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HomeMy WebLinkAboutCity Council Packet 10-23-2007 SpecialAgenda City of Plymouth Special City Council Meeting Tuesday, October 23, 2007 5:30 p.m. Medicine Lake Room 1. Call to Order 2. Discuss Housing Element of the Comprehensive Plan. City of Plymouth. (2005050) 3. Adjourn N DATE: October 17, 2007 TO: P13T),outh City Council FROM: Jldl . es, Housing Manager SUBJECT: Comprehensive Plan Update — Preliminary Housing Plan (2005050) At the October 9, 2007 council meeting, the City Council tabled the Preliminary Housing Plan and scheduled 'a study session for October 23, 2007. Attached is the original staff report and attachments for your review and consideration. Agenda Number CITY OF PLYMOUTH CITY. COUNCIL AGENDA REPORT TO: Laurie Ahrens, City Manager through Steve Juetten, Community Developjnent Director FROM: Jij es, Housing Programs Manager (509-5412) SUBJECT: City of Plymouth. Comprehensive Plan Update—Preliminary Housing Plan (2005050) DATE: October 3, 2007 for the City Council Meeting of October 9, 2007 1. PROPOSED MOTION: Adopt the resolution preliminarily approving the housing plan for the Comprehensive Plan Update. The Council may wish to make additional motions giving staff direction for future work on the Comprehensive Plan update. 2. BACKGROUND: The City began the process of updating its Comprehensive Plan in the summer of 2005. In August 2007, staff began bringing chapters of the plan update to the Planning Commission and City Council for review. The housing plan was reviewed by the Housing and Redevelopment Authority Board and the Planning Commission. Comments on the housing plan from these meetings are identified below. 3. HOUSING PLAN: The Housing Chapter of the Comprehensive Plan provides information on existing and projected housing needs in the city. For this Plan's update, staff has revised the structure of the chapters and divided each chapter into a main section and a supporting appendix section. This new formatting will make it easier for the public to review the plan elements without getting bogged down with too much detail. However the detail will be available in the Appendix, if someone desires to get a more in depth perspective. In addition, the Goals and Policies have been included in each individual chapter, as opposed to having a separate chapter for all of the Comprehensive Plan's goals and policies. In this current update, staff has reviewed the existing plan and made the necessary updates to the Housing Chapter based on a number of sources including the 2000 Census, City of Plymouth data, and Metropolitan Council data. The Housing Chapter has one significant change from the previous plan. The Metropolitan Council established an advisory panel to assess and make recommendations relating to each community's share of affordable housing. This panel reviewed the overall need for affordable and workforce housing throughout the metropolitan area and assigned a number to each community. The process included a review of household growth projections, low-wage job proximity, current affordable housing stock, and transit services. The Metropolitan Council has determined that Plymouth's share of the regions overall need to be 1,045 units between 2011 and 2020. In previous plans, the Metropolitan Council required each community to establish affordable housing percentages for owner -occupied and rental housing. In the current Plan, Plymouth established affordable housing goals of 21% and 35% for owner -occupied and rental units respectively. 4. HRA AND PLANNING COMMISSION COMMENTS: The Housing and Redevelopment Authority Board of Commissioners reviewed the draft housing plan at their September meeting. The list below outlines their comments. While they had some comments, in the end, they recommend that the Plan move forward without any changes. The use of accessory dwelling units = the Board discussed. whether the City allows this type of dwelling and whether we need to promote its use more in the future. [staff response] There is currently an ordinance allowing limited use of accessory dwelling units in subdivisions created after June 1, 2001 that include ten or more single family lots in RSF-1, RSF-2 and PUD zoning districts. The future of houses in excess of 2,800 square feet — the Board had concerns about what will happen to all of the larger houses that are/will be built as the demographics change in the city. The new housing goal (1045 units for Plymouth) established by the Metropolitan Council The Board discussed whether this was mandatory for the city to accomplish and what happens if we do not meet this goal. [staff response] At this point it is not clear what would happen if the City does not meet the new affordable housing goals. The Planning Commission reviewed the draft housing plan on October 3, 2007. The list below outlines their comments and recommendations. The new housing goal (1045 units for Plymouth) established by the Metropolitan Council The Commission asked whether the Goal of 1045 affordable units over a 10 year period was realistic and what happens if this goal is not achieved. [staff response] The goal assigned to Plymouth, along with many other communities is extremely aggressive. The goal will be even more difficult to achieve without additional state and federal resources. The methodology used to establish the new housing goals — The Commission questioned whether the methodology used to create the goals was fair. One of the criteria for determining the number of units was a community's proximity to low-wage jobs. The Commission did not believe there is a strong connection to this given the majority of new units in Plymouth will be in the Northwest quadrant of the city were there are no employment centers. The ability of the City to maintain a broad range of housing options — the Commission discussed what the effect will be on maintaining a balance of housing options if the City a meets the affordable housing goals given by the Metropolitan Council. The asked how can we reach the affordable housing goal and still maintain a diverse housing stock? What "tools" are used to assist affordable housing projects — The Commission inquired about what financial tools the City uses to help affordable housing projects and do we use county, state and federal resources as well. [staff response] The City and HRA try to incorporate funding sources from all jurisdictions including local, county, state and federal agencies. In addition, we provide first time homebuyer and owner -occupied rehabilitation loans to residents. The 1986 federal income tax reforms — The Commission questioned why changes that were enacted many years ago are still included in this preliminary plan. [staff response) The impact of this legislation removing many of the tax incentives to developers who build affordable rental housing is as great today as it was when the tax reforms were enacted. Senior Housing — The Commission requested that the City should add a statement relating to senior housing to the Goals and Policy section. [staff response] Staff recommends adding "Provide a broad range of senior housing options to address the needs of an aging population" in section B 1 of the housing chapter. There was one person from the audience who spoke. Kim Vohs, from Interfaith Outreach and Community Partners complimented the City on past efforts and indicated they look forward to working with the City in the future. 5. RECOMMEDATION: Adopt the resolution preliminarily approving the housing plan for the Comprehensive Plan Update. The Council may wish to make additional motions giving staff direction for future work on the Comprehensive Plan update. ATTACHMENTS: 1. HRA Minutes (Draft) 2. Planning Commission Minutes (Draft) 3. Draft Housing Plan 4. Resolution Approving Preliminary Housing Plan I Plymouth Housing and Redeveiopment Authority L A1- I September 20, 2007 Page 2 the Commissioner Ludovi opened the Public Hearing. Commissioner Ludovissie closed the c Hearing as no one was present to speak. MOTION by Commissioner Flansburg, seconded by issioner Stein, approving the update to the Public Housing Agency Annual Plan for the fisc ear beginning January 1, 2008. Vote. 4 Ayes. MOTION approved unanimously. 