Loading...
CR 96-100 Adoption Metroplitan Livable Commities Act\ t y 0 May 30, 1996 ° P K Proposed Action ADOPTION OF METROPOLITAN LIVABLE COMMUNITIES ACT ACTION PLAN Staff recommends approval of the following motion : Adopt the Action Plan for the Metropolitan Livable Communities Act as proposed. With this motion, the action plan will be submitted to the Metropolitan Council for their review. Overview The Metropolitan Livable Communities Act (LCA) was enacted in June 1995 and is the Legislature's attempt to address various issues facing the seven -county metropolitan area. The Act establishes a Metropolitan Livable Communities Fund which consists of three accounts: the Tax Base Revitalization Account; the Livable Communities Demonstration Account; and the Local Housing Incentives Account. The goal is to provide incentives to expand housing opportunities for low and moderate income families and funds for the clean-up of polluted land. Cities have the option whether to participate in the Metropolitan Livable Communities Program, administered by the Metropolitan Council. Participating allows the City competitive access to the three funding sources. If a city elects not to participate, it is not eligible for funding through the three LCA accounts or the DTED polluted sites fund. The City of Hopkins elected to participate in the program and has adopted housing principals and goals in cooperation with the Metropolitan Council. The final requirement of participating in the Livable Communities program is the submission of an Action Plan, outlining how the City will meet the adopted housing goals. Since the City of Hopkins has already met the housing goals, the Plan describes the actions the City will take to maintain affordability, life -cycle and density levels within the benchmarks established by the Met Council. Primary Issues to Consider o What is contained in the Action Plan? SupportinE Documents o Propo ed Action Plan '. the Metropolitan Livable Communities Act erste Hou g Coordinator Council Rpt #96 -100 Action Plan Council Rpt. 96 -100 Page 2 Primary Issues to Consider o What is contained in the Action Plan? The Action Plan contains the principles and goals which the City of Hopkins adopted in cooperation with the Metropolitan Council, and also incorporates the housing goals identified in the Strategic Plan for Economic Development and the 1992 Hopkins Housing Analysis. The Plan describes the programs that the City will pursue or continue to offer in order to maintain affordability, life -cycle and density benchmarks established by the Met Council. The Plan also incorporates a table which shows the total number and income of the residents to be served by the various programs and services. Because Hopkins' housing stock is considered more diverse, more affordable and developed at a higher density that other communities of similar Location and stage of development, the goals of • the Livable Communities Act have already been met. Additionally, as a fully- developed city the housing stock cannot be changed significantly. For these reasons, the Action Plan focuses on preserving the housing stock and enhancing it when appropriate with new or redeveloped property which meets special needs of our residents. Alternatives The City Council has the following alternatives regarding this issue: o Adopt the Action Plan as prepared. o Modify the Action Plan and adopt o Continue this item for more information. The Action Plan must be submitted by June 30, 1996. • EIG3H" CITY OF HOPKINS TWO YEAR ACTION PLAN FOR THE METROPOLITAN LIVABLE COMMUNITIES ACT • L INTRODUCTION The Metropolitan Livable Communities Act (LCA) was enacted in June of 1995 by the State Legislature in an attempt to address housing affordability issues facing the seven -county metropolitan area. Participation in the LCA is optional, but does allow participating cities to access three financial assistance programs not open to cities who choose not to participate. The City of Hopkins agreed to participate in the LCA and adopted principles and goals. The LCA requires that each participating municipality shall identify to the Metropolitan Council the actions it plans to take to meet or maintain its established goals. This document is intended to serve this purpose, and also incorporates recommendations regarding the City's housing stock which have previously been adopted by the Hopkins City Council . The action plan outlined in this document describes the programs that the City of Hopkins intends to pursue or continue to implement over the next two years. A two - year time frame was established as it is intended that this plan will be incorporated