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HomeMy WebLinkAbout2018 09-18 HCPAGENDA BROOKLYN CENTER HOUSING COMMISSION September 18, 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: August 21, 2018 4) Comprehensive Plan Housing Chapter 5) New Neighbor Program a) Delivery Dates 9/22/2018 and 10/06/2018 6) City Council Liaison’s Report 7) Chairpersons Report 8) Other Business 9) 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 August 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 David Johnson - Excused Tamika Baskin – Not Present Kathie Amdahl - Present Joan Schonning – Present Michael Stokes – Present Paul Oman - Present Also present was Staff Liaison Jesse Anderson and Council Liaison Marquita Butler. APPROVAL OF AGENDA There was a motion by Commissioner Amdahl and seconded by Commissioner Johnson to approve the agenda as submitted. The motion passed. APPROVAL OF MINUTES There was a motion by Commissioner Schonning and seconded by Commissioner Amdahl to approve the minutes of the Housing Commission meeting on 7/17/18. The motion passed. COMPREHENSIVE PLAN DISCUSSION: There are no further comments on the comp plan. NEW NEIGHBOR PROGRAM UPDATE The list of spring deliveries has been finished. Chairperson Goodell: Should we do a second round of deliveries? Commissioner Amdahl: We should pick a cutoff date for deliveries to be completed by. Commissioner Johnson: Property would need to do a few Saturdays. Staff Liaison Anderson: The bags are made; we are waiting on the coupons to be printed. Page 2 Chairperson Goodell: Bags would be delivered on September 22nd. Commissioner Schonning: Can we get the bags and list of addresses at the August 18th meeting? Commissioner Johnson: Let’s try to do deliveries on two Saturdays. Add October 6th as a second delivery day. Commissioner Amdahl: Let’s try to do four hours per day; Starting at 10am. Staff Liaison Anderson: Will need to send info to BCBA for the coupons. Commissioner Goodell will reach out to talk about it. Chairperson Goodell: Can we do another newsflash? Staff Liaison Anderson: Yes, we will do another newsflash. Chairperson Goodell: We could reach out to new businesses in the city. Commissioner Johnson: I visited the pop up Market; would they consider combining this with the farmers market? Council Liaison Butler: Funding has not yet been approved for next year; it is something the Council is considering. Commissioner Johnson: This could become a destination event. Commissioner Schonning: This would be an improved location for the farmers market. Council Liaison Butler: It would be free to Brooklyn Center residents to have a stand. Commissioner Johnson: What is the status of that lot? Council Liaison Butler: The lot is still for sale. Someone asked if they could have a charter school and it wasn’t consistent with the comprehensive plan. City has tried to purchase it at different times. QUESTION OR CONCERNS RELATING TO THE KEEPING OF CHICKENS COUNCIL LIAISON REPORT Council Member Butler Reported: The City had a National Night Out kick off at Centennial Park. It was a successful event with great energy. I also, did a ride along and visited six parties. It was Youth and Government Day at the last council meeting. The BrookLynk interns attended and spent time discussing the T21 Plan with the Youth Mock Council. They then joined them for the City Council meeting. The youth had a great experience and had great information on the T21 topic. Page 3 We are working on the 2019 budget and have met with each department. The City will then try to bring the budget to the levy amount. Tim Horton’s opened Bank of America is being built Hom Furniture is under construction Storage facility has started construction Fairfield Inn is under construction Commissioner Johnson: There was a great youth program this summer at the Community Center. My granddaughter participated and said the people did a great job running the events. Commissioner Schonning: Well organized for the National Night Out kick of party. There was a great flow and it was fun event. Chairperson Goodell: Does the city license hotels Staff Liaison Anderson: Yes, with modifications. Commissioner Johnson: I was surprised at the location for Topgolf. Council Liaison Butler: Provided an overview of the Topgolf facility. CHAIRPERSONS REPORT Chairperson Goodell reported: Thanks for all the help with the bag delivery. The deliveries went efficiently. Commissioner Johnson: When citizens do come to the door, they appreciate the visit. Chairperson Goodell: People are excited to be living here and happy to receive the packet. Council Liaison Butler: I enjoyed the information when I was a new resident of the city. Commissioner Amdahl: Great to have contact information and not just a general number. OTHER BUSINESS Chairperson Goodell: Is there anything for next meeting? Possibly discuss some more information from the comp plan? Council Member Butler: I would like to hear more about parking ordinances regarding possible changes to the on street parking regulations. Staff Liaison Anderson: This was discussed at a Council Work session and presented by the Police Page 4 Chief. Chairperson Goodell: We could discuss this at the next Housing Commission meeting and review the information from the work session. ADJOURNMENT There was a motion by Commissioner Johnson and seconded by Commissioner Amdahl to adjourn the meeting. The motion passed. The Brooklyn Center Housing Commission adjourned at 8:00 p.m. __________________________________ Chairman DRAFT Chapter 4: Housing Comprehensive Plan 2040 HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 1 INTRODUCTION This Chapter evaluates Brooklyn Center’s existing housing stock and plans for future housing needs based on household projections, population projections, and identified needs communicated through this planning process. As required in the City’s 2015 System Statement prepared by the Metropolitan Council, understanding and planning for the City’s housing stock is a critical part of the 2040 Comprehensive Plan (Plan). The City’s planned land use includes three residential categories and residential components of new mixed-use designations which together account for approximately