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HomeMy WebLinkAbout2021-03-11 PCPPLANNING COMMISSION AGENDA CITY OF BROOKLYN CENTER VIRTUAL MEETING MARCH 11, 2021 Virtual meeting being conducted by electronic means in accordance with Minnesota Statutes, section 13D.021. Public may access the Webex meeting: Online: logis.webex.com | Phone: (312) 535-8110 Meeting Number (Access Code): 133 591 9673 1.Call to Order: 6:30 PM 2.Approval of Agenda Motion to Approve Planning Commission Meeting Agenda for March 11, 2021 3.Approval of Minutes Motion to Approve the February 11, 2021 Regular and Work Session Meeting Minutes 4.Chairperson's Explanation The Planning Commission is an advisory body. One of the Commission's functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. 5.Planning Items a.None. 6.Discussion Items a.None. 7.Adjournment PLANNING COMMISSION AGENDA CITY OF BROOKLYN CENTER VIRTUAL MEETING MARCH 11, 2021 Virtual meeting being conducted by electronic means in accordance with Minnesota Statutes, section 13D.021. Public may access the Webex meeting: Online: logis.webex.com | Phone: (312) 535-8110 Meeting Number (Access Code): 177 868 5198 Joint Planning and Housing Commission Work Session Following Adjournment of Regular Planning Commission Meeting 1. Brooklyn Center Housing Presentation and Discussion – cont. a. Speakers: Meg Beekman (City of Brooklyn Center Community Development Director), Jason Aarsvold (Ehlers Public Finance) 2. Adjournment PC Minutes 02-11-21 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA FEBRUARY 11, 2021 1. CALL TO ORDER The Planning Commission meeting was called to order by Chair Omari at 6:42 p.m. The meeting was conducted via Zoom. 2. ROLL CALL OF THE YEAR 2020 PLANNING COMMISSION Chair Peter Omari, Commissioners Alexander Koenig, Sizi Goyah, and Stephanie Jones. Commissioner Alfreda Daniels was absent and excused. Commissioner Kellie Hmong was absent and unexcused. Commissioner Jack MacMillan was absent (resigned). City Planner and Zoning Administrator Ginny McIntosh, Community Development Director Meg Beekman and Associate Planner Olivia Boerschinger were also present. 3. APPROVAL OF AGENDA – FEBRUARY 11, 2021 There was a motion by Commissioner Koenig, seconded by Commissioner Goyah, to approve the agenda for the February 11, 2021 meeting as presented. The motion passed 4-0. 4. APPROVAL OF MINUTES – November 12, 2020 There was a motion by Commissioner Koenig, seconded by Commissioner Goyah, to approve the minutes of the November 12, 2020 Regular meeting as presented. The motion passed 4-0. There was a motion by Commissioner Koenig, seconded by Commissioner Goyah, to approve the minutes of the November 12, 2020 Work Session meeting as presented. The motion passed 4-0. 5. OFFICIAL ADJOURNMENT OF THE 2020 PLANNING COMMISSION There was a motion by Commissioner Koenig, seconded by Commissioner Jones, to adjourn the 2020 Planning Commission. The motion passed 4-0. 6. ROLL CALL OF THE 2021 PLANNING COMMISSION Commissioners Peter Omari, Alexander Koenig, Sizi Goyah, and Stephanie Jones were present. 7. ELECTION OF PLANNING COMMISSION CHAIRPERSON FOR YEAR 2021 PC Minutes 02-11-21 -2- DRAFT There were self-nominations for Commissioners Omari, Koenig, and Jones. Commissioner Goyah noted an inability to second a motion and in order to proceed in the election of the 2021 Chairperson, Omari rescinded his self-nomination and seconded Koenig. There was a motion by Commissioner Omari, seconded by Commissioner Koenig, to rescind his self-nomination and elect Commissioner Koenig as 2021 Planning Commissioner Chairperson. The motion passed 3-1 (Commissioner Goyah abstained). 8. APPOINTMENT OF 2021 VICE-CHAIR BY CHAIRPERSON Chair Koenig inquired as to whether there was any interest in a Commissioner serving as the 2021 Vice-Chair. Commissioner Jones indicated an interest. Following a call for any other interest, Commissioner Jones was appointed as 2021 Vice-Chair by Chair Koenig. 9. CHAIRPERSON’S EXPLANATION Chair Koenig explained the Planning Commission’s role as an advisory body. One of the Commission’s functions is to hold public hearings. In the matters concerned in these hearings, the Commission makes recommendations to the City Council. The City Council makes all final decisions in these matters. 10. PLANNING ITEMS -None. 11. DISCUSSION ITEMS -None. 12. OTHER BUSINESS 12a) RESIGNATION OF PLANNING COMMISSIONER JOHN (JACK) MACMILLAN City Planner and Zoning Administrator McIntosh informed the Commission that Commissioner Jack MacMillan tendered his resignation from the Planning Commission in an email on January 31, 2021 after serving for five years. City Planner McIntosh thanked Commissioner MacMillan for his volunteered time with the City and for working with her since her own onboarding back in 2017. Chair Koenig followed in noting their time served together and Commissioner MacMillan’s affinity for the environment when reviewing cases over the years. 12b) INTRODUCTION OF OLIVIA BOERSCHINGER (CITY OF BROOKLYN CENER ASSOCIATE PLANNER) AND HARRY DAVIS (BOLTON & MENK PLANNING CONSULTANT) City Planner McIntosh noted that she would be going maternity leave in the near immediate future and due to this, wanted to introduce the Commission to the City’s new Associate PC Minutes 02-11-21 -3- DRAFT Planner, Olivia Boerschinger, who previously worked for the City of North St. Paul, and Harry Davis, who is a Planning Consultant with Bolton & Menk. Bolton & Menk is the primary consultant on the Becoming Brooklyn Center project, which includes a major update to the City’s Zoning Code. City Planner McIntosh also introduced the group to the City’s new Economic Development Coordinator, Vong Thao, who previously worked for the City of St. Paul. 13. ADJOURNMENT There was a motion by Commissioner Goyah, seconded by Commissioner Omari, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 7:10 p.m. _______________________________ _______________________________ Ginny McIntosh, Secretary Alexander Koenig, Chair PC Minutes 02-11-21 -1- DRAFT MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA JOINT WORK SESSION WITH HOUSING COMMISSION FEBRUARY 11, 2021 CALL TO ORDER The Planning Commission meeting was called to order at 7:11 p.m. The meeting was conducted via Zoom. ROLL CALL Planning Commission: Chair Alexander Koenig, Commissioners Peter Omari, Sizi Goyah, and Stephanie Jones. Commissioners Alfreda Daniels and Kellie Hmong were absent. Housing Commission: Chair Mark Goodell, Commissioners Kathie Amdahl, Paul Oman and Lindsay Cremona. City Staff: City Planner and Zoning Administrator Ginny McIntosh, Community Development Director Meg Beekman, Deputy City Manager Dr. Reggie Edwards, Deputy Community Development Director Jesse Anderson, Economic Development Coordinator Vong Thao, and Associate Planner Olivia Boerschinger. City Council Liaison Kris Lawrence-Anderson was also present. BROOKLYN CENTER HOUSING PRESENTATION AND DISCUSSION Community Development Director Meg Beekman stated Covid-19 has had a significant impact on jobs and housing. The moratorium on evictions will end, and there is grave concern about what will happen to residents who have been negatively financially impacted. Other communities are responding with policies and practices related to housing, including new legally binding units; preservation of naturally occurring affordable housing (NOAH); and tenant protections. A multi- faceted approach addresses all of these categories at the same time. Ms. Beekman stated some cities are reducing parking requirements and standards, as parking is a high-cost element of construction. Some actions that address parking requirements are permit costs and impact fees to lower construction costs; subsidies and financing for multi-family housing; tenant protections including rent stabilization, legal services, and just cause evictions; and tax increment financing. Ms. Beekman stated the City of Brooklyn Center has adopted a Fair Housing Policy with two categories: housing choice, including current housing stock, current demand and market; and affordable housing policies to prevent displacement. The City Council adopted a tenant PC Minutes 02-11-21 -2- DRAFT protections Ordinance a year ago, which requires revision and expansion. An engagement process on that effort will begin after City Staff have completed their review. Jeff Matson, representing the Center for Urban and Regional Affairs (CURA), provided a review of the Brooklyn Center Housing Study. Mr. Matson stated CURA is a research center that works across the University system statewide, with a mission of facilitating and supporting community engagement. He added he supports data-based projects and community organizer training. He noted CURA employs non-traditional, shared expertise research models that are community- centered, using a racial equity framework to create equitable outcomes. Mr. Matson stated CURA is dedicated to increasing awareness in Brooklyn Center of how future development can proceed, in terms of affordability, the home ownership gap, and mitigation of neighborhood gentrification. This is an opportunity to help local stakeholders weigh factors including housing stability, land development and economic growth. Mr. Matson stated the partnership between CURA and Brooklyn Center has two phases – a qualitative analysis phase, including stakeholder interviews and a written report and recommendations; and a quantitative analysis phase, which will produce a Housing Report. Part 1 of the housing study was completed in fall of 2020 with an analysis of rental housing stock; age of housing stock; and rental affordability, among other issues. Part 2 of the housing study will include an analysis in spring 2021 to determine affordability of existing housing stock over the next decade. The focus will be how to balance the creation of new market-rate rentals with preserving naturally occurring affordable housing. The analysis will also include an evictions analysis including trends and evictions by landlord and a review of code violations from absentee and corporate landlords. Ms. Beekman reviewed background information in the staff report related to Brooklyn Center’s rental housing stock, 37% of which is rental, and nearly all of it is considered naturally occurring affordable housing. All multi-family properties were constructed in the 1960s and are homogeneous; 3.7% are legally binding affordable, which will increase to 6% when Sonder House is completed. There has been an increase in Section 8 voucher holders in 2020, which is not consistent with other communities. A 2016 CURA study showed that communities like Brooklyn Center are vulnerable to gentrification, which tends to occur where higher income, less diverse populations move into communities with cheaper housing, and leads to displacement of the existing population. Gentrification can be a loaded term, but it is important to keep track of new housing that could lead to displacement of existing residents. Mr. Matson stated it is unclear what the effects of Covid-19 will be on rents, home prices and