CR 10-079 Met Council Livable Communities ACT•
•
,\TY OF
Colo.
HOPKINS
August 17, 2010
Council Report 2010-079
METROPOLITAN COUNCIL LIVABLE COMMUNITIES ACT —
PARTICIPATION IN THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM
Proposed Action-
Staff
ctionStaff recommends adoption of the following motion: Approve Resolution 2010-034
electing to continue participating in the Local Housing Incentives Account Program
under the Metropolitan Livable Communities Act.
Overview
The Metropolitan Livable Communities Act Local Housing Incentives Account (LCA
LHIA) is a voluntary program that allows participating cities to compete for grants and
loans that support meeting. their affordable housing goals, clean up polluted sites, and
support demonstration projects linking jobs,. housing and transit. Hopkins has
previously participated in this program by..adopting LCA LHIA affordable and life cycle
housing goals for the period 1996-2010. 'In that period Hopkins has been awarded over
$5 million in LCA grants.
Based on demographic data and Hopkins' recent Comprehensive Plan Update, the
Metropolitan Council has determined that the fair share of affordable housing for the
City of Hopkins lover the next 10 years is 143 units. They are asking Hopkins to
establish its LCA affordable housing goal as a range of 93-143 units for. the period 2011
to 2020. They are further asking Hopkins to establish a goal range of 140 to 300 units
of life cycle housing during that same period (affordable units would count toward both
goals).
In addition to passing a resolution supporting the above housing goals, the City of
Hopkins must develop a Housing Action Plan that outlines the steps the City will take to
meet these goals in order to continue participation. This Plan is due by. December 1,
i 2010, and may consist largely of the housing chapter of Hopkins' Comprehensive Plan..
Primary Issues to Consider
• How realistic are the housing goals proposed by the Met Council?
Supportina Information
• Resolution 2010-034
• Hopkins Comprehensive Plan Update— Housing Chapter
Tara Beard
Community Development Coordinator
Financial Impact: $ Budgeted: Y/N . Source: ;PIR fund (501)
Related Documents (CIP, ERP, etc.):
Notes:
•
•
Council Report 2010-079
Page 2
Analysis of Issues
How realistic are the housing goals proposed by the Met Council?
The Housing Chapter of the Comprehensive Plan states that "over the next 10 years
(2020), the City of Hopkins is projected to addan additional 300 households." Many of
these households are anticipated to be located around future Southwest Light Rail
Transit stations. The goals suggested by the Met Council do not exceed this number of
units. While the Comprehensive Plan does not dictate a specific number of affordable
units,_ it recognizes the fair share goals of the Met Council and states that "Hopkins will
need to consider ways to accommodate future affordable housing units to meet
Metropolitan Council requirements."
In recognition of the fact that gap funding is almost always needed for affordable
.,housing development, the Met Council has asked Hopkins to adopt a range of
affordable housing goals that tops out at the fair share number of 143 units. This allows
a minimum goal (93 units) less than. the fair share number in case adequate funding is
not available for the maximum goal. Furthermore, Met Council has suggested a range
of life cycle housing (which includes affordable housing) from 140 to .300.units. The low
end of this range represents Hopkins' fair share number and the high end is the
potential number of .units .permitted by the Comprehensive Plan.
Given the number of units anticipated in the near future it is reasonable to, expect
Hopkins to meet these goals. If planned projects at Marketplace & Main, 5th Ave Flats,
and 8th Avenue South are realized, they will. provide over 200 new housing units alone,
including some which may be affordable. Additional redevelopment is likely over the
next decade as Light Rail Transit begins construction (likely 201 4) and operation (likely
2017).
Alternatives
The Council has the following alternatives:
• Approve resolution 2010-034 as is
• Deny resolution 2010-034 and opt not to participate in LCA LHIA
Lm
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2010-034
RESOLUTION ELECTING TO CONTINUE PARTICIPATING IN THE LOCAL
HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN
LIVABLE COMMUNITIES ACT
CALENDAR YEARS 2011 THROUGH 2020
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 Statues section 473.254; and
WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan
Council to negotiate with each municipality to 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, previously negotiated affordable and life -cycle housing goals for
municipalities participating in the Local Housing Incentives Account Program expire in
2010; 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 2011 through 2020.