half of the City’s land use area. Residential land use will continue to be the largest land use in the community. A diverse housing stock that offers neighborhood stability combined with access to open space and essential goods and services is essential to a healthy, sustainable, and resilient community. It protects the community’s tax base against market fluctuations; it builds community pride and engagement of existing residents; it helps the community’s economic competitiveness by assisting Brooklyn Center businesses with employee attraction and retention; it provides options for existing residents to remain in the community should their life circumstances (e.g., aging-in-place) change; and it offers future residents access to amenities and levels of service that support a stable and supportive housing and neighborhood environment. The first part of this Chapter focuses on the existing housing stock. It summarizes important information regarding the overall number of housing units, the type of units, their affordability, and the profile of their residents. These sections are a summary of more detailed socio-economic data which is attached to this Plan as an Appendix and serves as a supporting resource to this Chapter. Understanding the existing housing stock is key to determining what types of housing products may be demanded over the next 10-20 years and where they should be located. In conjunction to the statistical or inventory information collected, this Chapter includes a summary of community, stakeholder and policy-maker feedback related to housing and neighborhoods heard throughout this planning process. Additionally, this Chapter addresses the projected housing needs during the planning period and presents some neighborhood and housing aspirations as identified by the City’s residents and policy-makers. The final section of this Chapter links projected housing need to practical implementation tools to help the City achieve its housing goals and identified strategies. The list contained in this Chapter is not exhaustive but provides a starting place from which the City can continue to expand and consider opportunities to meet current and future resident needs. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 2 2040 Housing Goals »Promote a diverse housing stock that provides safe, stable, and accessible housing options to all of Brooklyn Center’s residents. »Recognize and identify ways to match Brooklyn Center’s housing with the City’s changing demographics. »Explore opportunities to improve the City’s housing policies and ordinances to make them more responsive to current and future residents. »Maintain the existing housing stock in primarily single-family neighborhoods through proper ordinances and enforcement. »Explore opportunities to incorporate new affordable housing into redevelopment areas that promote safe, secure and economically diverse neighborhoods. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 3 ASSESSMENT OF EXISTING HOUSING SUPPLY Overview of Brooklyn Center’s Residential Neighborhoods The City of Brooklyn Center’s residential neighborhoods are diverse and include a variety of housing types from single-family neighborhoods to large-scale apartment complexes. Although the City originally incorporated as a village in 1911, it wasn’t until the Post-World War II era that the City began to develop on a large scale in which entire blocks and even neighborhoods were constructed with tract housing, suburban streets, and neighborhood parks. Like much of the region’s first ring suburbs, Brooklyn Center took on the role of a typical bedroom community where residents could get to their jobs in the downtown, stop for groceries at the retail center, and go home and park their cars in their garages for the evening. This pattern of development can be seen throughout the region, but Brooklyn Center had one significant difference for many decades – the regional mall known as Brookdale. The prominence of the mall and its surrounding commercial district played a major role in how neighborhoods were built and developed, which influenced neighborhood patterns and housing types. Even though the mall is now gone, it continues to have lasting effects on the existing housing types and neighborhoods and will influence future housing as described in subsequent sections of this Chapter. For example, in the decades that the mall and regional retail center was operational much of Brooklyn Center’s multi-family and apartment development was concentrated near the mall and its commercial district and provided a transition to the surrounding single-family neighborhoods. Therefore, even though the mall no longer exists, the apartments developed around the periphery of its retail area in the 1960s continue to be in high demand and provide a critical source of housing for many households. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 4 The following sections identify and inventory the existing housing stock in the community including single-family, attached and apartment uses. Each of these housing types serve a different role in the community, but each type is an important part of the City’s neighborhoods. A summary of the City’s existing residential types and neighborhoods are as follows: Single-Family Residential Single-family residential neighborhoods are the dominant land use within the City and single- family detached homes comprise nearly 63 percent of the City’s housing stock. The City’s single-family detached neighborhoods were developed surrounding higher density and higher intensity land uses that included the former regional retail center and the major freeway corridors of I-94 and Highway 100. Most of the single-family neighborhoods are developed on a grid system with traditional ‘urban’ size lots. Exceptions of some larger lots are interspersed within the traditional block pattern and along the Mississippi River where a pocket of residents have views and/or frontage of the river corridor. The 1950s were the peak decade for housing construction in the City; a period in which owner- occupied housing predominated. While other housing types began to emerge post 1950s, the demand for single-family detached housing continued through 1980 as the remaining land in the community developed. Given the period in which the majority of Brooklyn Center’s housing stock was built, nearly the entire single-family detached housing stock is more than 40 years old. This is a major concern because at 40 years of age exterior components of a building including siding, windows, and roofs often need to be replaced to protect its structural integrity. Because the City became mostly built-out by the late 1970s, nearly all of the City’s housing stock falls into this category, which means the City must be cognizant of potential issues and proactively monitor the situation to ensure neighborhoods are sustainable into the future. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 5 While related to housing age, the size or square footage of single-family homes also plays a significant role in the demographics of a community. Changes to family structure, technology, and other factors alter housing preferences over time, which can lead to functional obsolescence of homes and result in reduced home values because they no longer meet current buyers’ expectations. Brooklyn Center’s single-family housing stock is fairly homogeneous and the overwhelming majority of homes in every neighborhood are less than 1,500 square feet – and in many areas less than 1,000 square feet. This is a relatively modest single-family housing size, and, therefore, the single-family housing stock lacks diversity, which results in lack of choice for current and prospective residents. At the same time, these homes offer an option for small families, single and two-person households, and first time homebuyers. Because the majority of the City’s single-family housing stock is relatively small, older, and of a homogeneous type as compared to newer larger homes or neighborhoods with more housing variety, housing prices in Brooklyn Center tend to be affordable. Also, given the similar age, size and styles of many of the homes, housing in the community has a fairly consistent price-per- square foot. Affordability in the existing housing stock can be a positive attribute that has the potential to provide long-term stability to residents and neighborhoods. However, as shown in the Background Report residents of Brooklyn Center also tend to have lower median household incomes, which can mean residents may struggle to pay for large-scale capital investments in their homes such as replacing windows or a roof. Additionally, within the region some communities with similar single-family stock to Brooklyn Center have experienced pressure for tear-downs and major remodeling, and that market trend has yet to reach the City. While that trend may eventually impact the community, at the present time the change and growth impacting the single-family neighborhoods is mostly related to the evolving demographics within the community. This change presents different considerations and challenges because it is not necessarily physical growth or changes to homes and neighborhoods. Instead the community is challenged with how to manage larger numbers of people living within a household such as growing numbers of multi- generational households. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 6 Existing Single-family Neighborhood Perspectives Described in this Planning Process Throughout this planning process policy-makers and residents alike expressed the desire to maintain the affordability of the existing single-family neighborhoods but acknowledged the current challenges of helping residents maintain their structures, blocks and neighborhoods in the face of compounding maintenance due to the age of the City’s neighborhoods. In addition to the physical condition of the structures, residents and policy-makers also acknowledged that as the City’s population and demographics become increasingly more diverse new residents are changing how existing homes are being occupied and, therefore, it would be valuable for the City to evaluate it’s ordinances and policies to ensure they align with the needs of residents. The demographic considerations are identified in subsequent sections of this Chapter, but it is worth noting that the demographic changes can have a significant impact the character of existing single-family residential neighborhoods. Most recognized this as a positive change, but also acknowledged and stated that the City must figure out how to pro-actively address some of these changes to protect the existing neighborhood fabric. For example, multi-generational households are becoming increasingly more prevalent within the City’s single-family neighborhoods which can impact how rooms within a home are used, how many cars may be present at the home, and how outdoor spaces and yards may be used. Closely related to the demographic changes in the community is the City’s aspiration to promote and maintain neighborhood stability. This objective emerged repeatedly throughout this planning process as residents and policy-makers expressed the desire to identify strategies to help promote and encourage sustainability, resiliency and accessibility within the single-family neighborhoods. In part this objective is the result of several years of turnover within the single- family neighborhoods as long-term residents begin to age and move onto other housing options, new residents and families are moving into the neighborhoods. This life-cycle of housing is common, but the City wants to find ways to ensure new residents want to stay in their homes, their neighborhoods, and the community long-term and invest in making the City a better place for generations to come. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 7 Multi-family Residential Nearly one third (29 percent) of the City’s housing units are in multi-family residential buildings located throughout the community. Nearly all of these buildings were constructed in the 1960s and 1970s, and are primarily located on major roadways or corridors, and surrounding the former regional retail areas. This means these buildings are nearly 50 years old or older. Just as noted within the single-family neighborhoods, the potential for deterioration and need for significant investment in these aging buildings can pose a threat to the quality of the City’s housing stock if the buildings are not properly maintained, managed and updated. There has been some maintenance and management of the multi-family housing stock, and a few complexes have even incorporated modest upgrades to the interiors. In fact, the City has started one large-scale rehabilitation of a building that would bring higher-market rate rental options to the community once completed. However, this is one project and despite these improvements the City’s multi-family housing stock continues to be one of the most affordable in the region with some of the lowest rental rates in the metropolitan area. Many of the multi-family areas are near major corridors and are adjacent to high intensity uses that do not necessarily support or serve the residential use with the current development and land use patterns. As a result, many of the multi-family areas do not feel like an incorporated part of the City’s neighborhoods. As discussed in subsequent sections of this Chapter, the City is planning for redevelopment in or adjacent to many of the existing multi- family areas that will hopefully reinvigorate and reconnect the existing multi-family uses into a larger neighborhood context. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 8 Multifamily Neighborhood Perspectives Described in this Planning Process Throughout this planning process the City’s residents were vocal about the existing multi-family options available in the community and the lack of diversity within the multi-family housing stock. Without a full inventory of all available multi-family units it is difficult to confirm some of the anecdotal comments heard throughout the process, but nevertheless it is important to consider since residents’ testimony provides valuable insight into the existing housing stock. Several residents indicated that there are few options available for larger multi-family units with at least three (3) bedrooms, making it difficult to find stable living options for families with more than two (2) children. Residents also communicated a desire to have housing options that were closer to supportive retail, commercial and services so that they could walk, bike or easily use transit to meet their needs. Despite these challenges, the City’s parks, trails and open spaces were viewed as an integral and important part of their quality of life. Similarly, to the single-family neighborhoods, the community’s aspiration to create a stable, accessible, and economically diverse multi-family housing stock was established as a short and long-term priority. Though not discussed at length during this planning process, it is widely known and understood that resident turnover, including evictions, is a serious problem that is most concentrated within the multi-family neighborhoods of the City. While this Chapter does not attempt to fully evaluate the causes for turnover and eviction in these neighborhoods, it does acknowledge it as a significant challenge and issue which shapes the character of these areas of the community. Turnover, including evictions, changes how residents feel about the community whether the City is directly involved or not. It has lasting affects on how safe people feel within a community, how invested in an area they want to become and how willing they are to contribute and reinvest in the City. For these reasons, it is imperative that the City tackle these issues and create a more stable, and integrated living environment so all residents feel a part of a neighborhood, and the larger community. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 9 Housing Stock Statistics The following existing housing stock characteristics support the previous neighborhood descriptions through more detail. This information, coupled with the previous description, provides a valuable baseline from which the City can evaluate and plan for the future of its housing stock. Total Housing Units According to data from the Metropolitan Council and the City of Brooklyn Center, there are 11,603 housing units in Brooklyn Center as of 2017. As a fully developed community, new residential development in Brooklyn Center has been limited since the late 1980s. According to the Metropolitan Council, around 100 new housing units have been built since 2000 and these homes were primarily small infill locations or small redevelopment opportunities. Housing Tenure (Owned and Rented Units) Nearly 40 percent of the community’s residents rent, and the majority of those renters live in apartment buildings which are integrated throughout the community. The Background Report in the Appendix includes maps illustrating the location of rental housing and demographics of renters. Given that a significant portion of the City’s population lives in apartments, the age of such structures becomes critically important to the overall health of the housing supply. The majority of the apartments were constructed prior to 1979 with the bulk of the units being constructed between 1966 and 1969. This means that the majority of the apartments is more than 50 years old, and that structural deficiencies and major capital improvements may be required in the relatively near term in order for the structures to remain marketable. 