vacancies, but evictions and foreclosures could spike in 2021, particularly among lower income people of color. Ms. Beekman stated the City Council reviewed this information and discussed issues around affordable housing, as well as examining other issues the City is facing, including economic resiliency, attracting investment, while delivering new development and encouraging naturally occurring affordable housing. PC Minutes 02-11-21 -3- DRAFT Ms. Beekman stated City Staff would like to have another meeting in March to review financing issues and tax base. She requested feedback and comments from the Commissioners and meeting attendees. Chair Koenig thanked Ms. Beekman and Mr. Matson for their presentation, which contained a lot of complex information but was succinct and painted a very realistic picture of Brooklyn Center’s current situation. He added he appreciates the clarity of the presentation itself. Commissioner Omari stated he has previously discussed with Ms. Beekman how the Planning Commission and its new members can get up to speed quickly, as decisions need to be made that will be of consequence for many years to come. He stressed the importance of this type of presentation on homeownership, renters, housing stock and gentrification. He added the Planning Commission needs to meet again to prove even further. He noted he too appreciated the presentation. Housing Commission Chair Mark Goodell stated he appreciates the time and effort that has gone into the study, and he looks forward to hearing more results and analysis that will result from this process. He added he is interested in research that has been done in other communities that are in similar situations, in terms of housing, educational opportunities, systemic racism, incentives and requirements, and other issues that have impacted housing over the years. Ms. Beekman agreed these are interesting questions, and the City Council has grappled with them as well, including what policy and regulatory options can be employed to address displacement that is a result of gentrification. Community groups like Acer have done extensive research and engagement to understand these issues and their root causes and have provided recommendations for how they can be addressed. Ms. Beekman stated all these issues are driven by the market and are relatively new in the broad scheme of housing. The intention of the housing study is to create awareness and understanding that Brooklyn Center is at risk of unintended consequences of development and look at trends from other communities to create a path forward. This would include encouraging new development in the community and creating a housing policy that addresses and mitigates unintended consequences of development. Jeff Matson stated the housing study plan includes a “literature review”, which studies policies and practices in communities with similar challenges. He added the communities of Richfield, Hopkins and Brooklyn Park have been identified, as well as other communities around the country. This research is being completed by law school students as part of the housing study and will be included in the final report. Chair Koenig requested clarification regarding 80% employment. Ms. Beekman stated that is the percentage of residents who leave the community to work elsewhere. Chair Koenig asked whether that data is comparable to other communities. Ms. Beekman stated Brooklyn Center residents have a longer commute than residents in other communities. She added she is not sure where Brooklyn Center ranks among other communities, as it depends upon the PC Minutes 02-11-21 -4- DRAFT number of jobs and specific types of jobs within the community, and whether residents have to leave the community to find work. Chair Koenig requested clarification regarding the cost burden of 30%. Mr. Matson stated 24% of Brooklyn Center renters spend 30% of their household income or more on rent; and over 30% spend 50% of their household income on rent. Chair Goodell asked whether impacts of national or state policy on Brooklyn Center incomes and housing has been considered. Mr. Matson stated that is something to consider as it falls under the idea of tax burden. Chair Omari asked whether there are other studies to help prepare the Commissioners for this study. Ms. Beekman stated Dr. Lewis has completed many studies in this area. She added the purpose of the study is to understand the City’s existing housing stock and existing gaps; guide land use decisions moving forward; and look at policies that recognize gentrification as a market force. She noted gentrification is an act of investment that occurs in places that have experienced disinvestment. She noted the study will help guide and develop a policy plan to address the negative impacts of development. Commissioner Omari stressed the importance of recognizing and mitigating the negative effects of gentrification, to ensure that the City’s residents can stay in the community. Chair Koenig asked whether school and student data plays a role in whether residents choose to leave the community. Mr. Matson stated that is a factor in housing decisions, and whether people move into a community. He added that particular issue is not being considered in this study. Commissioner Jones asked which community has the highest home ownership gap. She added Brooklyn Center was noted as the second highest community. Commissioner Jones asked whether there is data available related to residents who purchase a home in a city where they have been renting. Mr. Matson stated he is unsure which community has the highest home ownership gap. He added Brooklyn Center has the 2nd lowest median income for renter households, and the only City that has a lower median income is Robbinsdale. Mr. Matson stated he is not aware of any research that has looked at people purchasing homes in the community where they have been renting. He added that would fall in the qualitative portion of the study, during which residents will be asked those types of questions. Chair Goodell asked whether there is criteria or methodology to determine who will be interviewed. Mr. Matson stated the researchers have assembled an advisory panel made up of PC Minutes 02-11-21 -5- DRAFT current tenants, property owners, landlords, some city staff. He added the group just had their first meeting, and they plan to provide parameters for who to study and how many people to study. He noted he is not aware of what the targets are. Ms. Beekman stated the advisory council met yesterday for the first time. She added the advisory council is a very diverse group of residents, homeowners, renters and City Staff, as well as representation from local community groups like Acer and the Lao Association. She added the group’s next meeting is in two weeks. Commissioner Oman stated a study of 40 residents, as noted in the materials, does not seem like it will provide much of a cross-section. Commissioner Oman asked whether the information would need to be updated when 2020 Census data becomes available. Commissioner Oman stated a land trust could be considered as a pool for affordability. Mr. Matson stated a land trust is a fantastic idea. He added they exist in Minneapolis and St. Paul, and they do great work. He noted, with regard to the Census, the data released at the City level will not be available until the study has ended. He noted census data is taken from the American Communities Survey, which was last updated in December 2020. Mr. Matson administrative data provided by the City and Hennepin County provides data related to housing costs, rents, non-census data items, and administrative records that are regularly updated. Commissioner Oman requested clarification regarding the survey of 40 people, that indicates 20 people will be surveyed in each of two different time frames. Mr. Matson stated he is unsure but he would get additional information from Dr. Lewis regarding survey plans. Ms. Beekman stated she does not believe the number of people to be surveyed has been determined. She added Dr. Lewis uses a methodology that focuses on specific communities, and she is very intentional about who is selected and the purpose and reasons for the selections. She noted it will not be a statistically valid community survey, but probably conversations regarding research questions focusing on a couple different areas, and that information will be shared back to the Commissions. Commissioner Omari asked whether the next work session can be scheduled at tonight’s meeting. Ms. Beekman stated the Planning Commission’s next meeting is scheduled for March 11, 2021. Ms. McIntosh stated there are no planning cases coming in and that would be a good date for another joint meeting. Ms. Beekman agreed, adding a consultant would need to be engaged to come in and help with the work of the Commissions at a workshop, and she would need to confirm availability. PC Minutes 02-11-21 -6- DRAFT Commissioner Goyah stated he will be very busy over the next few weeks preparing for students to come back to school. He added the only time he can do is 7:00 p.m. Ms. Beekman stated confirmed the next joint workshop will be held at 7:00 p.m. on March 11, 2021. Commissioner Omari thanked the new Planning Commission Chair, Chair Koenig. He added he brings a lot of experience. He noted he looks forward to meeting the other commissioners. Chair Koenig asked whether there will be additional joint Work Sessions with the Planning and Housing Commissions. Ms. Beekman confirmed City Staff are developing an engagement strategy for moving forward with the Opportunity Site development and other development issues. She added it might be convenient to meet as a collective to go over these topics. ADJOURNMENT There was a motion by Housing Commission Chair Goodell, seconded by Planning Commissioner Omari, to adjourn the Planning Commission meeting. The motion passed unanimously. The meeting adjourned at 8:30 p.m. _______________________________ _______________________________ Ginny McIntosh, Secretary Alexander Koenig, Chair ________________ PC 03/11/2021 Page 1 Planning Commission and Housing Commission Joint Work Session Memo Meeting Date: March 11, 2021 TO: Planning Commission and Housing Commission FROM: Meg Beekman, Community Development Director SUBJECT: Brooklyn Center Housing Presentation and Discussion Background: At their February 11 meeting, the Housing Commission and Planning Commission met jointly to discuss the topic of housing. The agenda included: • National/Regional Housing Trends Affecting Brooklyn Center • Responses/Strategies being Employed • Brooklyn Center Housing and Demographic Data • Brooklyn Center’s Housing Policy Work Plan • Housing Study Overview • Discussion The memo and presentation from that meeting are attached. Housing Discussion: The purpose for the discussion this evening is to follow-up on last month’s discussion with a presentation from Jason Aarsvold, with Ehlers Public Finance. Jason serves as the City’s financial consultant and reviews and analyzes development projects on behalf of