HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 07-21-2022Housing and Redevelopment Authority 1 of 2 July 21, 2022
CITY OF PLYMOUTH
AGENDA
Regular Housing and Redevelopment Authority
July 21, 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 HRA Minutes
Housing & Redevelopment Authority Minutes 06-23-2022
4.2 Plymouth Towne Square housing report
Plymouth Towne Square Financials
4.3 Vicksburg Commons housing report
Vicksburg Crossing Financials
5.PUBLIC HEARINGS
6.NEW BUSINESS
6.1 Moderate Income Housing Policy Due Diligence Follow Up
Compensation Fee Schedule - Sample Project
Compliance Concept Memo
Moderate-Income Housing Policy - redline
7.UPDATES
7.1 HRA Updates
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Housing and Redevelopment Authority 2 of 2 July 21, 2022
8.ADJOURNMENT
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Regular
Housing and
Redevelopment
Authority
July 21, 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:HRA Minutes
1.Action Requested:
Approve the attached minutes from the HRA meeting held on June 23, 2022.
2.Background:
NA
3.Budget Impact:
NA
4.Attachments:
Housing & Redevelopment Authority Minutes 06-23-2022
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DRAFT MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
June 23, 2022
MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Aqueelah
Whitfield, James Williams, Wayne Peterson, Ronald Kelner, and Joel Spoonheim
ABSENT: Commissioner Lucas Larson
STAFF PRESENT: HRA Executive Director Danette Parr, Housing & Economic
Development Manager Devon Pohlman, and Permit Technician Michelle Bast
OTHERS PRESENT: Ed Goldsmith of Outreach Development Corporation and
Hildania Christensen
1. CALL TO ORDER
Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to
order at 7:04 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 Whitfield, seconded by Commissioner Williams to approve
the Agenda. Vote. 6 Ayes. MOTION passed unanimously.
4. CONSENT AGENDA
4.1. Approve proposed minutes from May 17, 2022.
MOTION by Commissioner Williams, seconded by Commissioner Whitfield, to approve
the Consent Agenda. Vote. 6 Ayes. MOTION passed unanimously.
5. PUBLIC HEARINGS
6. NEW BUSINESS
6.1. May 24 Joint HRA/City Council Study Session Feedback
Housing & Economic Development Manager Pohlman gave an overview. She reported that
the City Council appeared to support additional work on the Moderate Income Housing
Policy and wanted to know more about how ongoing compliance work associated with the
policy would be structured. Advancing the policy allows the HRA Board to enact an
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Plymouth Housing and Redevelopment Authority
June 23, 2022
Page 2
important component of their Strategic Plan. She said at this time, the Council did not
provide the direction to move forward with the Tenant Protection Policy. She said staff will
work on the compliance matters related to the Moderate Income Housing Policy with
potential to revisit the Tenant Protection Policy in the future. Housing & Economic
Development Manager Pohlman said during today’s meeting she would like to discuss the
goals of the Strategic Plan and what is in our capacity to administer this year. She said
another topic for tonight’s meeting is discussion about CDBG grant management.
6.2 Moderated Income Housing Policy
Compliance Concept Memo
DRAFT Moderate-Income Housing Policy
Chair Soderberg agreed with moving forward with the Moderate Income Housing Policy
as an immediate priority.
Commissioner Peterson requested the reason for the policy’s name change to be explained.
He asked if the name was changed to make is more saleable.
Housing & Economic Development Manager Pohlman responded the decision was made
to name the policy to better reflect the affordability level of units the policy would generate.
The policy is designed to serve households with median incomes at 50 to 60 percent of
Area Median Income (AMI).
Commissioner Williams noted that in the Strategic Plan the incomes at or below 50% are
low and asked how either this policy specifically, or other components of the Strategic
Plan, will serve low-income households below 50% AMI..
Chair Soderberg replied this policy is not intended to get us to 30% AMI low income; there
are other ways to get to low income with additional subsidies.
Commissioner Williams said we should be following the Strategic Plan that was developed,
including focusing our efforts on serving 30% AMI households.
Commissioner Williams asked why the name change is necessary.
Housing & Economic Development Manager Pohlman stated often significant additional
subsidies through the state, county and other sources are needed to reach 30% AMI rent
and income levels. The Moderate Income Housing Policy is trying to create affordable
housing at the 50-60% AMI level which can be accomplished by asking market rate
developers to make a financial structure work serving a more moderate-income renter. This
policy can be an effective tool to add affordability to a community, with additional and
more comprehensive strategies needed to secure resources to effectively serve lower-
income households.
