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HomeMy WebLinkAbout2018 04-17 HCPAGENDA BROOKLYN CENTER HOUSING COMMISSION April 17, 2018 7:00 p.m. Council Commission Conference Room Brooklyn Center City Hall 1) Call to Order: 7:00 p.m. 2) Approval of Agenda 3) Approval of Minutes: March 20, 2018 4) Draft Letter to City Council Regarding Housing Commission Projects/Priorities 5) Discuss Affordable Housing Policy and provide feedback for Council 6) New Neighbor Program Update a) Coupon Outreach b) Delivery Dates c) Assembly 7) City Council Liaison’s Report 8) Chairpersons Report 9) Other Business a) City Council has requested a recommendation on Chicken and Compost Bin Regulations. Tentatively scheduled to be discussed at the May 15, 2018 Housing Commission Meeting. 10) Adjournment Page 1 MINUTES OF THE PROCEEDINGS OF THE HOUSING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND STATE OF MINNESOTA REGULAR SESSION March 21, 2018 COUNCIL COMMISSION ROOM CALL TO ORDER The Brooklyn Center Housing Commission was called to order by Chairperson Goodell at 7:00 p.m. ROLL CALL Chairperson – Mark Goodell - Present Commissioner David Johnson – Excused Commissioner Tamika Baskin – Present Commissioner Kathie Amdahl – Present Commissioner Joan Schonning – Present Commissioner Michael Stokes – Present Commissioner Paul Oman – Present Also present: Staff Liaison Jesse Anderson and Council Liaison Marquita Butler. Introductions APPROVAL OF AGENDA There was a motion by Commissioner Amdahl and seconded by Commissioner Schonning to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES There was a motion by Commissioner Amdahl and seconded by Commissioner Schonning to approve the minutes of the Housing Commission meeting on February 20, 2018. The motion passed. DRAFT LETTER TO CITY COUNCIL This is an item discussed at the last meeting. Chairperson Mark Goodell will complete this letter and email this. OPPORTUNITY SITE WORK SESSION The Housing Commission attended the meeting. Commissioner Schonning was encouraged by the Atlantis presentation. It was well thought through and innovative. It will be a nice welcome off of Highway 100. Chairperson Goodell: Civic campus idea for an expansion of city service. Is that something that is being considered? Page 2 Staff Liaison Anderson: That parcel is still not owned by the city. Chairperson Goodell: Likes that they would be doing some concrete with 10-15 buildings with concrete then some 3-5 with building with wood. Like the idea of a Whole Foods or a Fresh Thyme. Commissioner Baskin: Attracting Brooklyn Center residents to stay in the area when shopping. We would like the idea to have the area have diversity in amenities. Over the other proposal that was only housing. Chairperson Goodell: Prefer the shorter build out of 5-10 years. Has there been any agreement on tax increment financing? Commissioner Schonning: I like the community that considered walkability and mixed uses. Possibly being an event center with cinema. Chairperson Goodell: I Liked the underground parking to decrease the amount of surface parking and the work they had done on the Humboldt Greenway. Chairperson Goodell: I am encouraged by the proposal NEW NEIGHBOR PROGRAM Chairperson Goodell: Provided and overview of the New Neighbor Program. Staff Liaison Anderson showed example of the new neighbor bag. Commissioner Stokes: How are we getting businesses to participate? Chairperson Goodell: Invited on the website. Commissioner Schonning: Panera was a new owner who received a packet last year. So she was excited to participate. Commissioner Amdahl: Visited some, however, they were busy and were left the form. Chairperson Goodell: What is the timeline? Staff Liaison Anderson: 3 weeks before we may need to start preparing. Council Liaison Butler: Is there a flyer for on street parking? If not, could we add it to the packet? Commissioner Schonning: There is great information in the packet. Chairperson Goodell: People do appreciate it. Staff Liaison Anderson: Notepad may be available to be included. Chairperson Goodell: How many new owners are there so far? Staff Liaison Anderson: There are 200 from 9/1 to 3/1 Commissioner Schonning: Do you break it up throughout the year? Commissioner Amdahl: We do 2 lists per year. Sometimes they didn’t move but ownership may have changed. All members to assemble at next meeting and pick dates. Council Liaison Butler: Will ask the Council if there are dates that they (the Council) would be available to deliver bags. Commissioner Amdahl: Start