HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 01-25-2024 - SpecialHousing and Redevelopment Authority 1 of 1 January 25, 2024
CITY OF PLYMOUTH
AGENDA
Special Housing and Redevelopment Authority
January 25, 2024, 5:30 PM
1. CALL TO ORDER
2. TOPICS
2.1 Discuss HRA Strategic Plan and Work Plan for 2024
HRA Strategic Plan (2021)
3. ADJOURN
1
Special Housing
and
Redevelopment
Authority
January 25, 2024
Agenda
Number:2.1
To:Dave Callister, City Manager
Prepared by:Grant Fernelius, Community and Economic Development
Director
Reviewed by:
Item:Discuss HRA Strategic Plan and Work Plan for 2024
1. Action Requested:
Staff is seeking feedback on the HRA Strategic Plan and work plan priorities for the upcoming year.
2. Background:
In 2021 the HRA adopted a Strategic Plan which outlined a set of future housing priorities for the
city. Since the plan was adopted, the HRA has presented both the tenant protection ordinance and
mixed income housing policy for council consideration. Most of the HRA's policy discussions in the
last two years have focused on the mixed income housing policy (now retitled as an inclusionary
housing policy) which will be discussed at the regular meeting on Thursday night. Staff hopes this
policy can be approved by the HRA and sent to council for review in the coming months. The main
goal of the HRA study session is to revisit the Strategic Plan and identify the next priorities for the
upcoming year. Staff would recommend revising the Strategic Plan every 5 years (2026) rather than
make wholesale changes at this time.
In addition to the Strategic Plan, staff will outline a couple of other topics for discussion. The HRA
has expressed interest in learning more about the city's tax increment financing program and
options for use of pooled tax increment to support affordable housing. A presentation on that topic
could be scheduled for February or March based on the availability of our consultant at Ehlers. Staff
would also like to share ideas for repositioning the HRA's scattered site rental program. Details will
be discussed at the meeting.
Please note that the study session will begin at 5:30 PM in the council chambers, but it will not be
televised. A light dinner will be provided. The regular meeting will begin at 7:00 PM.
3. Budget Impact:
N/A
4. Attachments:
HRA Strategic Plan (2021)
2
Plymouth HRA Strategic Plan
City of Plymouth
Housing and
Redevelopment
Authority
Adopted: March 25, 2021
3
Plymouth HRA Strategic Plan
PAGE 2
Table of Contents
Background…………………………………………………………………Page 3-4
The Process…………………………………………………………………Page 5
HRA Housing Priorities and Actions to Consider ………… ………Pages 6-13
Implementation……………………………………………………………Pages 14-15
Plymouth HRA
Mission & Values
Mission. The Plymouth Housing and Redevelopment Authority
promotes and contributes to the economic health of the community
through the creation and maintenance of affordable, workforce and
life-cycle housing, and active participation in the City’s development
and redevelopment processes.
Values. The Plymouth Housing and Redevelopment Authority is a
facilitator and significant contributor to creating an economically
healthy and diverse community:
•Which is supportive of quality affordable and workforce
housing for all incomes and family sizes.
•That promotes a variety of affordable, workforce and life-cycle
housing choices dispersed throughout the City to meet the
needs of a diverse population, local employment needs,
household stability and educational success of children.
•Where the existing housing stock is well maintained.
•Where some older commercial buildings and areas of the
community are redeveloped in a timely fashion.
•Which acquires additional resources to proactively address
affordable housing shortages and redevelopment needs.
•Where the HRA works in partnership with citizens, businesses,
the City Council and other City departments, and other
organizations.
•Where the social services necessary to support housing and
jobs in the community are available and coordinated.
•Where the HRA is committed to promoting Fair Housing and
equal access and opportunity in housing.
4
Plymouth HRA Strategic Plan
PAGE 3
Background
The Plymouth Housing and Redevelopment Authority (HRA) has been an
independent governmental entity since its initial creation by the City Council in
1975. The HRA is governed by a board of commissioners appointed by the City
Council. Commissioners serve five-year staggered terms.