11,603 Brooklyn Center housing units as of February 2017 - Sources: Metropolitan Council 40% of community residents are renters - Sources: Metropolitan Council; US Census; SHC HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 10 Housing Type Related to housing tenure is housing type. Due to Brooklyn Center’s peak time of housing development in the 1950s, the housing type is predominantly single-family detached homes. As of 2017, there are 8,270 units (71 percent) of single-family housing (attached and detached) and 3,333 (29 percent) classified as multi-family housing. The type of housing structure can influence not only affordability but also overall livability. Having a range of housing structures can provide residents of a community options that best meet their needs as they shift from one life stage to another. For example, retirees often desire multi-family housing not only for the ease of maintenance, but also for security reasons. Multifamily residences are less susceptible to home maintenance issues or burglary concerns because of on-site management. For those with health concerns, multi-family residences often have neighbors that can also provide oversight should an acute health problem occur. The majority (63 percent) of Brooklyn Center’s housing stock consists of detached single-family homes. This is above the proportion found in Hennepin County (55 percent) or throughout the metropolitan area (59 percent). Nevertheless, the City’s housing stock is diversified, with many multi-family units in large structures, as well as a significant number of single-family attached units. More detailed data are included in the Background Report in the Appendix. Year Built The age of the housing stock is an important characteristic of the community particularly as it relates to potential structural obsolescence and other limiting factors which correlate to housing values. As described earlier, much of Brooklyn Center’s single-family housing stock was developed post-World War II between 1950 and 1963 and many of the homes in this age range were dominated by rambler architectural styles. As shown on Map 15, entire neighborhoods were all constructed in a relatively short period of time which strongly defines a neighborhood pattern. As shown, most of Brooklyn Center was developed on a fairly regular grid pattern and does not reflect a ‘suburban’ development pattern. This is positive from the perspective that transportation and transit connections should be easier to improve, where necessary, because of the relatively dense population of the neighborhoods. However, aging neighborhoods can present a challenge as major systems (i.e. roof, siding, windows, 71% of housing units are single-family - Sources: Metropolitan Council; US Census; SHC HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 11 HVAC, etc.) reach the end of their useful life. This can be particularly difficult if residents are unable to reinvest and maintain their properties, which leads to deferred maintenance and the potential for more significant problems that would become widespread across entire neighborhoods. Approximately 86 percent of Brooklyn Center’s housing stock (over 10,000 units) is more than 40 years old. This is an overwhelming portion of the City’s housing, and it is therefore important to track the condition of these older homes as they are at- risk of deferred maintenance. This can rapidly result in critical structural problems. At the same time, well-maintained older housing can be an important source of entry-level housing because of its relative affordability when compared to newer construction. Table 4-1. Year Built 86% of housing stock is more than 40 years old - Sources: US Census; SHC HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 12 Housing Affordability The Metropolitan Council considers housing affordable when low-income households are spending no more than 30 percent of their income on housing costs. Households are considered low-income if their income is at or below 80 percent of the metropolitan area’s median income (AMI). The housing stock in Brooklyn Center is affordable relative to other communities in the Twin Cities region. According to the Metropolitan Council, 93 percent of the housing units in 2017 in Brooklyn Center were considered affordable. Moreover, only a small portion (5 percent) of this housing is publicly subsidized. Therefore, most housing is privately-owned and pricing is set by the market. According to the Minneapolis Area Association of Realtors, there were 480 home sales in Brooklyn Center in 2017 with a median sales price of $186,125. This was roughly 25 percent lower than the Metro Area median sales price of $247,900. For rental housing, according to CoStar, a national provider of real estate data, the average monthly rent for a market rate apartment in Brooklyn Center in 2017 was $981 compared to the Metro Area average of $1,190. $186,125 2017 median home sale price in Brooklyn Center $247,900 2017 median home sale price in the Metro Area - Source: Minneapolis Area Association of Realtors, HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 13 Map 4-1. Estimated Market Value of Owner-Occupied Housing Brooklyn Center Broo klyn Park Columbia Heights Crystal Fridley Robbinsdale Minneapolis - Owner-Occupied Housing by Estimated Market Value 1/5/2018 .1 in = 0.55 miles Brooklyn Center County Boundaries City and Township Boundaries Streets Lakes and Rivers Owner-Occupied Housing Estimated Market Value, 2016 $243,500 or Less $243,501 to $350,000 $350,001 to $450,000 Over $450,000 Source: MetroGIS Regional Parcel Dataset, 2016 estimated market values for taxes payable in 2017. Note: Estimated Market Value includes only homesteaded units with a building on the parcel. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 14 Table 4-2: Affordability of Units by Income Level Total Housing Units1 11,603 Affordability2 Units affordable to households with income at or below 30% of AMI Units affordable to households with income 31% to 50% of AMI Units affordable to households with income 51% to 80% of AMI 539 6,669 3,603 Source: Metropolitan Council. The high rate of affordability is largely due to the prevalence of smaller and older homes in the single-family neighborhoods, and the age and level of improvements within the multi-family rental neighborhoods. Such small sized properties are typically less expensive because they have significantly less living space than newer homes (average construction square footage has increased each decade since the 1950s). Age and level of update and improvements within the apartment stock, coupled with the average number of bedrooms in the rental units is impacting the relative affordability of the multi-family units. The condition in both the single-family and multi-family housing stock is what is known as Naturally Occurring Affordable Housing (NOAH), because the physical characteristics of the properties are what makes them affordable rather than the affordability being established through a legally binding contract. Although there is a high rate of affordability for existing units, the Metropolitan Council identifies a need for additional affordable units in any new housing construction added to the community through 2040. This condition would most likely be achieved by a legally binding contract, or some other financing mechanism as new affordable housing product would be difficult to achieve without some assistance given construction and land costs. Of the 2,258 projected new housing units, the Metropolitan Council establishes a need of 238 units to be affordable to households at or below 80 percent AMI to satisfy the regional share of affordable housing. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 15 Although nearly all of Brooklyn Center’s housing stock essentially fits within the criteria as naturally occurring affordable housing, there are some observable trends that would suggest the price of housing in Brooklyn Center could rise in the coming years. Most recently in 2018 the City’s for-sale housing median home sales price surpassed the pre-bust pricing. While the median remains below the regional median, it does indicate growing demand and increased pricing. Significant areas of redevelopment identified on the Future Land Use Plan, including the former regional mall (Brookdale) location, present opportunities for higher-market rates for new housing added. These opportunities have the potential to create a more economically diverse housing stock within the City, which is relatively homogeneous at the time this Plan is written. Given these opportunities, it is important to continue to monitor the City’s NOAH stock, and to evaluate and establish policies to incorporate legally binding and protected affordable housing as redevelopment occurs. This is a careful balancing act that requires concerted and direct monitoring, study, and evaluation in order to ensure an economically diverse, sustainable and resilient housing stock for the long-term success of the community. KEY DEMOGRAPHICS Age Profile of the Population The age profile of a community has important ramifications on demand for housing, goods and services, and social cohesion. Tables and figures illustrating the City’s age distribution are presented in the Background Report in the Appendix. Unlike the broader region, in which the population continues to age rapidly, Brooklyn Center’s population grew younger between 2000 and 2010, and has stayed relatively stable since 2010. This is largely due to a significant increase in people age 25 to 34, many of which are starting families and having children. Increases in the number of young families place demands on schools, housing affordability, and the types of retail goods and services needed. The median age of residents in Brooklyn Center in 2016 was 32.8, which is consistent with the 2010 median age of 32.6. This is younger than 32.8 Median age of Brooklyn Center residents - Sources: US Census, SHC HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 16 2000 when the median ages was 35.3. With such a young population, it is expected housing units may turn over more frequently. But, as of 2016, more than 60 percent all households have been living in their homes for more than five (5) years. More data about geographic mobility of households is found in the Background Report in the Appendix. Household & Family Type Changing family and household structures can also have a profound effect on housing and other community needs. For example, decreasing household size has a direct impact on the amount of housing a household needs. As mentioned, the presence of children not only impacts local schools and parks, but also the types of retailers that can be supported and the nature of housing demanded. Since 2010, the number of households with children in both single-parent and married couple households has been growing significantly. Meanwhile, the trend among households without children, especially married couples (i.e., empty-nesters) has been on the decline. The percentage of households with children is approaching 40 percent, which is well above the rate in the County and the metro area. 63% Households that have lived in their home 5 years or more - Sources: US Census, SHC HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 17 Cost Burdened Households Cost burden is the proportion of household income spent toward housing and utilities. When lower income households spend more than 30 percent of their income toward housing and utilities this burden is considered excessive because it begins to limit the money available for other essentials such as food, clothing, transportation, and healthcare. According to data from the Metropolitan Council, 4,114 (35 percent) Brooklyn Center households at or below 80 percent average median income (AMI) are considered cost-burdened which means they spend more than 30 percent of household income on housing costs. This percentage is well above the metro area rate of 23 percent. Half of these Brooklyn Center households are lower income households who earn at or less than 30 percent AMI. The high incidence of cost burdened households is correlated with younger wage earners, lower-wage jobs, and a high proportion of older households, many of which are in retirement and no longer working. FUTURE HOUSING OPPORTUNITIES Projected Housing Need As referenced in Chapter 3: Land Use and the following Table 4-3, the Metropolitan Council’s 2015 System Statement forecasts that Brooklyn Center will add approximately 4,169 new residents and 2,258 new households through 2040. Recognizing that the land use plan for Brooklyn Center identifies several key areas that are envisioned for new development or redevelopment, this will result in an opportunity to accommodate more housing and increase the City’s number of households. Based on guided residential densities in the development opportunity areas, the City can accommodate the Metropolitan Council’s forecasted households. As indicated in the Land Use Chapter, depending on how the market responds to these redevelopment areas the City could accommodate anywhere between 2,658 and 3,836 new households by 2040 (Chapter 3: Table 3-5, repeated in the following Table 4-3 ). 