at 6:30 and be done by 8. We can get about 25 done per group depending on the number of people. Need badges For 3 new commissioners. Commissioner Stokes: We should consider an item for kids. Council Liaison Butler: The fire department gave out some items at the open house. Maybe they would contribute? Staff Liaison Anderson: Will ask for items from the fire department. COUNCIL LIAISON REPORT Page 3 Council Member Butler: The Sanctuary grand opening was on March 8. It will open next month. It’s a beautiful facility; there will be fundraisers held onsite aswell. Top Golf is well underway; it is scheduled to open in the middle of July. Staffs are working to change highway 252 to freeway. We have secured 17 million in grants. The earliest they would start 2021. The Hennepin County Assessor report stated that the median home value went from $167,000 to 184,000. The City has added a community bulletin board for Local organizations to post events to the website. There is a list of what can be posted. CHAIRPERSONS REPORT Chairperson Goodell reported: I will work on the letter to council. Appreciated those who attended the opportunity site work session, it was a well-attended event. OTHER BUSINESS Chairperson Goodell: Joint commission meeting is on 4-4-18. We get to meet other commissioners and Council. Chair has presented in the past, however, Vice Chair Pragnic did the presentation last year. Staff Liaison Anderson to prepare PowerPoint. Staff Liaison Anderson reported: The affordable housing discussions; will be coming to Council for a work session. ADJOURNMENT There was a motion by Commissioner Amdahl and seconded by Commissioner Oman to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:00 p.m. __________________________________ Chairman BROOKLYN CENTER HOUSING COMMISSION March 21st, 2018 Brooklyn Center City Council City of Brooklyn Center 6301 Shingle Creek Pkwy Brooklyn Center, MN 55430 Re: Housing Commission Duties and Responsibilities Review Dear Council Members: At the January meeting the Brooklyn Center Housing Commission reviewed the duties and responsibilities of the commission as detailed in the resolution establishing the commission: https://www.cityofbrooklyncenter.org/DocumentCenter/Home/View/197 Here is the excerpted list: 1. Advise, investigate and review relevant matters for the City Council. 2. Develop an overall plan for housing in line with the comprehensive plan for Brooklyn Center and the needs of the metropolitan area. 3. Serve as a forum for the citizens of Brooklyn Center to voice their opinions regarding housing matters. 4. Work closely with the Planning Commission and all other commissions on matters regarding housing. 5. Work with the neighborhood advisory committees of the Planning Commission to understand the housing needs of each area of Brooklyn Center. 6. Develop and recommend standards for occupancy and maintenance of housing for the community. 7. Study the feasibility of establishing an occupancy permit program in conjunction with a housing maintenance code in Brooklyn Center. 8. Investigate new and innovative concepts in housing for the community. 9. Develop and recommend programs which will provide quality housing for low and moderate income citizens. 10. Develop and recommend a rehabilitation program as needed for existing housing in Brooklyn Center, especially for major maintenance and energy modernization projects. 11. Understand the financial resources available to the citizens in Brooklyn Center as it relates to housing. 12. Investigate all housing programs in terms of life safety. 13. Provide education seminars for the citizens of Brooklyn Center in matters of housing. 14. Serve as the initial review and advisory body for the Board of Appeals regarding contested compliance orders pursuant to the Housing Maintenance and Occupancy Ordinance, Sections 12-1202 and 12-1203. 