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VII.3. Resolution Accepting Southwest LRT Corridor Housing Strategy; Beekman (CR2016-045)April19,2016CouncilReport2016-045 SouthwestLRTCorridorHousingStrategy ProposedAction Staffrecommendsadoptionofthefollowingmotion:MovethatCounciladoptResolution2016- 039,ResolutionAcceptingtheCorridorHousingStrategy. Overview InMay2012,theSouthwestLRTCommunityWorksSteeringCommitteeendorsedthecreation ofahousingstrategyfortheSouthwestCorridoranddirectedtheprogram’sHousingWorkgroup tocarryoutthedevelopmentprocess.ThepurposeofthestrategyistohelpfulfilltheSouthwest CommunityWork’svisiontopositioncorridorcommunitiesasplacesforalltolive,providinga fullrangeofhousingchoices,especiallywithinahalf-mileoftheMETROGreenLine Extension.TheHousingWorkgroupiscomprisedofstafffromallsixcorridorcities,Hennepin County,FamilyHousingFund,TwinCitiesLISC,MinnesotaHousing,MetropolitanCouncil, theSouthwestCorridorProjectOfficeandULI-Minnesota. TheHousingWorkGrouphasbeenworkingsince2012toinventoryexistinghousingoptionsin thecorridor,understandwhatthefuturehousingdemandmaybeandthelikelydemographicsof peopleinterestedinlivingalongthecorridor.Theworkhasalsoincludeddevelopingadeep understandingofthecurrentandpotentialtechnicalandfinancialresourcestosupportafull rangeofhousingchoices.Additionally,individualcitieshaveundertakenhousingstudies, outlinedtoolsandstrategiesintheircomprehensiveplansandsetindividualhousinggoals.These efforts,alongwithotherresourcesandtechnicalassistance,havebeencompiledandtakeninto considerationtoinformaSouthwestCorridor-wideHousingStrategyalongtheGreenLine Extension. InJanuary2016theSouthwestLRTCommunityWorksSteeringCommitteeadoptedthe CorridorHousingStrategy.Eachcityalongthecorridorisnowbeingaskedtoacceptitbefore theHennepinCountyBoardofCommissionstakesfinalactiononit. PrimaryIssuestoConsider WhatarethehousinggoalsintheCorridorHousingStrategy? HowwilltheCorridorHousingStrategyinformHopkins’HousingPolicies? SupportingInformation Resolution2016-039 CorridorHousingStrategy ________________________________________ MegBeekman CommunityDevelopmentCoordinator AnalysisofIssues WhatarethehousinggoalsintheCorridorHousingStrategy? TheCorridorHousingStrategylaysoutacorridor-widegoalfornewconstructionand preservationofbothmarketrateandaffordableunitsby2030. NewConstruction:Add11,200newunitswithin½mileoftheCorridor,including3,520units affordablelowtomoderateincomehouseholds(upto100%AMI),with2,265ofthoseunits affordabletothoseat80%AMIorbelowby2030.Thistargetalsoincludes1,314newhome ownershipunits,with950ofthoseaffordabletoentry-levelandmidmarketowners. Preservation:Preserve3,800unsubsidizedaffordable(<60%AMI)rentalunitsby2030,outof 6,700unsubsidizedaffordableunitswithin½mileoftheCorridor. Inordertomeetthesegoalsthestrategygoesontoidentifyfourobjectives,eachwith implementationstrategies.Theimplementationstrategiesaredesignedasatoolboxofoptions availabletofundingpartnersandpolicymakerstoachievethehousinggoals.Citystaffwillbe lookingateachoftheimplementationstrategiestoidentifyhowtheymightfitintoHopkins’ housingpoliciesasweplanforfuturegrowtharoundtheCity’sthreestationareas. HowwilltheCorridorHousingStrategyInformHopkins’HousingPolicies? SouthwestLRTCommunityWorksenvisionsthiscorridor-widestrategyasacomplementto otherlocalhousingplanningandpolicywork.Itprovidesobjectives,suggestedhousingtargets andpotentialimplementationstrategiesthatareoptionstohelpCorridorstakeholderswork towardsafullrangeofhousingchoicesinLRTstationareas.ItisacknowledgedbytheHousing Workgroupthattheremaybemanywaysforcommunitiestomeetlocalandregionalhousing goalsandthateachcommunity,throughitselectedandappointedleaders,willhaveitsown legitimatepriorities,fundingandpolicychoicesandmayseekdifferentbalancesatdifferent pointsintime. ByacceptingtheCorridorHousingStrategytheCityofHopkinsisacknowledgingthatitwill usethedocumenttoinformfuturestation-areaplanning,housingpolicyplanning,and comprehensiveplanupdates.Thedocumentprovidesamenuofoptions,similartoatoolbox; however,notallthestrategieswithinthedocumentwillfiteverycityandeachindividual strategywillbeanalyzedasfuturepolicydecisionsaremade.Thedocumentdoesnotinclude individualstationgoalsorindividualcitygoals;thesewillbeleftuptotheindividual communitiesalongthecorridor. Alternatives TheCityCouncilhasthefollowingalternativesregardingthisissue: Approveresolution2016-039AcceptingtheCorridorHousingStrategyasproposedbystaff. Denyresolution2016-039andoptnottoaccepttheCorridorHousingStrategy. CITYOFHOPKINS HENNEPINCOUNTY,MINNESOTA RESOLUTIONNO.2016-039 RESOLUTIONACCEPTINGTHESOUTHWESTCORRIDORHOUSINGSTRATEGY ANDINCORPORATINGTHESTRATEGYINTOHOUSINGPLANNINGFORTHE CITYOFHOPKINS. WHEREAS, theHennepinCountyBoardofCommissionersadoptedresolutionNo.09-0596 in2009toestablishtheSouthwestLRTCommunityWorksprograminconsultationwiththecitiesof EdenPrairie,Edina,Minnetonka,Hopkins,St.LouisPark,andMinneapolis,andotherSouthwest LRTpartners,and WHEREAS, theSouthwestLRTCommunityWorksSteeringCommittee,composedof