2. Agrees to the following affordable. and life -cycle housing goals for calendar years
Affordable Housing Goals Range Life -Cycle Housing Goals Range
93-143 .140-300
3. Will prepare and submit. to the Metropolitan Council a plan identifying the actions
it plans to take to meet its established housing goals.
Adopted this. 17th day of August 2010.
By
Eugene J. Maxwell, Mayor
Attest:
Terry Obermaier, City Clerk:
r�
CITY OF HOPKINS
HENNEPIN COUNTY, 'MINNESOTA
RESOLUTION NO. 2010-034
RESOLUTION ELECTING TO CONTINUE PARTICIPATING IN THE LOCAL
HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN
LIVABLE COMMUNITIES ACT
CALENDAR YEARS 2011 THROUGH 2020
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 Statues section 473.254; and
WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan
Council to negotiate with each municipality to 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, previously negotiated affordable and life -cycle housing goals for
municipalities participating in the Local Housing Incentives Account Program expire in
2010; 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, THEREFQRE, 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 2011 through 2020..
.2. Agrees to the following affordable. and life -cycle housing goals for calendar years
2011 through 2020:
3. Will prepare and submit. to the Metropolitan Council a plan identifying the actions
it plans to take to meet its established housing goals.
Adopted this. 17th day of August 2010. .
By
Eugene J. Maxwell, Mayor
Attest:
Terry Obermaier, City Clerk:
10
•
Overview
ntroduction
Hopkins is a well established, complete community with a traditional
downtown area and neighborhoods containing a variety of housing
types. Although many people think of downtown Hopkins when they
think of the City, the residential neighborhoods are a strong contributor
to the overall character of the community. Hopkins' neighborhoods
contain housing that ranges from traditional single-family homes on
smaller, narrow lots to larger, more expansive homes on heavily wooded
lots in excess of one acre. Multi -family housing consists of a variety
of forms from townhouses to apartments to more contemporary loft
units. In recent years, Hopkins has seen significant construction in
downtown housing with the east end of Mainstreet becoming a strong
• residential node.
Although Hopkins is classified as a fully developed community, its
housing stock will continue to evolve and change. Over the next 10
years (2020), the City of Hopkins is projected to add an additional 300
households with 200 more households expected by 2030. Most of this
growth will occur as a result of redevelopment, both in and around
the downtown area and on sites along some of the major roadways like
Excelsior Boulevard, Shady Oak Road and Blake Road.
Market Response to Housing in Hopkins
Despite the aging of much of Hopkins' housing stock and the shortage
in older units of some contemporary conveniences, houses historically
have sold relatively quickly in Hopkins. In 2000 the Census reported
a vacancy rate of approximately 2 percent for the entire community;
however, the City is keenly aware that the size and design of many Post -
War houses, combined with the physical deterioration that can occur
in such units over time, can produce a downward spiral of conditions,
values and market response.
CHAPTER 6.- HousING
Single Family Home
Hopkins has a number of positive attributes that contribute to the de-
sire to maintain properties and to expand and modify existing homes
Hopkim comprehcnsive l.,lan
page 6-1
•
C-1
CHAPTER 6 - HomING
•
Hopkin,25 comprehensive plan
page 6-2
to meet more contemporary marketplace needs. The City's location
has convenient accessibility to major roads, transit routes and off-road
bicycle trails; numerous job opportunities in the City and surround-
ingyarea; excellent schools; and abundant social and cultural amenities
contribute to keeping the housing market strong. Past comprehensive
plans have emphasized the need to keep Hopkins' housing marketable.
This plan will continue to emphasize and expand upon this directive.
Residential Rehabilitation Loan and Grant Program
Hopkins has a long history of using loan and grant programs to further
housing goals. In response to the need to promote private reinvest-
ment in the aging housing stock, the City has been administering a
program of grants and loans to owner -occupants with lower incomes.
For the past 35 years, this program has assisted in the improvement of
over 300 housing units in all parts of the City. The program is funded
by the City's share of County administered Community Development
Block Grant funds.
Hopkins has also fostered housing innovation. It pioneered hous-
ing improvement districts that required special legislation. Setting
up the State's first housing improvement district allowed the city to
implement major improvements to a townhome development and
two condominium developments in the Westbrooke area, reversing a
decline in housing quality and stabilizing the neighborhood as a desir-
able residential area.
