Loading...
HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 06-23-2022Housing and Redevelopment Authority 1 of 2 June 23, 2022 CITY OF PLYMOUTH AGENDA Regular Housing and Redevelopment Authority June 23, 2022, 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 Housing & Redevelopment Authority Minutes 5. PUBLIC HEARINGS 6. NEW BUSINESS 6.1 May 24 Joint HRA/City Council Study Session Feedback 6.2 Moderate Income Housing Policy Compliance Concept Memo DRAFT Moderate Income Housing Policy 6.3 HRA Action Items for 2022 CDBG Administration Timeline 7. UPDATES 7.1 Community Development Block Grant (CDBG) Program Updates 1 Housing and Redevelopment Authority 2 of 2 June 23, 2022 7.2 Lakeview Commons 7.3 Upcoming HRA Meeting Dates 8. ADJOURNMENT 2 Regular Housing and Redevelopment Authority June 23, 2022 Agenda Number:4.1 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, HRA Executive Director Item:Approve proposed HRA minutes 1. Action Requested: Approve proposed HRA minutes 2. Background: Approve the attached minutes from the HRA meeting held on May 17, 2022. 3. Budget Impact: N/A 4. Attachments: Housing & Redevelopment Authority Minutes 3 DRAFT MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY May 17, 2022 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Lucas Larson, Aqueelah Whitfield, James Williams, Ronald Kelner, and Joel Spoonheim ABSENT: Commissioner Wayne Peterson STAFF PRESENT: HRA Executive Director Danette Parr, Housing & Economic Development Manager Devon Pohlman, and Permit Technician Michelle Bast 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 5:02 p.m. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Williams, seconded by Commissioner Whitfield to approve the Agenda. Vote. 6 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approve proposed minutes from February 24, 2022. MOTION by Commissioner Williams, seconded by Commissioner Larson, to approve the Consent Agenda. Vote. 6 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS 6. NEW BUSINESS 6.1. Discuss May 24, 2022 Joint HRA/City Council Meeting Agenda Special Meeting Agenda – draft HRA Executive Director Parr gave an overview of the Special Meeting Agenda for the joint HRA/City Council Meeting Agenda. She informed the board that Stacie Kvilvang from Elhers will be attending the meeting. Ms. Kvilvang will present information regarding Tax Increment Financing (TIF), the City of Plymouth’s current TIF districts and how we have historically used TIF for redevelopment and affordable housing, how it can be pooled, and how the City of Plymouth has typically used excess increment. 4 Draft Minutes Plymouth Housing and Redevelopment Authority May 17, 2022 Page 2 Chair Soderberg provided an overview of the Strategic Plan that was approved in March 2021. Commissioner Spoonheim asked if the Strategic Plan was adopted and approved. HRA Executive Director Parr stated the Strategic Plan was accepted. These are the items to bring to the City Council. Chair Soderberg said the purpose is to introduce the ideas again to the City Council. HRA Executive Director Parr affirmed the purpose is to ensure the HRA and the City Council are on the same page. Commissioner Williams asked if there is a legal process. HRA Executive Director Parr stated the meeting next week is an annual meeting to talk to the City Council about the ideas the HRA Board has and what the HRA wants to move forward on. Chair Soderberg said this is done as a courtesy to the City Council because the Strategic Plan is the HRA’s plan. Additionally, there are parts of the Strategic Plan that the City Council will be needed to enact. HRA Executive Director Parr said there are some proposed initiatives that, if advanced, will require a Public Hearing. Commissioner Williams inquired about what effects the potential differences in the environment and economic pictures now versus when the Strategic Plan was accepted. He stated inflation is up, interest rates have increased, and housing supply is down. Chair Soderberg said the Strategic Plan is intended to provide a framework for HRA housing initiatives over a three to five year period, and the Plan should embody some flexibility with the recognition that modifications will be necessary. Commissioner Williams asked how to implement the Strategic Plan. Chair Soderberg replied the Strategic Plan will be implemented in pieces. She said there are two priority pieces staff proposed to advance now for further discussion and then staff will move to the next items. HRA Executive Director Parr agreed that today’s environment needs to be considered when deciding which items to move to an action plan immediately. 5 Draft Minutes Plymouth Housing and Redevelopment Authority May 17, 2022 Page 3 Chair Soderberg stated prior to the Strategic Plan there was no framework for the HRA to work with. Commissioner Larson said there are now procedures. Chair Soderberg reminded the Board that the Strategic Plan is a living document. 