SouthwestLRTCommunityWorkspartnersfromcitiesandotheragenciesalongtheSouthwest corridor,wasformedin2010toprovideoverallguidanceanddirectionfortheSouthwestLRT CommunityWorksProject,and WHEREAS, SouthwestLRTCommunityWorksgoalsandguidingprinciplesforinvestment callforpositioningtheSouthwestcommunitiesasaplaceforalltoliveandprovidingafullrangeof housingchoices,and WHEREAS, theSouthwestLRTCommunityWorksSteeringCommitteeendorsedthe creationofacorridor-widehousingstrategyinMay2012,consistingofahousinginventory,gaps analysisandstrategydocumenttosupporthousingdevelopmentalongtheSouthwestLRTcorridor, and WHEREAS, representativesfromtheCityofHopkinshavebeenactiveparticipantsinthe SouthwestHousingWorkgroup,whichprovidedoversightandguidanceforthedevelopmentofthe HousingStrategy,theTechnicalImplementationCommittee,whichprovidedfeedbackonthe StrategyandtheCommunityWorksSteeringCommittee,whichprovidedoverallpolicydirection andguidance,and WHEREAS, theSouthwestCommunityWorksSteeringCommitteeacceptedtheCorridor HousingStrategyatitsJanuary2016meetingandreferredthedocumenttomembercitiesand partnerorganizationsforindividualactionasappropriate,and WHEREAS, therearenumerousbenefitsthatmaycomefromworkingcollaboratively, includingincreasingthecorridor’sabilitytobecompetitive,addingleveragetosecurepublicand philanthropicresources,sendingapositivemessagetothedevelopmentcommunityaboutthedesire foramixofhousingchoices,andaligningtoachieveregionalgoals,and WHEREAS, theFederalTransitAdministration(FTA)initsmostrecentNewStarts Guidance,nowconsiderspolicies,planningandprogramsthatsupportdevelopmentandretentionof affordablehousingalongtransitcorridorsaspartofitsprojectevaluationcriteriaforfunding,and WHEREAS, theSouthwestCorridorHousingStrategycontainsobjectivesthatcaninform housingplanning,includingcomprehensiveplanupdates,inSouthwestLRTCorridorcommunities aswellassuggestedimplementationstrategiesthatmayassistincreationofafullrangeofhousing choicesaroundSouthwestLRTstations,increasingLRTridershipandsupportingeconomic developmentandhealthycommunities, NOWTHEREFOREBEITRESOLVED, thattheCityofHopkinsacceptstheSouthwest CorridorHousingStrategyasadocumenttoprovideinputandoptionsforongoingcollaborative housingwork,anddirectsstafftoincorporatetheSouthwestCorridorHousingStrategyinto communityplanningeffortsintheCityofHopkinsasappropriate. th AdoptedbytheCityCounciloftheCityofHopkinsthis19dayofApril,2016. By:___________________________ MollyCummings,Mayor ATTEST: _______________________________ AmyDomeier,CityClerk HENNEPIN COUNTY SOUTHWEST LRT COMMUNITY WORKS Corridor Housing Strategy A plan to support and encourage a full range of housing choices in METRO Green Line Extension station areas www.hennepin.us/southwestlrt TABLE OF CONTENTS Acknowledgments 4 About the strategy About the Housing Workgroup Housing Workgroup members Vision — goals — investment guiding principle Background 6 Why a coordinated housing strategy? Why work together? How was the strategy created? 10 Allocating housing along the Southwest Corridor Achieving the goal 16 Corridor-wide objectives Implementation strategies Partners in implementation Next steps Corridor Housing Strategy | 3 Southwest LRT Community Works ACKNOWLEDGEMENTS About the strategy In May 2012, the Southwest LRT Community Works Steering Committee endorsed the creation of a housing strategy for the Southwest Corridor and directed the program’s Housing Workgroup to carry out the development process. The purpose of this strategy investment guiding principles to position corridor communities as places for all to live, providing a full range of housing choices, especially within a half-mile of the METRO Green Line Extension. Southwest LRT Community Works Vision Collaborate and partner so that Southwest Corridor becomes a premier destination that is accessible, livable and vibrant About the Housing Workgroup The Housing Workgroup for Southwest LRT Community Works Housing Fund, Twin Cities LISC, Minnesota Housing, Metropolitan Workgroup members have collaborated on background research and funding to support development of a corridor-wide housing strategy for the Southwest Corridor (METRO Green Line Extension). It is acknowledged that there may be many ways for communities to meet local and regional housing goals and that each community, through its elected and appointed leaders, will have its own legitimate priorities, points in time. We present this document to identify options for strategies and goals is no single or particular vision of urban development, and corridor communities have leeway to adopt various policies necessary to achieve their valid interests. It is also recognized that multiple factors go into investment decisions and locations for constructing or renovating housing units. 