HRA members who participated in development of the HRA Strategic Plan
include the following:
• Michelle Soderberg, HRA Chair
• Jeff Kulaszewicz
• Lucas Larson
• Aqueelah Whitfield
• Bob Huddleston
• Jim Davis, City Council Representative to
the HRA
The HRA’s charge is to oversee and guide in
the implementation of Plymouth’s housing
programs and collaborate on redevelopment
efforts of the City. They manage federal,
state, and local grants for housing programs
and administer eight active Tax Increment
Financing (TIF) Districts. Funding for the
HRA programs comes from the Federal
Department of Housing and Urban
Development (HUD) and Community
Development Block Grants (CDBG), and an
annual HRA levy. These funding sources
support staff, existing program
implementation, and the maintenance,
management and administration of two HRA
owned senior housing properties; Plymouth
Towne Square and Vicksburg Crossing.
2040 City Comprehensive Plan
Value Statements
•Maintain and enhance housing
quality and diversity. Plymouth
values housing that is attractive,
well-constructed and maintained
to ensure quality of life for all
residents. Plymouth also values
diverse housing opportunities in
neighborhoods throughout the
community, including affordable
housing, renter and owner-
occupied housing, senior housing
and lifecycle housing.
•Meet the needs of all age groups
within the City, with a particular
focus on young people and the
aging population. Plymouth
recognizes that the nation is
aging. And the City is no
exception. Plymouth will pay
increased attention to the special
needs of its aging population in all
aspects of community life –
housing, all forms of
transportation, services and
facilities and especially, sense of
community.
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Plymouth HRA Strategic Plan
PAGE 4
Existing programs supported by the HRA include the following:
1. CDBG Programs:
a. First Time Homebuyer Program
b. Owner Occupied Home
Rehabilitation Program
c. Owner Occupied Emergency
Repair Program
d. Social Services
e. Rental Rehab Program
2. Housing Choice Voucher Program
3. Senior Rental Housing
4. Architectural Design Program
5. Home Energy Squad Plus
6. Multi-Family Fire Suppression Program
7. Housing Improvement Area Program
8. Community Land Trust Program
9. Scattered Site Rental Program
10. Private Utility Repair Program
2040 City Comprehensive
Plan
Housing Goals
•Promote the development
and preservation of a
supply of quality housing
that is affordable at all
income levels and at all
stages of the life cycle.
•Encourage and ensure that
all housing and
neighborhoods in Plymouth
are well maintained.
•Promote development
patterns that link housing
with services and
employment centers by all
forms of transportation,
particularly public transit
and non-motorized forms
of transportation.
•Metropolitan Council
identifies that Plymouth’s
share of the regions need
of affordable housing
between 2021-2030 is 679
additional units, of which
87% should be affordable
to those with incomes at
or below 50% of the area
median income.
•Plymouth has guided
vacant land in the City to
accommodate the
construction of 736
affordable units.
6
Plymouth HRA Strategic Plan
PAGE 5
The Process
The HRA completed a process over the course of several months to develop a
strategic plan that will solidify key HRA goals,
priorities, actions and funding needs for the City
and to gain consensus on the role of the HRA in
supporting the housing and redevelopment needs
of the City. The outreach and engagement process
was conducted in a virtual format due to the
limitation brought on by the Covid-19 pandemic.
The strategic planning process identified the
priorities and actions outlined in this plan based
upon review and evaluation of the following:
• 2040 Comprehensive Plan
• Comprehensive Rental Housing Market Study
dated April 4, 2018
• Plymouth Hennepin County Consortium
Consolidated Plan FY2020-2024
• 2013 Plymouth HRA Strategic Plan
• Strengths, Weaknesses, Threats and
Opportunities Summary completed by the HRA
and dated October 14, 2020
• Stakeholder input through Zoom and phone
interviews and online surveys by residents, the
City Council and HRA members.