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June 23, 2022
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Commissioner Kelner stated if developers participate at the ten – 20 percent level this will
focus on the moderate income level.
Commissioner Peterson said there could be a second policy to support lower-income
affordable housing serving households at 30% AMI levels.
HRA Executive Director Parr relayed the title was brought forward to describe the policy
for what it is. This Moderate Income Housing Policy will help us serve more moderate-
income households by working with developers doing market rate multifamily projects.
Chair Soderberg added that this policy is one piece of the plan. The Moderate Income
Housing Policy will be step one and then we can work to identify projects and affordable
housing partners whose mission is to serve low-income households.
Commissioner Peterson stated this policy is not a stopping point. We need to draft a policy
to submit to the council because we are tying to get to affordable housing.
Chair Soderberg asked who is okay with the Moderate Income Housing Policy.
Commissioner Williams said we need to take on the hard work to stay with the vision of
the Strategic Plan to make the greatest impact.
Commissioner Kelner stated our plan can include those at 50 to 60 percent of income levels
to encourage developers. And then we can focus on projects, like Cranberry Ridge, to get
to the 30 to 40 percent income levels with higher subsidies.
Chair Soderberg said the Council has to approve the Moderate Income Housing Policy to
have the policy. Our donation to Cranberry Ridge did not go through the Council. We can
do high impact things with our dollars; we can find programs for the target group.
A member from the public, Hildania Christensen, asked about the intent of the CDBG
program and noted that resources were needed to support homeowners who struggled to
make their monthly mortgage payments because of COVID, citing that the state’s
HomeHelpMN program launched too late to support many homeowners in need.
Chair Soderberg requested that that we re-affirm with HRA members that we should
advance the Moderate-Income Housing policy as proposed to City Council.
Housing & Economic Development Manager Pohlman replied yes, we want to bring this
to the City Council with additional background on how the ongoing compliance can be
sustainably and successfully managed.
Commissioner Spoonheim requested it be restated what we are discussing.
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June 23, 2022
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Chair Soderberg replied the City Council supports the Moderate Income Housing Policy
with caveats about compliance. The City Council did not appear to support the Renter
Protection Policy at this time.
Housing & Economic Development Manager Pohlman suggested moving forward with the
Moderate Income Housing Policy and additional due diligence related to the compliance
aspect of the policy.
Commissioner Spoonheim suggested that actual compliance cost be modeled out and
presented with the compliance concept when the policy comes back to the City Council .
Commissioner Spoonheim also emphasized the need for the Strategic Plan to address
strategies for developing and preserving low-income housing. He suggested that having a
policy that is clear about our intent to support low-income housing will help the City
compete to get more points on housing applications submitted to the State, County or other
funders.
Chair Soderberg stated we are not disregarding low income; we are starting to create
policies.
Hildania Christensen, raised questions pertaining to how the city makes decisions
pertaining to the CDBG program.
HRA Executive Director Parr reminded the HRA members of the protocol around the public
forum.
Chair Soderberg proposed to go forward with the Moderate Income Housing Policy and
address concerns about administration.
Housing & Economic Development Manager Pohlman provided additional background
information pertaining to the proposed compliance concept that would support long-term
implementation of the Moderate Income Housing Policy. Compliance can be effectively
managed using an affordable housing consultant given limited staff capacity to administer
long-term rental compliance, with the potential to pass through relatively modest
compliance costs to the developer responsible for long-term adherence to the affordability
requirements.
Commissioner Williams asked what the cost range is.
Housing & Economic Development Manager Pohlman replied it depends on the project
size and provided an estimated range of a sampling of compliance costs associated both
with ongoing monitoring as well as individual tenant file review.
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June 23, 2022
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Commissioner Kelner said a developer wants to construct market rate unit and needs an
incentive to provide housing for moderate income. He said he agrees with charging
developers reasonable compliance fees.
Commissioner Peterson said it is reasonable to contract with someone who is already
managing properties.
Housing & Economic Development Manager Pohlman said that experience in affordable
housing rental compliance would be a pre-requisite for any potential contracted work given
various legal requirements and tenant regulations that need to be considered with
affordable housing.