into the City's Comprehensive Plan when it is updated in 1998. Hopkins housing stock is considered more diverse, more affordable and developed at a higher density than other communities of similar location and stage of development, and as a result has already met the goals of the Livable Communities Act. Furthermore, as a fully- developed city Hopkins recognizes that the mix of its housing stock cannot be altered significantly. Therefore, the City is committed to • preserving our existing housing stock, and enhancing it when appropriate with new or redeveloped property which meets special needs of our residents. • The following are the housing principles and goals established in cooperation with the Metropolitan Council and adopted by the Hopkins City Council on November 21, 1995: PRINCIPLES: The City of Hopkins supports: GOALS: o A balanced housing supply, with housing available for all income levels. o The accommodation of all racial and ethnic groups in the purchase, sale, rental, and location of housing within the community. o A variety of housing types for people in all stages of the life- cycle. o A community of well- maintained housing and neighborhoods, including ownership and rental housing. o Housing development that respects the natural environment of the community while striving to accommodate the need for a variety of housing types and costs. o The availability of a full range of services and facilities for its residents, and the improvement of access to and linkage between housing and employment. To carry out the above housing principles, the City of Hopkins agrees to use benchmark indicators for communities of similar location and stage of development as affordable and life -cycle housing goals for the period 1996 to 2010, and to make its best efforts, given market conditions and resource availability, to maintain an index within or above the benchmark ranges for affordability, life - cycle, and density. The following is a chart showing the current status of the City's housing stock as relates to affordability, life- cycle, and density as well as the benchmarks for these categories. IL PRINCIPLES AND GOALS Ownership Rental Type (non - single family detached) Owner/Renter Mix Single - family Detached Multifamily CITY INDEX 35/65% 3.2 /acre 18 /acre BENCHMARK 60 -77% 37 -41% 37 -41% (64- 67)/(33 -36)% 1.8 -2.9 /acre 14 -15 /acre Additional Housing Goals: Additionally, the City of Hopkins has adopted action steps related to the overall goal of assuring strong and well maintained neighborhoods as part of the Strategic Plan for Economic Development and the 1992 Hopkins Housing Analysis. The following are the suggested action steps which have not been accomplished or are ongoing activities: • Strategic Plan for Economic Development: o Work to enact the Westbrooke Special Legislation. (Successfully implemented in the Meadow Creek Condominium development; working towards implementing in the Westbrooke Patio Homes). o Continue /expand existing housing programs, including the Acquisition/ Demolition/Replacement Program o Examine and improve housing maintenance codes and actively enforce these codes. o Determine o Utilize the resources of the City's Community Relations Coordinator to improve the perception of the City's multi- family housing. o Facilitate development that will help meet "special housing needs," i.e. handicapped, three- bedroom, empty- nester, and high market value housing, and establish a high priority to maintain owner- occupied housing. o Maintain and improve public infrastructure in neighborhoods. o Monitor effectiveness of Truth in Housing ordinance to ensure it is helping to maintain and upgrade residential housing stock. 1992 Hopkins Housing Analysis: o Encourage the use of existing rental rehabilitation and single family housing loan programs available through MHFA. o Continue to investigate possible sources of funds for local rental rehabilitation loan program o Continue to offer first -time home buyer mortgage funds through MHFA. o Continue to offer the Residential Rehabilitation Loan/Grant Program and promote this program extensively. o Continue to locally administer the Section 8 Rental Assistance Program o Identify those properties which should be demolished and determine proper approach to take in order to remove them. o Aggressively enforce the Nuisance Abatement Ordinance/Housing Code in regard to dilapidated housing units. HL ACTION PLAN In order to maintain these goals over the next two years, the City of Hopkins will utilize a variety of assistance programs The following is a description of the major housing programs which will be utilized and the