4. NEW BUSINESS A. Comprehensive Plan. Draft Housing Chapter. Housing Program Manager Barnes presented an overview of the staff report. He said that the Metropolitan Council established an advisory panel to assess and make recommendations relating to each community's share of affordable housing. Plymouth's goal is 1,045 units of affordable housing between 2011 and 2020. Commissioner Ludovissie asked what happens to cities who do not accept the number of units. Housing Program Manager Barnes said it is not clear yet what would happen to communities that do not accept these goals. He stated that it could have an impact on funding requests the City makes to the Metropolitan Council in the future for competitive grant and loan programs. Commissioner Stein asked if the figure was based on the high cost of land in Plymouth. Housing Program Manager Barnes said they do not take that into consideration. Commissioner Stein asked if the Metropolitan Council audits us. Housing Program Manager Barnes said they do not, but they do track our progress through various data collection methods. Commissioner Ludovissie said he does not feel comfortable with the number of units and is questioning if it should be in the housing plan. Housing Program Manager Barnes said the number needs to be acknowledged and believes it should be in mentioned in the plan. Commissioner Stein said he feels it is a goal to strive toward. Commissioner Ludovissie said he doesn't have a problem if it is only being acknowledged. Commissioner Stein asked what will happen to all of the large houses that are or will be built as our demographics change. He mentioned houses in excess of 2,800 square feet. Housing Program Manager Barnes said there is not a definite answer for that as of now. Commissioner Kulaszewicz asked if attaining the goal has any financial benefit from the Metropolitan Council. Housing Program Manager Barnes said that by recognizing the goals and making efforts to achieve the goals we will be eligible to compete for Metropolitan Council funding. Housing Program Manager Barnes stated that Plymouth Plymouth Housing and Redevelopment Authority September 20, 2007 Page 3 has been fairly aggressive in providing affordable housing opportunities but he said the Council needs to balance housing needs among other City needs. He said staff meets with every developer and tries to encourage them to provide some level of affordability in their projects. MOTION by Commissioner Flansburg, seconded by Commissioner Kulaszewicz, recommending that the Housing Plan be forwarded to the Planning Commission and the City Council for consideration. Vote. 4 Ayes. MOTION approved unanimously. Housi\anamManagerBarnespresentedanoverviewofthestaffreport. CommisLudovissie asked how the Section 8 program works at Vicksburg Crossing. Housiam Manager Barnes explained the program. ComFl sburg feels that the recommendations suggested by staff are excellent. ComLudo ' sie asked whether the activity room could be rented to outsiders for varioues. Hou ' g Program Manager Barnes said that it would be difficult and may esidents un sy to have strangers in their building, which is their home. Commissioner Flansburg asked out additional activities for the residents. Housing Program Manager Barnes said that ould be covered by the proposed part-time additional staff person, which will be discussed the October meeting when the Board discusses the 2008 operating budgets. Commissioner ulaszewicz asked where Vicksburg Crossing Manager Monahan would go to market the ilding. Housing Program Manager Barnes replied at senior clubs, senior centers, churche d other places where there are high concentrations of seniors. Commissioner Ludovi ie said he feels it is important to keep the building in the forefront and look at other faciliti for ideas. Commissioner Stein asked if Grace Management has looked at other buildin to see what they are doing to get leased up. Housing Programs Manager Barnes said they h ve begun this and will continue to look at other comparable buildings. Discussion occurred r arding discounted rents. Housing Programs Manager Barnes indicated that the notice we out about 2 weeks ago to over 300 interested people. Staff will keep the Board abreast of th effort. Commissioner Ludovissie wants to see definite figures for funding the\ Board er the next six months. Housing Program Manager Barnes said that in Octobd will bepresentedwithabudget. Commissioner Kulaszewicz asked if they coSeptemberfiguresin.October. The Board also requested that the rentaone inadifferentformat. Commissioner Stein suggested using the Sun Sailog yerinserted. Housing Program Manager Barnes said additional informatig marketing will be brought before the Board at the October meeting. 5. ADJOURNMENT The meeting was adjourned at 8:45 P.M. Draft Planning Commission Minutes September 19, 2007 Page 2 Legacy Park, for property located at County Road 47 and Vicksburg Lane. Vote. 6 Ayes. MOTION approved. 6. PUBLIC HEARINGS A. KB&J'S S, INC. (2007085) Chair Holmes introduced the reNe.st by KB & J's Enterprises, Inc. for a conditional use permit to allow accessory on-saleuor at the planned Broadway Bar & Pizza located at 1370527 1h Avenue North. Associate Planner Berglund gave an overvi v of the September 24, 2007 staff report. Chair Holmes said the applicant was present an\ as t with the conditions listed in the staff report. Chair Holmes opened and closed the public he.was no one present to speak on the item. Commissioner Davis asked if there were any conditions with thi equest that were special or unusual. Associate Planner Berglund said there were not, and added the applicants already started the process to meet the requirements for obtaining their liquor license. MOTION by Commissioner Weir, seconded by Commissioner Davis, to ap ove the request the request by KB & J's Enterprises, Inc. for a conditional use permit to llow accessory on -sale liquor at the . planned Broadway Bar & Pizza located at 13705 to Avenue North. Roll Call Vote. 6 Ayes. MOTION approved. 7. NEW BUSINESS A. • CITY OF PLYMOUTH. Chair Holmes introduced the request by the City of Plymouth fora comprehensive plan update — preliminary housing plan. Housing Manager Barnes gave an overview of the September 24, 2007 staff report. Commissioner Weir said he is very supportive of affordable housing and asked if the number of affordable units we have been given is realistic based on builders stating the price of dirt makes it difficult to build affordable housing in the City of Plymouth. Ili UIL Planning Commission Minutes September 19, 2007 Page 3 Housing Program Manager Barnes said it probably will be difficult for many municipalities to meet the new affordable housing goals. He said communities which are still developing have higher average house prices with less affordable housing. One criteria in determining a community's share of affordable units is the current number of affordable units. Housing Program Manager Barnes added that Plymouth has been very active in past years to find good projects that have affordable housing components. Planning Manager Senness added that the affordable housing unit goal of approximately 100 units per year exceeds the number of residential units built in a year. She said the City has not seen that much of an increase in the number of units built per year in the past few years. Vice Chair Neset asked how many units are forecast to be built between 2011 and 2020. Housing Manager Barnes said the 20 -year plan forecasts 3,393 to 6,405 units. Based on that, Housing Program Manager Barnes said approximately 1,600 to 3,200 units could be built in the ten year period. Vice Chair Neset said that is more than we establish for our current goals. He said the Met Council reviews proximity to low wage jobs, transportation, etc., as criteria for establishing the goals, but in his mind the ,area yet to be developed doesn't have proximity to those requirements. Housing Manager Barnes explained that the criteria that impact the decision are not solely contained in Plymouth. Housing Manager Barnes said other communities are also concerned about numbers they have been given. He said if financial resources from the state and federal government would increase, Plymouth would have a better chance of achieving the goals. Commissioner Neset said it is fine to have an aggressive goal, but asked about the downside of not achieving the goal. Planning Manager Senness said the Met Council in the past has looked at these goals as opportunities. She said an area guided for higher density housing which tends to be more affordable would provide more opportunity to achieve an affordable housing unit goal than an area that is guided for low density. Commissioner Neset asked what is considered affordable for owner -occupied units. Housing Manager Barnes said there is no differentiation between ownership and rental housing units in the new affordability goals assigned by the Met Council. He said a unit is considered to be affordable if the owner or tenant's income is 60% of area median income or below for rental or ownership. He noted that other programs may still have a benchmark for sales price for ownership. Planning Commission Minutes September 19, 2007 Page 4 Commissioner Neset asked how the income limit is tested or reset. Housing Manager Barnes said HUD reviews and releases .data on an annual basis. He added that there has not been much change in the last three years. Commissioner Jaffoni asked if the goals and policies Section Bl(f) could be more definitive and change "support efforts..." to "...assure equal access to housing in Plymouth". Housing Manager Barnes said he was unsure if the City has the ultimate control over all of the access to housing in such a broad manner where we would want to make that change. He said situations could occur where a person was denied access to housing, and the City would not be aware of. Housing Program Manager Barnes said the City would not have regulatory backing to enforce such a statement. He said that the City has the Human Rights Commission and other housing programs the City participates in regarding housing initiatives, but to emphasize equal access is a bit strong. Commissioner Jaffoni commented on the existing senior living facilities and the approved Trillium Woods project, and the range of services currently available. She said Plymouth has no skilled