4 | Corridor Housing Strategy Southwest LRT Community Works Southwest LRT Community Works Adopted Goals position the Southwest LRT communities as a place for all to live Quality neighborhoods create unique, vibrant, safe, beautiful, and walkable station areas Critical connections Housing Workgroup members Tara Beard, Metropolitan Council Cathy Bennett, ULI-Minnesota Theresa Cunningham, City of Minneapolis Elise Durbin, City of Minnetonka Margaret Kaplan, Minnesota Housing Molly Koivumaki, City of Eden Prairie Tania Mahtani, City of Eden Prairie Alysen Nesse, City of Eden Prairie Gretchen Nicholls, Twin Cities LISC Kerri Pearce Ruch, Hennepin County Joyce Repya, City of Edina Elizabeth Ryan, Family Housing Fund Michele Schnitker, City of St. Louis Park Libby Starling, Metropolitan Council Stacy Unowsky, City of Hopkins Katie Walker, Hennepin County For additional information on Southwest LRT Community Works, its members, partners and initiatives, as well as contact information, please visit . www.swlrtcommunityworks.org Corridor Housing Strategy | 5 Southwest LRT Community Works BACKGROUND Southwest LRT Community Works and its funding partners have been working together since 2012 to inventory existing housing options in the corridor, understand what the future housing demand may be and the likely demographics of people interested in living along the corridor. In addition, the work includes developing a deep understanding of Southwest LRT the current and potential local, county, state and federal technical and Community Works Guiding Principle this work was a series of stakeholder engagement activities in 2015 to gather feedback from groups including funders, developers, housing for investment advocates, city councils and commissions, along with Southwest — Housing Additionally, individual cities have undertaken housing studies, outlined Providing a full range tools and strategies in their comprehensive plans and set individual of housing choices — assistance, have been compiled and taken into consideration to inform positioning the a Southwest Corridor-wide Housing Strategy along the Green Line Southwest LRT Extension. Southwest LRT Community Works envisions this corridor- communities wide strategy as a complement to other housing planning and policy as a place for all to live work. It provides objectives, suggested housing targets and potential implementation strategies that are options to help Corridor stakeholders work towards a full range of housing choices in LRT station areas. Recent Southwest Corridor housing studies Southwest Corridor-wide Housing Inventory (2013) a chronicle of existing housing and demographics along the corridor Evaluation Summary, MZ Strategies (2013) an outline of existing SW Corridor Cities plans and programs be applied to the LRT Corridor Southwest Corridor Investment Framework (2013) Transitional Station Area Action Plans for each of the 17 station areas, including recommendations on likely sites for housing development Southwest Corridor Housing Gaps Analysis (2014) projects future housing demand, provides market analysis and outlines recommendations and tools to achieve a full range of housing choices. Southwest LRT New Starts Submittal (2014) updated information on costs, ridership and land use/ economic development both current and future, as part of the federal LRT funding process 6 | Corridor Housing Strategy Southwest LRT Community Works Why a coordinated housing strategy? The Southwest LRT Corridor is well known as job-rich, with over 270,000 jobs expected by 2030. Housing will play a key role in maximizing economic development and supporting job growth along the Southwest Corridor, as well as in helping the LRT line to be successful. Workers who can live close to their jobs save money in transportation costs; a full range of housing choices within station areas will help support a balanced employment base; and lifecycle housing in communities and increased housing density around transit stations will support the LRT line with consistent or increased ridership. “ Ensuring that there is However, studies along Southwest Corridor point to the majority of new a full range of housing housing being high-end /luxury development. This leads to a concern choices with access to that without a coordinated strategy, development in station areas may transit in our cities builds not produce a full range of housing choices, either by cost or unit size economic prosperity and type. Recent studies by the Dukakis Center for Urban and Regional Policy of 42 neighborhoods and 12 metropolitan areas revealed that and competitiveness by when transit is added, housing stock becomes more expensive. These attracting and retaining and other studies indicate that existing and future housing located residents to support strategically near light rail transit experiences a rise in value and rents key employers. “ at a more rapid pace than the general market. This increase helps to spur economic development and at the same time has a tendency to — Family Housing Fund reduce the opportunities for lower-to-moderate income people and living in station areas. Rising housing costs generally hit low-income working households the hardest, which elevates the risk of involuntary displacement for people already living in those