Loading...
VII.1. Participation in the Local Housing Incentive Account Program; YoungquistNovember 4, 2020 Council Report 2020-083 PARTICIPATION IN THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT Proposed Action Staff recommends adoption of the following motion: Move to approve Resolution 2020-058 electing to participate in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act. Overview The Local Housing Incentives Account Program (LHIA) under the Metropolitan Livable Communities Act is a voluntary program that makes participating communities eligible to compete for grants that support meeting affordable housing goals, cleaning up polluted sites, and developing projects that connect housing, jobs, and transit. The Livable Communities Act (LCA) was enacted in 1995 and currently has four types of grants: Tax Base Revitalization Account, Livable Communities Demonstration Account, Local Housing Incentives Account, and Transit Oriented Development. Hopkins has participated in the program since its inception and has been awarded more than $10,500,000 in LCA grants. In order to participate in the LHIA Program, a community needs to adopt affordable and life cycle housing goals. The Metropolitan Council has determined that Hopkins’ allocation of the regional need for affordable housing over the next decade is 197 units. The Metropolitan Council is requesting that Hopkins establish its affordable housing goal as a range of 109-197 units and its life cycle housing goal as 500 units for the calendar years 2021-2030. In addition to passing a resolution adopting the affordable and life cycle housing goals, the City of Hopkins must submit a plan identifying the actions it plans to take to meet its established housing goals, which will consist largely of the housing chapter and appendix from the 2040 Comprehensive Plan. Primary Issues to Consider • How realistic are the housing goals proposed by the Metropolitan Council? • What is the incentive to participate? Supporting Information • Resolution 2020-058 ________________________________________ Jan Youngquist, AICP Community Development Coordinator Financial Impact: $_____0____Budgeted: Y/N ___ Source: __________ Related Documents (CIP, ERP, etc.): ________________________________ Analysis of Issues • How realistic are the housing goals proposed by the Metropolitan Council? Hopkins is projected to add approximately 700 new households between now and 2030, many of which may be located near the Southwest Light Rail transit stations. The housing goals of 109-197 affordable and 500 life cycle units proposed by the Metropolitan Council are well within the projected growth. The 2040 Comprehensive Plan includes a goal to maintain an inventory of housing that is affordable to moderate and low income households as well as a policy to support the development of moderate to high density housing in appropriate locations, particularly near commercial nodes and activity centers. In recognition that there is not sufficient funding available to meet forecasted affordable housing needs throughout the metropolitan region, the Metropolitan Council established a range of units for each community’s affordable housing goal, which is 55 percent to 100 percent of the community’s fair share of the regional need. Hopkins’ range is 109-197 units. The life cycle housing goal was calculated by looking at the acreage of land guided for multifamily development in the 2040 Comprehensive Plan multiplied by the median density of that land, for a total of 500 units. With the proposed development projects on the horizon, it is reasonable to expect that Hopkins will meet these goals. • What is the incentive to participate? Participation in the LHIA Program makes Hopkins eligible to compete for Livable Communities grants from the Metropolitan Council that support cleanup of polluted sites, transit oriented development, affordable housing, and innovative development that connects housing, jobs and services. Hopkins has been awarded a total of $10,527,535 in LCA grants, which have supported projects including Marketplace Lofts, Gallery Flats, Excelsior Crossings, Oxford Village, the Artery, and 325 Blake Road. Additionally, participation in the LHIA Program is required in order for the City to receive Contamination Cleanup Grants from the Minnesota Department of Employment and Economic Development. With much of the future development in Hopkins anticipated to occur as redevelopment of properties near the Southwest light rail stations, access to these grants can bring funding to help make these projects feasible. Alternatives The Council has the following alternatives: • Approve Resolution 2020-058 • Deny Resolution 2020-058 and opt to not participate in the LHIA Program CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2020-058 RESOLUTION ELECTING TO PARTICIPATE IN THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT CALENDAR YEARS 2021 THROUGH 2030 WHEREAS, the Metropolitan Livable Communities Act (Minnesota Statutes sections 473.25 to 473.255) establishes a Metropolitan Livable Communities Fund which is intended to address housing and other development issues facing the metropolitan area defined by Minnesota Statutes section 473.121; and WHEREAS, the Metropolitan Livable Communities Fund, comprising the Tax Base Revitalization Account, the Livable Communities Demonstration Account, the Local Housing Incentive Account and the Inclusionary Housing Account, is intended to provide certain funding and other assistance to metropolitan-area municipalities; and WHEREAS, a metropolitan-area municipality is not eligible to receive grants or loans under the Metropolitan Livable Communities Fund or eligible to receive certain polluted sites cleanup funding from the Minnesota Department of Employment and Economic Development unless the municipality is participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254; and WHEREAS, the Metropolitan Livable Communities Act requires that each municipality establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide; and WHEREAS, a metropolitan-area municipality can participate in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254 if: (a) the municipality elects to participate in the Local Housing Incentives Program; (b) the Metropolitan Council and the municipality successfully negotiate new affordable and life-cycle housing goals for the municipality; (c) the Metropolitan Council adopts by resolution the new negotiated affordable and life-cycle housing goals for the municipality; and (d) the municipality establishes it has spent or will spend or distribute to the Local Housing Incentives Account the required Affordable and Life-Cycle Housing Opportunities Amount (ALHOA) for each year the municipality participates in the Local Housing Incentives Account Program . NOW, THEREFORE, BE IT RESOLVED THAT the City of Hopkins: 1. Elects to participate in the Local Housing Incentives Program under the Metropolitan Livable Communities Act for calendar years 2021 through 2030. 2. Agrees to the following affordable and life-cycle housing goals for calendar years 2021 through 2030: Affordable Housing Goals Range Life-Cycle Housing Goal 109-197 500 3. W ill prepare and submit to the Metropolitan Council a plan identifying the actions it plans to take to meet its established housing goals. Adopted this 4th day of November, 2020. By:__________________________ Jason Gadd, Mayor ATTEST: ____________________________ Amy Domeier, City Clerk