Development Standards are Supportive of Housing Choices
The Hopkins Zoning Ordinance has been continually modified over
the years to support and implement the housing initiatives identified in
the Comprehensive Plan. The current Zoning Ordinance includes five
districts that allow detached housing on parcels ranging in size from
6,000 to 40,000 square feet. Five other districts allow attached housing
including duplexes, four -unit buildings, townhouses, and apartments at
densities ranging from 3,500 to 1,000 square feet of lot area per unit
(12 to 43 dwelling units per net acre). The R-4 and R-5 districts allow
for very urban densities with minimal amounts of open area. This type
of development has proven popular in many communities throughout
the Twin Cities Metropolitan Area.
•
Housing Construction
Although the City is considered fully developed, over 400 new housing
units have been built in Hopkins since 1990. Many of the new units have
been created through redevelopment efforts including projects such as
The Oaks of Mainstreet, Marketplace Lofts, Oakridge Place and The
Summit. Other projects such as Marketplace & Main are poised to begin
construction as soon as market conditions improve. The impact of these
projects on the image of the City has been profound. Hopkins now
offers the attraction of urban style housing choices within a compact,
historical downtown area. This is exactly the type of enviromnent that
many suburban communities today are trying to emulate. In Hopkins,
the fit of housing, jobs and the availability of goods and services occurs
in a very genuine way. The community has a rich character that cannot
be duplicated by new communities that are constructed at one point
in time. Accordingly, Hopkins will remain a desirable location for the
private marketplace to continue to seek opportunities for redevelop-
ment that fit into the existing fabric of the community.
A Guide for Future Housing Initiatives
The housing section of the Hopkins Comprehensive Plan is intended
to help guide the changes that lie ahead. It contains overall goals, an
analysis of past trends, the identification of current issues, a plan for
future housing, and strategies and implementation methods to guide
future decisions. At its core, the housing plan focuses on two primary
themes: 1) ongoing maintenance of existing housing and 2) opportuni-
ties to add new housing as a part of future redevelopment efforts.
CHAPTER 6 - HOUSING
Marketplace Lofts
Regency Townhomes
l lopkines comprehensive plan
page 6-3
•
CHAPTER 6 - HOUSING
Goals
A set of overall goals provides a framework for housing initiatives in
Hopkins. Pertaining to housing, the City of Hopkins seeks to:
• Retain and enhance detached single-family homes. Hopkins has a high percentage of multi -family
housing. Most ofthe housing constructed in the future will also be multi-familydue to locational and economic
considerations. The city will generally continue to protect existing single-family neighborhoods from
redevelopment and undue encroachments to maintain a variety of housing types.
• Continue to emphasize housing maintenance. Much of Hopkins' single-family and multi -family
housing is at least 40 years old. Due to the age of the structures, emphasizing ongoing maintenance will be
critical to maintaining and enhancing real estate values and keeping neighborhoods desirable in the eyes of
future home buyers.
• Take advantage of redevelopment opportunities to provide new housing choices for the
community. Redevelopment has created exciting new housing opportunities in recent years and future
projects will offer even more choices. Of particular note is the current plan to expand light rail transit to serve `
southwestern Twin Cities suburban communities. The Southwest LRT line passes directly through Hopkins
creating redevelopment opportunities at and around three potential station locations.
• Encourage the development of owner -occupied housing. Hopkins has a high percentage of rental
housing. To maintain overall housing diversity, the city encourages new housing to be owner -occupied where
feasible.
• Continue to strive for a mix of housing that accommodates a balance of all housing needs. The
current supply of housing in Hopkins provides opportunities for people in all stages of the housing life -cycle. "
Hopkins' current housing stock also addresses a wide range of income levels. Entry level opportunities exist
in the supply of rental housing; more affordable units are also available for first-time home buyers. Existing
neighborhoods offer opportunities for move -up housing, and the needs of seniors are addressed in a number
of subsidized and market rate housing choices. Support services for seniors in the form of assisted living and
long-term care opportunities also exist in the community.
•
Hopkins comprehensive plan
page 6-4
Analysis of Housing Stock
Household Characteristics
The housing stock in the City of Hopkins is described by the follow-
1�
u
ing data from the 2000 U.S. Census Bureau. A household in Hopkins
includes all the people who occupy a housing unit as their usual place
of residence. The following household characteristics offer another
perspective on the characteristics of people living in Hopkins:
• 45 percent of Hopkins' households is family households (see
Table 6.1). This compares with 58 percent for Hennepin County
and 65 percent for the region.