areas, who may no “… we must act now to ensure that the housing built in Why work together? these locations provides for a mix of incomes or a once- in-a-lifetime opportunity will be one measure of the success of Southwest LRT (METRO Green will be lost.” Line Extension) and the communities it serves. Collaboration is key to adequately addressing the challenges, particularly in developing — Center for Transit Oriented Development A collaborative approach increases the corridor’s ability to be competitive and adds leverage to secure public and philanthropic resources. It also sends a positive message to the development community that the corridor cities are “all-together” in supporting a mix of housing choices, and helps to create alignment to achieve regional housing goals. Corridor Housing Strategy | 7 Southwest LRT Community Works A Housing Strategy for the Southwest Corridor may enable corridor cities, Hennepin County and other public and private partners to do more — better — together than they can do alone. For instance, it may help them to: Create and sustain healthy communities By providing a full range of housing choices all along the Southwest corridor, cities will be better able to create and sustain the livable, vibrant neighborhoods that contribute to overall city well-being. increases choices for residents looking to live near work, family or educational opportunities. It also reduces transportation costs and creates equity in communities. Provide lifecycle housing for existing residents Whether it’s housing for young people just out of college, move-up housing for growing families or housing options for seniors looking to age in place, the right mix of housing can help cities retain residents and build strong, stable communities. A Corridor-wide Housing Strategy will help cities respond to the needs of their existing residents and accommodate community needs. Achieve individual city goals: The Housing Strategy will assist cities in meeting their individually adopted housing goals and may allow them to increase their Housing Performance Score to qualify for resources from the Metropolitan Council including the Livable Communities Demonstration Account program (LCDA) and other sources. Leverage resources Southwest Corridor cities and Hennepin County can use the housing strategy to leverage additional public and private resources, compete better for limited grant funds and philanthropic dollars and attract greater private development than any entity may be able to do in acting alone. Increase economic competitiveness There is an economic case for providing the best opportunities for access to quality housing for those with modest incomes. If essential impacts not just individual cities but also the economic growth and competitiveness of the corridor and entire region. 8 | Corridor Housing Strategy Southwest LRT Community Works Quality developers have a limited capacity to pursue projects. Project costs increase when inconsistent visions, goals and processes result in developers spending substantial time pursuing needed capital and regulatory approvals. By contrast, developers may be drawn to a redevelopment-ready area that has a collaborative housing approach and consistency of vision. This reduces the complexities of development, helps to solve problems and manages development risks. A corridor- wide Housing Strategy can provide clarity and consistency to the local and national development community, allowing cities and the County to take full advantage of unique transit-oriented development (TOD) opportunities and to be creative in development near transit that will grow the tax base now and into the future. Sustain and improve the Southwest LRT New Starts Score … The region appears to The Federal Transit Administration (FTA) considers policies, planning have one of the most housing along transit corridors. In its most recent New Starts ranking, comprehensive sets along Southwest Corridor, noting that “The region appears to have initiatives in the country. the country.” FTA ranked Southwest LRT “high” based on coordination — Capital Investment “medium-low” based on the formula for counting legally-binding Federal Transition Administration, 2016 as competitive as possible for federal funding, FTA will be looking for further action, such as adoption of a corridor-wide housing strategy, when it reviews Southwest LRT for the Full Funding Grant Agreement. How was the strategy created? The Southwest LRT Community Works Steering Committee has adopted goals and guiding principles for investment that ground the work of this Housing Strategy. They provide the overarching strategy goal, as well as the basis for recommended targets for constructing and preserving housing and implementation strategies. This document aims to provide one measure of what a “full range of key partner roles. While no one entity is likely to take on all of the implementation strategies, cities along the corridor can work together to share resources and information and