municipalities all over the region. Jason will cover the basics of Tax Increment Financing (TIF) as well as provide information on how multi-family housing, both market-rate and affordable, are financed. The topic of housing is complex and will require ongoing dialogue as we explore this work with the Housing Study Advisory Taskforce. Staff will bring back updates to the Commissions as the process proceeds over the next year. Discussion Questions: During the presentation, think about the following questions: • Is there additional information that would be useful to understand this topic area better? • Are there additional topics related to housing that we didn’t talk about, but that you think would be helpful for you to feel better prepared to make decisions and recommendations? • Are there outside subject matter experts that might be able to provide more information or a different perspective that you feel would be beneficial for the group? Attachments: • February 11, 2021, Staff Report • February 11, 2021, Presentation ________________ PC 02/11/2021 Page 1 Planning Commission and Housing Commission Joint Work Session Memo Meeting Date: February 11, 2021 TO: Planning Commission and Housing Commission FROM: Meg Beekman, Community Development Director SUBJECT: Brooklyn Center Housing Presentation and Discussion Background: In April 2018, the City Council discussed several possible policies to address affordable housing issues. Based on that discussion, Council directed staff to move forward with a Tenant Protection Ordinance, and in December 2018, it was adopted. In March 2020, The City Council discussed housing policy as it centers around two distinct topic areas: 1) Housing choice - What is the composition and condition of the current housing stock? What are the current market demands for housing? How does the city's housing stock relate to the market, and does the city have enough and the right type to meet current and future need? 2) Affordable housing policies - What can the city do to improve livability and accessibility to quality affordable housing for residents? What best practices exist to support an effective approach to addressing the need for affordable housing in the community? What policies are most effective to prevent displacement? At the work session the Council considered a work plan that would take a comprehensive review of the City’s housing policy approach related to these two distinct topic areas and provided direction to staff. The work plan included the following action items: - Adopt a Fair Housing Policy (Complete) - Conduct a comprehensive housing study (in process) - Explore a NOAH Preservation program (in process) - Explore a mixed-income/inclusionary housing policy (in process) - Review rental licensing thought the lens of tenant protections (in process) - Single family housing stabilization Introduction: Housing and the policy issues related to housing have become some of the most pressing and important matters facing communities today. For most suburban communities, housing comprises a significant majority of a cities land use and tax base. Maintaining and preserving a safe, quality, and desirable housing stock is critical to a community's long-term economic health and resiliency. Further, a diverse housing stock, which offers a wide range of housing choices and price points, ensures that a community can be resilient through economic ups and downs as well as provide housing options for a diverse population throughout their lives. In addition to maintaining a quality and diverse supply of housing, communities are more and more becoming focused on concerns regarding livability and accessibility of housing. Over the last several ________________ PC 02/11/2021 Page 2 years, the Twin Cities Metropolitan Area has been experiencing record low vacancy rates. According to Marquette Advisors’ midyear report from August 2019, the average vacancy rate across the seven- county metro area was 2.3 percent. The pandemic has driven vacancy rates higher, and by the end of September 2020, rates in the Twin Cities had risen to 3.6 percent. Still, experts agree that a balanced rental market will typically see an average vacancy rate of around 5 percent. The effect of low vacancy rates over time is increasing 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, with the average rent increasing nearly 8 percent year over year to a current unprecedented $1,254 per month. In addition, the Metropolitan Council continues to see a reduction in the number of landlords accepting Section 8 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. Brooklyn Center’s Current Rental Housing: The result of the regional trends described above are being felt in Brooklyn Center. Vacancy rates in the community remain lower than the regional average, hovering around 2 percent. This is common in communities with more affordable rental units. Thirty-seven percent of Brooklyn Center's housing stock is comprised of rental units. Of the City’s single- family housing, about 8 percent are rental. Nearly 100 percent of the multi-family housing in Brooklyn Center are one and two bedroom units built between 1961 and 1971, and nearly all of it is naturally occurring affordable housing (NOAH). Average rents in Brooklyn Center are naturally occurring affordable because the market rents, based on the age and condition of the units make them affordable at around 50 percent AMI in the metropolitan area. Rents in Brooklyn Center are lower than the regional average. According to the Metropolitan Council, the following table indicates what are considered affordable rents in the Twin Cities Metropolitan Area: Housing is considered affordable when a person making 80 percent area median income (AMI) or less spends no more than 30 percent of their income on rent or a mortgage. Currently, the AMI for a family ________________ PC 02/11/2021 Page 3 for a family of four in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area is: AMI 2020 Area Median Income $103,400 80% of Area Median Income $78,500* 60% of Area Median Income $62,040 50% of Area Median Income $51,700 30% of Area Median Income $31,000 *The 80% of Area Median Income limit is capped at the U.S. national median family income Approximately 90 percent of all of the housing units in Brooklyn Center are NOAH. While NOAH properties are affordable, they can be at risk of being lost as market demand increases and rents continue to go up. They can also experience disinvestment over time, causing deterioration, loss of value, and most importantly poor quality or unsafe living situations if they are not properly inspected and maintained. At present 4.1 percent of all units, and 10.9 percent of rental units, are legally binding, or subsidized affordable units. Subsidized affordable units are housing units that are required to maintain an affordable rent regardless of shifts in market demand. Due to their financing structure, they also must be maintained to a certain minimum standard. One of the goals of affordable housing advocates is to preserve existing NOAH properties by converting them to legally binding affordable units through NOAH preservation programs. With the construction of Sonder Housing, Real Estate Equities will be adding 270 units of legally binding new affordable housing units to the city. These will be the first new construction multi-family housing units built in Brooklyn Center since 1979, and will increase the percentage of legally binding affordable units to 6.6 percent of all units and 17.1 percent of rental units. The City's 2040 Comprehensive Plan identifies several broad housing goals 2040 Housing & Neighborhood 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, incentive programs and enforcement. • Explore opportunities to incorporate new affordable housing into redevelopment areas that promote safe, secure and economically diverse neighborhoods. In addition to these goals, the 2040 Comprehensive Plan identifies implementation strategies as well as resources and tools for achieving its housing goals. Chapter 4 of the 2040 Comprehensive Plan provides more background information on the City’s housing stock, its housing goals, and how these goals will be implemented (Attached). Housing Study: ________________ PC 02/11/2021 Page 4 In November 2020, the City entered into a contract with Dr. Brittany Lewis and the Center for Urban and Regional Affairs (CURA) with the University of Minnesota to complete a city-wide housing study. The scope of work is attached to this memo, and includes a dual research approach with both quantitative and qualitative methods. CURA has recently completed a demographic and housing data analysis which has been included as an attachment to this memo. The purpose of the study is to: • Develop a housing policy plan that addresses policies and practices that ensure that the current and future housing needs of the community are met. • Provide stable and affordable housing options for current and future residents while providing a balance of land uses that support a resilient community. • Help the City become more aware of the ways that future development could potentially widen the affordability gap and help to identify ways to mitigate gentrification pressures. The scope of the study includes: • Understand existing housing conditions and trends in the City of Brooklyn Center. • Provide an analysis of the likely impact of forecasted growth on property values and rents with a focus on the potential for gentrification. • Survey residents in the City of Brooklyn Center to understand their perspectives on current housing conditions, affordability, experience, preferences, and housing needs. • Complete a best practices literature review and analysis on impacts of major investment on property values and residential rents (i.e., “opportunity site master plan”). • Identify strategies and policy initiatives that mitigate displacement and gentrification as investment occurs. • Co-facilitate a conversation with the City Council about housing policy, gentrification and the affordability crisis to present data and gain mutual understanding • Final report with policy recommendations, and presentation of findings to local leadership. Dr. Lewis will facilitate an Advisory Council, which will oversee the housing study and provide input on the qualitative research methodology as well as the final recommendations. CURA has already begun the data analysis portion of the project. The project is anticipated to wrap up in the fall of 2021. Housing Discussion: The purpose of the discussion this evening is to provide an overview of a variety of housing topics as they relate to Brooklyn Center’s housing. The discussion this evening is a starting point, and will require further dialogue as the City continues to learn more about what is needed to address housing needs in the community. Jeff Matson, with CURA, and Nelima Sitati Munene, with ACER, will present along with staff at this evening’s work session. The agenda for the work session: • National/Regional Housing Trends Affecting Brooklyn