nursing facility. Commissioner Jaffoni said the demographics repeatedly show there will be a need not only for independent living, but skilled nursing facilities. Commissioner Jaffoni asked for comments specific to those needs be included. Housing Manager Barnes reviewed the existing facilities and the care components of each. He said nursing homes are State regulated and no new nursing homes are allowed at this time. He said the State is consolidating and revamping this system. Housing Manager Barnes said they are looking for the private sector to provide a broad range of senior housing options. Housing Manager Barnes said the baby boomer generation is healthier, wealthier and able to live in their homes longer and able to bring in care. He said the metro area is beginning to have campuses for seniors which include full services of medical on staff, convenience stores, barber, beauty shop, etc, and said this is a national trend. Planning Manager Senness concurred that there will be more opportunities or situations where people stay in their own homes, and any additional services would be contracted. Commissioner Jaffoni said she is unclear what the trend will be to meet the needs as there are so many of us (baby boomers). She said she gets the sense that there are long waiting lists for assisted living facilities, not only in Plymouth but everywhere. Housing Manager Barnes reiterated that a key part of the current draft is that it will allow us to be flexible as needs change and be able to adapt through other parts of the Comprehensive Plan. vratt Planning Commission Minutes September 19, 2007 Page 5 Commissioner Aamoth asked if specific language promoting or dealing with senior housing could be included. He said these goals are not emphasized as much as other issues, but senior housing presents a special challenge. Commissioner Aamoth asked for clarification of "reasonable progress" in relation to the housing goals, and how that affects our other housing goals in the next ten years. Housing Manager Barnes said the overall goal within this plan is to provide a broad range of housing options and to make sure Plymouth is a balanced community. He said local and national studies conclude that you need a broad range of housing choices and options, not only on the economic side, but also for life cycle choices. Housing Manager Barnes said Plymouth seems to be average in maintaining that balance and is on par with other similar communities. i Commissioner Aamoth asked how these goals would be implemented. He asked about subsidies and if that is typical for affordable housing. Commissioner Aamoth asked if the City directs the subsidy and how it is used to make housing affordable. Housing Manager Barnes said if a development is a rental project or townhomes, it often requires a public subsidy of some kind to assist with the development costs if the project has an affordability component. He said the City ensures that the developer seeks out County, Federal and State resources in addition to the City. Housing Program Manager Barnes reviewed some of the funding for the recent Vicksburg Commons project. He said the City also uses Community Development Block Grant funds for first time homebuyers and helping homeowners rehabilitate their houses. Commissioner Aamoth said for Plymouth to meet or make substantial progress toward the goals, it is not only our resources, but County, and State funding sources are needed to get to that point. Housing Program Manager Barnes said for a development project in excess of $6,000,000, there might be 7-15 other public funding sources involved. Commissioner Jaffoni said she would support Commissioner Aamoth's suggestion to look at goals and policies and add a specific stand-alone line to provide a broad range of senior housing to address the needs of the aging population. Commissioner Davis questioned the inclusion of the 1986 Federal Income Tax Reform as one of the barriers to developing affordable housing. Housing Manager Barnes said that tax reform act, which had a massive impact on tax incentives for developers and investors in 1986, continues to affect developers who consider doing affordable rental housing. He said the only tax incentive now is Section 42 of the tax code (Low -Income Tax Credits). He said the low income tax credits are not nearly as plentiful as the tax incentives developers used to receive prior to the tax reforms. Dratt Planning Commission Minutes September 19, 2007 Page 6 He stated each state receives a limited allocation of tax credits each year and the demand typically exceeds the amount of tax credits. He believes that the language should remain because of its continued impact on the development of affordable housing. Chair Homes introduced Kim Vohs, Housing Director for Interfaith Outreach and Community partners. Mr. Vohs thanked Plymouth for its incredible role in the Vicksburg Commons project. Mr. Vohs said the goals in this preliminary housing plan are high and he appreciates the determination the City of Plymouth has. Mr. Vohs noted that more people are coming to work in Plymouth. He said there would be less strain on the (metro) transit system if they were able to live in Plymouth than now live here. Mr. Vohs said Section B 1(c) actively encourages developers to include affordable housing. He said Vicksburg Commons is an example of how a City can make affordable housing happen and reviewed the process from purchasing the land, developing partners and providing seed money. Mr. Vohs discussed the population of the clients IOCP assists. He said 85% of the 1,500 people they assist are at or below 50% of the area median income. He said IOCP and other agencies have been inundated by persons impacted by foreclosures and in need of rental housing. Mr. Vohs said the trend is to develop affordable housing in "non - impacted" areas. These are areas that are not already minority or poverty impacted and he said he suspects all of Plymouth would be considered non -impacted. Mr. Vohs concluded that the goal of 1,045 units would help meet the challenge of that trend. MOTION by Commissioner Weir, seconded by Commissioner Cooney, to preliminarily approve the comprehensive plan update — preliminary housing plan and to forward the Commission's comments to the City Council. Roll Call Vote. 7 Ayes. MOTION approved. S. ADJOURNMENTi, MOTION by Chair Holmes, without objection, to adjourn the meetin —57 p.m. Draft 09.06.07 Chapter 4 Housing Plan A CHAPTER PURPOSE The Housing Plan establishes standards, plans and programs to meet existing and projected housing needs in Plymouth. It also identifies strategies to promote the development of low and moderate income housing as defined by state law. The Housing Plan will help the City in integrating housing into the City's overall development objectives and encourage the private. sector to meet identified housing needs. The plan is intended to maximize the City's efforts to respond to and create opportunities for the development of affordable and life cycle housing, to promote compact, efficient and well -integrated development and to maintain the City's . neighborhoods and housing stock. This chapter, along with the associated appendices, provides information on present and future housing demand in Plymouth, present housing supply and housing mix, current and proposed housing programs and the trends associated with these elements of Plymouth's housing stock. The primary sources of data are the 2000 U.S. Census, City of Plymouth forecasts of population and employment and information from current City programs and services. When the results of the 2010 U.S. Census are available, the City will analyze them to determine if the plan will require updating. B GOALS & POLICIES 1 Promote the development and preservation of a supply of quality housing that is affordable at all income levels and at all stages of the life cycle. a Provide opportunities for the development of quality housing that is diverse in terms of ownership, price, type and style. b Promote the use of sustainable resources in the design (site and building) of all proposed housing projects. C Actively encourage residential developers to include housing that is affordable to low -and moderate -income persons and local employees as part of their proposals in order to provide a range of mixed - income housing throughout the community. Toward that end, the City will provide information about Plymouth's goals for affordable and life -cycle housing to anyone inquiring about possible development within the city. d Provide financial and technical assistance to developers of housing that is affordable to low and moderate persons. e Promote the development of housing for persons with special needs, including accessible housing for persons with disabilities. f Support efforts to assure equal access to housing in Plymouth. g Continue to pursue federal and state resources for affordable housing that help meet Plymouth's needs for low- and moderate -income life cycle housing. h Review all development proposals for their potential to contribute toward meeting the City's goals for affordable life -cycle housing. When necessary, the City will recommend ways in which such housing can be incorporated into a proposal. To the extent it is lawful and appropriate, the City may approve development applications contingent upon a proposal's contribution toward meeting housing goals. 