use the strategies that best meet their community’s needs. Corridor Housing Strategy | 9 Southwest LRT Community Works HOUSING GOAL AND AFFORDABILITY TARGETS The Housing Gaps Analysis examined each station area and suggested development scenarios. These included potential numbers for new preservation. These scenarios form the baseline for unit targets along Southwest corridor by 2030, ten years after METRO Green Line Extension LRT service begins operations. The Gaps Analysis suggests that if housing development is left solely to market forces, new development around station areas will be market- rate and luxury rental options — not the mix of housing types desired by corridor communities. Therefore, this housing strategy pays particular development and preservation. However, the implementation strategies include options to bring new with these strategies could allow additional units above the baseline targets to be created. There is a need for a variety of options in terms of housing unit sizes, reason for this is the desire to retain community residents as their housing needs change and evolve over a lifetime. Larger housing sizes, especially three- and four-bedroom units, may be of particular need, as well as senior housing and entry-level home ownership opportunities. Additionally units for those earning 30% of area median income are particularly needed. market conditions and new housing policy direction, including 2018 comprehensive planning. While cities are not expected to plan a half-mile METRO Green Line Extension stations, this LRT transit investment provides unique opportunities to increase the likelihood that all income levels have access to TOD housing. 10 | Corridor Housing Strategy Southwest LRT Community Works Southwest LRT Community Works Housing Goal: Position the Southwest LRT communities as a place for all to live. Southwest LRT Community Works guiding principle for investment: Provide a full range of housing choices. Corridor Preservation Target New Construction: Add 11,200 new units within ½ mile of the Corridor, rental = 6700 units 80% AMI or below by 2030. This target also includes 1,314 new home 43% market owners. Remaining unsubsidized Preservation: 57% of the Corridor. Preservation target 0–30% AMI 31–60% AMI Rental 6.4% 6.4% 61–80% AMI 10% • Area Median Income (AMI) is a calculation that funders and policymakers use to 81–100% AMI >100% AMI • 12.5% 64.7% moderate- income families. • Homeownership should, in general, comprise no more than 30% of 36% household income. 120% AMI or less 64% 120% AMI + Corridor Housing Strategy | 11 Southwest LRT Community Works Allocating housing along the Southwest Corridor About allocation of need: represent about about 35% of Metropolitan Council’s Need Allocation The Metropolitan Council developed a process of Southwest Corridor-wide Housing Strategy new development target forecasting the region’s need to low- and moderate- 0 – 30% AMI: 635 units income households. Local 31 – 60% AMI: 635 units governments use these 61 – 80% AMI: 995 units “need” numbers to aid 81 – 100% AMI: 1,255 units > 100% AMI: 6,402 units 6,402 responsibilities. units Total units: 9,922 1,255 units 995 units 635 635 unitsunits 0–30%31–60%61–80%81–100%>100% of Area Median Income (AMI) City-wide allocation of per Metropolitan Council 0 – 30% AMI: 3,124 units 3,125 1,443 1,928 6,495 unitsunitsunitsunits 31 – 50% AMI: 1,443 units 51 – 80% AMI: 1,928 units 0–30% AMI31–50% AMI51–80% AMITotal units * Extension LRT stations: Eden Prairie, Hopkins, Minneapolis, Minnetonka and St. Louis Park. Edina is a corridor city but does not have a LRT station within its boundaries. 12 | Corridor Housing Strategy Southwest LRT Community Works Note on Edina: No Southwest LRT stations are located in the City of Edina citywide allocation of Edina. However, a small portion of Edina falls within 1/2 mile of the Blake need: 878 units and Downtown Hopkins stations. Portions of Edina also fall within 1 mile 0 – 30% AMI: 365 units 31 – 50% AMI: 234 units availability in the larger Southwest LRT Corridor area. 51 – 80% AMI: 279 units $82,833 Area median income (AMI) for a family of four in the Minneapolis/ St. Paul/Bloomington Metropolitan Statistical Area (MSA) Based on area median income (AMI) for a four-person household* Monthly rentAMIAnnual income $0 – $6210 – 30% up to $24,850 $622 – $124431% – 60%$24,851 – $49,740 $1,245 – $1,59861% – 80%$49,741 – $63,900 $1,599 – $2,071 81%– 100%$63,901 – $82,833 $50,580 Corridor household median income** $1,250 Southwest Corridor median income for workers monthly income Household Percent of incomecorridor workersmonthly rent $1,250 and less21% $375 $875 $1251 – $333327%$376–$1,111 $3,334 and greater52%> $1,112 * United States Department of Housing and Urban Development 2014 $375 rent ** Southwest Corridor-wide Housing Inventory, 2013 average salaries $776 assembly worker $595 home health aide $772 nursing assistant $755 teacher assistant $844 school bus driver $571 restaurant cook $640 bank teller