Center • Responses/Strategies being Employed • Brooklyn Center Housing and Demographic Data • Brooklyn Center’s Housing Policy Work Plan • Housing Study Overview ________________ PC 02/11/2021 Page 5 • Discussion Staff intends to hold a follow-up work session with the Planning Commission and Housing Commission that covers the basics of tax increment financing and multi-family housing finance. Discussion Questions: During the presentation, think about the following questions: • Is there additional information that would be useful to understand this topic area better? • Are there additional topics related to housing that we didn’t talk about, but that you think would be helpful for you to feel better prepared to make decisions and recommendations? • Are there outside subject matter experts that might be able to provide more information or a different perspective that you feel would be beneficial for the group? Attachments: • 2040 Comprehensive Plan, Chapter 4 • Housing Study Scope of Work • CURA’s Housing Report CHAPTER 4: Housing & Neighborhood Comprehensive Plan 2040 HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-1 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, 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-2 2040 Housing & Neighborhood 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, incentive programs and enforcement. »Explore opportunities to incorporate new affordable housing into redevelopment areas that promote safe, secure and economically diverse neighborhoods. * Supporting Strategies found in Chapter 2: Vision, Goals and Strategies HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-3 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 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 surrounding 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-4 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-5 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-6 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-7 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-8 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-9 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-10 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, 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. 71% of housing units are single-family - Sources: Metropolitan Council; US Census; SHC HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-11 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-12 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-13 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-14 Table 4-2. Existing Housing Assessment Total Housing Units1 11,608 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 460 4,451 6,029 Tenure3 Ownership Units Rental Units 6,911 4,697 Type1 Single-family Units Multifamily Units Manufactured Homes Other Housing Units 8,275 3,333 0 0 Publicly Subsidized Units4 All publicly subsidized units Publicly subsidized senior units Publicly subsidized units for people with disabilities Publicly subsidized units: all others 553 22 0 531 Housing Cost Burdened Households5 Income at or below 30% of AMI Income 31% to 50% of AMI Income 51% to 80% AMI 1,691 1,406 895 1 Metropolitan Council, 2016 housing sock estimate. Single-family units include single-family detached homes and townhomes. Multifamily units include units in duplex, triplex, and quadplex buildings as well as those in buildings with five or more units. 2 Metropolitan Council staff estimates for 2016 based on 2016 and 2017 MetroGIS Regional Parcel Datasets (ownership units), 2010-2014 Comprehensive Housing Affordability Strategy data from HUD (rental units and household income), and the Council’s 2016 Manufactured Housing Parks Survey (manufactured homes). Counts from these datasets were adjusted to better match the Council’s estimates of housing units and households in 2016 as well as more current tenure, affordability, and income data from eh American Community Survey, home value data from the Federal Housing Finance Agency, and rents from HousingLink’s Twin Cities Rental Revue data. 3 US Census Bureau, 2012-2016 American Community Survey five-year estimates; counts adjusted to better match the Council’s 2016 housing stock estimates. 4 Source: HousingLink Streams data (covers projects whose financing closed by December 2016) 5 Housing cost burden refers to households whose housing costs are at least 30% of their income. Source: US Department of Housing and Urban Development, 2010- 2014 Comprehensive Housing Affordability Strategy (CHAS) data, with counts adjusted to better match Metropolitan Council 2016 household estimates. 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 HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-15 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 approximately 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. 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. A few key existing housing needs can be summarized as the following: • The need to protect the City’s existing NOAH properties, both owner and renter- occupied, and to maintain NOAH properties with high-quality living standards. • More rental units with larger square-footages and increasing number of bedrooms to meet the needs of the City’s residents that tend to be younger and/or include multi- generational households. • The City needs greater diversity within the existing housing stock to accommodate a wider market including the desire to incorporate market-rate product types that will supplement the City’s existing affordable housing product types. HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-16 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 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. 32.8 Median age of Brooklyn Center residents - Sources: US Census, SHC HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-17 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 & Redevelopment and the following Table 4-4, 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 and identifies the following affordable housing allocation to be accommodated between 2020 and 2030. Table 4-3. Affordable Housing Need Allocation AMI Range Units At or below 30% AMI 103 31 to 50% AMI 0 51 to 80% AMI 135 Total Units 238 Source: 2015 System Statement - Metropolitan Council Housing Challenges inform Housing Needs The Metropolitan Council’s System Statement identifies approximately 10% of the planned HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-18 housing units for some level of affordability as identified in Table 4-3. As described in other chapters of this Plan, for the first time since the post-World War II housing boom the City is expected to add a significant number of new households. These new households have the opportunity to provide a more diverse housing stock, and add to the options of available for existing and new residents in the community. Redevelopment can reinvigorate and revive areas of the community with vibrant, experience-rich areas that will benefit everyone in the community. The City is excited for redevelopment to create a dynamic central hub of activity in the community, but also acknowledges that it must be balanced with strong assessment, planning and appropriate protection of its existing housing stock to ensure neighborhood sustainability and stability in all areas of the community. New housing stock brings the possibility of adverse impacts to existing single-family and multi-family properties if proactive steps are not taken to protect existing naturally occurring affordable housing (NOAH), single-family neighborhoods, and multi-family properties. The City’s policy makers throughout this process discussed and acknowledged that bringing new market-rate, amenity rich housing products could have deleterious affects specifically on existing naturally occurring affordable housing if a plan to protect affordability is not implemented. This is a huge concern as resident stability through access to safe and healthy housing is one of the City’s adopted strategic priorities. If proper tools are not in place there are no protections to keep rents reasonable for residents and to maintain reasonably priced for-sale housing as redevelopment takes holds. One of the positive aspects of the City’s identified redevelopment areas is that the land proposed for redevelopment does not contain existing housing. In a fully-development community this is unusual for a large redevelopment area, and is positive because no residents will be displaced as a result of the City’s redevelopment aspirations. However, even though residents will not be displaced directly, indirectly, redevelopment could increase the desirability of activities such as flipping single-family homes and converting NOAH multi-family properties for higher-rents. To address some of these concerns an extensive list of high-level tools have been outlined in Table 4-5 of this Chapter. The City recognizes that this chapter is only the start of an ongoing conversation, and it is the City’s policy-makers intent to continue to be proactive, and to collaborate with non-profits and advocate for a broader regional approach to housing affordability. In addition to the tools identified in Table 4-5, the City is also continuing conversations about: • Viability of a non-discrimination ordinance related to Section 8 acceptance. Adjacent Cities, including Minneapolis, have attempted to include ordinances in HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-19 their tool-kit addressing this issue. While the issue is currently in court, Brooklyn Center will continue to monitor the process and may consider adoption of a similar ordinance depending on its outcome. • The City has discussed developing a more formal housing action plan to better understand the needs of its residents. The plan would work to better understand cost-burdened households, eviction rates and policies, home-ownership racial disparities, and gaps in the housing stock. • Continuing to revise, enhance and modify its policies and ordinance to respond to residents needs. This includes monitoring best-practices in the region, being agile and open to changes and enhancements. As an example of this type of ordinance or policy response the City recently adopted a Tenant Protection Ordinance that is aimed and protecting the City’s residents ability to maintain stable, safe housing. The City’s projected housing needs are complex, and are likely to become more complicated as redevelopment occurs. However, the City intends to continue to prioritize discussion and action around creating safe and stable housing throughout the City. The following sections specifically address the new housing expected to be develop in this planning period. The new and redevelopment areas should be considered collectively with the City’s existing neighborhoods to ensure an incorporated, integrated approach to the City’s neighborhoods is achieved to create a dynamic community for generations to come. New Housing Opportunities in this Planning Period Recognizing that the land use