2 Promote development patterns and densities that link housing with services and facilities, employment centers Page 2 of 9 Chapter 4 Plymouth Housing Plan — 12008 and all forms of transportation, particularly public transit and non -motorized forms of transportation. a Support residential development that makes efficient use of land and. public infrastructure. b Provide opportunities to develop housing that is affordable to low - and moderate -income persons in areas that are accessible to employment centers, commercial areas, public uses and transportation facilities. c Work with Plymouth businesses to identify opportunities to promote affordable housing as a means to maintain a healthy business climate. 3 Ensure that all housing and neighborhoods in Plymouth are well maintained. a Encourage programs and activities that enhance and maintain neighborhoods. b Support local programs that provide low and moderate income persons financial assistance to maintain and rehabilitate their housing. Page 3 of 9 Chapter 4 Plymouth Housing Plan - 2008 C HOUSING NEEDS The City needs to address the following key housing issues: 1) life cycle housing; 2) affordable housing; and 3) housing maintenance and preservation. 1 LIFE -CYCLE HOUSING Life -cycle housing is defined as housing that meets the needs of all residents and various phases in life. It ranges from housing for young adults establishing new households to homes for growing families with children and housing for seniors in their retirement years. To accommodate this range, the City's housing supply needs to be diverse, consisting of a variety of prices and styles of housing. Furthermore, providing an adequate supply will require an adequate response from both the private and public sectors. The City's current mix of housing includes 15,814 (54 percent) detached housing units and 13,654 (46 percent) attached housing units. Seventy one percent of Plymouth's housing units are owner occupied, 29 percent are renter occupied. The number of non -family households continues to increase. Roughly a quarter of Plymouth's housing units are affordable to low and moderate income households. City officials will monitor this mix throughout the next 20 plus years so that imbalances may be identified and addressed. a Life Cycle Housing Indicators Indicators of the future need for additional life -cycle housing or greater housing diversity include: 1) changes in age of population; 2) changes in family structure; 3) changes in the availability of different types of housing; 4) supply of and demand for senior housing; and 5) supply of and demand for special needs housing. Demographic trends indicate that Plymouth's population is aging and the community is seeing an increase in non -family and non-traditional households. Currently, the City exceeds the Metropolitan Council's regional benchmark for multi -family housing. Waiting lists for senior housing suggest that demand exceeds supply. (See Appendix 4A.) Plymouth will promote housing diversity, but recognizes that several factors may limit the City's ability to meet life -cycle housing needs in Plymouth between now and 2030. The supply and mix of housing, both rental and ownership, may not keep pace with the demand created by the increasing number of elderly and fewer traditional family households. Such changes indicate that the demand for alternatives to the single family home will continue to be strong in the future. Sites suitable for additional higher -density housing types, such as apartments, are limited. The property tax system discourages investment in rental housing. In addition, the 1986 federal income tax reforms eliminated incentives that had encouraged significant investment in rental housing. Public resources that helped provide special needs housing for the elderly and disabled are limited. The demand for affordable family and senior housing exceeds the supply. b Housing Programs As people go through various stages and/or changes in their lives, their housing needs and desires change. The City provides the leadership, through its policies and . programs to meet the anticipated future housing needs of all residents. The Plymouth Housing and Redevelopment Authority (HRA) is the primary municipal agency that administers housing assistance programs in Plymouth. The HRA and its staff work closely with staff from Hennepin County, Minnesota Housing Finance Agency, U.S. Department of Housing and Urban Development and local lenders, realtors and landlords. The HRA administers and will continue to provide programs that address the needs for life -cycle and all other housing needs within the city. c Fair Housing Fair housing is the assurance that adequate housing opportunities are available to all Plymouth citizens. The City's role is to ensure that landlords and renters are aware of state and federal regulations prohibiting discrimination in housing for any member of society based on religion, sexual orientation, gender, physical disability or race. The Plymouth HRA participates in the Fair Housing Implementation Council, which is a consortium of nine organizations that provide public education, complaint resolution and fair housing testing in Plymouth as well as the entire metropolitan area. The Plymouth Human Rights Commission also assists in promoting fair housing in the community. 2 AFFORDABLE HOUSING The Department of Housing and Urban Development (HUD) defines affordable housing as housing for which a household pays no more than 30 percent of its income. For the purpose of the Metropolitan Livable Communities Act, the Metropolitan Council has further defined affordable housing as: 1) renter housing that is affordable at incomes at or below 50 percent of the area's median family income; or 2) owner -occupied housing that is affordable at incomes at or below 80 percent of the area's median income. a Affordable Housing Indicators Indicators of affordable housing need include: 1) household income; 2) housing cost as a percent of household income; 3) jobs and housing relationship; 4) availability of affordable housing units; and 5) supply of and demand for subsidized housing units. Although Plymouth's median income exceeds the metropolitan median, there are a growing number of households for which housing affordability is an issue. In fact, n--- c _cn nti__.__ e -_-1 rr_.__:__ n— n . the number of renter households and homeowners paying more than 30 percent of their income for housing has increased dramatically in Plymouth. In addition, given the high cost of housing in the city and the wages earned by non-resident workers, housing costs are likely an obstacle for a significant portion of non-resident workers. On the supply side, roughly a quarter of.Plymouth's housing units fall within the affordable range. At the end of 2007, there were nearly 1,150 units of either subsidized rental housing or rental housing with Section 8 vouchers. Looking at new construction, the cost of land in Plymouth will make it increasingly difficult to meet affordable housing needs with single family homes. However, City Assessor's data shows that affordable attached housing is being built in the city. Nonetheless, based on regional figures, the demand for affordable housing still exceeds the supply. This is the case in almost all metropolitan area communities. b Affordable Housing Programs The City of Plymouth and the Plymouth HRA support federal and state housing programs to assist low and moderate income persons. In addition to taking advantage of state and federal funds, the City uses local property tax dollars (more than $7.4 million since 1.990) to promote and support affordable housing. C Livable Communities Housing Goals To be eligible for funding specified in the Metropolitan Livable Communities Act, state law requires cities to establish housing goals.. Plymouth adopted housing goals as part of the 2000 Comprehensive Plan. The City's goals were established as percentages or averages to be applied to new housing development proposals in the city. With assistance from other housing -oriented groups, the Metropolitan Council has developed new forecasts of affordable housing need in the metropolitan area from 2011 — 2020 and assigned a proportional share (goal) to each community. Plymouth's share has been set at 1,045 units for the 10 -year period. This goal serves as a benchmark for the City as it promotes development that maintains the livability n,. _,. _rn nom__.__ n ni_.