15. Assist the Planning Commission in reviewing and discussing a redevelopment policy for the City of Brooklyn Center, and make recommendations to the City Council with regard to redevelopment in the City During this review it appeared that some of the duties in the resolution are quite different from the business the commission has been engaged in over the past few years. Some items seem to be focused on specific issues or projects and there were questions if they were still relevant. As a result of this process the commission would like to ask the council to review the duties in the resolution to see which are still applicable, if there are any refinements that should be made and if there were any particular issues or projects that the council would like the commission to consider in the next few years. Sincerely, Mark Goodell Chairperson MEMORANDUM – COUNCIL WORK SESSION Our Vision: We envision Brooklyn Center as a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment DATE: April 9, 2018 TO: Curt Boganey, City Manager FROM: Jesse Anderson, Deputy Director of Community Development THROUGH: Meg Beekman, Community Development Director SUBJECT: Affordable Housing Policy Recommendation: It is recommended that the City Council consider providing direction to staff regarding potential affordable housing policies for the City. Background: In May of 2017, the City Council received copies of emails forwarded by Councilmember Butler from African Career and Education Resource Inc. (ACER) requesting an opportunity to come before the City Council to discuss concerns about the need for affordable housing in Brooklyn Center. In addition Mayor Willson was in contact with a representative of Community Action Partnership of Hennepin County (CAPHC) regarding the same topic. On July 10, 2017, by consensus the City Council directed staff to invite representatives from ACER and CAPHC to a future work session to present information and have a dialogue on the issue of affordable housing. On August 14, 2017, the City Council received a presentation from ACER and CAPHC regarding the topic of affordable housing. At the presentation ACER and CAPHC advocated that the City consider adopting policies that would address the region’s need for affordable housing, protect tenants, and help preserve naturally occurring affordable housing. The Council directed staff to bring the subject back to a future work session for discussion. Regional Housing Trends: The Twin Cities Metropolitan Area is currently experience record low vacancy rates. According to Marquette Advisors’ midyear report in August 2017, the average vacancy rate across the Twin Cities metro was 2.4 percent. Experts agree that a balanced rental market will typically see an average vacancy rate of around 5 percent. The impact of low vacancy rates over time has increased rents, a growing interest from outside investors, and landlords in a position to be choosier about who they rent to. This has borne out throughout the Twin Cities Metropolitan Area as rents have gone up throughout the region. The average rent at the end of July 2017 had increased 3.1-pecent year over year. In addition, the Metropolitan Council is seeing a reduction in the number of landlords accepting Section 8 MEMORANDUM – COUNCIL WORK SESSION Our Vision: We envision Brooklyn Center as a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment vouchers. According to the Metropolitan Council, landlords are citing the increased interest for their units from non-voucher holders as the primary reason for the change. Yet another impact of the increasing value of rental property is the growing number of investors purchasing Class B or Class C rental properties, which are renting for naturally affordable rents, making cosmetic improvements, and increasing rents so that the units are no longer affordable. According to the Minnesota Housing Partnership, the sales of apartment buildings in the metro area jumped 165 percent between 2010 and 2015. Often the change in ownership will also come with a change in policy related to criminal history, acceptance of Section 8 vouchers, or minimum income requirements, resulting in existing tenants being displaced from the property. The region is also seeing a loss of smaller-sized rental properties (1-4-units). This is due, in part to single family properties converting back into owner-occupied as the market recovers from the recession, but also a growing number of local investors purchasing smaller properties and flipping them. While some of the proposed policies would impact single family rentals, the primary focus of affordable housing advocates and media attention has been on larger properties (40-units or greater). Affordable housing advocates have identified potential policies designed to address these issues. The policies fall into one of three categories; 1) preservation policies designed to preserve naturally occurring affordable housing and prevent it from being flipped; 2) tenant protection policies designed to prevent or mitigate displacement; and 3) creation policies designed to create new, legally-binding, affordable housing that will replace the naturally occurring affordable housing