• Stakeholder interviews including
representatives from Interfaith Outreach
Community Partners, Outreach Development
Corporation (ODC) Board of Directors, RE/MAX, former Wells Fargo Community
Lender, Summit Mortgage, Plymouth Covenant Church, Mount Olivet Church of
Plymouth, Messiah Church and Wayzata Schools (Community Engagement and
Partnership Coordinator, Academic Interventionist, Director of Community
Education and Principal on Special Assignment.)
• A developer work session of the HRA and City Council on July 23, 2020 which
included representatives from Doran Companies, Ryan Companies and
CommonBond
• HRA and City Council online survey of priorities and needs completed by 80
percent of the members
• City of Plymouth flash vote completed by 1,042 Plymouth residents – 1,197
total participants which included 1,139 responding (62%) of the 1852 initially
invited and 58 new participants
Stakeholder Comments
•As the gap between housing
costs and incomes increases
there is a higher risk of
families and children
becoming homeless – ODC
•There is a need for larger (3
and 4 bedroom) affordable
housing units for families –
ODC
•Support higher densities to
provide more opportunities
for the private sector to
develop new housing and
commercial options desired
by residents – Developer
Roundtable
•Support zoning land for
higher densities and being
more flexible in local land
use, building requirements
and processing time is
important – Developer
Roundtable
•The top three Flashvote
responses on what residents
(986) would like to see more
of included:
-55% renovate older
buildings
-45% mixed use housing
-42% first time homebuyer
assistance
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Plymouth HRA Strategic Plan
PAGE 6
HRA Priorities
1. Preservation of Existing Housing and Tenant Protections
The most affordable housing is within the existing older properties, referred to
as Naturally Occurring Affordable Housing (NOAH).
HRA Priority: Support preservation of existing rental housing and protect
vulnerable and low-income households.
• Tenant Protection Ordinance:
o Goal: Protect vulnerable and
lower income residents from
being displaced due to rent
increases without time to find
alternate housing and provided
an opportunity for residents at
risk of losing housing to be
connected to housing and social
assistance.
o Action: Consider adoption of a
tenant protection ordinance that
would outline requirements to
protect tenants from being
displaced when properties change
ownership. Best practices include
providing tenants a three (or
longer) months period where
there is a pause on rent
increases, tenant re-screening,
and non-renewal of leases without
cause. An ordinance can spell
out options where a new owner
chooses or does not comply with
the pause that can include a
requirement to pay relocation
benefits to tenants.
The Facts: Need for Preservation
and Protection of Tenants
•The City’s existing rental housing
stock is aging - 47% of the rental
housing in the City was built in the
1970s and 1980s.
•28% of the City’s residents live in
rental housing.
•43% (3,736) of renter households,
are paying more than 30% of their
income on housing cost, increasing
the risk of residents choosing between
paying rent, eating, covering
healthcare costs and other critical life
and safety needs.
•Median rent increased 18% from
2010 to 2018; at the same time there
was less available housing with a 29%
reduction in the vacancy rate from
5.5% to 3.9%.
•From 2010 to 2018, 10 apartment
properties sold representing 3,456
units in the City.
•In-demand jobs in the Twin Cities do
not pay enough to afford the median
rent or mortgage in Plymouth. These
include critical workers to support
business vitality and resident services
such as cashiers, retail workers,
personal care aides, nursing
assistants, janitors and customer
service representatives.
Sources: Plymouth Maxfield Study, Plymouth
2040 Comprehensive Plan, MHP’s Plymouth
Rental Snapshot, MHP’s Market Watch;
Hennepin County Report
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Plymouth HRA Strategic Plan
PAGE 7
• Local 4d Affordable Housing Incentive
o Goal: Protect vulnerable and lower income residents by preserving
existing unsubsidized affordable rental units in exchange for a lower tax
applied to those units. In many cases, existing properties are already
providing rents at or below 60% of the area median income. However,
those units are most at risk of rent escalation as vacancy rates lower and
the availability of lower rental housing is reduced.
o Action: Evaluate adoption of a local 4d Affordable Housing Incentive that
would provide qualifying existing rental property owners a rate
reduction in property taxes from the current 1.25% to .75% per MN
Statute 273.128 for qualifying rent restricted units. Per the state statute
a minimum of 20% of the total units would need to have rent and income
restrictions for those at or below 60% of the current area median income
to be eligible for the reduced tax rate on those units. To trigger the
program, the HRA, as the local unit of government, would provide
nominal financial assistance to the property owner who then enters into a
development agreement which outlines the rent restrictions and terms.