6.2 HRA Strategic Plan Priorities HRA Strategic Plan DRAFT Moderate-Income Housing Policy – redline DRAFT Renter Protection Ordinance Housing & Economic Development Manager Pohlman provided an overview of the items being proposed, the Moderate-Income Housing Policy and the Renter Protection Ordinance. Commissioner Larson stated the timing of these two items is different than what is laid out in the Strategic Plan for priority Action Steps. He said we voted on an order of what was most impactful. He said these two items were not determined to be the most impactful. Commissioner Larson said the order should be item 1b (Local 4d Affordable Housing Incentive) then 2a (Mixed Income Housing Policy) or 3c (Educate the Community and Policy Leaders on the Benefits of Investing in Redevelopment). The order was made for such items that were higher impact and lower cost for the HRA. Housing & Economic Development Manager Pohlman said the Mixed Income Housing Policy has been renamed Moderate Income Housing Policy to more accurately reflect the proposed policy requirements for affordable units. The policy would require multi-family developments that meet the policy requirements to provide at least 20% of units at affordable income levels to 60% of Area Median Income, or 10% of units to 50% of Area Median Income. The policy also sets forth affordability requirements for homeownership units. Commissioner Williams said the intention of the discussions was to produce that chart. Commissioner Spoonheim suggested the HRA Board support the TIF district discussion and move forward with items 1a (Tenant Protection Ordinance) and 2a (Moderate-Income Housing Policy). He said there are numerous examples from other cities who have enacted similar ordinance and policy that staff can create a draft from them. He said changes have been made since the pandemic. Housing & Economic Development Manager Pohlman noted that item 1b (Local 4d Affordable Housing Incentive) is important strategic work, though it has proven difficult for other cities to obtain private landlord support. 6 Draft Minutes Plymouth Housing and Redevelopment Authority May 17, 2022 Page 4 Commissioner Larson suggested that with the new information the priorities need to be reordered. He said he does not agree with picking and choosing items to work on because the Strategic Plan lists the HRA Board’s priorities. Chair Soderberg said moving priorities may be necessary. She said we need to agree on what to present to the City Council. We can vote on reordering the priorities at a future meeting. Housing & Economic Development Manager Pohlman said the HRA staff can further outline Strategic Plan Action Steps as part of an overall work plan. Chair Soderberg recommended continuing with the Moderate-Income Housing Policy and Renter Protection Ordinance now and to relook at next steps for the Strategic Plan. Commissioner Larson suggested voting on these two items now. Commissioner Kelner said it makes sense to move forward with what is ready to move forward on. Commissioner Williams stated we ought to present what we have to the City Council provided the City Council knows changes may be made in the future. Chair Soderberg said there is new staff in place which brings different ideas. HRA Executive Director Parr offered to revisit and review the Strategic Plan and then vote on priorities. She said there may be more to add from new commissioners. Housing & Economic Development Manager Pohlman provided more information related to the Moderate-Income Housing Policy and the Renter Protection Ordinance. HRA Executive Director Parr said that additional due diligence with the City attorney will be undertaken to determine whether the proposed Moderate-Income Housing Policy should remain as a policy, be considered as an ordinance, or include components of both. She said there are considerations for when we create an ordinance or a policy, with policies providing some additional flexibility for future modifications. Commissioner Williams asked what Plymouth’s median income number is. Housing & Economic Development Manager Pohlman said that number is for Hennepin County and is just over $118,000 now for a household of four, with households at 80% of Area Media Income making just over $89,000 (FY 2022 Department of Housing and Urban Development Income Limits). 7 Draft Minutes Plymouth Housing and Redevelopment Authority May 17, 2022 Page 5 Commissioner Larson requested clarification regarding the when the affordability thresholds apply to certain properties under the proposed Moderate-Income Housing Policy. He asked if this applies only to those properties with 10 or more units. Housing & Economic Development Manager Pohlman confirmed it only applies to those multifamily properties with 10 or more units and those properties can choose either 60% and 20% or 50% and 10%. HRA Executive Director Parr stated it is important to discuss the proposed Moderate- Income Housing Policy with the City Council at this time because of significant market- rate residential redevelopment demand now. She said having a policy will be important, with TIF as an important incentive for developers. Commissioner Spoonheim suggested including in the policy other forms of incentives, not solely financial contributions. He suggested the policy be expanded to include other mechanisms the City has purview to authorize such as rezoning, or Planned Unit Development designation.. Commissioner Larson reminded the HRA Board about unintended consequences when policies affect the supply/demand of housing. He said if the policies become burdensome developers won’t develop in Plymouth. He said in the long term the housing supply will be constrained and affordability will be a bigger challenge. He recommended finding the middle ground for both short term and long term. Commissioner Williams advised to get