• The decrease in married couple homes may not be a true depic-
tion of Hopkins since this decrease may be closely associated
with the current housing stock. Single-family homes have not
significantly decreased over the years. Instead there has been
an increase in more contemporary loft style units. These units
typically consist of non -family households and would influence
the decrease in married couple homes.
• Householders living alone increased by nearly 500 residents
between 1990 and 2000.
• 23 percent of all households include children under the age of
• 18 (see Table 6.2) compared to the region that has 34% of such
household's.
• 55 percent of Hopkins households is non -family households.
This is significantly higher than Hennepin County (41 %) and
the region (35%).
Table 6.1- Household Type (1990 and 2000)
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
CHAPTER 6 - Housi\,G
Total households Family households Married -couple Nonfamily Householder living
(families) family households alone
• ®1990 ■ 2000
Single Family Home
noPKlnQS com�2rehensive Ulan
page 6-S
• CHAPTER 6 - HOUSING
C]
Table 6.2 - Household Type - City/County/Region
(2000)
Kopkim comprehensive plan
page 6-6
Housing Implications
• The increase in householders living alone may be indicative of a
longer-term pattern. If so, it will continue to support a market
for multi -family, smaller unit housing.
• The proliferation of households containing a smaller percentage
of children under the age of 18 will have an impact on enrollment
at local schools, and it may have an impact on the future sales of
traditional single-family homes.
Demographics
Communities are continually evolving over time as residents age or
move to other communities. Understanding Hopkins' demographics
can provide a telling story about future market needs. The 2000 Census
shows a small increase in population since 1990 of about 4 percent (see
Table 6.3). By 2030 Hopkins is projected to add an additional 1,000
residents.
•
CHAPTER 6 - Hot!SING
Table 6.3 - Aze
• Table 6.4 - Age (2)
100%
90%
80%
is
70%
■ 65 and older
60%-
1135 to 64
50%
■ 20 to 34
40%
105 to 19
30%
■ Under 5
20%
�'�
0%
Hopkins
Hennepin County
Twin Cities SMSA
Table 6.4 provides a breakdown of age groups in Hopkins. A typical
trend for the region and the state is the aging Baby Boom generation.
This age group, typically between 45 and 64, currently snakes up 18
percent of Hopkins' population. As this age group continues to grow
in size, it may pose several important questions for the community. Is
•
Hopkim comprehensive plan
page 6-7
U
CHAPTER 6 - HOUSING
HHH opkim comprehensive plan
page 6-S
there a diverse housing stock to accommodate an aging population, and
are there the necessary services (health services, medical facilities and
assisted living) to support the aging population? Providing a diverse
housing stock not only gives residents a community to age in place, but
options for all income levels.
Demographic Implications
• Changing demographics will impact the existing housing stock.
One -level homes will continue to be popular since they better
accommodate the needs of an aging population.
• Existing and new housing will continue to need to offer choices
for residents to age in place.
• Hopkins and other agencies will continue to see a need for sup-
port services for the senior population.
• Since Hopkins is a fully developed community, redevelopment
initiatives will be needed to accommodate the projected 1,000
additional residents by 2030.
Housing Stock
Between 1999 and March 2000,40 new housing units were built in Hop-
kins (seeTable 6.5). A significant number of new units have been created
through land redevelopment over the last 5 years, including projects
such as Oakridge Place, Marketplace Lofts and The Summit. The focus
of the community is now on housing maintenance and redevelopment of
blighted and/or obsolete properties. Any new construction will likely
occur on infill lots and through redevelopment.
•
CHAPTER 6 - HOUSING
Table 6.5 - Year Structure Built
• Overall, the single-family housing stock in Hopkins is in good condi-
tion. In some cases, small concentrations of deteriorated multi -family
housing exists. Although the older units located between Downtown
and TH 7 and in South Hopkins need more ongoing maintenance
due to age, there is apparent pride in ownership of these single-family
structures, and they are generally well maintained.
A large portion of Hopkins multifamily units were built in the 1970s
(Table 6.6) and lead to concerns about deterioration and deferred
maintenance issues. Proper maintenance of these units is a strong in-
terest of the City. The City does have standards for the maintenance
of rental housing that go beyond the Building Code. The provisions
of the code require periodic inspections of rental units and repair of
identified deficiencies.