The total amount of the reduction would be evidenced by a document
recorded against the property.
• NOAH Rehabilitation and Maintenance Program
o Goal: Encourage property improvements that increase property values
while protecting vulnerable and lower income residents by ensuring that
a portion of a property’s rents remains affordable when these properties
are improved to protect the health, safety and livability of the City’s older
rental properties.
o Action: Consider expanding funding and criteria for restricting rents
focused on providing assistance to existing older rental properties that
are in need of renovation such as exterior improvements, energy
efficiency upgrades, fire suppression systems and other health, safety,
crime reduction and livability improvements. The assistance would be
provided to help finance improvements in exchange for ensuring that a
portion of the rents are kept affordable at or below 60% of the current
area median incomes. The financial assistance could be structured as a
loan or grant. A development agreement with the property owner that
would include a covenant on the deed of the property, would be required
to ensure the owners comply with the income requirements.
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Plymouth HRA Strategic Plan
PAGE 8
HRA Housing Priorities (continued)
2. Increase Housing Affordability to Diversify Housing Options
and Opportunity in the City
To achieve the mission of the HRA, it is
important to provide opportunities to
diversify the housing options and support
new affordable housing including seniors,
low-income families and the younger
generation.
HRA Priority: Support more development
of affordable housing and increase
housing options and opportunities in the
City.
• Mixed Income Housing Policy
o Goal: Ensure high quality housing
in the City is accessible to
households with a variety of
incomes, ages, and sizes and to
increase the supply of new
affordable senior and rental housing
options.
o Action: Consider and evaluate
options for adoption of a mixed
income housing policy. Mixed
income housing policy (referred to as
inclusionary housing policy) can tie
financial or land use assistance for
new housing to include a certain
percentage of the total units as
affordable. Some policies allow a
financial contribution rather than
providing units within the proposed development. Evaluations would
consider the parameters that trigger the policy and outline the
percentage of affordable units and/or cash contribution formula. Mixed
income policy options include various triggers (city assistance, land use
change, number of units, etc.) that is outlined when created and adopted.
The Facts: Importance of
Diversifying Housing Options
•Only 1% (18 units) of the new
housing constructed in the City
between 2015-18 can be
considered “affordable” to a
household earning less than 60
percent of the area median income
which is $60,000 for a family of
four.
•Senior Housing Need: The
population growth from 2017 to
2022 for those age 75 to 84 is
projected to have the greatest
percentage growth at 32%. Incomes
of current older residents are lower
than the median incomes in the
City. In 2017, 10% of those senior
households had incomes below
$15,000 per year. Many City senior
households wish to remain within
their existing homes or may wish to
move out but cannot afford other
alternatives.
•Entry Level Housing Need: The
population of 18 to 34-year old’s is
expected to increase slightly 445
people (+1.4%) between 2017 and
2022. These are the residents that
tend to rent and may be looking to
put down roots in the community by
purchasing their first home.
•Through October of 2020, 1,300
homes were sold with a median
sales price of $392,000: up 3% from
the previous year; an unaffordable
option for many first-time buyers.
Sources: Plymouth Maxfield Study, MHP’s
Plymouth Rental Snapshot, Realtor
Association Sale Data
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Plymouth HRA Strategic Plan
PAGE 9
• Affordable First-Time Buyers Options
o Goal: Increase the opportunity of affordable first-time homebuyers and
to revitalize existing older single-family neighborhoods.
o Action: Evaluate expanding
program criteria and policies to
support the purchase and/or
development of affordable, first
time home buyer options.