many tools in the toolbox to find out what is appropriate. He said having flexibility and options is valuable. Commissioner Kelner added the city could change the zoning to allow for greater density, which will be valuable to the developer to be able to afford 20% of units to be affordable. Commissioner Larson stated developers won’t develop if the number of units is not right. HRA Executive Director Parr asked HRA members if their preference was to hold, and have more discussion on these items, prior to advancing them for discussion with the City Council. Commissioner Whitfield said the HRA Board should move forward with these two items. She said there are a lot of people being pushed out of their homes from Minneapolis and St. Paul since the emergency measures enacted during the pandemic have been lifted. She said people are moving to the suburbs to try to find high quality affordable housing that meets the needs of families. 8 Draft Minutes Plymouth Housing and Redevelopment Authority May 17, 2022 Page 6 Chair Soderberg stated the city always has the option to request affordability from developers. HRA Executive Director Parr affirmed. Chair Soderberg recommended the HRA Board present what is proposed with respect to the Moderate-Income Housing Policy and Renter Protection Ordinance to the City Council. Commission Larson asked what outcomes are expected from the City Council discussion. HRA Executive Director Parr said the City Council won’t be voting on these items. The purpose is to promote discussion from the City Council to see what the HRA Board wants to do and to determine if there are any red flags from the City Council. Commissioner Larson proposed to make a motion to vote on presenting the Moderate- Income Housing Policy to the City Council. MOTION by Commissioner Williams, seconded by Commissioner Kelner, to present the Moderate-Income Housing Policy to the City Council. Vote. 6 Ayes. MOTION passed unanimously. Housing & Economic Development Manager Pohlman provided and overview of the proposed Tenant Protection Ordinance. Commissioner Williams inquired when tenants receive three month’s rent. Chair Soderberg asked if the property owner pays the city and then the city pays the tenant. Commissioner Larson asked why three months. HRA Executive Director Parr stated three months is seen in other cities’ ordinances. It seems to be an industry standard and provides adequate time for a tenant to find alternative housing. Commissioner Spoonheim said if notice is given within 30 days as it is written that could be the date of sale which would then give the tenant less notice. Chair Soderberg said the calculation should trigger 90 days after notification. Commissioner Spoonheim said the business community needs three months to get the building ready. 9 Draft Minutes Plymouth Housing and Redevelopment Authority May 17, 2022 Page 7 Commissioner Spoonheim noted that the timing for payment is outlined under 4XX.15 Relocation Assistance, Subd 2., When Paid. Commissioner Willems asked about administrative citation and civil penalties. Housing & Economic Development Manager Pohlman said the city will review options to incorporate additional penalties, per City code and/or charter. Chair Soderberg proposed to make a motion to vote on presenting the Tenant Protection Ordinance to the City Council. MOTION by Commissioner Whitfield, seconded by Commissioner Williams, to present the Tenant Protection Ordinance to the City Council. Vote. 6 Ayes. MOTION passed unanimously. 6.3 HRA Priority 2022 Action Items HRA Priority 2022 Action Items Memo HRA Executive Director Parr gave an overview of the Action Items. HRA Executive Director Parr discussed the need to evaluate HRA owned affordable housing, including scattered site rental units owned and operated by the HRA. This evaluation should include a review of the two senior-owned buildings in addition to four scattered site units owned and operated by the HRA. Chair Soderberg recommended that staff look at the Strategic Plan. Commissioner Larson suggested a re-vote with this new HRA Board. Chair Soderberg said she would like input from staff. Commissioner Larson said it is important to know what is meaningful to the HRA Board. Commissioner Spoonheim asked if item 1b (Local 4d Affordable Housing Incentive) will be added to this year. He stated there are templates of this policy available. Commissioner Larson said this is a good program to present to the City Council. HRA Executive Director Parr said it will be added to the work plan. Housing & Economic Development Manager Pohlman said to make a timeline and decide what are the next steps after presenting the Moderate-Income Housing Policy and Renter 10 Draft Minutes Plymouth Housing and Redevelopment Authority May 17, 2022 Page 8 Protection Ordinance to the City Council. She added it is important to continue to be flexible and stay oriented and focused Chair Soderberg asked the HRA Board if the detailed financial statements from the senior buildings can be changed to quarterly review from the monthly review, which HRA members affirmed. 7. UPDATES Valor Place 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 7:07 p.m. 11 Regular Housing and Redevelopment Authority June 23, 2022 Agenda Number:6.1 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, HRA Executive Director Item:May 24 Joint HRA/City Council Study Session Feedback 1. Action Requested: Discuss and review directional feedback from the May 24 Joint HRA/City Council Study Session meeting. 