that is being lost. Brooklyn Center’s Current Rental Housing: According to the Metropolitan Council, the following table indicates what is considered affordable rents in the Twin Cities Metropolitan Area: # of Bedrooms 30% AMI 50% AMI 60% AMI 80% AMI Efficiency $474 $791 $949 $1,265 1-Bedroom $508 $848 $1,017 $1,356 2-Bedroom $610 $1,017 $1,220 $1,627 3-Bedroom $705 $1,175 $1,410 $1,880 4-Bedroom $786 $1,311 $1,573 $2,097 *Rents include tenant-paid utilities According to the Metropolitan Council, the following table indicates average rents in Brooklyn Center: # of Bedrooms Survey 5-Year Avg Efficiency $730 $744 1-Bedroom $869 $801 2-Bedroom $1,019 $925 3+ Bedroom $1,281 $1,147 MEMORANDUM – COUNCIL WORK SESSION Our Vision: We envision Brooklyn Center as a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment Brooklyn Center currently has 834 rental license holders. 713 of those are for single family homes. 71 of the licenses are for 2-4-unit properties. 24 are for properties with between 5 and 39 units. 27 licenses are for properties with greater than 40 units. There are approximately 4,300 rental units in the City. The average rents in Brooklyn Center are considered affordable for those making around 50 percent of the Area Median Income. Of the 11,608 total housing units (both rental and owner-occupied) in Brooklyn Center, 89.5 percent are naturally occurring affordable housing. There are currently 402 Section 8 voucher holders in the City. Brooklyn Center currently has five apartment building that are legally-binding affordable housing, Ewing Square Townhomes (23-units), The Crest Apartments (69-units), Unity Place (112-units), Emerson Chalet Apartments (18-units), and The Sanctuary (158-units). Also, Lynwood Apartment (50-units) is currently applying for Certified Low Income Status, which would make it a legally-binding affordable property. This equates to 3.7 percent of the City’s housing stock is legally-binding affordable housing. Anecdotally, a recent phone survey of 34 Brooklyn Center landlords found a current average vacancy rate of 1.3 percent. Rents in Brooklyn Center are currently very affordable compared to the region. Low rents may be contributing to the low vacancy rates. If the vacancy rates are in fact below 2 percent, and they remain that low over time, it would be reasonable to expect rents to increase. However, given the current low rents, even an increase in rents of 20-30 percent would result in rents still considered affordable for those making 60-80% AMI. Affordable Policy Options: Section 8 Ordinance (Tenant Protection) - Prohibiting discrimination against Section 8 voucher holders and other recipients of government programs. The policy would prohibit landlords from denying any tenants’ application based on the applicant receiving government assistance.  Staff surveyed 34 Brooklyn Center apartments and found that 50 percent indicated that they do not accept section 8 vouchers.  Minneapolis recently adopted this ordinance, which allows applicants who feel they have been discriminated against to seek damages through the city’s department of Civil Rights.  The City of Minneapolis has an active lawsuit filed against them by 55 apartment owners over the legality of this ordinance. The lawsuit argues the mandate conflicts with state law and unfairly forces them to comply with requirements of federal housing voucher programs for low-income residents. It also says the law violates the Minnesota Constitution because it reduces their property values, forces landlords to enter into contracts and represents an unnecessary government intervention in their businesses. Landlords also claim that this could cause landlords to increase rent and/or application criteria as to price out Section 8 vouchers.  Staff feels that if the ordinance is upheld by the courts, it could be a useful tool to ensure residents are not discriminated against based on their source of income; however additional review would be necessary related to the enforcement of the ordinance. Staff MEMORANDUM – COUNCIL WORK SESSION Our Vision: We envision Brooklyn Center as a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment recommends that the City monitor the Minneapolis lawsuit then review pending the outcome. Notice of Intent to Sell (Preservation) – Rental property owners must give advanced notice prior to the sale of a rental property. This gives a preservation buyer an opportunity to match the purchase price. It would also give service providers additional time to relocate residents who would be displaced as a result of the sale.  