Source: Family Housing Fund, Southwest Housing Gaps Analysis, 2014 Corridor Housing Strategy | 13 Southwest LRT Community Works The diverse cities along the corridor are each taking steps to plan for land uses; they also have housing strategies and goals outlined in their comprehensive plans. In addition, all of the corridor cities work toward housing goals that were negotiated with the Metropolitan Council. There are many, including the following: Respond to regional and federal funders • Federal Sustainable Communities Grant: In 2011, Hennepin County was a sub-recipient of a federal Sustainable Communities Grant. Combined with Living Cities resources through Corridors of Opportunity, the Southwest Corridor was tasked with developing a set of measurable unit goals for housing along the corridor. • Corridors of Opportunity Transit Recipients need to address In September 2011, the Corridors of Opportunity Policy Board adopted several recommendations for their overall TOD strategies. The primary recommendation was for the adoption of measurable, corridor-wide goals and strategies to to serve a full range of incomes. The Sustainable Communities grant and Corridors of Opportunity program have both ended. However, their guidance and best practices are still applicable for work in the Southwest Corridor. There are also important funding opportunities in the future, both for the LRT project and for competitive development resources. Competitiveness for Federal Transit Administration (FTA) funding of infrastructure In 2013, the FTA released new guidance for scoring transit projects The FTA seeks to “ensure that as service is improved seeks to “ensure that as service is improved over time, there is a mix of over time, there is a mix of housing options for existing and future residents.” In anticipation of housing options for existing the METRO Green Line Extension’s FTA application for the Full Funding and future residents.” Grant Agreement (FFGA), commitment and progress toward meeting — New and Small Starts against other regions seeking the same limited funds. Evaluation and Rating Alignment with Metropolitan Council Housing Policies Process Final Policy Guidance, August 2013 A coordinated strategy along the corridor that aligns with Metropolitan Council‘s housing policies, including the Housing Policy Plan (2014), will help cities in planning, tracking progress and addressing regional cycle housing goals with participating cities in the future. A corridor- wide strategy that aligns with regional housing policies will help cities improve their competitiveness when seeking council resources. 14 | Corridor Housing Strategy Southwest LRT Community Works Align development policies and resources throughout the corridor and tied to existing city plans and Metropolitan Council allocation tools and information, while preserving each entity’s unique identity and role in housing creation. Track progress over time Similar to the work being done along the along the METRO Green Corridor will allow cities, Hennepin County and funders to track progress over time to help determine whether the corridor is moving towards against a baseline and can also help identify where targets may need adjustment due to market trends or development activity. Promote fair housing The Fair Housing Act of 1968 prohibits discrimination in housing and fair housing. A housing strategy can assist all Southwest Corridor communities in reducing barriers to and promoting fair housing and equal opportunity, while recognizing that each community will be balancing many policy options and may have multiple ways to meet its fair housing requirements. Corridor Housing Strategy | 15 Southwest LRT Community Works ACHIEVING THE GOAL Corridor-wide objectives To promote the corridor-wide goal and housing unit targets, Southwest LRT Community Works supports four objectives. Each objective has a range of tools, in support of the corridor-wide objectives. Through public/private partnerships, the implementation strategies detailed below may help achieve the objectives. Objective 1 Develop new housing opportunities Create new housing that includes a mix of unit types with incomes. Focus on creating mixed income neighborhoods as well as opportunities for mixed income projects. Support opportunities in home ownership as well as rental units. Implementation strategies Develop coordinated mixed-income (inclusionary housing) policies. • These policies would apply to new housing development within corridor cities, particularly in areas targeted for new transit oriented development. • Seek support for policy adoption by corridor cities. Leverage private and philanthropic investments locally, regionally and nationally, along the corridor through a TOD Housing Fund. • Link development prospects to Regional Pre-development Funders Roundtable to assist developments in navigating • Participate in the development of private/public TOD Housing fund. • Work with private lenders to evaluate underwriting criteria for TOD projects Engage large corridor employers to strategically invest in the preservation and production of housing opportunities for low-to- moderate income employees. • Engage employer groups in the corridor on workforce housing needs. • Encourage employers to participate in private/public TOD Housing fund or other strategies to increase mixed income housing. 