2. Background: Review and discuss feedback pertaining to the Moderate-Income Housing Policy and Renter Protection Ordinance discussion. 3. Budget Impact: N/A 4. Attachments: 12 Regular Housing and Redevelopment Authority June 23, 2022 Agenda Number:6.2 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, HRA Executive Director Item:Moderate Income Housing Policy 1. Action Requested: Review and finalize the Moderate Income Housing Policy, including ongoing compliance plans 2. Background: The City of Plymouth is considering adoption of a Moderate Income Housing Policy as outlined in the HRA Strategic Plan. In the joint Study Session held with the City Council and HRA in May 2022, questions arose related to the long-term compliance plan for any affordable housing units, should the City Council ultimately adopt the policy. Staff are presenting a proposed compliance concept memo for discussion with the HRA. 3. Budget Impact: Budget impacts will be reviewed as part of the compliance concept. 4. Attachments: Compliance Concept Memo DRAFT Moderate Income Housing Policy 13 PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY STAFF REPORT TO: Plymouth Housing and Redevelopment Authority FROM: Devon Pohlman, Housing & Economic Development Manager MEETING DATE: June 23, 2022 SUBJECT: Moderate-Income Housing Policy Compliance Discussion BACKGROUND: The City of Plymouth is considering adoption of a Moderate-Income Housing Policy as outlined in the HRA Strategic Plan. In the joint Study Session held with the City Council and HRA in May 2022, questions arose related to the long-term compliance plan for any affordable housing units, should the City Council ultimately adopt the policy. DISCUSSION: The Moderate-Income Housing Policy, as currently proposed, requires a 25-year affordability period for the affordable units. The following ongoing compliance concept would require accountability by the property owner/property manager, and ultimately provide assurance to the City, that these affordability requirements are met. 1. Creation of a Moderate Income Compliance Guide which would detail out policies such as the following: o Policy overview ▪ Period of affordability ▪ Affordability standards (income/rent limits) and required affordability (10% at 50% AMI or 20% at 60% AMI) ▪ Rental assistance ▪ Utility allowances ▪ Lease requirements ▪ Affirmative marketing plan o Maintaining the unit mix ▪ Fixed or floating units o General occupancy guidelines ▪ Eligibility determination ▪ Number of persons per unit ▪ Tenant selection plan ▪ Income verification ▪ Required disclosures 14 ▪ Household size ▪ Over income households ▪ Certification requirements – for ex., at initial lease up with full certification required every three years (to be determined by us) ▪ Tenant files o Reporting requirements ▪ Annual owner/agent certifications ▪ Compliance reports ▪ Utility allowance source documentation o Compliance inspections ▪ Physical inspections ▪ Review of tenant files and property records o Correction and consequences of non-compliance o Requests for action – required notification to the HRA before sale or transfer of the property to help ensure the new owner manages the property in accordance with the policy. 2. Ongoing compliance oversight – to be conducted by the contracted compliance specialist 3. Monitoring status report – to be provided to the City and property owner 4. Annual, or as needed, updates to the Compliance Guide BUDGET IMPACT: Under the proposed concept, a contract with an affordable housing compliance specialist organization would be negotiated. Specific terms would need to be negotiated, but would likely include provisions for the following: • New project set-up fee • Initial tenant file review • Ongoing tenant file review at a specific compliance interval (every three years?) • Additional tenant file reviews as needed (move in/out) • Monitoring fee Cities who have adopted this compliance model pass on the compliance cost of enforcing the policy to the developer as part of the developer’s agreement. The contract with the compliance specialist would be held by, and billed to, the City, with the City responsible for billing the property owner for any applicable fees. DISCUSSION • Are there any specific compliance policies the HRA wishes to have direct feedback on, or if the policy moves forward and we engage a compliance specialist as part of contract negotiation, bring a draft back for review? 15 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 develo pment 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 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 16 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. 17 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 18 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 another 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. 19 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 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 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 20 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. 21 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. 