Landlords would be concerned about delaying the closing of a property sale, which could have a negative effect on price. Preservation companies such as Aeon have expressed concerns that this could increase the competition for these properties, and thusly increase sales prices.  Enforcement would be difficult because the penalty would come after the sale has occurred. If the property has sold, the seller no longer has ties to the property so enforcing a citation could be challenging and may not be a deterrent. In a workgroup in St. Louis Park landlords stated that if there was a $1000.00 citation for selling without notice, they would likely still sell the property and pay the citation.  It is unclear who the seller would need to notify of their intent to sell and what would be done with that information once it was known. Who would decide what buyers could have access to the information? Who would be responsible for disseminating the information?  It is possible that this ordinance would dissuade investors, who may opt to purchase property in cities that do not have the additional requirements.  St. Louis Park is looking at an alternative ordinance related to tenant transition/protection would address the need for additional time to relocate tenants.  Staff recommends that the city consider other options such as the tenant transition ordinance. Tenant Transition/Protection Ordinance (Tenant Protection) – This would require a new owner of a naturally occurring affordable housing property to pay relocation benefits to tenants if the new owner increases rent, rescreens existing residents or implements non-renewals without cause within 3 months after the purchase. The ordinance has the effect of freezing lease terms for 90 days after the sale of a property. The purpose is to allow tenants three (3) months to relocate if necessary.  This ordinance wouldn’t interfere with the sale of naturally occurring affordable housing, however; it would provide assistance to the tenants if necessary.  The ordinance would require new buyers to notify tenants within 30 days if substantive changes to the lease are forthcoming, giving tenants time to relocate if necessary.  St. Louis Park adopted the Tenant Protection Ordinance in March of 2018.  The policy could dissuade potential apartment buyers from buying in Brooklyn Center, who may opt to purchase a property in a city without this policy.  Staff recommends that the City review this policy further to determine the legality of it, the enforcement mechanism, and what the specific impacts in Brooklyn Center might be. MEMORANDUM – COUNCIL WORK SESSION Our Vision: We envision Brooklyn Center as a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment Just-Cause Eviction (Tenant Protection) – Also known as Just-Cause Non-Renewal, this would require a landlord to provide a reason if they were going to not renew a tenant ’s lease that was expiring. Currently landlords must provide a just cause for eviction, which a tenant can appeal in court. There is no appeal process available to tenants who lose their housing due to non-renewal of lease.  Landlords see this as taking away a valuable management tool for dealing with problem tenants and have the unintended consequence of increasing the number of evictions filed and strengthening screening standards.  When St. Louis Park conducted their meetings with landlords and the Multi-family Housing Association, this ordinance received the strongest opposition.  The enforcement of this policy would be through the court system and would require a tenant to take legal action against their landlord via a lawsuit.  Of the 34 landlords surveyed by staff, the majority of evictions or non-renewals are the result of non-payment of rent or criminal activity.  The intent of this ordinance would be to protect tenants from being non-renewed in the event a new owner wants to empty a building in order to do a substantial renovation with the goal of increasing rents.  Staff recommends that the City consider other options such as the tenant transition ordinance to protect tenants. Inclusionary Housing Policy (Creation) – These are a collection of policies that could be adopted by the city which would either encourage or require new affordable units to be included as part of new market-rate residential development projects which receive public subsidy or other discretionary City approvals. Frequently it is in the form of a requirement that a percentage of units be affordable in a new residential development in exchange for public subsidy of the project.  