Programs and policies to be
evaluated will include the
enhancement of existing support
for Community Land Trusts,
down payment assistance and
lower mortgage options. In
addition, innovative program
options to consider can include
partnering with non-profit
housing providers by providing
gap funding to facilitate the
connection with first time buyers
to purchase existing homes from
senior households who wish to
sell their home.
• Collect and Share Information on the Importance of Addressing the
City’s Affordable Housing Needs
o Goal: Identify the economic and social benefits of a diverse and
inclusive community that provides housing affordability options to all
residents and workers in the City.
o Action: Collect and share data with residents, property owners,
landlords, property managers, and government leadership on market
realities, educational attainment impacts, worker recruitment and
retention and health benefits of a diverse and inclusive community with
a full range of housing options.
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Plymouth HRA Strategic Plan
PAGE 10
HRA Housing Priorities (continued)
3. Proactively Support Redevelopment Efforts of the City
As the City of Plymouth becomes fully developed, reuse and redevelopment of
property will become more important to ensure that property values remain
stable and to increase options and opportunities for residents and businesses.
Reuse of land that includes a mix of uses and more compact development
provides options for active living, such as walking or biking, within proximity to
retail, services and other amenities.
HRA Priority: Assist in prioritizing redevelopment opportunities and future
land uses to support a mix of land uses and options for compact living.
• Identify and Prioritize Areas for Redevelopment
o Goal: Provide clarity, consistency, and flexibility to attract private
investment in redevelopment areas of the City and ensure that market
demand and community vision align.
o Actions: In cooperation with the City Council and other City
departments, the HRA will assist with the following redevelopment
efforts, where appropriate.
Provide input on and identify key areas of the City that need
redeveloping.
Identify acceptable mixes of future land uses such as affordable
housing, ownership/rental mix and mix of uses for redevelopment
areas.
Identify best practices and policies for fast-track approvals and
flexibility when the project meets certain requirements.
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Plymouth HRA Strategic Plan
PAGE 11
• Assist with Assembly of Land for Redevelopment
o Goal: Increase partnerships and opportunities in the redevelopment of
land by leveraging property control to support community goals, facilitate
and promote private investment and increase availability of affordable
housing.
o Action: Provide assistance in identifying site acquisition tools and
financing options to support assemblage of key (re)development sites
under multiple ownership.
• Identify and Share the Benefits of Investing in Redevelopment
o Goal: Facilitate and support agreement on redevelopment priorities
through education, collaboration and increased engagement of residents
to support a healthy and vibrant community.
o Actions: Collect and share information on current market realities,
redevelopment goals, and plans including:
Providing information to newly elected and appointed policy
leaders on HRA mission,
values, priorities and goals.
Offering site visits and tours
of successful regional
redevelopment projects.
Conducting stakeholder
engagement
sessions/neighborhood
meetings and engaging
underrepresented populations.
Clearly document stakeholder
support for the redevelopment
plan(s).
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Plymouth HRA Strategic Plan
PAGE 12
HRA Housing Priorities (continued)
4. Coordinate Funding Sources and Financial Strategies
To adequately support the HRA Strategic Plan, additional and aligned funding
resources will be important. As federal and state resources become more
constricted, local sources of funding for housing and redevelopment will
become more important to ensure that the priorities and goals of the City and
HRA are achieved.
HRA Priority: Proactively meet the housing and redevelopment needs of the
City and be a partner with the private sector in development and redevelopment
that achieves the HRA mission.
• Assist in Identifying Adequate Funding Sources in the Support of the
HRA Mission, Values and Priorities
o Goal: Annually review options and opportunities to support the
programs and policies outlined in the HRA Strategic Plan through the City
budgeting process.
o Action: Evaluate public, private and philanthropic resources to
implement the priorities and programs identified in the HRA Strategic
Plan. Work with City administration on incorporating and analyzing the
effects on utilizing local resources on the City’s 10-Year Financial Plan.
