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
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Housing and Redevelopment Authority 2 of 2 June 23, 2022
7.2 Lakeview Commons
7.3 Upcoming HRA Meeting Dates
8. ADJOURNMENT
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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
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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.
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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.
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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.
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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).
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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.
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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.
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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
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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.
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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:
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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
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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
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▪ 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?
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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
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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.
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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
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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.
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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
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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.
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(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