Housing Stock Implications
• Efforts will need to focus on programs and initiatives that en-
courage the maintenance of the existing aging housing stock.
• Generally single-family and multifamily units constructed 40+
is
flopkim compi ehensive plan
page 6-9
2,500
rn
0
N
2,000
■ Own
® Rent
N
CI'
1,500
�
o
•N
0
1,000
a
°i
N
„ Ln
N
lLn
500
s'r
Ln
Ln0N
j
OD
N M
al
N
N
0
1999 to
1995 to
1990 to
1980 to 1970 to
1960 to
1940 to
1939 or
March 2000
1998
1994
1989 1979
1969
1959
earlier
Year Built
• Overall, the single-family housing stock in Hopkins is in good condi-
tion. In some cases, small concentrations of deteriorated multi -family
housing exists. Although the older units located between Downtown
and TH 7 and in South Hopkins need more ongoing maintenance
due to age, there is apparent pride in ownership of these single-family
structures, and they are generally well maintained.
A large portion of Hopkins multifamily units were built in the 1970s
(Table 6.6) and lead to concerns about deterioration and deferred
maintenance issues. Proper maintenance of these units is a strong in-
terest of the City. The City does have standards for the maintenance
of rental housing that go beyond the Building Code. The provisions
of the code require periodic inspections of rental units and repair of
identified deficiencies.
Housing Stock Implications
• Efforts will need to focus on programs and initiatives that en-
courage the maintenance of the existing aging housing stock.
• Generally single-family and multifamily units constructed 40+
is
flopkim compi ehensive plan
page 6-9
9 CHAPTER 6 - Housi,\G
•
•
years ago begin to approach an age were continual maintenance
improvements are needed. The City may need to find creative
ways to encourage homeowners and landlords to conduct main-
tenance improvements.
• The City will need to continue to seek outside programs that
assist in the maintenance and enhancement of the existing hous-
ing stock.
Tenure
One of the unusual facts about the Hopkins housing stock is the high
proportion of renter -occupied units compared to owner -occupied
units. According to data from the 2000 Census Bureau, 62 percent of
the housing in Hopkins was renter -occupied and 3 8 percent of the units
was owner -occupied (see Table 6.6).
Table 6.6 — Housing Type and Tenure (2000)
Hopkims, comprehensive plan
page 6-10
The Census also reports the population living in various types of housing.
This data can be used to calculate the average number of people living
in different housing types. Table 6.7 compares average population by
housing type and tenure (own or rent). This data provides some inter-
esting observations about housing in Hopkins:
• There is a large rental population; however, there is also a signifi-
7,000
eD
C
6,000
0
5,000
0
o
N
N
4,000-
.2
M
3,000
O
0
a
2,000
�
N
O
o
ON r
1,000
�r
Ln -
r,
d L
ON
O
m
O
V
C[
N
Ln
C,
O O O O
1,
1, 2 3or4
5to9 10 to 19 20 to 49
50 or Mobile Boat, RV,
detached
attached
more home van, etc.
■ Own El Rent
Hopkims, comprehensive plan
page 6-10
The Census also reports the population living in various types of housing.
This data can be used to calculate the average number of people living
in different housing types. Table 6.7 compares average population by
housing type and tenure (own or rent). This data provides some inter-
esting observations about housing in Hopkins:
• There is a large rental population; however, there is also a signifi-
•
•
I•
CHAPTER 6 - HOUSING
cant amount of single-family homes that are owner occupied.
Hopkins offers a diverse housing stock that allows residents to
own single family -homes or rent multifamily units.
• Structures with 3 to 49 units are primarily occupied by one and
two person households.
Table 6.7 - Population Per Housing Type and Tenure
(2000)
Tenure Implications
• Hopkins will continue to have a large number of rental units,
making turnover a potential issue.
Household Income
Income influences many aspects of a community. Income provides
consumers the ability to acquire housing (own or rent) and purchase
goods from local businesses. According to the 2000 Census, 27 percent
of Hopkins' homeowners was spending more than 30% of their house-
hold income on housing costs (see Table 6.8). This is 9 percent more
than the Twin Cities average of 18 percent. 36 percent of Hopkins'
renters was also spending more than 30 percent of their household
income on housing costs. (see Table 6.9).