—_..a •r__. _:__rn__ nnno of the city and provides opportunities for affordable and life -cycle housing that is efficient, compact and well integrated. The housing -related activities in Chapter 11 (Implementation) serve as the Housing Action Plan for achieving the goal identified in the City's Metropolitan Livable Communities Housing Goals Agreement with the Metropolitan Council. Supporting demographic information can be found in Appendix 4A. 3 HOUSING MAINTENANCE AND PRESERVATION The current condition of Plymouth's housing stock is good. However, programs fostering housing maintenance. will become increasingly important as the community ages. Good housing maintenance promotes stability and appreciation in housing values and helps create a sense of community. a Housing Condition Indicators Indicators of housing condition include: 1) age of housing; 2) housing values; and 3) exterior condition. Housing condition is related in part to the age of housing Since a majority of the housing in Plymouth is less than 35 years old, the condition of most of the housing supply is good. Since 1990, the Plymouth HRA has provided approximately 620,000 for the rehabilitation of 101 homes in the city. Housing in need of rehabilitation is scattered throughout the city, with most in the southern and eastern areas near Parkers Lake and Medicine Lake. However, Plymouth has no concentrated areas in need of rehabilitation. Those same areas of the city have the majority of Plymouth's oldest homes—over 50 years old. Based on building permit data, 13 percent of these homes had additions or alterations between 2000 and mid -2005. While investment is being made in the city's oldest housing, more may need to be done to ensure that older neighborhoods are maintained. D.— R of O PI—t— d DI --ti, T -T,-; -Dl— Housing condition is also related to value. Median housing values in Plymouth exceed values in both Hennepin County and the metropolitan area. The 2000 U.S. Census identified the following substandard housing conditions in Plymouth: 53 units lacking complete plumbing facilities; and 34 lacking complete kitchen facilities. In addition, the census identified 433 units (1.7 percent of all units in Plymouth) as overcrowded, which is defined as more than one person per room. While housing in need of rehabilitation tended to be in the southern and eastern areas of Plymouth, overcrowded units were spread throughout the city. The City's Housing Maintenance Code and Rental Housing Licensing programs have also identified housing in need of continued maintenance and renovation. In 2006, the City licensed 7,538 units in 373 buildings. As part of the licensing program, the City inspects units for code compliance. The City may need to expand its efforts to provide housing assistance to owners of affordable rental and homesteaded units to ensure older units remain in good condition. b Housing Maintenance Programs Numerous City activities support well-maintained housing and neighborhoods. These include the Housing Maintenance Code, Rental Licensing, Homeowner Rehabilitation, Crime -Free Multi -Housing and Neighborhood Watch. Through these programs, the City is able to continually monitor the condition of the City's housing stock and order owner compliance with the Housing Maintenance Code. The City also supports a number of local non-profit groups that help residents with housing -related issues. They include the Plymouth Apartment Managers Association, Interfaith Outreach and Community Partners, People Responding in Social Ministry, Community Action Partnership of Suburban Hennepin, HomeLine, and Habitat for Humanity. Page 9 of 9 Chapter 4 Plymouth Housing Plan - 12008 Appendix Chapter 4A Age of Population The population of Plymouth, as well as the metropolitan region, is aging. The State of Minnesota predicts that the number of persons age 65 and older in the metropolitan area will increase by 152 percent by the year 2030. While the population is aging, the City of Plymouth still remains an attractive community to young couples desiring a convenient location in the Twin Cities with quality housing, natural amenities, good public services and recreational opportunities. The change in the age distribution of Plymouth residents between 1990 and 2000 illustrates how a city's population can change over time (Table 4-1). During the 1990s, the largest population increase occurred among young children (age 0-4) and the 25-54 age group. This reflects a high percentage of families with dependent children in the community. The in -migration of young families with children has been a major component of the intense growth Plymouth has seen over the past two decades. This trend matches the surge in demand for larger, single family homes during the 1980s and 1990s. However, the data in the 2000 census indicates a shift in the population's age distribution. For the first time in 30 years, Plymouth saw a decrease in the 25-34 age group and a much smaller increase in the 0-4 age group. During the same time period, the greatest percentage increase was in persons over 65, suggesting an aging population and a significant increase in older residents. This is consistent with trends in the metropolitan area and the entire country. During the period covered by this plan, the City expects to see continuing increases in the number of older residents. As the families that moved to Plymouth in the 1990s and 2000s age, the parents will become empty nesters and begin to retire, and their children will become young, independent adults. Both groups will need housing that is affordable and appropriate to their needs, including supportive living arrangements. TABLE 4-1 CHANGE IN AGE DISTRIBUTION 1990 TO 2000 Age Range 1990 Total 2000 Total Change Change 0 to 4 4,111 4,595 484 12% 5 to 14 7,700. 10,334 2,634 34% 15 to 24 6,856 7,806 950 14% 25 to 34 9,994 9,068 926) 9% 35 to 44 9,862 12,647 2,785 28% 45 to 54 6,492 10,622 4,130 64% 55 to 64 3,331 5,835 2,504 75% 65+ 2,543 4,987 2,444 96% Total 50,889 65,894 Jource: 19Nu ane lune uJ uensus Family Structure Over the past 20 years, the size and snake -up of families has changed nationally as well as in Plymouth. Between 1990 and 2000, the percentage of married couple families with children under 18 decreased from 3 5 percent of all households to 24 percent of all households. During the same time period, the number of married couple families without children remained stable. Family households still had the largest increase in terms of numbers, however, non -family households continued to increase significantly, up 54% from 1990 to 2000. Compared to the rest of the metropolitan area, in 2000, Plymouth had a higher percentage of its population in family households than in non -family. However, as the population continues to age and as trends in the formation of more non- traditional families in Hennepin County continue, the City can expect more non- traditional families and non -family households. TABLE 4-2 CHANGES IN HOUSEHOLD TYPE 1990 TO 2000 Household Type 1990 2000 Chane Change Family Households 13,715 17,654 3,939 28.7% Married couples 11,964 15,188 3,224 26.9% With related children under age 18 6,412 7,943 1,531 23.9% No related children under age 18 5,552 7,245 1,693 30.5% Other families 1,751 2,466 715 40.8% Male householder, no wife present 381 592 211 55.4% With related children under age 18 185 327 142 76.8% No related children under age 18 196 265 69 35.2% Female householder, no husband present 1,370 1,874 504 36.8% With related children under age 18 891 1,268 377 42.3% No related children under age 18 479 606 127 26.5% Non -family households 4,646 7,166 2,520 54.20/o 1 -person 3,248 5,402 2,154 66.3% 2 or more persons 1,398 1,764 366 26.2% Total 18,361 24,820 6,459 35.2%' Sources: 1990 and 2000 U.S. Census Over the past 30 years, the average household size in Plymouth has decreased from 3.9 persons to 2.6 persons. It is expected to decrease to 2.3 persons per household by the year 2030 (Table 4-3). The decrease in average household size reflects a combination of lower birth rates, an increasing number of empty nester households and an increasing number of single person households. The Metropolitan Council projections suggest that this trend will continue beyond 2030. Both the changes in family structure and household size will have an effect on the type of housing needed in the city in the future. Young singles, older residents and smaller families will all require housing to meet their respective needs for space and affordability. Page 3 of 22 Chapter 4 Plymouth Housing Plan — 2008 TABLE 4-3 HOUSEHOLD SIZE TRENDS Year Population Households Household Size 1970 18,077 4,645 3.9 1980 31,615 10,491 3.0 1990 50,889 18,361 2.8 2000 65,894 24,820 2.6 2010* 73,000 29,000 2.5, 2020* 76,000 31,500 2.4 2030* 78,500 33,500 2.3 Sources: U.S. Census; *Metropolitan Council Forecasts Owner -Occupied and Renter Housing Younger individuals or couples, who are still at the early stages of their earning potential, will likely begin as renters and move to home ownership at some point. Similarly, retired individuals or couples may wish to sell their homes in favor of renting or owning in a complex where they will need to do little or no maintenance themselves. As the city's population continues to age and as the city's children grow to young adults, rental housing will continue to be in demand. There were 29,468 housing units in Plymouth at the end of 2006. Of these, 20,864 were owner -occupied homesteads (71 percent) and 8,604 units were rental units (29 percent). The Metropolitan Council has not updated its benchmarks for ownership versus rental since the last Comprehensive Plan update. The previous benchmarks were set at 72 to 75 percent for owner -occupied units and 25 to 28 percent for rental housing. Plymouth's ratio is at 71 percent/29 percent, which is close to the previous Metropolitan Council benchmark, with slightly less ownership housing. Housing Types As of January 2007, detached homes including single family, mobile homes, farmhouses and seasonal homes represented 54 percent of the housing stock. Multiple family