Commissioner Spoonheim noted that before the Moderate Income Housing Policy is
brought forward for City Council action, staff need to be prepared to respond to the request
for additional information about why the policy requires a 10 unit threshold to take effect,
noting that this precludes smaller developers from the requirement as questioned by one
City Council member at the May Study Session.
HRA Executive Director Parr noted that our municipal advisory firm was consulted in the
development of the 10-unit threshold and that projects with fewer than 10 units may not
have sufficient margins to make the affordability requirements work, particularly in cases
where homeownership is concerned.
Housing & Economic Development Manager Pohlman agreed to reach back out to our
municipal advisory firm with respect to the ten-unit threshold recommendation.
Commission Kelner asked if the levels are federal guidelines.
Housing & Economic Development Manager Pohlman said the unit threshold, as proposed,
is a common standard for other cities.
Chair Soderberg asked what the time frame is for when to go back to the City Council.
Housing & Economic Development Manager Pohlman replied late summer to early fall.
The policy will go before the HRA Board and then to the Council.
Commissioner Spoonheim said public comments on the two proposed housing policies
were not previously circulated when staff transitions occurred and requested those be made
available.
HRA Executive Director Parr said the comments will be shared and a discussion can be
had to ensure we are doing this right and we are in agreement.
Commissioner Kelner asked if the Dundee development will be market rate.
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Plymouth Housing and Redevelopment Authority
June 23, 2022
Page 6
HRA Executive Director Parr said yes, and that the developer agreement includes a
provision for funding for future affordable housing set at 2% of rents based on stabilized
occupancy. When the project is closer to completion, the HRA Board will be consulted on
how best to invest that funding stream.
Chair Soderberg asked when to propose the Renter Protection Ordinance.
Housing & Economic Development Manager Pohlman said after the Moderate Income
Housing Policy is passed.
Chair Soderberg asked if there were any questions for staff about the Renters Protection
Policy.
Commissioner Spoonheim said one of the Council Members raised the point that the 90-
day notice requirement should be for all tenants regardless of which rate they are paying,
noting that the policy could potentially move forward for further review.
Chair Soderberg said we will reprioritize what is in the Strategic Plan and discuss that
when we meet in July.
Commissioner Kelner said it is the desire of the HRA Board to help ensure that the Strategic
Plan specifically outlines strategies to serve low income households.
Housing & Economic Development Manager Pohlman stated the Housing Choice Voucher
Program is not called out specifically in the Strategic Plan and that is a critical resource
that helps to serve low-income households and is administered by the City.
Chair Soderberg said we will target the August meeting for further discussion related to
Strategic Plan priorities and will work to advance the Moderate Income Housing Policy in
the near term with additional financial modeling to highlight the rational for the ten unit
threshold.
6.3 HRA Action Items 2022
CDBG Administration Timeline
Housing & Economic Development Manager Pohlman provided an overview about the
CDBG timeline. She said CDBG administration requires year-round work with the new
program year starting on July 1. She noted that the City has three different options for
CDBG program administration and briefly outlined those, including pros and cons.
Commissioner Kelner said it makes sense to partner with Hennepin County to streamline
program administration.
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Plymouth Housing and Redevelopment Authority
June 23, 2022
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Chair Soderberg asked if staff is ready for a proposal.
Housing & Economic Development Manager Pohlman replied not yet, but noted the likely
timeline for partnering with Hennepin County would need to be to be soon to start
negotiations in January 2023 for a partnership that could become effective with the 2024
program year. Further assessment is needed, and a proposal will be brought back to the
HRA.
Commissioner Peterson asked if CDBG administration were to move to Hennepin County,
would the City of Plymouth retain its CDBG allocation amount?
Housing & Economic Development Manager Pohlman said the funds will be reallocated
to our formula by HUD. She said if Hennepin County managed it, the administration fee
would go to Hennepin County, and public services funding would be combined into one
county-wide allocation through the County. Currently Hennepin County has Joint
Cooperation Agreements with individual cities to administer rehabilitation for specific
amounts to each City, but the County would have discretion to change its administrative
approach to the program. She stated managing the CDBG funds is very labor intensive.
7. UPDATES
7.1 Community Development Block Grant (CDBG) Program Updates – The 2022
Program Year Annual Action Plan awaits approval by HUD.