plan for Brooklyn Center identifies several key areas that are HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-20 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 well as meet the allocated affordable units as shown in Table 4-3 above. As indicated in Chapter 3, the market will play an important role in how much redevelopment occurs, but at this time the City is anticipating that a minimum of 1,276 new units that has the potential to address the affordable housing allocation will be brought to the market. Table 4-4. Future Land Use Densities and Projected Households Future Land Use Density (DU/A)2021-2030 Est. Acres 2021-2030 Acres Residential HH Transit Orient Development 31.01-130 DU/A 48 36 1,116 Neighborhood Mixed-Use 15.01-31 DU/A 12 6 90 Commercial Mixed Use 10.01 – 25 DU/A 14 7 70 TOTAL ----1,276 Source: Brooklyn Center, SHC 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-21 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) and the potential future D-Line BRT. The C-Line BRT is planned to open in 2019 and 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, and future D-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 multi-modal 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 9: 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-22 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 & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-23 HOUSING RESOURCES, STRATEGIES & TOOLS Table 4-5 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 4-5. Housing Resources, Strategies & Tools Housing Goal Tool/ Resource/ Strategy Description Affordability Target Promote a diverse stock that provides opportunities for all income levels Housing Demand Market Study Conduct a market study and gaps analysis to track housing demand. This study and report could double as a marketing and promotional piece about housing opportunities. <30% AMI 51-80% AMI HRA/CDA/ EDA Work with the County HRA and City EDA to protect and enhance existing NOAH in the City. Use Market Studies to help identify opportunities to meet housing needs in the City and evaluate ways to partner with the County and other program providers. <30% AMI 30-50% AMI 51-80% Site Assembly Consider strategies for assembling sites in high-density or mixed-use districts that would increase appeal to developers. <30% AMI 51-80% AMI CDBG and Demonstration Account (LCDA) Work with Hennepin County to use CDBG funds to help low-and moderate-income homeowners with rehabilitation assistance. CDBG funds will also be explored for use to support redevelopment efforts that meet the City’s goals towards a diverse housing stock (units and market/ affordable diversity). <30% AMI 51-80% AMI Tax Abatement Consider tax abatement for large rental project proposals that provide unit and income-mix within a single project. The City is particularly interested in projects with market diversity and units of different size to cater to a larger market (singles, families, multi-generational, etc). <30% AMI 51-80% AMI HOME and Affordable Housing Incentive Fund Consider application, and utilization, of HOME and Affordable Housing Incentive fund grants to support a diverse housing stock. The City will prioritize projects that include a unit size and income mix that meets the needs of single-person and families in the City. <30% AMI 30-50% AMI Housing Bonds The City would consider issuing Housing Bonds for projects that include units for large families, particularly in projects with a mix of unit sizes and incomes. However, it should be noted that there are limitations to the city bonding authority and other programs may be more suitable <30% AMI 51-80% AMI 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. <30% AMI 30-50% AMI 51-80% 4D for NOAH Properties The City will continue use of 4D classification for the purpose of protecting its Naturally Occurring Affordable Housing (NOAH) uses throughout the City. <30% AMI 30-50% AMI Pooled TIF Funds Explore the use of TIF housing funds to create a revolving loan program to support the rehabilitation of existing single- family and multi-family NOAH properties. <30% AMI 30-50% AMI 51-80% HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-24 Housing Goal Tool/ Resource/ Strategy Description Affordability Target Identify ways to match housing stock with changing demographic 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. <30% AMI 30-50% AMI 51-80% Referrals Review and update reference procedures and training for applicable staff including a plan to maintain our ability to refer residents to any applicable housing programs outside the scope of local services. <30% AMI 30-50% AMI 51-80% Preserve LIHTC properties The City will monitor expiring LIHTC properties and work to find solutions to protect and preserve these affordable units to meet the needs and demands of the City’s residents. The City will approach owners with expiring properties to discuss the possibility of 4d program tax breaks <30% AMI 30-50% AMI Explore opportunities to improve City housing policies and ordinance to make more responsive Expedited Application Process Streamline the pre-application process in order to minimize unnecessary delay for projects that address our stated housing needs, prior to a formal application submittal <30% AMI 30-50% AMI 51-80% Fair Housing Policy The City will work to incorporate a Fair Housing policy into its ordinances and policies. <30% AMI 30-50% AMI 51-80% Existing ordinances The City will continue to operate its Rental Licensing Program, and will periodically review and make enhancements to support the City’s residents. <30% AMI 30-50% AMI 51-80% Update the City’s Zoning to support new land uses The City’s future land use plan provides opportunities to include high density residential uses in the areas identified for redevelopment. The City will update its zoning ordinance, including prepare new zoning districts, to support the housing needs identified in this Housing chapter. <30% AMI 51-80% Table 4-5. Housing Resources, Strategies and Tools Cont’d. HOUSING & NEIGHBORHOOD City of Brooklyn Center Comprehensive Plan 2040 4-25 Housing Goal Tool/ Resource/ Strategy Description Affordability Target Maintain existing housing stock in single-family neighborhoods through proper ordinances, incentives and enforcement 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/ <30% AMI 30-50% AMI 51-80% Low or No Cost Home Loans 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. <30% AMI 30-50% AMI 51-80% Home Ownership Program Work with residents to provide education and programs to make home ownership possible, particularly converting existing renters to home owners through supporting down- payment assistance programs. 30-50% AMI 51-80% Code Enforcement The City will continue to operate a robust code enforcement program that includes both complaint-based enforcement and proactive sweeps. <30% AMI 30-50% AMI 51-80% Vacant Building Program The City will continue to operate its Vacant Building Program that tracks and monitors vacant properties in the City to ensure adequate upkeep and maintenance. <30% AMI 30-50% AMI 51-80% Homes within Reach The City will cooperate with Homes Within Reach, but will not imitate a Community Land Trust independently during this Planning Period. <30% AMI 30-50% AMI 51-80% Explore opportunities to incorporate new affordable housing into redevelopment areas 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 80% AMI. <30% AMI 30-50% AMI 51-80% Livable Communities (LCA and LCA LCDA-TOD) 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. <30% AMI 30-50% AMI 51-80% Tax Increment Financing (TIF) To help meet the need for low-income housing, the City will establish a TIF district in an area guided for TOD and mixed uses. <30% AMI 30-50% AMI 51-80% Consolidated RFP Process - Minnesota Housing The City will support developer applications for the Consolidated RFP Process when a proposed redevelopment meets the City’s goals stated within this Plan, and will focus on redevelopment opportunities in the central core including TOD and Mixed-use areas. <30% AMI 30-50% AMI 51-80% Table 4-5. Housing Resources, Strategies and Tools Cont’d. Project Proposal for the Brooklyn Center Housing Study The Center for Urban and Regional Affairs (CURA) University of Minnesota & Research in Action (RIA) Principal Researcher: Dr. Brittany Lewis The Center for Urban and Regional Affairs (CURA) connects the resources of the University of Minnesota with the interests and needs of urban communities and the region for the benefit of all. The City of Brooklyn Center is ultimately looking to develop a housing policy plan that addresses policies and practices that ensure that the current and future housing needs of the community are met. The City is seeking to provide stable and affordable housing options for current and future residents while providing a balance of land uses that support a resilient community. This housing study aims to help the City become more aware of the ways that future development could potentially widen the affordability gap and help to identify measures that can be tracked to mitigate gentrification pressures.1 The City Council of Brooklyn Center is currently grappling with what it should do with its surplus of underdeveloped land and do it in a manner that does not directly displace or harm its current community members while also trying to create the most resilient community possible. The City of Brooklyn Center’s housing stock is incredibly homogenous with a majority of single-family homes built in the pre-1970s that are single level ramblers. The multifamily rental properties were also built primarily in the pre-1970s with 1- & 2-bedroom units primarily. Half or more of Brooklyn Center renters are paying more than they can afford in housing. The City of Brooklyn Center staff reported that a significant number of renters are on month to month leases. Further, through engagement, renters in the community have reportedly experienced 3 or 4 rent increases a year, and fear retaliation when they file complaints over rental conditions or issues with maintenance. The Center for Urban and Regional Affairs (CURA) and Research in Action (RIA) submits this proposal to the City of Brooklyn Center to support its efforts to do the following: • Understand existing housing conditions and trends in the City of Brooklyn Center. 