population(s) that are served. The narrative is followed by a tables which identifies the income of persons served as well as the timeline for implementation HOUSING ASSISTANCE PROGRAMS Rental Assistance: Federal Government o Section 8 Rental Vouchers and Certificate Program - Rental assistance program providing subsidies for privately - owned, market rate, rental housing for low income households. Currently, the City locally administers 165 Section 8 contracts through the Met Council. o Public Housing (Dow Towers and 20th Avenue Townhomes) - 86 HRA -owned units providing housing opportunities for low and moderate income persons. Tenants pay 30% of their monthly adjusted income as rent. • • o Privately- owned, subsidized housing- Subsidized housing for low income and seniors. Hopkins Renaissance and Hopkins Village Apartments have a total of 262 subsidized units. Mortaa¢e Assistance: Minnesota Housing Finance Agency o Minnesota City Participation Program (MCPP) - First - time home buyer mortgage program administered in cooperation with approved lenders. Maximum allocation based on population. The City of Hopkins has participated in the MCPP since 1992 and has received allocations ranging from over $1 million to $360,000. Current income limit is $43,650 per year. o Community Activity Set - Aside (CASA) Program - First - time home buyer mortgage program, targeted for a specific neighborhood. The City of Hopkins received $800,000 in mortgage funds in 1996 for the Westbrooke neighborhood. o Homeownership Assistance Fund (HAF) - Downpayment, closing cost, and monthly payment assistance available in conjunction with the MCPP and CASA programs Income limit is $28,000 per year. Community Action for Suburban Hennepin (CASH) o Mortgage Foreclosure Prevention Program - Provides financial assistance and counseling in order to stop foreclosure proceedings and bring owners current on their payments. o Home Buyer Counseling - Provides education regarding the entire home buying process including budgeting, selecting a property and financing the purchase. HOUSING MAINTENANCE, REHABILITATION AND REDEVELOPMENT PROGRAMS Rehabilitation of Rental Properties: Hennepin County Housing Consortium • o HOME Funds - Rehabilitation loans for maintaining and improving multi - family rental buildings. $340,000 in funds allocated for this activity from Hennepin County 1996 HOME funds. Minnesota Housing Finance Agency o Low Income Housing Tax Credit Program - Federal income tax credit to investors who invest in the construction or substantial rehabilitation of rental housing. Allocated on a project basis through three allocation rounds per year. o Low and Moderate Income Rental Program - Mortgage and rehabilitation funds available for the acquisition and rehabilitation of rental apartment buildings housing low and moderate income families. Center for Energy and Environment o Rental Energy Loan Fund - Low interest loans to owners of residential rental property in order to make cost effective energy conservation improvements. Single Family Housing Rehabilitation: Minnesota Housing Finance Agency o Community Rehabilitation Fund - Funds for the acquisition, demolition, rehabilitation and financing of new of rehabilitated housing in a designated neighborhood . The City of Hopkins applied for Community Rehabilitation Funds in 1994 for rehabilitation funds for the Westbrooke neighborhood, but was denied. o The Great Minnesota Fix - Up Fund - Home improvement loans at below market interest rates, available through participating lenders. The City of Hopkins assists in marketing this program and makes referrals. o Community Fix - Up Fund - Rehabilitation loan funds for low to moderate income homeowners, available through participating lenders. Applied for funds in 1996 with First Bank Hopkins and Norwest Mortgage. o Home Energy Loans - Low cost loans to make improvements that increase the energy efficiency of homes, available through private lenders. City of Hopkins o Adoption and enforcement of BOCA Housing Maintenance Code. • o Adoption and enforcement of Truth In Housing Program - Point of sale inspections required for all homes sold in the City. Results of inspection must be provided to each potential buyer and all items determined to be hazardous must be corrected. Program adopted in 1992 and averages 125 inspections per year. o CDBG funded Housing Rehabilitation Loan/Grant Program - Forgivable grants and low interest loans to Hopkins homeowners to make energy and code - related improvements to their homes. The City allocates over $100,000 to this program each year, assisting approximately 10 low to moderate income households. o Rental