2,258 Number of forecasted new Brooklyn Center households through 2040 by the Met Council - Sources: Metropolitan Council 2,658 Number of forecasted new Brooklyn Center households through 2040 by the City - Sources: City of Brooklyn Center, SHC HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 18 Table 4-3. Future Land Use Densities and Projected Acres, Households & Population Future Land Use Density (DU/A) 2020 Acres (Res)b HH Popc 2030 Acres (Res)b HH Popc 2040 Acres (Res)b HH Popc Transit Orient Development (TOD) 31+ DU/A 25 (9)279 +/-619 +/-70 (26)814 +/-1,807 +/-200 (53a)1,643 +/-3,648 +/- Neighborhood Mixed-Use 15-31 DU/A 50 (13)195 - 403 433 - 895 125 (31)465 - 961 1,032 - 2,133 213 (53a) 795 - 1,643 1,765 - 3,648 Commercial Mixed Use 10 – 25 DU/A 30 (8)80 - 200 178 - 444 60 (15)150 - 375 333 - 833 88 (22)220 - 550 488 - 1,221 TOTAL ----554 - 882 1230 - 1958 --1,429 - 2,150 3,172 - 4,773 --2,658 - 3836 5,901 - 8,517 Source: Metropolitan Council, Thrive 2040 Brooklyn Center 2015 System Statement, SHC. a Acreages assume that some recently redeveloped areas within these land use designations will not experience redevelopment until post-2040 and therefore households are not calculated. Please refer to Map 3-3 that identifies areas planned for change within this planning period. b Note, there are existing households in each of the designations today that would be re-guided for potential redevelopment in the future. This accounts for existing households and those that my potentially develop over the next two years. cCalculation multiplies households by 2.22 persons per household (According to the 2016 ACS (Census), for multi-family units (5+ units in structure) There are three large districts identified in the City with guided land use that allows for significant potential of new development and redevelopment through 2040. These areas have the potential to greatly expand Brooklyn Center’s current housing numbers and choices. Moreover, each opportunity area has the potential to not only provide new forms and types of housing but to catalyze or rejuvenate investment into the City resulting in stronger linkages between neighborhoods and districts that are currently isolated from one another. The following section discusses these areas further. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 19 Future Residential Uses in Planned [Re] Development Opportunity Areas Transit-Oriented Development (TOD) Transit-Oriented Development (TOD) is a new land use and redevelopment concept in the City that focuses on existing and planned transit as a major amenity and catalyst for redevelopment. While previous planning efforts have acknowledged the presence of transit in the community, none have embraced it as an opportunity for redevelopment. As this portion of the City redevelops, the location of future transit enhancements has the potential to attract significant new housing development. Therefore, this is where guided densities are the highest. This is purposeful because the area has exceptional visibility and access from Highway 100 and I-94, and will be served by two transit stops (one being a transit hub) for the C-Line Bus Rapid Transit (BRT). The C-Line will mimic the operations of LRT (light rail transit), offering frequent transit service that will connect residents to the larger region. To best support the C-Line, the City has planned to reinvigorate and re-imagine this central area of the community as a more livable, walkable, and connected neighborhood within the City. In addition, the potential for desirable views of Downtown Minneapolis could result in pressure to build taller structures in this area. Any development of this area should also be seen as an opportunity to support commercial users, improve multimodal service and access, and allow safe, pleasant, and walkable connections to transit, parks, and other community destinations. As this area evolves, the desirability of this area as an amenity-rich livable area is likely to improve. As change occurs, the housing within the area is likely to be at market rates adding to a more economically diverse housing stock than is currently available in the community. This would add more housing choices in Brooklyn Center, and it could also support a mix of both market rate and affordable units; provided proper policies are developed to ensure legally binding affordable housing is incorporated into development plans. Communities oftentimes explore policies such as inclusionary zoning as redevelopment accelerates which may become an appropriate consideration in the future, but is likely not to be the best approach given current market conditions. However, in the future if significant increases in the market occur it may warrant further discussion in the City. Regardless of the policy tool (whether regulatory or incentive based) selected, consideration will need to be given to working with any future developer in a possible partnership with the City to help deliver affordable units as part of redevelopment. As described within the Chapter 8: Implementation, the City will continue to explore proper methodology and policies to ensure an economically diverse housing stock is created as housing continues to evolve in the community. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 20 Commercial Mixed-Use Areas The Commercial Mixed-Use areas generally surround the TOD area and are contemplated for large-scale redevelopment but are equally as focused on supporting business and office users. These areas are generally within one mile of the transit station that serves as a major hub for regional and local transit services, and therefore new housing will still have opportunities to capitalize on this as an amenity. Slightly less dense than the TOD district, these areas may provide exceptional opportunities to introduce multi-family uses such as town homes, row homes, and small lot single-family uses that could cater to larger families and incorporate more units with three or more bedrooms. As indicated in previous sections of this Chapter, the City’s residents expressed a desire to have access to more rental units with more bedrooms and larger square footages. While a detailed market study would likely be needed to confirm the demand for these uses, if we