New developments such as the Opportunity Site would be required to include a certain number of affordable units.  Inclusionary Housing policies ensure that new affordable units are added as market -rate units are built, thus ensuring mixed-income communities.  Cities such as St. Louis Park and Minneapolis have found that in higher rent developments, a certain percentage of affordable units can be required without increasing the need for additional public subsidy. This is due to the higher than average market rents, which off-set the affordable units. In Brooklyn Center, as is true in communities with lower average rents, it is likely that the cost of the affordable units would require additional public subsidies in order for a project to be financially feasible.  If the Council would like to move forward with this police staff would recommend reviewing the feasibility of future development if an affordable housing policy is adopted. 4D Tax Breaks (Preservation) – Also known as the Low Income Rental Classification Program (LIRC), Minnesota provides a property tax break, currently amounting to 40%, to subsidi zed rental properties under LIRC, commonly referred to as the 4D program. There is the potential, MEMORANDUM – COUNCIL WORK SESSION Our Vision: We envision Brooklyn Center as a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment however, to extend 4D eligibility to certain currently unsubsidized affordable properties, without changing current law. This is because the LIRC/4D statute defines eligible properties as those which meet two conditions: the owner of the property agrees to rent and income restrictions (serving households at 60% AMI or below) and receives “financial assistance” from federal, state or local government. This presents the possibility of creating a “Local 4D” program in which qualifying properties receive the 4D tax break in return for agreeing to conditions which meet certain local government policy goals.  A government agency would need to provide a financial contribution to a rental apartment with a low income agreement placed on the property. The property could then be eligible to apply for 4D status. This would allow a landlord to make physical improvements to the property in exchange for affordable rents.  The reduction in property taxes would not decrease the City’s revenue from property taxes, as the funds would be distributed to all other properties; however, it would reduce that property’s share of local property taxes.  The amount of the tax break is a limiting factor as it equates to around $80/unit per year; however, the program may be an incentive for a property owner in a community where the market rents are already considered affordable, since they would not need to depress their rent rates.  Hennepin County is looking into a rehabilitation program for rental properties which would function similarly to the CDBG housing rehabilitation program, but be County funded.  The City could also look at funding a program for rental housing rehabilitation.  Staff recommends working with the County to determine the feasibility of a County-led program. The City could also review EDA or TIF 3 Housing funds to determine the availability of funds for a city program that would provide rental housing rehab assistance in exchange for a 5-10 year affordability requirement. This could be set up as a per unit matching forgivable loan. Other Policies/Programs  Identify buildings that are at-risk of being flipped. Reach out to owners of at-risk buildings and gauge their short and long-term plans. Help connect them with preservation buyers on a case-by-case basis.  Comprehensive Plan – the City is in the process of updating its Comprehensive Plan. If the preservation and/or creation of affordable housing are a priority for the City, it should be reflected in the City’s Comprehensive Plan.  