Hopkins comprehensive plan
page 6-11
• CHAPTER 6 - HOUSING
0
Table 6.8 - Selected Housing Costs as % of Household Income
(2000)
Table 6.9 - Gross Rent as % of Household Income (2000)
Hopkins comprehensive plan
page 6-12
•
CHAPTER 6 - HOUSING
Regardless of income spent on housing, the City of Hopkins has been
relatively successful in retaining and attracting new residents. 42 percent
of the population (age 5 and older) lived in the same house in 1995 (see
Table 6.10). This compares with 52 percent for all of Hennepin County
and 54 percent for the region. The census does not report the portion
of the population that moved to a different house within Hopkins dur-
ing this period. People moving to Hopkins from a different location in
Hennepin County made up 28 percent of the 2000 population. This
portion of the population is higher than the comparable segments of the
County (22 percent) and regional (25 percent) populations.
Hopkins' success in retaining residents is partially attributable to the
supply of existing single-family homes. Rental units, however, have been
a challenge for the City. There has been a high turnover rate of tenants
in some rental units compared to the rest of the housing stock. This
issue is a concern for the City, because it can influence a community
on several levels. Fluctuations in school enrollment create educational
challenges for the Hopkins School District. High turnover rates also
• influence the overall well being of the community. Retaining residents
creates a stronger sense of community and stronger cohesiveness.
•
Table 6.10 - Residence in 1995 - City/County/State
Hopkin comprehensive plan
page 6-13
•
•
CHAPTER 6 - HOUSING
• u
Hopkim comprehensive plan
page 6-14
Housing Income Implications
• Based on current household incomes, portions of Hopkins'
housing is affordable.
Hopkins will need to consider ways to accommodate future
affordable housing units to meet Metropolitan Council require-
ments.
• The City will need to work with other governmental and non-
profit entities to help reduce the turnover rate of rental hous-
ing.
• The City of Hopkins will need to continue collaborating with
the Hopkins School District to assess the social, economic and
educational implications of the overall housing supply.
Home Buyers/Renters
The opportunity for purchases by first-time homebuyers in Hopkins
is enhanced by the supply of smaller, older homes in Central Hopkins
and in other neighborhoods. Parts of the Presidential neighborhoods,
Park Valley and Peaceful Valley are also more affordable. Campbell,
Hobby Acres and Interlachen Park neighborhoods offer opportunities
for move -up buyers. More expensive homes are available in the Bell -
grove and Knollwood neighborhoods. The relatively large number of
rental apartments and townhouses also offer choices for households
who do not wish to or cannot afford to purchase homes.
The Housing and RedevelopmentAuthority (HRA) owns and maintains
76 dwelling units rented to low-income households. All of the units
are located in one building near Downtown. Other subsidized rental
units are operated by coops and non-profit agencies not directly af-
filiated with the City. Overall, 12 percent of the total rental units in
Hopkins is subsidized and 7 percent of the Cities total housing stock
is subsidized (exclusive of group homes).
A small percentage of low income individuals in Hopkins receive rent
assistance through the federal Section 8 Rent Assistance Program ad-
ministered by the Metropolitan Housing and Redevelopment Authority
(HRA). The City of Hopkins currently has 350 households receiving
rent subsidies through the Section 8 Housing Program. This program,
however, does not fully meet the need for housing affordability in Hop-
kins or elsewhere, and levels of finding have been reduced annually
throughout the past two decades.
Home Buyer/Renter Implications
• Changing market trends will continue to influence the Hopkins
housing market.
• The City will need to continue offering and promoting hous-
ing assistance programs to facilitate both home ownership and
affordable rents.
Housing Affordability
Housing is considered affordable when it consumes no more than
30 percent of gross household income. Families spending more than
30 percent of their income on housing may have difficulty affording
basic needs like food or clothing, or handling unanticipated medical
or financial expenses.
Affordability in the City of Hopkins is defined by the Metropolitan
Council and the U.S. Department of Housing and Urban Develop -
4 ment (HUD). Based on the thresholds of these agencies, Hopkins
and other metro area communities should focus on providing hous-
ing that is affordable to families earning 60 percent of the Twin Cities
median family income. Under HUD definitions this translates to a
home priced at or below $152,000. At that price, a family of four
who earns $47,100, which is 60 percent of the Twin Cities median
family income of $78,500, is spending 30 percent or less of its gross
income on home ownership.
