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Home My WebLink About2021 03-15 TOWN HALL MEETINGCouncil Special Meeting VIRTUAL meeting being conducted by electronic means in accordance with Minnesota Statutes, section 13D.021 Public portion available for connection via telephone Dial: 1-312-626- 6799 Meeting I D: 2365542887# Passcode: 031521# March 15, 2021 1 2 3 AGENDA p o K c r CEN'�ER AT-THEICENYER TOWN HALL MEETING 6:00 -7:30 pm The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the entrance of the council chambers. 6:00 pm Introductions Topic A. 6:05 pm What is affordable housing? Who is it for? What are the issues around affordable housing? Sarah Harris, Aeon presenting B. 6:30 pm Questions and Comments A dialogue with Presenter, City Council, and community members. C. 7:25 pm Closing Remarks 4. 7:30 pm Adjournment Council Special Meeting DATE: 3/15/2021 TO: City Council FROM: Curt Boganey, City Manager THROUGH: N/A BY: SUBJECT: 6:05 pm What is affordable housing? Who is it for? What are the issues around affordable housing? Sarah Harris, Aeon presenting Background: About the Presenter: Sarah Harris EXECUTIVE VICE PRESIDENT, STRATEGY, PARTNERSHIPS, AND PRODUCTION Sarah joined Aeon in 2020. Prior to Aeon, she provided leadership in a variety of organizations, most recently as Managing Director of the University of Minnesota Foundation Real Estate Advisors. Sarah started her real estate career with the Eberhardt Company, launched the Minneapolis Downtown Improvement District, and has served many community organizations as a board member, including as Board Chair of the Minneapolis Parks Foundation, Ordway Center for Performing Arts, and ULI Minnesota. ATTACHMENTS: Description Upload Date Type Presentation 3/16/2021 Presentation Brooklyn Center City Council Affordable Housing Work Session 3/Zs/21 Sarah Harris, EVP, Aeon I^, aeon Overview A few facts to level set What is affordable housing? Who needs affordable housing? Why does affordable housing matter? What are the challenges and opportunities with affordable housing? Q&A Discussion n aeon What is affordable housing? Low income & AMI A household earning up to 80% of the area median income (AMI), e.g., a family of four with to $75,500. Affordable a gross income up A low income household paying no more than 30% of gross income for housing costs, including basic utilities (paying over 30°0 = cost burdened) eeik aeon This is Brooklyn Center Housing Supply* M Population: 30,690 Owner Occupied Homes 7,324 62% Median Income (household) $59,550 Rental Units 4,440 38% Median income (individual) $30,857 Total 11,764 100% Median Home Value $172,800 Median gross rent $1,083 $1,083 <_ 30% AMI 573 5% Vacancy Rate* 4% 31% - 50% AMI 2,141 18% 51% - 60% AMI 3,438 29% 61% - 80% AMI 4,778 41% >_ 81% AMI 834 7% Source: TOTAL 11,764 100% US Census Bureau, 2019 *Metropolitan Council, -2018 ink aeon Types of Affordable Housing New Construction — often uses LIHTC (Low Income Housing Tax Credits). Current QAP prioritizes most deeply supportive units. NOAH — Naturally Occurring Affordable Housing — 1960-1980+ buildings, low amenities, requiring reinvestment in building systems and marketability. New capital ready to acquire, upgrade and increase rents. Displacement of families ripples through community. Preservation — Policies and funds targeted to keep current affordable housing in place once legal requirements expire. aeon ,. tc�� lip —i PIP i. Energy innovation,.` f III r, EE ��. M1 . •-r Family I a ' 1 4 Historic Rehab I This is affordable housing I Home Housing Stability Community Stability General • Emergency room visits reduce by 60% • Health care costs reduce by 50% • Imbalanced income and housing price growth slows the economy (incomes have not kept pace with housing costs) • Highly -nomadic households increase demand on public services and related costs Diversity, Equity, and Inclusion • Pay inequities result in women using a greater % of income for housing • 72% of students facing homelessness are BIPOC • Children with housing instability are more likely to repeat a grade • Ad isproportionate number of rental units were sold in moderate income, racially diverse neighborhoods aeon ncome Family size City AM 30% 50% 60% 80% 1 Person 30,857 211720 361200 43,440 57,920 2 People 241840 411400 49,680 661240 3 People 59,550 27,930 46,550 551860 741480 4 People 31,020 51,700 621040 821720 Incomes over Brooklyn Center median income in red i aeon These are our residents... "W Family size City AM 30% 50% 60% 80% 1 Person 30,857 21,720 36,200 43,440 57,920 2 People 24,840 41,400 49,680 66,240 3 People 59,550 27,930 46,550 55,860 74,480 4 People 31,020 51,700 62,040 82,720 PI AV r i ...and these are our residents..J7 Family size City AM 30% 50% 60% 80% 1 Person 30,857 21,720 36,200 43,440 57,920 2 People 24,840 41,400 49,680 66,240 3 People 59,550 27,930 46,550 55,860 74,480 4 People 31,020 51,700 62,040 82,720 _' - #1 ` IOU. ... and these are our residents... Family size City AM 30% 50% 60% 80% 1 Person 30,857 21,720 36,200 43,440 57,920 2 People 24,840 41,400 49,680 66,240 3 People 59,550 27,930 46,550 55,860 74,480 4 People 31,020 51,700 62,040 82,720 These are the facts NEW • ±$350,000/unit to build • 1,500/units/year built in MN NOAH • ±$150,000 to buy/rehab • ±4,000/units/year lost (sold to market buyers) • Displaces families; impacts schools and employment centers Met Council • Net loss of affordable units since 2011 • Additional 37,400 households will need affordable housing 2020 - 2030 • 40% of the new households will earn less than 80% AMI • 1/3 of region's households are cost burdened — many pay over 1/2 of their income aeon These are the challenges Economic • Increasing construction material costs • Too few funding sources — capital and services • Service funding not long term = large operating gaps / risk • Changing funder priorities don't align with development timelines • Increasing fees (stormwater, park dedication, assurances, and other) • Limited duration of affordability restrictions Community • NIMBY-ism • Proximity to jobs / transit • Density drives first responder activity • Competition for limited land — parking, green space, walkability COVID-19 • Low income households disproportionately impacted • Eviction moratoria will end aeon These are the opportunities COVID = Focus • Awareness of the importance of home • New policies & funds in discussion • More downward pressure from market renters Community Stability • Public sources create affordability for constituents • Minimizing displacement stabilizes services, grow jobs, and reduces demand on tax base Sustainability & Innovation • Readiness for solar, stormwater recapture, other • Modular • Use of excess land • Long term owners invested in success i aeon Questions? Sarah Harris Executive Vice President Strategy, Partnerships, & Production 612-746-0544 sharris@aeon.org n aeon