Agreements, Conditions and Restrictions (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 shall identify: a. the location, number, type, and size of affordable housing units to be constructed; and b. sales and/or rental terms; occupancy requirements; 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 as applicable. (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 this Policy. (3) The applicant or owner must prepare and record all documents, restrictions, easements, covenants, and/or agreements that are specified by the City as conditions of approval of the application prior to issuance of a building Permit for any development subject to this Policy. (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 policy shall meet an income eligibility and rent affordability standard for the term of the restriction as follows: (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. Formatted: Font: (Default) +Body (Calibri) Formatted: Font: (Default) +Body (Calibri) 30 7 (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). 2. Financial Assistance: This Inclusionary Moderate-Income Housing Policy applies to all new and renovated multifamily residential buildings receiving City financial assistance. Financial Assistance is defined as funds derived from the City and includes but is not limited to the following: A. City of Plymouth B. Community Development Block Grant (CDBG) C. Housing Rehabilitation Fund D. Revenue Bonds (private activity bonds are negotiable) E. Tax Increment Financing (TIF) F. Tax Abatement G. Housing and Redevelopment Authority (HRA) Funds H. Land Write Downs 3. Affordable Housing Plan: A plan that documents policies and procedures for 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. 31 DRAFT Renter Protection Ordinance 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 Commented [DP1]: May want to define as the Housing Tax Credit Rent (or below) to establish a standard for how this is calculated. 32 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. 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. 33 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. 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. 34 Regular Housing and Redevelopment Authority May 17, 2022 Agenda Number:6.3 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, Community & Economic Development Director Item:HRA Priority 2022 Action Items 1.Action Requested: Review and discuss HRA priority initiatives for calendar year 2022. 2.Background: In reviewing status of various HRA-related items, staff requests HRA feedback related to priorities and next steps for 2022 initiatives. 3.Budget Impact: N/A 4.Attachments: HRA Priority 2022 Action Items Memo 35 1 1. Explore new revenue sources for affordable housing (examples could include excess TIF increment housing fund, market rate developer donation, grant/loan programs, etc.) This item focuses on a review of available resources and tools to leverage funding for affordable housing for the City of Plymouth, including reviewing new opportunities to expand revenue as development and redevelopment interest in the City continues to be strong. 2. Evaluate of HRA-owned affordable housing, including scattered site units This review would include developing a capital needs assessment for all HRA owned properties which will allow us to maintain and manage these important affordable housing assets within the community for the long-term, while also maximizing operating efficiency. The capital needs assessment specifically would result in both a short and long term evaluation of the life expectancy and cost of major items needed to maintain HRA owned properties over the long-term. 3. Evaluate Community Development Block Grant (CDBG) administration / HRA loan program administration The City of Plymouth qualifies as a CDBG entitlement jurisdiction which allows us to administer the CDBG program directly, which the City has done since its inception. We are currently allocating resources to a First-time Homebuyer Program, an Owner Occupied Rehabilitation Loan Program and to social service organizations through CDBG. The City may wish to continue to administer the CDBG program independently, but should evaluate if there are efficiencies in program administration by working more collaboratively and directly with Hennepin County. 4. Review HRA loan program policies and procedures The HRA’s policies and procedures for both the First-time Homebuyer Program and Owner Occupied Housing Rehabilitation Program merit a re-review and refresh. Changing market conditions coupled with changing demographics in the City of Plymouth provide the right opportunity to refresh program policies and help ensure that City-administered housing programs are well positioned to serve low- and moderate-income household needs. 5. Create an HRA Onboarding resource and review ongoing engagement Memorandum To: HRA Members From: Devon Pohlman, Housing & Economic Development Manager Date: May 12, 2022 Item: HRA Priority 2022 Action Items 36 2 Staff are interested in feedback from HRA members regarding resources that are most helpful in navigating HRA roles and functions. What information was most helpful to you as a new HRA member? What ongoing information do you find most helpful? 6. Other priorities the HRA would like to discuss 37 Regular Housing and Redevelopment Authority May 17, 2022 Agenda Number:7.1 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, Community & Economic Development Director Item:Valor Place Update 1.Action Requested: Discuss updates related to Valor Place. 2.Background: Staff will provide an update on the lease-up status of Valor Place. 3.Budget Impact: N/A 4.Attachments: 38