can take the anecdotal information as true, this area has the potential to support those types of uses. As with the TOD district, affordability is likely to become a consideration in any redevelopment within these areas because new construction naturally costs more and as the area redevelops interest and demand is likely to escalate costs. It is therefore important, just as with the redevelopment of the TOD district, that the City evaluate and explore ways to incorporate a range of affordable and market rate opportunities in new developments. Neighborhood Mixed-Use Areas The Neighborhood Mixed-Use is a new land use designation that responds to resident and policy-makers desire to incorporate retail and services into the neighborhood fabric. One of the ways the City can accomplish that objective is to create ‘nodes’ of mixed-uses that include residential uses, but protect key corners for small retailers, shops, or restaurants that create a more vibrant streetscape. The City acknowledges that these areas are less likely to redevelop with any regularity. Therefore, the number of new housing units expected to come on-line in these areas is a little less tangible than in areas with large contiguous redevelopment acres. However, the nodes have the opportunity to provide yet another housing style and type, as these areas are not envisioned for large high-rises or extensive master plans. Instead, these areas are contemplated to have smaller footprints with living units above a small store front or restaurant for example. HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 21 HOUSING RESOURCES, STRATEGIES & TOOLS Table 4-4 outlines a variety of resources, strategies, and tools to implement Brooklyn Center’s identified housing needs and stated housing goals. There is a wealth of resources available to assist communities in meeting their goals. The following table should be considered a starting point. As the City’s housing needs evolve or become clearer, this set of tools should expand with options. Table 4-4. Housing Resources, Strategies & Tools Housing Goal Tool/Resource/ Strategy Description Promote a diverse stock that provides opportunities for all income levels Housing Demand Market Study City to regularly conduct a market study to track housing demand that could double as a marketing and promotional piece about opportunities. Housing Coordinator Position The City would create a position that would serve as a liaison to existing landlords to help them respond to shifting demographics through training and access to city resources. The position could also serve as a resource for tenants to connect to support services in the event of eviction notices, discriminatory practices, and other issues related to housing access. The position would include coordinating housing programs, including home ownership programs, resident financial literacy programs, with the intent to convert Brooklyn Center renters to successful home owners. Inclusionary Housing Ordinance If the market strengthens in redevelopment areas to the extent that policies would not deter investment, the City could consider an inclusionary housing ordinance to ensure that affordable housing is a component of any new housing development. Since current market conditions in the City are well below those of adjacent communities, an inclusionary policy may deter short- term investment. The City may want to explore this policy in the future if the market rents rise to levels of at least 100% AMI. Livable Communities Demonstration Account (LCDA) Consider supporting/sponsoring an application to LCDA programs for multi-family rental proposals in areas guided for high density residential and targeted to households of all income levels. Tax Abatement Consider tax abatement for large rental project proposals. Expedited Application Process Streamline the pre-application process in order to minimize unnecessary delay for projects that address our state housing needs, prior to a formal application submittal. [Meg/Ginny: If Brooklyn Center has already done this, let us know] Site Assembly Consider strategies for assembling sites in high-density or mixed-use districts that would increase appeal to developers. Tax Increment Financing (TIF) To help meet the need for low-income housing, consider establishing a TIF district in an area guided for high density development. Brownfield Clean-up In potential redevelopment areas, explore EPA and MN DEED grant programs that provide funding and assistance with planning, assessment, and site clean-up. Table continues on the following page HOUSING - DRAFT 9-7-2018 City of Brooklyn Center Comprehensive Plan 2040 22 Housing Goal Tool/Resource/ Strategy Description Protect existing single-family neighborhood patterns Home Ownership Program Work with residents to provide education and programs to make home ownership possible, particularly converting existing renters to home owners. CDBG Work with Hennepin County to use CDBG funds to help low-and moderate-income homeowners with rehabilitation assistance. Referrals Review and update reference procedures and training for applicable staff including a plan to maintain our availability to refer residents to any applicable housing programs outside the scope of local services. Low or No Cost Home Rehabilitation Programs Providing low-or no-cost loans to help homeowners repair heating, plumbing, or electrical systems helps preserve existing housing. For example, Minnesota Housing’s Rehabilitation Loan and Emergency Loan programs make zero percent, deferred loans that are forgivable if the borrower lives in the home for 30 years. Minnesota Housing’s Community Fix Up Program offers lower-cost home improvement loans, often with discounted interest rates, remodeling advising, or home energy services, through a trained lender network. Foreclosure Prevention In established neighborhoods, a rash of foreclosures, especially in close proximity to one another, can have a deleterious effect on the surrounding neighborhood. Be aware of foreclosures and be able to direct homeowners at-risk of foreclosure to resources that can help prevent foreclosures. http://www.hocmn.org/ Table 4-4. Continued. Housing Resources, Strategies & Tools