1 At the core of the debate over gentrification are the issue of displacement and the question of who benefits and who is harmed by the neighborhood changes induced by it. Gentrification describes a specific type of neighborhood change, that is, the upgrading of previously disinvested neighborhoods. Physical displacement was one of the defining characteristics of gentrification in its original usage. In Ruth Glass’s study of London published in 1964 in which she coined the term, she wrote of gentrification as the changing social status of neighborhoods occurring “as the middle class—or the ‘gentry’—moved into working-class space, taking up residence, opening businesses, and lobbying for infrastructure improvements.” She adds, “Once this process of ‘gentrification’ starts in a district it goes on rapidly until all or most of the working-class occupiers are displaced and the whole social character of the district is changed” (Glass, Ruth. 1964. Introduction: Aspects of change. In Centre for Urban Studies (ed.) London: Aspects of change, London: MacGibbon and Kee.). • Provide an analysis of the likely impact of forecasted growth on property values and rents with focus on the potential for gentrification. • Survey residents in the City of Brooklyn Center to understand their perspectives on current housing conditions, affordability, experience, preferences, and housing needs. • Complete a best practices literature review and analysis on impacts of major investment on property values and residential rents (i.e., “opportunity cite master plan”).Co-facilitate a conversation with the City Council about gentrification and the affordability crisis to present data and gain mutual understanding (Fall of 2020) • Final report and presentation of findings to local leadership. CURA and RIA believe in the power and impact of mixed methodological research. The goal is to collect qualitative and quantitative data to provide a stronger and more comprehensive picture of the housing conditions and experiences in the City of Brooklyn Center with tangible policy and practice recommendations that aim to mitigate the negative impacts of gentrification. The strength of a mixed methods approach is that each method can provide different types of information and can minimize the limitations of the other method, which is critical in the study of an elusive and complex process such as the study of housing stability/instability, evictions, gentrification, and disinvestment. In addition, RIA believes there is power in defining research questions and in controlling the production of knowledge. When research is done in communities of color and low-wealth communities, a power imbalance often exists between researchers and community-based organizations that must be disrupted. Community-engaged action research values community knowledge and people’s lived experiences. It reflects meaningful collaboration between academics, advocates, policymakers, service providers, and impacted communities. It leads to more robust and holistic data, more effective policy solutions, and stronger community action. When we use a community-based action research model, community members are not the subjects of research—they are the co-producers of knowledge. Dr. Brittany Lewis employs an actionable research model that uses a mixed methodological research approach to: (1) build community power, (2) assist local grassroots campaigns and local power brokers in reframing the dominant narrative, and (3) produce community centered public policy solutions that are winnable. This model relies heavily on the development of reciprocal relationships across sectors that embrace an open process where the collective develops shared understandings for the purpose of creating social transformation. This actionable research model embraces a racial equity framework that asserts that we must: (1) look for solutions that address systemic inequities, (2) work collaboratively with affected communities, and (3) add solutions that are commensurate with the cause of inequity. Quantitative Analysis Research Approach/Design CURA will undertake the quantitative analysis portion of the Housing Study using a variety of data sources and methods relating to the key points of analysis outlined in the Proposed Scope of Work. This includes completing an inventory of current housing in Brooklyn Center that focuses on housing type, age and cost. Housing will be classified as either single- family or multi-family, rental or owner-occupied, and whether it is considered affordable. Affordability can be either naturally occurring (generally in older multi-family buildings) or subsidized (usually with income limits related to area median income) and will be noted as such. Current and historic rents will be examined for affordability and whether change (increases) in rent differs by housing type or geography. The cost of housing and its relationship to household income will also be analyzed with attention paid to cost-burdened households (>30% of income spent on housing) that are both owner-occupied and renter occupied, and the degree to which housing in the city is affordable to its residents. Particular attention will be paid to signs of gentrification or involuntary displacement. CURA completed a gentrification study of suburban Hennepin County in 2019 (using 200-2016 data) and found that all eight census tracts in Brooklyn Park were vulnerable to gentrification. This study will update that data and look for additional evidence of neighborhood change. Expected growth in both the housing market and the city’s population will be compared to existing housing stock and proposed developments in order to answer the question of whether gaps in housing types and affordability exist. The potential loss of affordability, especially the risk of naturally occurring affordable housing (NOAH) units being sold, remodeled and upscaled will also be noted. A key component to this will be an examination of property tax rates and revenues for both residential and commercial/industrial properties. The disproportionate amount of revenue generated by existing residential property tax is of concern and efforts will be made to estimate the increase in development necessary to offset or reduce the burden on current homeowners and landlords, and to identify land uses which might help achieve this. In addition, this quantitative analysis will look at and assess what affordability goals and bands should be put into place around the “opportunity site” helping to identify affordability policies that the City of Brooklyn Center should adopt. This should also include the use of CoStar or HousingLink data on the average rents in the area overtime. Acknowledging that there is a huge gap in housing options in the City of Brooklyn Center and the need to identify the housing needs now and into the future. This might include a comparative analysis of the amount of rental housing in the City of Brooklyn Center compared to adjacent communities, looking at year built, its characteristics, and size. Lastly, the City of Brooklyn Center will make their rental licensing data available to the quantitative team to analyze. The CURA quantitative team will get access to a report on rental complaints, inspection reports, landlord rental types, who accepts section 8, and analysis of a recent landlord survey conducted by the City of Brooklyn Center for quantitative analysis. This portion of the analysis will also address health-related impacts of housing. Health can be affected by the age of housing stock (eg. presence of lead paint or asbestos) and the condition of rental housing (tenant complaints related to unhealthy living conditions.) Data Sources: • Hennepin County parcels - housing type / land use, tenure, year built, property tax • HousingLink Streams - subsidized housing (AMI limits, senior housing, expiration date) • HousingLink Rental Revue - rents asked on new openings (includes single-family rentals and duplexes) • CoStar - current and historic rents for 4+ unit properties • American Community Survey - housing costs, cost-burdened status, household income • Met Council - population and housing growth forecasts • City of Brooklyn Center rental license data Project Outputs: It is expected that tables, charts, graphs and/or maps will accompany the final report. These will provide a visual and easy to understand look at housing in Brooklyn Center. Qualitative Analysis Goals: (1) Better understand housing stability/instability and quality of life in the City of Brooklyn Center by engaging with up to 40 residents for in-depth analysis. (2) Conduct (online) surveys and brief (30 minute) semi-structured interviews with tenants for the purpose of helping to identify the conditions that often lead up to housing instability and eviction as well as to gain a clearer understanding of these tenants’ housing composition/stability overtime and the various income streams they rely on to help better inform the development of targeted interventions, needs, and policy prescriptions. (3) Conduct (online) surveys and brief (30 minute) semi-structured interviews with landlords to learn more about, a) there investment strategies and interests, b) what policies and procedures they have in place to determine that eviction is the best course of action for dealing with a tenant (during a regular rental context), b) how they determine the cost benefit of evicting a tenant and owning rental property more generally speaking, and c) what practices they employ once that decision is made and whether and why those practices are employed for certain rental populations to help better inform the ways that the city can work with landlords as partners in community building and help the city produce targeted incentives for landlords illustrating positive behaviors. A recent survey conducted by the City found that landlords during the pandemic were presently working with tenants on payment plans with 2/3 not planning to evict any tenants. (4) Ensure that multiple stakeholders will benefit from this research including, but not limited to academics, philanthropists, the City of Brooklyn Center, Hennepin County, the Minnesota Multi Housing Association, the courts, tenant advocacy organizations, landlords and many others. CURA will make concrete policy and program recommendations for local government, housing practitioners and investors, and tenant advocacy organizations. Research Design: In preparing for the qualitative side of the project, the first step would be to connect with relevant stakeholders (elected and neighborhood leaders) and those most affected by housing instability (residents) in the City of Brooklyn Center to understand the landscape. The second step would be to convene an Advisory Council comprising of tenants, landlords, community organizers, community-based staff members, and staff members from the city of Brooklyn Center to inform the interview questions and outreach strategy. These engagements would frame the project and inform the scope of work, survey and semi-structured interview questions and methodology. Proposed Timeline: Fall 2020 • Solidify research partnerships with City of Brooklyn Center • Finalize research design and fiscal support. • Submit Institutional Review Board (IRB) application for University of Minnesota approval (application approving human subject research) • Begin Quantitative analysis and initial policy analysis. • Complete a “mini” quantitative report/analysis highlighting the affordability landscape, development possibilities, and areas for further exploration. • Begin literature review. • Complete early engagement process with Brooklyn Center City Council and solidify community research advisory council and community-based housing partners to establish