housing, including duplexes, townhomes and apartments, represented 46 percent (Table 4-4). Based on the regional housing needs in suburban communities such as Plymouth, the Metropolitan Council has set a ratio of 43 percent to use as a benchmark for multiple housing types. Plymouth's ratio of 46 percent exceeds the Metropolitan Council benchmark. At the present time, Plymouth has a balanced housing stock. TABLE 4-4 2007 HOUSING STOCK Type of Housing Number of Dwelling Units Percent of Total Single Family 15,737 53.6% Mobile Homes 59 0.2% Farm Houses 12 0.04% Seasonal Homes 6 0.02% Total Detached Housing 15,814 53.9% Apartments 7,190 24.5% Other Multiple Housing 6,464 21.7% Total Multiple Housing 13,654 46.1% Total Housing Stock 29,468 100.0% Source: City of Plymouth Page 5 of 22 Chapter 4 Plymouth Housing Plan — 2008 Senior Housing Plymouth continues to need more senior housing. Plymouth Towne Square was the first apartment complex in the city specifically for seniors. The Plymouth Housing and Redevelopment Authority (HRA) opened Plymouth Towne Square in the fall of 1994. The complex reached full occupancy in 1995. It provides affordable housing options for 130 residents. As of August 2007, this complex hada waiting list of 161 applicants, which is a clear indication of the need for more housing of this type in Plymouth. In November 2006, the Plymouth HRA opened its second senior building. Vicksburg Crossing is a 96 -unit independent senior facility that offers a mix of affordable and market rate units. One-third of the units are set aside for low- income seniors. The remaining two-thirds are offered at market rate. While lease -up continues for the market rate units, all of the affordable units are occupied, and there is a waiting list of 71 applicants. Senior housing projects in Plymouth have rented or sold quickly. Examples of these include Gramercy Park Cooperatives, Bassett Creek Commons, Alterra Clare Bridge, Cornerstone Commons cooperative, owner -occupied townhomes, assisted living rental units, and Sumrnerwood assisted living. There are also a number of senior housing developers considering Plymouth for new projects in the near future. Special Needs Housing Special needs housing encompasses a diverse set of populations: those who are older and frail; those with mental and/or physical disabilities; those with mental illness or chemical health issues; and those who are in need of temporary or transitional housing due to major changes or losses in their lives. For many years; Hammer Residences has operated a successful housing and service program for mentally and physically challenged adults in small group homes and apartments scattered through the community. The organization houses 80 clients at 16 locations in Plymouth. Demand for this program is growing and Hammer has indicated that it would like to develop more homes in the community. Plymouth has a need for housing designed to be accessible for disabled persons. The City and Plymouth HRA have actively promoted and supported more accessible housing in the community. The HRA, in partnership with Habitat for Humanity, provided financial assistance for the construction of a four -unit townhome project with one accessible unit. Household Income The federal and state governments have long used household income as a key measure for eligibility for housing programs. Eligibility is based upon very low-, low-, and moderate -income categories defined as follows: A very low-income household has an income no greater than 30 percent of the median income of the county or metropolitan area, as adjusted for household size. In 2007, a very low-income four -person household was one with an income of $23,550 or less. A low-income household has an income between 30 and 50 percent of the median income of the county or metropolitan area, as adjusted for household size. In 2007, a low-income four -person household was one with an income between $23,550 and $39,250. A moderate -income household has an income between 50 and 80 percent of the median income of the county or metropolitan area, as adjusted for household size. In 2007, a moderate -income four -person household was one with an income between $39,250 and $59,600. The City does not have current information about household income. However, according to the 2005 American Community Survey, the median family income for Plymouth was $92,453. This was substantially higher than the comparable figures for Hennepin County and the metropolitan area of $74,206 and $73,418, respectively. Given the cost of housing built in the city over the past ten years, it is reasonable to assume that the median income in Plymouth still far exceeds the metropolitan median income which is currently $78,500. Consequently, housing affordability is not an issue for the majority of Plymouth's households. On the other hand, in 1999 (most current information), the number of persons in Plymouth with incomes below the poverty line was 1,679, which was 2.6 percent of the City's population. Of those below the poverty line, 4 percent were age 65 and older, 23 percent were children under the age of 18, and 7 percent were single heads of household living with children under 18 years old. With an aging population and a continuing increase in single parent households, it is reasonable to assume that the number of lower income households has not decreased and in fact, has likely expanded. The current demand for rental apartments at Bassett Creek Commons, Plymouth Towne Square and Vicksburg Crossing, all of which targeted low income seniors, is a good indicator that this is the case. Therefore, while housing affordability is not an issue for many of the City's residents, there is a growing group of households for which housing affordability is a major issue. Housing Cost as Percent of Income Tables 4-5 and 4-6 show the relationship of housing cost and income for people living in Plymouth in 2000 In 2000, there were 1,185 renter households in Plymouth with incomes less than 50 percent of the area median income that were paying more than 30 percent of household income for housing. These households would qualify as needing affordable rental housing based on Metropolitan Council guidelines. In 2000, there were 5,144 homeowners with incomes less than 80 percent of the area median income in Plymouth who were paying more than 30 percent of household income for housing. These households would also be classified as needing affordable housing based on Metropolitan Council guidelines. In 1990, the comparable figures were 648 renter households and 967 homeowners. Based on trends cited in this chapter, including an aging population and an increase in the number of non- traditional families, it is reasonable to conclude that the number of households that would qualify as needing affordable housing has not declined in the past 10 years and more likely has increased. TABLE 4-5 Renters paying more than 30 percent of income for housing - 2000 Source: CHAS data, 2000. Table 4-6 Homeowners paying more than 30 percent of income for housing 2000 Income by Percent of Area Median Income Household Type All Other Income by Elderly 1 Small Large All Other Total Percent of 2 Related (2- Related 613 2,178 Area persons 4 persons) 5+ 5,144 Over 80% Median 62+) 19,639 persons) 3,207 21,576 Income Percent 13% 87% 100% 0-30% 163 211 10 220 604 31-50% 130 195 22 234 581 Total 50% or 293 406 32 454 1,185 less 51-80% 140 328 28 655 1,151 Total 80% or 433 734 60 1,109 2,336 less Over 80% 128 1,490 139 1,700 3,457 All 561 2,224 199 2,809 5,793 Households Percent 10% 38% 3% 49% 100% Source: CHAS data, 2000. Table 4-6 Homeowners paying more than 30 percent of income for housing 2000 Income by Percent of Area Median Income Household Type Elderly 1 & 2 under 62 All Other Total Owner Units Needed at Various Incomes 0-30% 229 806 1,035 31-50% 430 888 1,318 51-80% 613 2,178 2,791 80% or below 1,272 3,872 5,144 Over 80% 1,935 17,704 19,639 All Households 3,207 21,576 24,783 Percent 13% 87% 100% Source: CHAS data, 2000. Housing and Employment Relationship The 2006 employment estimates for Plymouth indicate that there are 51,043 jobs in the city. In 2000, there were 50,300 jobs and 36,835 residents in the labor force. Table 4-7 illustrates that Plymouth residents tend to earn more than people working in the city but not living here. Taken together, this suggests that there may be a need for increased affordable housing near employment centers to accommodate people working but not currently living in Plymouth. Given the cost of housing in Plymouth and the make-up of the city's job market, high housing costs are likely an obstacle to non-residents who work in Plymouth. However, it is not known if these workers would move to Plymouth if more affordable housing were available. Given today's high employment rates and the difficulties that Plymouth businesses are having in finding and keeping employees, providing more housing affordable to Plymouth workers could aid businesses in attracting and keeping workers needed to keep Plymouth businesses profitable and in the community. Table 4-7 Wages Earned by Workers in Plymouth and Plymouth Residents Annual Wages Earned Number of Workers in Plymouth Percentage Number of Plymouth Residents Percentage Difference Less than $5,000 2,315 4.6% 2,250 6% 65 5,000-$9,999 