Registration/Property Inspection Program - Requires registration of all rental property, from single family homes to multi -unit developments, and inspections of the units on a 4 -5 year schedule. Currently, there are 920 buildings registered with the City. Hennepin County - Office of Planning and Development o Handicap Accessibility Loans - Deferred loans for the removal of architectural barriers. Maximum loan of $20,000 in the form of a 30 -year deferred loan, due after the 30th year or at the time of sale. LOCAL INITIATIVES Neighborhood Revitalization: City of Hopkins o Residential Service Districts - General Obligation Bonds used to finance improvements to a neighborhood, repaid through a fee paid with the owner's property taxes. Specifically designed for use in the Westbrooke condominium and patio home neighborhood. It is anticipated that this program will be used to rehabilitate 328 units in the next two years. o Home Remodeling Fair - Event held in cooperation with the cities of St. Louis Park, Golden Valley and Minnetonka, and the Hopkins, Minnetonka • • • and St. Louis Park School Districts .Encourages Hopkins homeowners to maintain and improve the housing stock while educating them about the inspection requirements, appropriate design, financing, etc. o Hopkins Apartment Managers Association - Originally formed by the City of Hopkins, the Hopkins Apartment Managers Association operates as an independent organization whose objectives include enhancing the quality of life of their residents, provide continuing education for managers and enhancing the image of the City of Hopkins. o Housing revenue bonds, tax - increment financing, essential function bonds - Tools used on a project by project basis, to make development or redevelopment projects financially feasible. Examples include Sonoma Apartments, Chapel View, and St. Therese. Metropolitan Council o Livable Communities Demonstration Account - Loan and grant funds for projects that are compact, efficient developments close to transit and offer a variety of housing options and employment opportunities. $4 million available annually. LOCAL OFFICIAL CONTROLS AND APPROVALS The City has reviewed and when appropriate, revised its local official controls and approvals impacting residential development and redevelopment. Generally, the City has less restrictive set -back requirements and minimum and maximum densities. The City has an ordinance for planned unit developments which allows great flexibility in design, including zero - lot - lines. The Hopkins Planning and Zoning Commission has undertaken a review of all parcels of land zoned for high density multi - family housing and when appropriate, reduced the allowed density or changed the allowed use. Currently, over 60% of the City's housing stock is in multi- family developments. This uncommon mix does leave the City more vulnerable in a weak rental market and as a result, the City Council has placed an importance on preserving all existing single family housing and encouraging all new • • multi - family developments to meet a special need or niche in the housing market . AUTHORITY FOR PROVIDING HOUSING PROGRAMS The City of Hopkins has a Housing and Redevelopment Authority (HRA) that was established in 1965 to facilitate the redevelopment of a blighted neighborhood and address housing needs throughout the City. Since that time, the role of the HRA has been expanded to include activities such as the operation of 86 units of public housing, the purchase of potential redevelopment sites, providing special needs housing and facilitating economic development within the City. The City of Hopkins has an experienced housing staff including a Housing Inspector, Housing Coordinator and Public Housing Manager. Together, these key staff members have over 25 years experience in the housing field. The City of Hopkins will utilize the services and expertise of other housing providers when appropriate. An example of a successful collaborative effort is the administration of the CASA program for the Westbrooke neighborhood. The mortgage funds available through this MHFA program are accessed through a local lender, Norwest Mortgage, and homebuyer counseling is provided by Community Action for Suburban Hennepin (CASH). The City assists in marketing the program and coordinating efforts between the lender and service provider. The City encourages such collaborations and frequently uses outside agencies and consultants to provide services. 00 a kk kk kk kk kk kk kk kk kk kk k k k k k k X k k k k k kkk kkk kk kkk X k k k k kk kkk k k k k kk kk kk kk kk kk kk kk kk kk kk kk k k k kk k k kk kk kk kk kk k k kk kkk k