collective outreach efforts and identify community interview sites. • Work with the advisory council to define survey and semi-structured interview questions and methods for interviews in the Spring of 2021. Spring 2021 • Complete expansive quantitative analysis. • Identify and make initial contact with tenants and landlords (20) • Conduct initial intake of all interviewee(s) • Begin interviews (complete 20 of 40 interviews) • Transcribe and analyze simultaneously • Complete literature review and finalize policy analysis. Summer 2021 • Complete remaining interviews (20) • Transcribe and analyze simultaneously • Meet with advisory council • Produce a working internal draft of data findings Fall 2021 • Write and deliver a final quantitative and qualitative based report with data findings with policy recommendations by October/November 2021 • Meet with advisory council & discuss the dissemination of findings Project Principal Investigator Dr. Brittany Lewis Quantitative Team Members Jeff Matson, Research Specialist (CURA) Kyle Malone, Graduate Research Assistant (CURA) Qualitative Team Members Dr. Brittany Lewis, Senior Research Associate (CURA) Dr. Shana Riddick, Junior Research Associate (CURA) THE CITY OF BROOKLYN CENTER HOUSING STUDY: QUANTITATIVE ANALYSIS PART I Brooklyn Center’s Housing Stock Brooklyn Center has an estimated 11,797 housing units. Approximately 37 percent of those, about 4,400 units, are rentals. Of the nearly 7,400 owner-occupied units, 90 percent are single-family homes. The distribution of residential buildings in the city is displayed in Figure 1, with tenure type shown in Figure 2. However, many of those buildings are aging. As Figure 3 shows, more than 90 percent of the residential units in the city were built more than 40 years ago, compared to just one percent constructed after 2000. Owner-occu- pied units skew older, with nearly two-thirds built prior to 1960. Over three-quarters of renter-occupied hous- ing was built in the 1960s and 1970s. The distribution of buildings by age is displayed in Figure 4. Figure 1. Map of Land Uses in Brooklyn Center Figure 2. Map of Housing in Brooklyn Center by Tenure Figure 3. Age of Brooklyn Center Housing Figure 4. Map of Housing in Brooklyn Center by Year Built Source: Hennepin County Source: Hennepin County Source: Hennepin County; Brooklyn Center Source: Hennepin County; Brooklyn Center The City of Brooklyn Center partnered with the Center for Urban and Regional Affairs (CURA) in 2020 to collect qualitative and quantitative data to provide a comprehensive picture of current housing conditions, affordability, residential experiences, preferences, and housing needs in the city, and to provide tangible policy and practice recommendations that mitigate the negative impacts of gentrification. Below are the initial findings from the first phase of the quantitative component of the Brooklyn Center Housing Study. The primary objective was to identify gaps in affordability along with racial disparities in incomes and key housing outcomes. These results will inform subsequent research and recommendations on promoting affordability in Brooklyn Center. 1 Incomes and Housing Costs Incomes for both renters and owners have not kept pace with housing costs, though the problem is more acute for renters. Figure 5 shows how incomes and housing costs have changed relative to the year 2000, in 2018 inflation-adjusted dollars. By 2018, the median income for renter households had fallen by 24 percent, from $39,701 to $30,060. Over that same span, median rents increased by eight percent, rising from $930 to $1,008. The divergence between owner incomes and home prices, while not nearly as dramatic, was still notable. Incomes fell 12 percent while the median home value rose five percent between 2000 and 2018. Figure 5. Change in Incomes and Housing Costs Since 2000 A closer look at year-by-year changes in asking rents in Figure 6 reveals that rents were falling or stagnant until 2014, after which they began a precipitous upward climb.* In the span of five years, the median asking rent rose nearly 14 percent, from $969 to $1,103. This trend holds for one-, two-, and three-bedroom apartments, which can be seen in Figure 7. The exception is for studio apartments, where rents rose in tandem with the other units until 2017, when they fell by over $100, or 14 percent, compared to 2016. The reason for this sudden drop is not clear, but it may be tied to the completion of The Sanctuary at Brooklyn Center, a 158-unit affordable housing development. However, renters are not the only ones feeling the pinch. Home prices have increased even more rapidly since the housing crash. In Brooklyn Center, the median sale price for a home doubled between 2011 and 2019, jumping from just under $110,000 to $220,000 in real terms. Renters thus have greater difficulty becoming homeown- ers and building wealth while current owners benefit from appreciation in home values, widening the wealth gap. Figure 6. Median Asking Rent, 2000-2020 Figure 7. Median Asking Rent by Number of Bedrooms, 2011-2019 Source: 2000 US Census; 2009 & 2018 ACS 5-Year Survey Source: CoStar Source: CoStar *Due to sampling differences, CoStar and the Census Bureau do not list the same median rent. However, the trend of rising rents and stagnating incomes is the same across both data sets. 2 Lack of Affordable Options There is a substantial mismatch between available rental units and what households in Brooklyn Center can af- ford. Nearly one-quarter of households earn less than $20,000 per year. At that income, the maximum rent a household can pay and not be cost-burdened is $500 per month. By that metric, there were zero affordable apart- ment units for renter households in that income range in 2020, which can be seen in Figure 8. Another 30 percent of households earned between $20,000 and $35,000, but only 11.2 percent of units rented for less than $875, the maximum affordable rent for that income bracket. The overwhelming majority of units--61 percent--had listed rents between $875 and $1,250, the range of af- fordability for households earning between $35,000 and $50,000 per year. The data for Figure 8 includes only market-rate units in apartments with at least four units. About 21 percent of Brooklyn Center’s rental housing is income-restricted, the majority of which is set aside for households earn- ing no more than 60 percent of the area median income, or about $62,000 for a family of four. Only 4 percent of rental units are restricted to those households earning no more than 30 percent of AMI. These numbers are presented in Table 1. Given the dearth of affordable units for low-income rent- ers, it is little surprise that a significant number of Brook- lyn Center renters are cost-burdened. More than half of renter households are paying at least 30 percent of their monthly incomes toward rent, including nearly one-third paying at least half, the cutoff for severely cost-burdened. Both of these numbers exceed the averages for Hen- nepin County and for the seven-county metropolitan area. By comparison, only about 22 percent of Brooklyn Center owners are cost burdened, 8.5 percent severely. However, these numbers are also both higher than the county and metrowide averages displayed in Figure 9. Figure 8. Distribution of Renter Incomes and Affordable Rental Units Figure 9. Percentage of Renters and Owners Cost- Burdened AFFORDABILITY UNITS PERCENT Total 915 21.1% 30% AMI 182 4.2% 50% AMI -- -- 60% AMI 733 16.9% 80% AMI -- -- Table 1. Affordable Housing Units Source: 2018 ACS 5-Year Survey; CoStar Source: HousingLink Source: 2018 ACS 5-Year Survey 3 Racial Inequities Brooklyn Center is one of the most diverse communi- ties in the entire Twin Cities area. Only about 38 per- cent of its population identifies as non-Hispanic white, compared to 69 percent of Hennepin County residents. Conversely, 27 percent of the city’s inhabitants identify as black or African American and nearly 18 percent as Asian, both of which are more than double the county and metro averages. These numbers are presented in Table 2. Unfortunately, Brooklyn Center must contend with the same stark disparities along racial and ethnic lines faced by other cities. Households headed by non-Hispanic whites earn significantly more than African-American or Hispanic households: just under $60,000 compared to $36,000 and $46,000, respectively. However, Asian- headed households have the highest median income at slightly less than $75,000. These numbers are displayed in Figure 10. Despite out-earning non-Hispanic whites by a significant margin, an equal proportion of Asian-headed house- holds own their homes, about 79 percent. Other de- mographic groups are disproportionately renters. More than half of Hispanic-headed households and nearly three-quarters of African American households must fork over money to a landlord each month. Given the importance of homeownership as a means of building wealth, the racial wealth gap will thus continue to grow. BROOKLYN CENTER HENNEPIN COUNTY 7-COUNTY METRO AREA Non-Hispanic White 38.3%69.2%73.2% Black or African American 27.1%12.9%9.4% Asian 17.7%7.0%7.4% American Indian and Alaska Native 0.3%0.6%0.5% Some Other Race/Two or More Races 3.5%3.4%3.2% Hispanic or Latino, Any Race 13.3%6.9%6.3% Table 2. Racial Composition of Select Geographies Figure 10. Median Household Income in Brooklyn Center by Race of Householder Figure 11. Percentage of Renters and Owners by Race of Householder Source: 2018 ACS 5-Year Survey Source: 2018 ACS 5-Year Survey Source: 2018 ACS 5-Year Survey Next Steps: Over the next three months, the quantitative team will conduct a literature review to understand the trade-offs associated with the preservation versus creation of new affordable housing; study the effects of new construction on rents in neighboring cities; re-run CURA’s gentrification analysis; study the development potential of underutilized land; and investigate connections between corporate landlords and code violations/evictions. 