Rental housing is defined differently than home ownership. The thresh-
old for rental housing is considered affordable to families earning 50
percent of theTwin Cities median family income. The rental threshold
for affordable housing for a family of four is $39,250.
This results in the following affordable rental rates:
Efficiency Unit - $687 a month
1 Bedroom Unit - $736 a month
2 Bedroom Unit - $883 a month
3 Bedroom Unit - $1,020 a month
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CHAPTER 6 - HOUSING
In response to affordable housing needs, the Hopkins Comprehensive
Plan is required to acknowledge the community's share of the region's
need for low and moderate income housing. In January of 2006, the
Metropolitan Council released a summary report entitled "Determin-
ing the Affordable Housing Need in the Twin Cities 2011-2020." This
report not only forecasted the regional need for newly -constructed,
affordable housing (2020), but also allocated each community's share
of the regional need for the comprehensive planning process. The total
need for newly -constructed affordable housing units in theTwin Cities
is estimated to be 51,000 between 2011 and 2020.
Based on this report, the Metropolitan Council has forecasted a need
of 143 new affordable units between 2011 and 2020 for the City of
Hopkins. This number is determined based on a variety of factors such
as low-wage job proximity, existing housing stock and transit services.
The following is a summary of these factors and the formula used by
the Metropolitan Council:
72 Base allocation of the amount of the 300 new housing units
which should be affordable (same across the region with minor adjust-
ments).
+66 Low-wage Job Proximity: communities, such as Hopkins, with
more low-wage jobs than local low-wage working residents have their
share increased by a proportional amount (1.93 ratio).
-9 Housing Stock: 43 percent of Hopkins' housing stock is con-
sidered affordable at 60 percent of median income. Since 30 percent
is seen as desirable, the community's share decreased by a proportional
amount.
+14 Transit Service — Level 2 transit service available results in an
increase of 20 percent to the community's share.
143 Total New Affordable Units Needed
It is important to note that the study was concerned only with newly -
constructed affordable housing or development actions that consume
land. The study recognizes that a portion of low income households
will find housing in older, market -rate units that have depreciated in
price to maintain occupancy; however, these housing units are not
Hopkim comprehensive plan
page 6-16
included in determining the number of units needed. Since Hopkins
is a fully developed community, it is assumed the 143 additional units
will be achieved through redevelopment initiatives. These initiatives
are discussed further in the Land Use chapter.
Housing Plan
Hopkins' Housing Plan identifies strategies and approaches to help
meet the identified housing goals which include:
• Retain and enhance detached single-family homes.
• Continue to emphasize housing maintenance.
• Take advantage of redevelopment opportunities to provide new
housing choices for the community.
• Maintain a housing supply that responds to changing demo-
graphics.
• Encourage the development of owner -occupied housing.
• Continue to strive for a mix of housing that accommodates a
balance of all housing needs.
The goals listed above and the implementation actions that follow are
intended to ensure long-term housing quality, meet Hopkins' share of
the regional need for low and moderate income housing, preserve the
integrity of existing neighborhoods, promote housing redevelopment
in appropriate areas and continue to provide a mix of housuzg types
that keeps the community viable and competitive.
Neighborhood Preservation
The City regards the preservation and protection of its existing resi-
dential neighborhoods as one of its most important actions; therefore,
the City will work to protect the integrity and long-term viability of
its neighborhoods and strive to reduce the potential negative impacts
of nearby commercial or industrial land development through zoning,
site plan reviews, and code enforcement.
Long-term stability and growth of neighborhoods are key elements in
Hopkins' efforts to remain a desirable place to live and to achieve long-
term sustainability. Neighborhoods are more than attractive places to
live. The residential sectors of Hopkins provide employees for busi-
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CHAPTER 6 - HOUSING
Hopk1prehensive plan
page 6 -IS
nesses, a market for goods and services, and they create an image of the
community. Neighborhoods are also a reflection on the community's
social and economic standards of living and overall quality of life.
To address neighborhood preservation, Hopkins will:
• Strictly enforce its municipal regulations pertaining to hous-
ing and yard maintenance to protect the value and integrity of
residential neighborhoods.
• Support housing maintenance through continued administration
of applicable programs.
• Continue to enforce its maintenance code for multiple -family
housing and rental housing.