22 Regular Housing and Redevelopment Authority June 23, 2022 Agenda Number:6.3 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, HRA Executive Director Item:HRA Action Items for 2022 1. Action Requested: Review 2022 HRA Action Items 2. Background: Staff will provide an update on two priority action items for upcoming work in 2022, including options available to the City of Plymouth with respect to the HRA's administration of the federally funded CDBG program. 3. Budget Impact: N/A 4. Attachments: CDBG Administration Timeline 23 O:\HOUSING\HRA\CDBG\CONVEN\CDBG Administration Timeline - CDBG Only.doc CDBG Administration Timeline January • Check on CDBG Action Plan timeframe with Hennepin County • Publish notice for public hearing in February for CDBG Action Plan (minimum 30-day notice) • Review & rank social service applications • Submit HUD 2516 Form – Women/Minority Subcontract Report (deadline may fluctuate) • At the Lake Bond letter (quarterly) • Lancaster Village, Stone Creek, Vicksburg Commons, and the Axis Bond letter (annual) • Section 3 Summary Report • Quarterly reports for social services due (Quarter 2) • Check Spenddown ration PR-56 (IDIS) February • Draft the following items and forward to Hennepin County: Action Plan, Application for Federal Assistance & HUD Certifications Forms (note: Hennepin County sets up Consortium Action Plan) • Draft HRA staff report & resolution for the CDBG Action Plan • Send social service agencies a copy of the meeting agenda & the staff report prior to the meeting • Hold public hearing before the HRA Board • Draft CC staff report & resolution for the CDBG Action Plan • Check Spenddown ration PR-56 (IDIS) March • CC approves CDBG action plan (Note: Hennepin County submits Action Plan on our behalf – contact Tonja West-Hafner for submittal) • Sending funding letters to social service grantees • Regency Point Bond letter (quarterly) • Check Spenddown ration PR-56 (IDIS) April • Submit HUD 4710 Form – Semi annual labor standards enforcement report (deadline may fluctuate) • Run PR-56 Report (spend-down timeliness- Test May 1st) • At the Lake Bond letter (quarterly) • Remodeling Fair – 1st weekend (may fluctuate due to Easter Holiday) • Draft social service grant agreements • Quarterly reports for social services due (Quarter 3) June • Check on CDBG CAPER timeframe with Hennepin County • Request accomplishment date from social service agencies for CAPER • Regency Point Bond letter (quarterly) 24 O:\HOUSING\HRA\CDBG\CONVEN\CDBG Administration Timeline - CDBG Only.doc July • Draft HRA staff report for the CDBG CAPER • Draft CC staff report for the CDBG CAPER • Update accomplishment data in IDIS • HUD receives CDBG funding (date may fluctuate) • At the Lake Bond letter (quarterly) • Section 3 annual report (online) • Social service reports due (Quarter 4 and annual) August • CC approves CAPER • Receive Funding Approval/ Agreement, complete & submit to HUD (date may fluctuate) • Plymouth receives CDBG funding (date may fluctuate depending on when HUD receives CDBG funding & when the Funding Approval/Agreement is submitted to HUD) • Attend Hennepin County Public Hearing (date may fluctuate between August and September) • Parkside Bond letter (annual) September • Set-up & fund new activities or add money to existing activities in IDIS • Regency Point Bond letter (quarterly) October • Submit HUD 4710 Form – Semi annual labor standards enforcement report (deadline may fluctuate) • Submit HUD 2516 Form – Women/Minority Subcontract Report (deadline may fluctuate) At the Lake Bond letter (quarterly) • Quarterly reports for social services due (Quarter 1) November • Review & Update social service application guidelines and application December • Mail out social service application guidelines and applications • Send monitoring notices to social service agencies • Schedule monitoring visits between mid-December and early-January • Conduct monitoring visits • Complete monitoring checklists • Complete monitoring reporting letters • Regency Point Bond letter (quarterly) Other • HUD 272 Form – Finance should complete this 25 Regular Housing and Redevelopment Authority June 23, 2022 Agenda Number:7.1 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, HRA Executive Director Item:Community Development Block Grant (CDBG) Program Updates 1. Action Requested: Discuss upcoming CDBG program items 2. Background: Staff will provide an update on the CDBG Program, including the timeline to report out on the 2021 program year activities and new funding for the 2022 program year. 3. Budget Impact: Federal funding for the program is provided by the Department of Housing and Urban Development. 4. Attachments: 26 Regular Housing and Redevelopment Authority June 23, 2022 Agenda Number:7.2 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, HRA Executive Director Item:Lakeview Commons 1. Action Requested: Discuss status of Lakeview Commons, a multifamily affordable rental development 2. Background: Staff will provide an update on the status of Lakeview Commons and notification about a potential sale/change in ownership of the property. 3. Budget Impact: N/A 4. Attachments: 27 Regular Housing and Redevelopment Authority June 23, 2022 Agenda Number:7.3 To:Housing and Redevelopment Authority Prepared by:Devon Pohlman, Housing and Economic Development Manager Reviewed by:Danette Parr, HRA Executive Director Item:Upcoming HRA Meeting Dates 1. Action Requested: Review upcoming HRA meeting dates 2. Background: Explore scheduling options for an earlier July meeting date. 3. Budget Impact: N/A 4. Attachments: 28