4 CITY OF BROOKLYN CENTER HOUSING STUDY AND BACKGROUND INFORMATION NELIMA SITATI MUNENE, ACER JEFF MATSON, CENTER FOR URBAN AND REGIONAL AFFAIRS MEG BEEKMAN, CITY OF BROOKLYN CENTER AGENDA •NATIONAL/REGIONAL HOUSING TRENDS AFFECTING BROOKLYN CENTER •RESPONSES/STRATEGIES BEING EMPLOYED •BROOKLYN CENTER HOUSING AND DEMOGRAPHIC DATA •BROOKLYN CENTER’S HOUSING POLICY WORK PLAN •HOUSING STUDY OVERVIEW •DISCUSSION African Career Education & Resources, Inc The African Career Education and Resources, Inc. is an issue based organization. We are experts in developing sustainable policy solutions that address the concerns impacting community. We are committed to creating access to education, jobs, health, housing and the means to build wealth. Our Mission: ACER is the leading issue based community organization working to uplift and amplify the Africna Diaspora to build power for systemic change that advances racial and economic equity in communities Our Vision:A transformed system, free from inequities where African Diaspora communities can thrive and lead prosperous lives. ACER’s Housing Work in Brooklyn Center •Blue Print for Equity in Housing Justice •City of Brooklyn Center Housing Complaint •Fair Housing Implementation Committee (FHIC) -Regional Analysis to impediments to Fair Housing •Tenant Organizing -Victoria Townhomes ◦Georgetown Townhomes •Advocating for Equitable Development ◦Opportunity Site •Sessions with the Brooklyn Center Housing Commission NATIONAL CRISIS OF AVAILABILITY & AFFORDABILITY National crisis of availability & affordability •Lack of housing ◦Construction rates not keeping up with demand ◦Loss of housing ◦Due in some cases to restrictive zoning ◦Due in some cases to lack of developer interest (where incomes won’t support rents necessary to provide profits) ◦Increased demand for rental housing ◦Generational, financial, demographic National crisis of availability & affordability •Lack of affordable housing ◦New construction at top end of the market ◦Loss of units at the low end of the market ◦Conversion ◦Rent increases ◦“Financialization” of housing and investor strategies ◦Incomes not keeping pace with rents & maintenance costs ◦Lack of resources to finance affordable new construction National crisis of availability & affordability •COVID-19 impacts ◦Job & income losses •Disparate racial impacts •Unbalanced power structure between tenants and landlords ◦Increased rents (up 8 percent year over year) ◦Increased interest from outside investors in Class B and C rental properties ◦Landlords in a position to be choosier about who they rent to ◦Reduction in number of landlords accepting Section 8 vouchers Responses •Creation of New Legally-binding units •Preservation of naturally occurring affordable housing (NOAH) units •Tenant protections Responses •Reducing regulatory barriers ◦Zoning for affordability ◦Permitting costs ◦Impact fees •Subsidies ◦Development subsidies ◦Household subsidies •Tenant protection ◦Rent stabilization, tenant legal services, TOPA, just cause evictions •Tax breaks and incentives Strategies –ACER Recommendations •People Centered Development -Implementing a robust community engagement framework •Centering the voices of the most disenfranchised communities and those who are most impacted. -Tenant organizing, community organizing, engaging businesses. •Long range visionary planning: •Implementing Fair Housing Policies. •Preserving tenants’ rights •Preserving and continued production of affordable housing •Building an inclusive city in which every past, present and future resident of Brooklyn Center can prosper. -implementing an equitable development tool. •Applying a social and racial justice lens. Strategies –ACER Recommendations •Promote Fair Housing policies. •Advance policies that strengthen and protect tenants’ rights. •Invest in the preservation and protection of affordable housing. This includes building NOAH preservation funds. •Increase family size rental units to meet the needs of families who are renting. •Advance and strengthen zoning policies that promote development and remove barriers such as increasing density to serve a growing population. •The City of Brooklyn Center has the 2nd highest racial home ownership gap in the state of Minnesota. Pass policies that will support the building of strategies that will increase home ownership in BIPOC communities and close the inequity gaps. •The City of Brooklyn Center has grown and changed over time. Develop a comprehensive Housing Policy Plan that will support the successful future growth and development of Brooklyn Center as a City. Brooklyn Center Housing Policy Work Plan •Housing Choice ◦What is the composition and condition of the current housing stock? ◦What are the current market demands for housing? ◦How does the city's housing stock relate to the market, and does the city have enough and the right type to meet current and future need? •Affordable Housing Policies ◦What can the city do to improve livability and accessibility to quality affordable housing for residents? ◦What best practices exist to support an effective approach to addressing the need for affordable housing in the community? ◦What policies are most effective to prevent displacement? Brooklyn Center Housing Policy Work Plan •Adopt a Fair Housing Policy (Complete) •Conduct a comprehensive housing study (in process) •Explore a NOAH Preservation program (in process) •Explore a mixed-income/inclusionary housing policy (in process) •Revise rental licensing through the lens of tenant protections (in process) •Tenant Protection Ordinance •Single family housing stabilization BR0OKLYN CENTER HOUSING STUDY What is CURA? State and local Governments, Neighborhoods, nonprofits Faculty, staff & students from all campuses, colleges, centers and departments Traditional Method to Research CURA’s Approach to Research CURA’s Research Model Continued... CURA’s Racial Equity Model Purpose: ◦Develop a housing policy plan that addresses policies and practices that ensure that the current and future housing needs of the community are met. ◦Provide stable and affordable housing options for current and future residents while providing a balance of land uses that support a resilient community. ◦Help the City become more aware of the ways that future development could potentially widen the affordability gap and help to identify ways to mitigate gentrification pressures. ◦Opportunity for local stakeholders to help develop a project examining housing stability, land development, and economic growth in Brooklyn Center Scope of Work:Mixed methods approach & partnership between CURA and the City of Brooklyn Center Qualitative Analysis ◦Led by Drs. Brittany Lewis & Shana Riddick ◦Team of Graduate Research Assistants ◦Advisory Council ◦Literature review ◦Stakeholder Interviews ◦Written Report & Recommendations Quantitative Analysis ◦Led by Jeff Matson & GRA Kyle Malone ◦Housing Report BR0OKLYN CENTER QUANTITATIVE HOUSING STUDY UPDATE Scope of Work:A. Part 1 Analysis (Fall 2020) ◦1. Composition of rental housing stock ◦2. Age of housing stock ◦3. Cost of rent, ownership & income trends ◦4. Rental affordability ◦5. Cost burdened households ◦6. Racial disparities in income and home ownership rates B. Part 2 Analysis (Spring 2021) ◦1. How much affordable is needed, balance between new units and preservation of existing NOAH housing ◦2. Evictions analysis –trends, evictions by landlord ◦3. Code violations, absentee and corporate landlords ◦4. Gentrification analysis –rerun with 2019 data ◦5. Compare rent trends near new construction in similar cities ◦6. Property tax burden by land use type Scope of Work: A. Part 1 Analysis (Fall 2020) ◦1. Composition of rental housing stock ◦2. Age of housing stock ◦3. Cost of rent, ownership & income trends ◦4. Rental affordability ◦5. Cost burdened households ◦6. Racial disparities in income and home ownership rates B. Part 2 Analysis (Spring 2021) ◦1. How much affordable is needed, balance between new units and preservation of existing NOAH housing ◦2. Evictions analysis –trends, evictions by landlord ◦3. Code violations, absentee and corporate landlords ◦4. Gentrification analysis –rerun with 2019 data ◦5. Compare rent trends near new construction in similar cities ◦6. Property tax burden by land use type ◦7. Development potential of underutilized land Updated as of 2/3/2021 Most of Brooklyn Center’s Rental Housing •37% of Brooklyn Center’s housing stock is rental •829 properties and 4,340 units •Nearly all of it is considered naturally occurring affordable housing (NOAH) •All multi-family constructed between 1961-1971 – homogeneous •3.7% are legally-binding affordable; this will go to 6% when Sonder House is completed •425 Section 8 voucher holders (up from 402 in 2018) What is Considered Affordable? •Average rents in Brooklyn Center are affordable to households making 50-60 percent AMI •Median Household Income in Brooklyn Center is $59,550 (2019) •71% of regional AMI •Median Household Income in the region is $83,698 (2019) Most of Brooklyn Center’s housing stock is more than 40 years old S o u r c e : M e t r o G I S , B r o o k l y n C e n t e r Incomes have not kept pace with housing costs, particularly for renters S o u r c e : 2 0 0 0 U S C e n s u s , 2 0 0 9 & 2 0 1 8 5 - Y e a r A C S Rents fell through the early 2000s but have rebounded sharply since 2014 S o u r c e : C o S t a r Home sale prices have doubled since 2011 while rents across all bedroom sizes have risen S o u r c e : M e t r o G I S S o u r c e : C o S t a r For renters, there is a substantial shortage of affordable rental units S o u r c e : 2 0 1 8 5 - Y e a r A C S , 2 0 2 0 C o S t a r More than half of Brooklyn Center renters are cost burdened, and nearly one-third severely S o u r c e : 2 0 1 8 5 - Y e a r A C S Brooklyn Center has significant disparities along racial and ethnic lines S o u r c e : 2 0 1 8 5 - Y e a r A C S Non-Hispanic White and Asian households are more likely to own their homes S o u r c e : 2 0 1 8 5 - Y e a r A C S A prior CURA study found that Brooklyn Center was vulnerable to gentrification Scope of Work: A. Part 1 Analysis (Fall 2020) ◦1. Composition of rental housing stock ◦2. Age of housing stock ◦3. Cost of rent, ownership & income trends ◦4. Rental affordability ◦5. Cost burdened households ◦6. Racial disparities in income and home ownership rates B. Part 2 Analysis (Spring 2021) ◦1. How much affordable is needed, balance between new units and preservation of existing NOAH housing ◦2. Evictions analysis –trends, evictions by landlord ◦3. Code violations, absentee and corporate landlords ◦4. Gentrification analysis –rerun with 2019 data ◦5. Compare rent trends near new construction in similar cities ◦6. Property tax burden by land use type ◦7. Development potential of underutilized land Updated as of 2/3/2021 What to watch for: •Effect of Covid-19 on rents, home prices, vacancies –too soon to tell, though evictions and foreclosures are both down in 2020 ◦Lack of new federal aid, expiration of eviction moratoria may lead to a spike in evictions and foreclosures in 2021, particularly among lower income people of color •Whether Brooklyn Center’s gentrification risk has changed since 2016 –will update analysis with most recent (2019) American Community Survey data •How can the Opportunity Site, redevelopment of other underutilized land contribute to affordability in a growing Brooklyn Center? •How should Brooklyn Center think about the trade-off of preserving existing affordable housing, new development, and the creation of new affordable units? Discussion •Future topic: Tax Increment Financing/Multi-family Housing Finance •Discussion Questions: ◦Is there additional information that would be useful to understand this topic area better? ◦Are there additional topics related to housing that we didn’t talk about, but that you think would be helpful for you to feel better prepared to make decisions and recommendations? ◦Are there outside subject matter experts that might be able to provide more information or a different perspective that you feel would be beneficial for the group? THANK YOU & QUESTIONS