7.2 Lakeview Commons – The HRA discussed the potential sale of Lakeview
Commons, the history of the development of the property, and potential strategies
to maintain the long-term affordability of the property as well as the threat of
conversion to market-rate units. A member of the public, Ed Goldsmith, provided
background on the significant partnerships involved in the development and
ongoing community support at Lakeview Commons, including partnerships with
the local school district.
7.3 Upcoming HRA Meeting Dates – The next meeting will be held at Plymouth Towne
Square on July 21 at 7 pm. Please note a change in the original meeting date.
8. ADJOURNMENT
MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 9:05 p.m.
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Regular
Housing and
Redevelopment
Authority
July 21, 2022
Agenda
Number:4.2
To:Housing and Redevelopment Authority
Prepared by:Devon Pohlman, Housing and Economic Development Manager
Reviewed by:Danette Parr, HRA Executive Director
Item:Plymouth Towne Square housing report
1.Action Requested:
Accept attached Plymouth Towne Square housing report for May 2022.
2.Background:
Plymouth Towne Square housing report May 2022
3.Budget Impact:
NA
4.Attachments:
Plymouth Towne Square Financials
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Regular
Housing and
Redevelopment
Authority
July 21, 2022
Agenda
Number:4.3
To:Housing and Redevelopment Authority
Prepared by:Devon Pohlman, Housing and Economic Development Manager
Reviewed by:Danette Parr, HRA Executive Director
Item:Vicksburg Commons housing report
1.Action Requested:
Accept attached Vicksburg Commons housing report for May 2022.
2.Background:
Vicksburg Commons housing report May 2022.
3.Budget Impact:
NA
4.Attachments:
Vicksburg Crossing Financials
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27
Regular
Housing and
Redevelopment
Authority
July 21, 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:Moderate Income Housing Policy Due Diligence Follow Up
1.Action Requested:
Review the Moderate Income Housing Policy, associated compliance concept, and sample
development compensation structure prior.
2.Background:
In March 2021 the City Council adopted the HRA Strategic Plan after a variety of engagement
opportunities with external stakeholders, City Council members, and analysis and input from other
cities. In May 2022 a joint Study Session with the HRA and City Council was held to review two
proposed policies within the Strategic Plan, with the City Council asking for additional due diligence
related to the Moderate Income Housing Policy specifically. Staff have finalized the proposed policy
with changes made subsequent to the May 2022 Study Session outlined in red, and have identified a
recommended compliance concept for managing the affordability requirements long-term. Staff
will present a proposed compensation structure for a sample development project for review and
discussion.
3.Budget Impact:
Under the proposed compliance concept, the HRA would incur a one-time compliance set up fee.
Additional costs associated with ongoing compliance throughout the affordability period are
proposed to be passed on the project owner.
4.Attachments:
Compensation Fee Schedule - Sample Project
Compliance Concept Memo
Moderate-Income Housing Policy - redline
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07/2022
COMPENSATION:
Overall, Fee Types: Description of Fees: Fee
Amount:
HRA Set-Up Program Set-Up Fee (1X) $1800
Project Set-Up Project Docket Set-Up Fee (Per Project) $300
Initial File Review Initial Program Certification (Per Unit) $80
Annual Report Annual Report / Desk Audit Administrative Review (Per Project) $150
Annual Monitoring Annual File Monitoring 20% of Units $80
On-Going Monitoring MI/Turnover Initial Program Compliance (Per Unit/Per Occurrence) $80
First Year : Assumptions: 20% at 60% AMI – 100 total units with 20 affordable units
Fee Type: Breakdown Fee Amount:
Project Set-Up 1 X $300 $300
Initial File Review 20 units X $80 $1600
Annual Report 1 Report X 150 $150
On-Going Monitoring (Unknown
– assumed 4 turns annually)
4 X $80 $320
Project First Year Fees $2370
Second Year: Assumptions: 20% at 60% AMI – 100 total units with 20 affordable units
Fee Type: Breakdown Fee Amount:
Annual Report 1 Report X $150 $150
Annual Monitoring 20% 4 X $80 $320
On-Going Monitoring (Unknown
– assumed 4 turns annually)
4 X $80 $320
Project Second Year+ Fees $790
Third Year+: Assumptions: 20% at 60% AMI – 100 total units with 20 affordable units
Fee Increase ($5 increase per report & per file review)
Fee Type: Breakdown Fee Amount:
Annual Report 1 Report X $155 $155
Annual Monitoring 20% 4 X $85 $340
On-Going Monitoring (Unknown
– assumed 4 turns annually)
4 X $85 $340
Project Third Year Fees $835
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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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Rev. July 2022
DRAFT Moderate Income
Housing Policy
A moderate-income housing policy encourages new developments to make a certain percentage
of new housing units affordable. The goal of this policy is to promote high quality housing located
throughout the community for a variety of income levels, ages, and household sizes in order to
meet the City's goal of preserving and promoting economically diverse housing options within the
community.
