Minnesota APA Conference-September 2011

1. Minnesota APA Conference-September 2011 Affordable Housing-One City’s Journey to Implementation September 30, 2011

2. Introductions • Doug Borglund, Community Development Director, City of Forest Lake • Jay Demma, Planner/Market Research, Bonestroo/Stantec • Tina Goodroad, Planner, Bonestroo/Stantec • Barbara Dacy, Executive Director, Washington County HRA

3. How it all started for Forest Lake… • An affordable housing project was proposed on a former community hospital site • Proposal for conversion to Spanish Immersion school and affordable housing development • Local concerns influenced PC and CC votes • City denied housing project • City was sued by the developer

4. Former Hospital Site- now school 36 Affordable town homes (rental)

5. Settled the lawsuit and approved the project • waived $150,000 in project related fees, processed a Met Council grant for the project, • as a PUD gave flexibility to many of its zoning standards. • absorbed other related expense’s from the lawsuit.

6. The settlement of the lawsuit brought about positive change…. • Results • A promise to prepare a housing chapter focused on creation of new affordable housing. • Creation of a Affordable Housing Task Force • Completed a Comprehensive Housing Study to understand the need • Prepared Goals, Polices and Implementation steps

7. 2006 Forest Lake Housing Study

8. Household Growth Trends

9. Age Distribution

10. Household Type

11. Household Tenure

12. Household Income

13. Employment Growth Trends

14. Distribution of Jobs and Wages by Industry

15. Housing Conditions

16. Recent Building Trends

18. Lifecycle Housing Model

19. Growth Potential: 2007-2020

20. Growth Potential 2007-2020: Owned Housing

21. Growth Potential 2007-2020: Rental Housing

22. Comprehensive Plan and Implementation

23. Land Use Decisions Supports Affordable Housing • New growth planned in the urbanized area of the City vs. pushing outward • Raised density to 10-15 units/ac for downtown and new mixed use areas (187 ac) • Traditional compact development pattern

24. Land Use Decisions Supports Affordable Housing • Residential mixed, medium and high residential categories supports higher densities throughout the city • Designates higher density housing opportunities along major transportation and transit corridors

25. Aggressive Housing Goals …. Existing Housing Stock • Regulatory • Housing maintenance code; rental licensing; truth in housing; mixed use ordinance and accessory dwellings • Funding • City funded activities aimed at rehabilitation or acquisition of existing properties • Utilize an existing Land Trust in the creation and preservation of long-term affordable ownership housing.

26. Aggressive housing goals…Increase Affordable Housing: • Regulatory: • Adopt an Inclusionary Housing Policy • Increase density-land use and supportive zoning • Flexible zoning/use of PUD’s • Reduce minimums standards-garage size, setbacks, etc. • Funding: • Create an affordable housing trust • Develop City funded programs • Waive city related development fees

27. Aggressive housing goals …Improve Housing Maintenance • Regulatory: • Encourage maintenance and rehabilitation of older neighborhoods and identify City improvement projects for these neighborhoods • Funding: • Create property tax policies that encourage the maintenance and rehabilitation of existing housing • Create new City programs for remodeling and maintenance programs

28. Regulatory Response to Affordable Housing • Created new mixed use zoning districts to mirror changes in land use. • Used form based codes to set design standards • Emphasis on compact development patterns

29. Regulatory Response to Affordable Housing • Adopted an Inclusionary Housing Ordinance • Purpose is to encourage and provide for the development of affordable housing within Forest Lake • Ensures a continued availability of a diverse supply of home ownership and rental opportunities for low to moderate income households in all new residential development

30. Regulatory Response to Affordable Housing • Applies to all new residential developments of 10 units or more • Must include a minimum of 20% affordable rental or 20% ownership of affordable units. • Monthly rent affordable at thirty to fifty percent (30-50%) of area median income for Washington County adjusted by family size appropriate for the dwelling unit. • For all affordable housing units available for-sale, housing costs must be affordable at 50% of the area median income for Washington County • Units shall remain affordable for not less than 30 years

31. Regulatory Response to Affordable Housing • Housing Plan Required • Affordable units distributed throughout the development • Incentives may be offered • Density bonus of up to 15% • Zoning code modifications- setbacks, reduce lot size and width, parking, etc • Reduction in street widths • Reimbursement/reduction in fees-planning, building, SAC/WAC and park land dedication. • Other incentives can be requested/negotiated

32. On the ground results… • Even before the Comprehensive Plan and regulatory tools were adopted and test: • Total Units approved: 294 • Total Units under construction or completed: 234 • Total of $ 1.3 million (Met Council grants) • Other financial resources: City fee waivers $600,000 to date on multiple projects • Housing score in 2002 was 27 with the highest in 2009 of 76 and estimated to be in 70-80 range for 2011.

33. Trailside Senior Living (71 Affordable Units) City helped project $700,000 Grant & related fee waivers.

34. Mill Pond (Phase 1 of 120 Affordable Workforce/Family Units) City supported the project $300,000 in fee waivers and delayed payment on other fees.

35. Forest Oak (Phase 1 of 72 Affordable Workforce/Family Units) City provided $600,000 in grant funds to support the project.

36. Creating Affordable Housing in Forest Lake, Minnesota

37. Presentation Outline • HRA Service Areas • Role in Forest Lake • Financing Model Descriptions • Outcomes

38. HRA SERVICE AREAS What does the HRA do?

39. Mission Through innovation, the Washington County Housing and Redevelopment Authority promotes community and economic development, and provides and maintains affordable, decent and safe housing opportunities in Washington County

40. Four Service Areas

41. Households Served $17,078,071 Budget Highlights 1,030 affordable housing units 395 senior units 635 family units 522 households with rental assistance 2,152 households counseled since 2008; 1,012 foreclosures averted

42. ROLE IN FOREST LAKE What has been done?

43. Existing Housing Data

44. Affordable Housing Programs • Preservation of existing affordable housing • Facilitate private or non profit investment • HRA owned developments • New Construction • Facilitate private or non-profit investment • HRA owned developments

45. Preservation Kilkenny Apartments Whispering Pines

46. New Construction (HRA) John Jergens TrailSide Senior Living

47. New Construction (private) • Forest Ridge Apartments • Forest Oaks Apartments • Mill Pond Apartments • Autumn Hills Apartments • Hillcrest Apartments (affordability expired)

48. FINANCING MODELS How is affordable housing created?

49. Affordable Housing • “Affordable” typically means no more than 30% of HH income spent on housing costs (inc. utilities) • Affordable housing can be provided by private, non-profit, or public sector programs or combination of partners

50. Affordable Housing Dilemma Challenges Solutions Construction Maximize low cost loans and/or grants to pay for: Land Improvements Operating Minimize debt Obtain ongoing operating “subsidy” to pay for: Debt Gap • Gap between affordable rents versus typical expenses • Finding land • Zoning issues • Long term affordability • Operating subsidy scarce • Owner credibility • Lengthy pre-development process