16 | Corridor Housing Strategy Southwest LRT Community Works Develop and adopt a clear and consistent vision, goals and of LRT stations. • Increase developers’ knowledge of city and county expectations in advance, rather than negotiating on every project. Maintain and enhance policies around station areas to promote increased density and include a mix of uses consistent with federal and regional transportation policies. • Implement infrastructure recommendations from the Southwest Corridor Investment Framework to provide connectivity in and around station areas and maximize development potential at station sites. Utilize creative tools and resources to engage the public and policy leaders around key development opportunity sites. Objective 2 Preserve existing housing opportunities Preserve and enhance existing subsidized and unsubsidized housing stock to reduce the involuntary displacement of residents with low to moderate incomes. Develop preservation criteria for unsubsidized housing stock. Maintain opportunities to use Housing Choice vouchers in corridor units. Implementation strategies • Determine length of contracts and assess conversion risk. • units along the Corridor. • agreements. • income households: 30% AMI and below, up to 60% AMI. Prioritize preservation at lowest income levels. • Track use of Housing Choice vouchers along the corridor and actively work to preserve units accepting vouchers. Corridor Housing Strategy | 17 Southwest LRT Community Works Maintain and improve the quality of existing aging rental and ownership housing stock. • Focus primarily on properties that are at values and rents • Develop programs together with regional partners that provide for strategic acquisitions, low-interest loans and public-private partnerships. • Work with owners to match lower income residents with Objective 3 Expansion and Improvement of Technical, Financial and Regulatory tools Utilize existing resources and develop new resources to achieve corridor housing targets by seeking funding sources and technical expertise to support the development and preservation of a full range of housing choices. Modify regulatory tools to support housing development and preservation. Actively seek opportunities for land-banking, development. Examine legislative changes to language that inhibits higher-density home ownership opportunities. Implementation strategies sharing, and other forms of value capture. • Identify opportunity for large-scale TIF agreement rather than project-by-project TIF. • Expand housing tax increment with a particular focus on TOD locations. • net payer cities to receive credit that could be used towards housing development. • (e.g. 4% tax credits, mezzanine loans) in collaboration with Community Development Financial Institutions (CDFIs). 18 | Corridor Housing Strategy Southwest LRT Community Works Objective 4 Market the corridor Create a marketing plan to attract developers and new residents and draw existing residents and employees to TOD neighborhoods and a TOD lifestyle. Implementation strategies Provide marketing resources and expertise to promote the corridor and its housing vision to developers, employers, schools and future residents. Develop metrics to track progress towards unit targets over time, using existing partners and resources. income households. Implementation strategies tools in support of the corridor-wide objectives. Through stakeholder feedback, implementation strategies have been grouped into primary and secondary categories. Primary strategies have seen strong interest or agreement in terms of their usefulness in achieving the corridor- wide goal. “” or “ corridor-widecity/county- .” Corridor-wide strategies can be pursued collaboratively, Hennepin County. Primary Strategies • sharing, and other forms of value capture. (corridor-wide) • Maintain and improve the quality of existing aging rental and ownership housing stock. (corridor-wide) • Leverage private and philanthropic investments locally, regionally and nationally, along the corridor through a TOD Housing Fund. (corridor-wide) • Provide marketing resources and expertise to promote the corridor and its housing vision to developers, employers, schools and future residents. (corridor-wide) Corridor Housing Strategy | 19 Southwest LRT Community Works • Develop metrics to track progress towards unit targets over time, using existing partners and resources. (corridor-wide) • Develop and adopt a clear and consistent vision, goals and LRT stations. • Implement infrastructure recommendations from the Southwest Corridor Investment Framework to provide connectivity in and around station areas and maximize