The City recognizes the need to provide affordable housing for a broad range of income levels to
maintain a diverse population and attract residents to live or work in the City. This Policy has
been created to ensure that a reasonable proportion of each new development receiving City
financial assistance include units affordable to 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
of dwelling units in the development. The units designated as moderate-income will be subject
32
Rev. July 2022
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
a 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 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 Developmentand calculated annually by Minnesota
Housing for the Impact Fund program. Commented [DP1]: MHFA_1019813 (1).pdf
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Rev. July 2022
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 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 equally by
bedroom size be distributed and 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 rental 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 fiveforty percent (125140%) of the applicable AMI. If the family income
exceeds this amount they must be moved to the first available non-moderate-income affordable
unit.
Commented [DP2]: Industry standard LIHTC is at 140%
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Rev. July 2022
V. Alternatives to On-Site Development of Affordable Moderate-Income Dwelling Units
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
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Rev. July 2022
with federal, state or local public assistance, including, but not limited to rental assistance,
rent supplements, and Housing Choice Vouchers.
VII. Affordable Housing PlanPublic Financial Assistance Application and Agreement
(1) Applicability
Developments that are subject to this Policy shall include submit an Application for Public
Assistance and enter into a Public Assistance AgreementAffordable Housing Plan as
described below, which documents . An Affordable Housing Plan describes how the
developer complies with each of the applicable requirements of this Policy.
(2) Approval
The Affordable Housing Plan Public Assistance Agreement shall be approved by the City.
(3) Contents.
The Affordable Housing PlanPublic Assistance Agreement 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 by bedroom size and income threshold.
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.D. 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.E. Proposed schedule of individual unit development (market rate
vs. affordable units).
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Rev. July 2022
I.F. Documentation and specifications regarding the exterior appearance,
materials and finishes of the development for each of the affordable
dwelling units illustrating that the appearance of affordable units are
comparable to the appearance of the market-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.G. 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 Public Assistance Agreement 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 Ppolicy and location criteria. The Public Assistance
Agreement shall identify:
a. the location, number, type, and size of affordable housing units to
be constructed; and
a.b. income limitations for the affordable units
b.c. sales and/or rental terms; occupancy requirements; and
c.d. a timetable for completion of the units; and
d.e. restrictions that will be placed on the units to ensure affordability; and
e.f. 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, a Declaration of rRestrictive
covenants 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. DefinitionsFinancial Assistance
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:
Commented [DP3]: Included in the Public Assistance
Agreement.
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Rev. July 2022
(1) Rental Projects:
A. At least twenty percent (20%) of the units shall be affordable for
households at sixty percent (60%) Area Median Income (AMI), or
B. At least ten percent (10%) of the units shall be at available affordable
for households at fifty percent (50%) Area Median Income.
(2) For-Sale Projects:
A. At least fifteen percent (15%) of the units shall be affordable for
households at eighty percent (80%) Area Median Income (AMI).
2.1. Financial Assistance: This Moderate-Income Housing Policy applies to all new and
renovated multifamily residential buildings or new for-sale housing 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 or HRA funds or fee waivers 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.G. 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.
4.2. 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.
Commented [DP4]: Already covered under II.
Affordability Level above
Commented [DP5]: Included in the Public Assistance
Agreement
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Regular
Housing and
Redevelopment
Authority
July 21, 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:HRA Updates
1.Action Requested:
Review brief updates on upcoming work items and areas of interest.
2.Background:
Staff will provide updates and facilitate brief discussion on the following:
1. Senior Buildings - roof damage
2. CDBG Consolidated Annual Performance and Evaluation Report (CAPER) for Program Year 2021
3. Budget Process
4. Lakeview Commons
3.Budget Impact:
NA
4.Attachments:
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