2,605 5.2% 1,925 5.2% 680 10,000-$14,999 2,580 5.1% 1,775 4.8% 805 15,000419,999 2,770 5.5% 1,610 4.4% 1,160 20,000-$24,999 4,555 9% 2,315 6.3% 2,240 25,000-$29,999 5,255 10.5% 2,625 7.1% 2,630 30,000-$34,999 5,170 10.3% 3,025 8.2% 2,145 35,000-$49,999 11,465 22.8% 6,615 18% 4,850 50,000-$74,999 7,870 15.7% 6,645 18% 1,225 75,000 Plus 5,195 10.3% 7,670 21% 2,475 No Earnings 520 1% 380 1% 140 Total 50,300 100% 36,835 100% 13,465 Source: 2000 Census Transportation (CTPP) Availability of Affordable Housing Units Table 4-8 shows the number of affordable housing units in Plymouth in 2000. Based on Metropolitan Council definitions, Plymouth had 1,108 affordable rental units and 5,453 affordable owner -occupied units at that time. This represents about 15 percent of rental units and 25 percent of owner -occupied units. In 2000, the City had 8 percent of the rental units and 19 percent of the owner -occupied units that were considered affordable. In 2006, based on the City's data, 17 percent of Plymouth's homesteaded housing was valued at less than $206,800, the Metropolitan Council's housing affordability benchmark for owner -occupied housing. From 2001 through 2006, 118 rental units,and 136 ownership units were constructed that were affordable to households at the Metropolitan Council's affordability limits. Between 2011 and 2020, the Metropolitan Council estimates that there will be a need for 43,800 new affordable housing units in the sewer -serviced area of the metropolitan area. Plymouth's share of this figure is estimated to be 1,045. The City anticipates between 3,393 and 6,405 new housing units to be developed over the next 20 years. Given the figures above, the City will need to focus on making 32 to 75 percent of all new units affordable between 2011 and 2020. Because of the greater availability of subsidies for rental housing, Plymouth has a better chance of increasing its supply of affordable rental housing. However, the high cost of land in Plymouth presents a significant challenge for the development of affordable owner - occupied housing. Table 4-8 Affordable Housing Units Units Affordable by Income 0 & 1 Bedrm 2 Bedrm 3 + Bedrm Total 30% or less of area median income Owner 0 0 0 64 Renter 195 189 95 479 31-50% of area median income Owner 154 474 233 861 Renter 204 365 60 629 51-80% of area median income Owner 118 1,485 2,925 4,528 Renter 1,645 1,980 245 3,870 Over 80% of area median income Owner 147 1,939 11,525 13,611 Renter 215 389 215 819 Source: CHAS data, 2000 Subsidized Housing Units By the end of 2007, there were 718 units of rental housing in Plymouth that were publicly subsidized or had income/rent restrictions due to public financing. In addition to the increase in the number of affordable housing units noted above, the HRH's HUD Housing Choice Voucher Program (Section 8) has increased the pool of rental units accessible to low-income clients with Section 8 Vouchers. As of July 2007, there were 425 households in private rental housing in Plymouth receiving Section 8 assistance and 57 households were on the waiting list. The HRA expects to open this waiting list for new applicants early in 2008.. However, the waiting list is a good indicator that there is strong unmet need for subsidized housing in the community. Barriers to Development of Affordable Housing The private market on its own has not provided the number of affordable units, either owner -occupied or rental, needed in Plymouth or within the metropolitan region. There are barriers to the development of affordable housing, some of which are within the City's control and some of which are not. Many of these barriers increase the cost of development and dissuade developers from undertaking affordable housing development projects. Barriers to affordable housing beyond the City's control include: Steady increase in land prices. The 1995 average residential lot, with public improvements, sold for $50,000 to $60,000. Since then, prices have increased and the average lot is selling between $250,000 and $300,000. Construction costs have stabilized recently. However, they did show large increases from 2000-2006. These increases make it more difficult to provide affordable units through new construction. Much of the city's vacant land is encumbered by wetlands, poor configuration, poor access and/or poor soil conditions, requiring construction that is more expensive and often spreading the development costs over fewer housing units. Most of the vacant land is in Northwest Plymouth with no major roads and very limited opportunity for commercial development that would lead to high job creation. Consequently, there are few areas that would meet location criteria for higher density housing Local reliance on and the structure of the current property tax system, which taxes rental property at a rate higher- than homesteaded property. The 1986 federal income tax reforms, which eliminated a number of tax incentives that had encouraged investment in rental housing. There are barriers to the development of affordable housing that the City could potentially influence and that impact the cost of development. Included among these barriers are the amount of land guided and zoned for various types and densities of residential use, development fees, public improvement standards such as required street width and utility construction specifications, and development regulations such as park dedication fees, tree preservation and wetland buffers. While all of these items affect the development costs, they are also important tools to ensure that Plymouth is well planned and provides sound infrastructure and equitable amenities throughout the community. Reducing certain standards and/or reducing or waiving fees would produce trade-offs that could result in higher long- term infrastructure and maintenance costs as well as negatively affect quality of life amenities such as parks. For example, not charging adequate fees to build parks and trails initially, could put the City in the position of having to raise property taxes over the long-term to provide them. Similarly, the City may have to assess property owners prematurely to repair or replace infrastructure that was not initially built to public improvement standards for streets and utilities. Age of Housing Stock The number of housing units built in Plymouth began rising in the 1970's and increased dramatically in the 1980's. The 1990's saw a slight downward trend and was more in line with the 1970's. The number of units built after 2000 was comparable to that of the earlier three decades. As of 2006, approximately 84 percent of Plymouth's housing stock was less than 35 years old, and 64 percent was less than 25 years old (see Table 4-9). Only 6 percent of the city's housing stock was built prior to 1960. However, during the period covered by this plan, roughly 63 percent of the housing stock will be more than 40 years old. Table 4-9 Age of Housing Stock Year Built Number of Dwelling Units Percent of Total 1939 or earlier 389 1.33% 1940 to 1959 1,491 5.11% 1960 to 1969 2,659 9.11% 1970 to 1979 5,983 20.50% 1980 to 1989 7,931 27.16% 1990 to 1999 6,809 23.32% 2000 to 2006 3,934 13.47% Total 29,196 100% Source: 2000 Census, City of Plymouth (2000 — 2006) Housing Age and Affordability The Plymouth housing market has seen a rapid increase in values since the last comprehensive plan. In 1999, 33 percent of the housing built prior to 1970 was considered affordable. Comparatively, only 12 percent of the housing built prior to 1970 was considered affordable in 2006. (Table 4-10). As the housing stock ages, the need for maintenance and renovation will increase. The City may need to provide more housing assistance to owners of affordable rental and homesteaded units to ensure older units remain in good condition. Housing Costs Over the past decade, housing prices in Plymouth have been steadily increasing and they reflect the strong housing market in the city. The census indicates that the median value of a home in Plymouth in 2000 was $197,600. This value was significantly higher than the median value of $143,400 for Hennepin County and 141,400 for the metropolitan region. The City of Plymouth's data indicates that the average residential market value for single family housing in Plymouth increased from $243,300 in 2000 to $380,100 in 2007. Annually, the Plymouth HRA conducts a survey of rental apartment and townhouse complexes in the city. The 2006 survey indicated that the median monthly rent, including utilities, for one-two- and three-bedroom units was $779, $1,076, and 1,430, respectively. This represents a rent decrease in the one -bedroom units of 8.7% and increases in the two and three-bedroom units of 4.7 percent and 3.0, respectively, over a two-year period. The rent decrease in the one -bedroom units and the small increases in the two and three-bedroom units can be partly attributed to a slightly weaker than average rental market between 2004 and 2006. In 2004, the average vacancy rate in Plymouth was 6.8 percent. In 2006, the average vacancy rate was just under 5 percent. The industry considers 5 percent as an acceptable vacancy rate in a balanced market. Table 4-10 Homesteaded Units by Affordability and Year built Year Built Affordable Units" Other Units All Homesteaded Units Value of 0- 208,600 Percent Value of 208,601+ Percent Total Percent Pre -1960 277 20% 1,075 80% 1,352 100% . 