development potential at station sites. • Maintain and enhance policies around station areas to promote increased density and include a mix of uses consistent with federal and regional transportation policies. Secondary Strategies • Develop coordinated mixed-income (inclusionary housing) policy language (corridor-wide) • (corridor-wide) • Engage large corridor employers to strategically invest in the preservation and production of housing opportunities for employees with low to moderate incomes. (corridor-wide) • Utilize creative tools and resources to engage the public and policy leaders around key development opportunity sites. • income households. • 4% tax credits, mezzanine loans) in collaboration with Community Development Financial Institutions (CDFIs). Partners in implementation Creating a full range of housing choices in the Southwest Corridor can be enhanced through partnership and cooperation between the public sector and private partners, each with unique perspectives and implementation roles. Southwest LRT Community Works The primary role of this partnership is as a convener of policymakers as track progress on the Corridor-wide Housing Strategy. 20 | Corridor Housing Strategy Southwest LRT Community Works Cities Cities are on the front line in housing development and preservation and are key players in land use and zoning control necessary to achieve individual and corridor housing goals. It will be important to align the corridor-wide strategy with local housing planning and comprehensive housing options — and constraints on city resources to support housing, along with other TOD infrastructure needs. Hennepin County Community Works. This strategy can be one of the factors considered in how the County allocates these funds. The Metropolitan Council provides regional guidance on the Housing Policy Plan; works with cities on planning housing need through comprehensive plan implementation; negotiates housing goals; provides technical assistance on tools and policies; and provides LRT project information to support developers/city infrastructure coordination requirements. Developers the development and preservation of housing units in the Southwest Corridor. Developers work with cities and other partners to meet with the strategy. They also provide critical input regarding market conditions, challenges and opportunities as they relate to implementing strategies along the corridor. Employers Corridor employers have a strong interest in recruiting and retaining top talent. Housing can be a key component in developing a stable workforce. Identifying ways to have continued dialogue with employers will be important to identify workforce housing needs. Funders Private, public and philanthropic funders play a key role in providing critical resources to support investment in a mix of housing types criteria that support a mix of housing types in station areas and ensure syndicators, and entities involved in site acquisition. Corridor Housing Strategy | 21 Southwest LRT Community Works Advocates Housing advocates have provided valuable feedback on the development of this Strategy and will continue to play an important role The advocacy community can also help connect the Southwest Corridor Housing Strategy with larger housing policy agendas moving forward. Next steps Housing Workgroup • Develop a work plan to move implementation strategies forward. • Track progress on corridor-wide strategy implementation. • Engage regularly with policymakers and stakeholders to ensure the Seek city/county support for the four key Corridor-wide Objectives • Encourage integration of strategy tools within zoning and development plan review. • Encourage use of strategy goals as a factor in in funding allocation decisions. • Incorporate and align the Corridor Housing Strategy in the development of or updates to individual housing policies and comprehensive plans. • Ask cities to identify station area mix of housing units, types and values. • Pay particular attention to targets for larger unit sizes, senior • Calculate amount of public/private subsidy necessary to fully achieve the housing targets. Seek city goals for preservation and new construction at various • Adopt corridor targets that are consistent with city goals. • Align with comprehensive plans • Embed station area targets in city housing plans, taking into account 22 | Corridor Housing Strategy Southwest LRT Community Works Southwest Corridor Housing Strategy Compiled by Southwest LRT Community Works’ housing workgroup Southwest LRT Community Works partners Hennepin County Hennepin County Regional Railroad Authority Eden Prairie Minnetonka Hopkins Edina St. Louis Park Minneapolis Metropolitan Council Urban Land Institute Minnesota Minneapolis Park and Recreation Board Minnehaha Creek Watershed District SouthWest Transit Hennepin County Southwest LRT Community Works 701 Fourth Ave. S., Suite 400 Minneapolis, MN 55415 swcorridor@hennepin.us Phone: 612-348-9260 www.southwestlrtcommunityworks.org 35-204-06-15