HRA Levy: The primary method of financing the delivery and
administration of housing and redevelopment programs is through
the HRA authority provided through Minnesota State Statute 469.
The statute allows the HRA, with approval by the City Council, to
levy a tax to give, sell, buy, transfer, or convey properties as
necessary to remove blight and promote affordable, safe and
decent housing. The HRA levy is evaluated and set annually by the
City Council upon the recommendation of the HRA.
Pooled Tax Increment Financing: Tax Increment Financing is a
local government tool that can be utilized to support
redevelopment and affordable housing as allowed by Minnesota
State Statute 469. A portion of tax increments can be pooled and
utilized outside of the boundaries of the district from which they
were collected and can be a source to support priorities outlined in
the HRA Strategic Plan.
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Plymouth HRA Strategic Plan
PAGE 13
• Adopt a Public Subsidy Policy
To be successful in achieving the priorities for housing and redevelopment,
it is important for the HRA and City Council to clearly outline the goals and
objectives of providing public funds toward that effort. This includes
identifying public subsidy policies accepted and utilized for the purpose of
implementing the HRA Strategic Plan. Clarity and consistency in how the
HRA and City respond to requests for assistance for development proposals
decreases uncertainty and risk resulting in lower costs to preserve and build
affordable and market rate housing and redevelopment projects.
o Goal: Ensure that the City and HRA leaders are accountable to City
residents on the utilization of public resources and provide clarity to
the development community on what is acceptable public support to
achieve the mission and vision of the City.
o Action: In partnership with the City Council and other City
departments, seek financial consulting assistance to adopt a clear and
strong public finance policy.
15
Plymouth HRA Strategic Plan
PAGE 14
Implementation
The four priorities outlined in the HRA strategic plan and implementation of
the action steps will require the HRA to prioritize their time, staff capacity and
financial resources to be successful. The following is a schedule to help guide
the HRA and staff in the successful planning and implementation of the HRA
Strategic Plan action steps.
Priority Actions Steps Timing Financial
Resources
Impact
on HRA
Mission
1.a Tenant Protection
Ordinance
$ ✪✪
1.b Local 4d Affordable
Housing Incentive
$$ ✪✪✪
1.c NOAH Rehabilitation
and Maintenance
Program
$$ ✪✪✪
2.a. Mixed Income Housing
Policy
$$ ✪✪✪
2.b. Increase Options for
Affordable First-Time
Buyers
$$ ✪✪
3.a Identify and Prioritize
Areas for
Redevelopment
$$ ✪✪
3.b Assist with Assembly of
Land for Redevelopment
$$ ✪✪
3.c. Educate the Community
and Policy Leaders on
the Benefits of Investing
in Redevelopment
$ ✪✪
4.a Increase HRA Levy
Dollars
$$ ✪✪✪
4.b. Adopt a Public Subsidy
Policy
$ ✪✪
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Plymouth HRA Strategic Plan
PAGE 15
Timing Key
Short Term Median Term Longer Term
Work on Immediately
and will have the most
substantive impact on
achieving the HRA
mission.
Policies and programs
that require additional
research and
collaboration
Outside resources,
stakeholder input and
collaboration required
to fully understand the
implication of the policy
or program
Complete in 2021 Complete within 1-3
years
Complete within 3-5
years
Financial Resources Key
Low Cost Medium Cost High Cost
$ $$ $$$
Ability to complete with
existing resources
A modest increase in
the HRA levy and
budget would be
required
A substantial increase
in the HRA Levy and
budget would be
required
Impact in Achieving HRA Mission
Low Impact Medium Impact High Impact ✪ ✪✪ ✪✪✪
Limited number of
residents benefit and
little to no property
value increase from
implementation of
program or policy
Several residents
benefit and/or
increased property
value results from
implementation of
program or policy
Many residents benefit
and/or larger property
value increase resulting
from implementation of
program or policy
17