1960-1969 129 7% 1,843 93% 1,972 100% 1970-1979 804 19% 3,405 81% 4,209 100% 1980-1989 1,074 18% 4,783 82% 5,857 100% 1990-1999 874 17% 4,335 83% 5,209 100% 2000-2006 329 17% 1,569 83% 1,898 100% Total 3,487 17% 17,010 83% 20,497 100% Source: City of Plymouth Assessor's Data, August 2006 Table 4-11 identifies affordable units by unit type and age. The data in this table illustrate that most of the newer affordable units are multiple family units. The cost of land in Plymouth will make it increasingly difficult to meet affordable housing needs with single family homes. On the other hand, the table shows that developers are building affordable, attached housing. Table 4-11 Affordable Housing Units by Unit Type and Year Built Year Built Multi -Family Units Single Family Units. All Affordable Units Number Percent Number Percent Total Percent Pre -1960 21 8% 256 92% 277 100% 1960-1969 103 80% 26 20% 129 100% 1970-1979 268 33% 536 67% 804 100% 1980-1989 736 69% 338 31% 13074 100% 1990-1999 835 96% 39 4% 874 100% 2000-2006 222 67% 107 33% 329 100% Total 2,185 63% 1,302 37% 3,487 100% Source: City of Plymouth Assessor's Data, August 2006 Paoe 17 nf22 Chsnter4 Plvmnnth Hrnisino,Plan— 2008 APPENDIX Chapter 413 Financial Assistance for Housing Construction Since 1990, the HRA has provided assistance utilizing local, state and federal funds for approximately 600 units of housing for low and moderate -income persons. The HRA has also used federal Community Development Block Grant (CDBG) funds to provide a variety of assistance for affordable homeowner, renter and special needs housing and housing rehabilitation programs to homeowners and for-profit and non- profit developers. In addition, the HRA has worked with local lenders and the Minnesota Housing Finance Agency (MHFA) to make MHFA low- and moderate - income housing programs available in Plymouth. The City has also used federal Housing Revenue Bonds to finance the development and renovation of rental housing in the community. In recent years, the City has required developers using these bonds to provide a portion of their housing at affordable rents. This requirement goes beyond federal provisions that do not require affordable rents in all developments using this financing. When it is not feasible to provide units at affordable rents, developers have been required to make annual bond fee payments to the HRA to support affordable housing activities elsewhere in Plymouth. Section 8 Housing Choice Voucher (HCV) Program The Section 8 HCV Program provides housing subsidies for about 425 low-income households in Plymouth. The HRA has successfully increased the pool of rental units accessible to clients with Section 8 vouchers. The HRA has annually applied for and received approval for exception rents for the program to meet the higher than average rents in Plymouth. The rents for 2007, including utilities, are $769 for one -bedroom units, $935 for two-bedroom units and $1,239 for three-bedroom units. The three-bedroom price is 20 percent above the HUD fair market rent standard for the Twin Cities area (the maximum amount that can be obtained from the Section 8 program without further HUD approval). As of July 2007, there were 57 people on the waiting list for vouchers. The HRA does not expect to open this waiting list for new applicants until late 2008. The HRA generally opens the Section 8 waiting list every three to four years and typically receives about 1,500 inquires and subsequently places 300 new applicants on the waiting list. The HRA currently administers 30 disabled mainstream vouchers as part of its allocation. The HRA also has 13 project -based vouchers, six MHOP (Minnesota Housing Opportunities Program) units, 33 enhanced vouchers and 185 port -in vouchers from other communities. First Time Homebuyer's Program The First Time Homebuyer's program has been instrumental in assisting low and moderate -income persons to become new homeowners. From 1991 to 2006, about 2.3 million of Community Development Block Grant (CDBG) funds were spent in this program to assist 142 clients at 80 percent or less of area median income. The average assistance per homebuyer has been $16,000. Since 2000, the Minnesota Housing Finance Agency (MHFA) has provided almost 10 million in first-time homebuyer program funds to assist 71 eligible homebuyers with below market rate financing and downpayment assistance in Plymouth. Senior Housing The City of Plymouth, through the Plymouth HRA, has been very active in providing senior housing options. The City uses its HRA property tax levy to subsidize rents for nearly all of the tenants at Plymouth Towne Square, a locally financed senior -housing complex. In 2007, the total subsidy was $300,000. Of those people subsidized, 55 percent qualify as very low-income individuals (i.e. their income is at or below 30 percent of the area median income) and 40 percent as low-income individuals (i.e. their income is between 31 percent -50 percent of the area median income). In 2006, the City opened its second senior building, Vicksburg Crossing. Vicksburg Crossing is a 96 -unit independent living senior community. The property has 34 units that offer rents that are affordable to low-income households. The remaining 62 units are offered at market rate. In 2001 and 2003, the City issued housing revenue bonds to facilitate the construction of two new senior communities that offer a range of housing options including independent, assisted and memory care. Housing Maintenance Code The City has a housing maintenance code that is enforced on a complaint basis for single family residences. In 2006, City staff, following up on complaints, inspected 119 properties. Maintenance needs of single family homes are generally addressed by the property owner. However, rehabilitation and repair assistance is available from the HRA for low- and moderate -income homeowners to make code -required, as well as other, improvements. Rental Housing Maintenance Code and Licensing Program To address the condition of the rental housing stock, the City of Plymouth has adopted a Rental Housing Maintenance Code and Rental Housing Licensing Program. Through these programs, the City conducts periodic inspection of all rental housing to identify any building or code deficiencies that require building maintenance or renovation. Through these programs, the City is able to continually monitor the condition of the City's rental housing stock and order owner compliance with the Housing Maintenance Code. Rehabilitation Financing Programs The HRA operates the CDBG-funded Home Rehabilitation Program that provides no interest deferred loans that after 30 years become grants to low- and moderate - income homeowners. As of 2007, the Home Rehabilitation Program has served a total of 148 City households since 1990. The average assistance to each household is $10,000 and the total dollar amount loaned is about $1.5 million. Since 1997, the HRA has significantly increased the use of home rehabilitation loan and grant programs operated by the Minnesota Housing Finance Agency and Hennepin County. Homeowners in Plymouth have received more than $1 milion from these programs since 2000. This has increased the rehabilitation funding available to low- and moderate -income homeowners in Plymouth. In addition, the City has assisted private rental properties in need of renovation and repairs with tax-exempt federal Housing Revenue Bond financing. The City has used this program to require a portion of the units to have affordable rents or require annual bond fee payments that go to the HRA to be used to assist in the development of affordable housing. Housing Improvement Areas To date, the City has used the state Housing Improvement Area statute to provide financing for one local homeowners association for needed building improvements to an affordable townhome development. The program included the replacement of siding and windows for more than 200 units spread throughout 57 separate buildings. Under this program, property owners are levied the cost of the improvements on their property tax statements. These improvements can be paid off over time. The HRA also used Housing Assistance Program funds from the Federal Home Loan Bank to pay a portion of the cost of the improvements for low-income homeowners in the development. CITY OF PLYMOUTH RESOLUTION 2007 - APPROVING PRELIMINARY HOUSING PLAN CHAPTER FOR THE 2008 CITY OF PLYMOUTH COMPREHENSIVE PLAN UPDATE WHEREAS, the City of Plymouth initiated an update to its Comprehensive Plan in Fall 2005; and WHEREAS, the preliminary housing chapter will be used to provide information on existing and projected housing needs in the city; and WHEREAS, the Housing and Redevelopment Authority and the Planning Commission have reviewed the preliminary housing plan chapter at a duly called public meeting; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA, that it should and hereby does approve the preliminary housing plan chapter. FURTHER, since .this approval is preliminary only, it does not constitute an official Comprehensive Plan Amendment and therefore is not contingent upon, or subject to, review and response by the Metropolitan Council at this time. Adopted by the City Council on October 9, 2007.