Education – Work with the Metropolitan Council to provide education on Section 8 voucher programs to dispel some of the negative perceptions of the program. Policy Issues: Does the Council believe that the information presented indicates a need for additional policy actions to address the concerns raised regarding affordable housing and the protection of tenant rights? MEMORANDUM – COUNCIL WORK SESSION Our Vision: We envision Brooklyn Center as a thriving, diverse community with a full range of housing, business, cultural and recreational offerings. It is a safe and inclusive place that people of all ages love to call home, and visitors enjoy due to its convenient location and commitment to a healthy environment Does the Council require additional information regarding these issues before concluding if further policy actions are necessary? Which policies if any would the Council want brought back for further consideration? Which policy does the council consider a higher priority? Strategic Priorities:  Resident Economic Stability Attachments: US Census Bureau Data Metropolitan Council Land use Chart August 14, 2017 Council Work Session Memo August 14, 2017 Council Work Session Minutes Housing Strategies Table Presented at Previous Work-Session Mixed-Income Housing Policies among Neighboring Cities Table Phone Survey of Brooklyn Center Apartments Phone Survey of Brooklyn Center Single Family Property Management Companies: US Census Bureau Data: Metropolitan Council Land Use Chart: Housing Strategies Table Presented at Previous Work-Session Mixed-Income Housing Policies among Neighboring Cities City Policy/Program Type Affordability Requirements Affordability Period Opt-out (alternative) options Enforcement Tool Other Notes St. Louis Park (2015)  City financial assistance for new developments creating at least 10 multi-family units or renovation of an existing multi-family development with at least 10 units.  18% of total units in the development required at 60% AMI or 10% of units required affordable at 50% AMI.  Families may remain in the dwelling unit as long as the income does not exceed 120% AMI.  25 year minimum (considering an increase).  Subject to City Council approval: o Dedication of existing units o Offsite construction near public transit o Participation in construction of affordable units by another developer within the City  Affordable Housing Performance Agreement between City and Developer prior to Zoning Compliance Permit being issued.  Implemented 2015 – 6/7 new developments triggered policy with 1,073 units and 281 affordable units produced.  No development has used an opt-out option.  Units must be located within the development and distributed throughout the building unless approved by City Council. Edina (2015)  Re-zoning or Comprehensive Plan Amendment for all new multi-family development of 20 or more units.  10% of all rentable area at 50% AMI or 20% of all rentable area at 60% AMI.  15 year minimum.  Dedication of existing units equal to 110%, must be equivalent quality.  New construction at a different site.  Participation in construction of affordable units by another developer within the City.  Land use restrictive covenant.  PUD ordinance states development must consider affordability.  City will consider incentives for developments with affordable housing including: Density bonuses, parking reductions, TIF, deferred low interest loans from the Edina Foundation, and Tax Abatement. Golden Valley (policy approved in 2017; ordinance in coming months)  Market rate residential development with 10 or more units and receive: o Conditional Use Permit (ord.) o Planned Unit Development o Zoning Map Amendment (ord.) o Comprehensive Plan Amendment o Or Financial Assistance  15% of total project units at 60% AMI or 10% of project units at 50% AMI.  Families may remain in the dwelling unit as long as the income does not exceed 120% AMI.  20 year minimum.  Equal or greater amount dedication of existing units.  Affordable Housing Performance Agreement.  Mix of policy and ordinance.  City will consider incentives including:  Minimum in 33% reduction in required parking spaces  Minimum of 10% density bonus Brooklyn Park  New market rate residential development with 10 or more units and receive: o Planned Development Overlay (ord. required) o Zoning Map Amendment (ord. required) o Comprehensive Plan Amendment  Or Financial Assistance  15% of units at 60% AMI or 10% of units at 50%AMI or 5% of units at 30%AMI  20 year minimum.  Consider an alternative proposed by developer.  Affordable Housing Performance Agreement.  Mix of policy and ordinance.  Units must be located within the development and distributed throughout the building unless approved by City Council. Minneapolis (2002)  City-assisted housing projects of 10 or more units.  City-assistance includes TIF, condemnation, land buy downs, issuance of bonds to finance project, pass-through funding, and other forms of  Varies based on funding source but generally is either 20% of units at 60% AMI or 20% of units at 50% AMI (AHTF)  15 year minimum.  None.  