• Protect residential areas adjacent to downtown Hopkins from
the undue encroachment of non-residential uses.
• Promote the infilling of vacant parcels in and near residential
neighborhoods. The redevelopment of existing developed land
will be in accordance with uses specified in the Comprehensive
Plan.
• Pursue efforts to remove land uses that are inconsistent with the
Comprehensive Plan and incompatible with existing residential
neighborhoods.
• Enforce high standards for all multiple -family residential de-
velopment. Factors to be considered in reviewing new housing
proposals will include but not be limited to the aspects of build-
ing massing, parking locations, access, traffic impacts, landscap-
ing, exterior architectural design, fencing, trash handling, and
parking ratios.
Housing Redevelopment
Most of Hopkins new growth in housing will be attributable to rede-
velopment. Today, there are limited locations in the community where
it may be appropriate to allow and encourage housing redevelopment.
In these locations, the City has indicated its land use intentions through
the Land Use Plan and the zoning regulations. In the future, however,
the opportunities for additional housing may be expanded. The planned
Southwest LRT line has the potential for significant change including
creating additional potential locations for more housing or mixed-use
development. Future improvements to Shady Oak Road and possibly
Blake Road also have the potential to expand housing opportunities.
•
In most cases, future housing construction is expected to be the out-
come of private market actions. On a case-by-case basis, Hopkins will
consider financial participation in housing redevelopment projects
when projects provide demonstrable public benefits consistent with
this Comprehensive Plan and city redevelopment policies.
To address future redevelopment, Hopkins will:
Focus on the implementation of short and long-term redevel-
opment recommendations contained in the land use section of
this plan.
Remain open to the consideration of new housing types and
designs that meet the broad spectrum of existing and future
residents' needs.
Work closely with Hennepin County and other agencies on the
implementation of the Southwest LRT line.
Housing Assistance
• The City of Hopkins has a long history of providing housing assistance
for low income, elderly and special needs residents. Due to the age
of the Citv's housing stock, a significant number of rental and owner -
occupied units are affordable. Accordingly, Hopkins will continue to
provide housing assistance in a targeted manner.
In order to provide housing assistance, the City will:
Participate in the rent assistance programs of Hennepin County
and the Twin Cities Metropolitan Housing Authority and serve
as a local clearinghouse for information pertaining to rental
assistance.
Consider using a variety of means to upgrade existing housing
to provide a fair share of rental Housing for low and moderate
income households. Tools may include revenue bonds, tax incre-
ment financing, tax abatement and Community Development
Block Grants along with other public funding sources as they may
become available. The City will also consider partnerships with
private and non-profit entities to improve the quality of existing
housing and/or ensure that rents remain affordable.
0
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CHAPTER 6 - HOUSING
Housing Initiatives
The City of Hopkins will pursue a series of action steps related to the
maintenance of strong neighborhoods and the creation of new housing
through appropriate redevelopment efforts. The following initiatives
will be pursued:
• Continue and/or expand existing housing programs.
• Examine and improve housing maintenance codes and actively
enforce these codes.
• Maintain and improve public infrastructure in neighborhoods.
• Monitor the effectiveness of the Truth in Housing Program to
ensure that it is helping to maintain and upgrade residential
housing stock.
• Encourage the use of rental rehabilitation and single-family
housing loan programs offered by various private and public
sources.
• Continue to promote first-time home buyer programs offered
by outside agencies.
• Continue to promote and offer the Residential Rehabilitation
Loan/ Grant Program.
• Continually monitor the condition of existing housing units and
identify properties that have deteriorated to the point that they
may need to be removed and replaced with new housing.
• Aggressively enforce the Nuisance Abatement Ordinance/Hous-
ing Code in regard to dilapidated housing units.
• Continue communication and outreach efforts with residents of
multi -family housing including working with the Hopkins Apart-
ment Managers Association (HAMA) to ensure that multi -family
housing residents are welcomed to the community.
• Discourage the construction of additional assisted living facilities
and long-term care facilities. Hopkins has an extensive supply
of such uses, which places significant pressure on existing police
and emergency medical response services.
• Continue to coordinate redevelopment initiatives associated
with the LRT stations.
Additional information on housing programs and actions is included
u q_ in the Implementation Section of the Comprehensive Plan.
Kopkin,s comprchensiveplan
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