Only 1-2 projects have taken advantage of the incentive program since 2002.  Currently engaging a consultant to develop an effective system. direct subsidy.  Density bonus and parking reduction incentive Saint Paul (2014)  City/HRA assisted rentals and homeownership.  Rental development in selected zones – density bonus incentive  Rentals – 30% of units affordable to households earning 60% AMI, of which at least one third will be affordable to 50% AMI, and at least one third will affordable to 30% AMI.  Rental - 10 year minimum .  Development Agreement  Voluntary/incentive density bonus is not being used so policy is currently being revised. Minnetonka (2004)  City Assistance  Voluntary/incentive based for all developments.  Rentals – 10% of units at 50% AMI for all developments, 20% of units at 50% AMI if using TIF funding.  30 year minimum.  Considered on a case by case basis.  Development Agreement.  Produced over 500 affordable units since 2004. Eden Prairie  City Assistance  Using a voluntary/incentive based approach for all developments; exploring adopting a policy.  City subsidy – 20% of units at 50% AMI.  Voluntary/incentive – starts at 10% of units at 50% AMI. Woodbury (2012)  Voluntary/incentive based – density bonus policy  20% of units at 80% AMI or negotiated.  15 year minimum. Chaska  All developments that need City approval  30% of units at 80% AMI. Forest Lake (2014)  Voluntary/incentive based – density bonus policy  Negotiable  15% density bonus, flexible parking requirements. Phone Survey of Brooklyn Center Apartments: Apartment Name number of Units number of vacant units Rent for a studio Rent for a 1 bedroom Rent for a 2 bedroom Rent for a 3 bedroom Rent for a 4 bedroom Do you accept section 8 Has rent increased over the past 2years? How much has rent increased? Most common reason for Eviction or non-renewal 4819 Azealia 12 0 750 800 no new yes $15-50 non-renewal 5207 Xerxes 12 0 0 Ave: $750 Ave $850 Yes yes 8% Disturbance 5240 Drew 10 0 845-950 yes no police calls for service The Avenue 36 0 755 929 1075 no yes 5% each month non-payment Beard Ave 24 0 $895 1 fl-$1025, 2-3 fl $1075 Yes (Typically don’t meet criteria) yes 100 - 2bd - 1bd 75 smoke in units, police calls (pattern) Brookside Manor 90 0 garden - $750 2- 3 floor $800 yes yes $20 police calls, disturbance, non-payment Carrington Dr 128 0 $735 $835-855 $945-975 no yes $50 disturbance, illegal activity, cleanliness, non-payment The Crest 122 3 for end of march $755 $935 yes yes 50 non-payment, crime free addendum Crossings - 6201 Lilac - 55+ 81 4 (0 in past few years) 1181-1275 (1bd + den 1081 1190-1750 No (inherited) yes 2-5% rarely - non-payment Crossings - 6125 Lilac - 55+ 65 1150 Earle Brown Farm 120 1 845-920 1010-190 No new ones yes 3% increase disturbance, non-payment Emerson Chalet 18 0 737 870 yes no non-payment, 3 strikes Gateway 252 3 775 850-875-895 995-1045 no yes 50 late payment, police calls, unit maintenance Granite City 72 0 849 949 1139 yes yes 34-55 smoking Granite Peaks 54 0 849 949 1139 no yes 34-55 non-payment Humboldt Courts 36 1 750 900-995 no yes 75-95 non-payment Lynwood - mark 50 0 895-925 1050-1190 yes Yes 2-4% non-payment of rent Melrose Gates 217 0 919-949 1129-1159 1159-1189 2bd+1.5ba 1209-1249 2bd+2ba no yes 100 non-payment River Glen 128 0 900 975-1000 1250 yes yes 50-75 non-payment/late rent Riverwood Estates 84 2 929 999-1050 no yes 40 lease violation Ryan Lake 22 1 800 800-1000 yes yes 75 non-payment Summerset 36 3 700 800-850 1150-1200 yes yes $50 non-payment, lease violations Twin Lake North 276 3 950+ 1105-1225+ yes yes 5% non-payment, behavior Unity Place 112 2 904-909 970 yes yes 30 non-payment Victoria Townhomes 48 4 1340-1400 no yes 40-60 tenant not renew Phone Survey of Brooklyn Center Single Family Property Management Companies: Management Agency number of Units number of vacant units Rent for a studio Rent for a 1 bedroom Rent for a 2 bedroom Rent for a 3 bedroom Rent for a 4 bedroom Rent for a 5 bedroom Do you accept section 8 Has rent increased over the past 2years? How much has rent increased? Most common reason for Eviction or non-renewal Prosperous 40 0 1050 1250 1450 1550 yes yes 2-3% non-payment Urban homes 2 1300 1400 1500 Yes NA Juliana Koi 2 1 1350 no yes 50 NA Kathleen Freitag 4 0 1235-1325 1410-1450 no no non-payment; destruction of property Tyang 1 0 1150 no no NA Michelle Nyarecha 1 0 1170-1250 yes no non-payment; police violations Nazeen 2 0 1000 1200 no yes 5% NA Tracy Hinkemyer 7 1350-2000 no no NA Dan tan 4 0 850-950 yes no non-payment drugs, noise