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HomeMy WebLinkAbout2015/11/04 - ADMIN - Agenda Packets - Planning Commission - Study SessionAGENDA PLANNING COMMISSION STUDY SESSION COUNCIL CHAMBERS 6:00 P.M. NOVEMBER 4, 2015 1. SWLRT Housing Strategies Presentation – Hennepin County and ULI 2. General Updates/Communications (verbal report) If you cannot attend the meeting, please call the Community Development Office, 952/924-2575. Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call 952/924-2575 at least 96 hours in advance of meeting. Planning Commission Meeting Date: November 4, 2015 Study Session Agenda Item 1 Title: SWLRT Housing Gaps Analysis Findings & Draft Southwest LRT Corridor-wide Housing Strategy PURPOSE: The purpose of this presentation is to inform the Planning Commission, Housing Authority Board and School District Staff of the results of the Southwest Housing Gaps Analysis and review and seek input on the draft Southwest LRT Corridor-wide Housing Strategy. The goal of the Southwest Community Works is to seek support in the future for the corridor-wide housing strategy from the cities along the Southwest LRT corridor. SUMMARY: In May 2012, the Southwest Community Works Steering Committee approved a process to develop a corridor-wide housing strategy for the Southwest LRT Corridor. The outcome of the strategy is to help achieve the Southwest Community Work's vision and guiding principle for providing a full range of housing choices specifically within ½ mile of the Green Line Extension station areas. Southwest Corridor Community Works and their 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 an understanding of the current and potential local, county, state and federal technical and financial resources to support a full range of housing choices. Additionally, cities along the corridor have undertaken housing studies, outlined tools and strategies in comprehensive plans and set individual housing goals. These efforts, along with other resources and technical assistance, including the findings in the Gaps Analysis, have been compiled and considered to form the basis for a Southwest LRT Corridor-wide Housing Strategy. At the meeting on November 4, Kerri Pearce Ruch, of the Hennepin County Southwest Community Works will present an overview of the SWLRT Housing Gaps Analysis, review and discuss the draft Southwest LRT Corridor-wide Housing Strategy and detail next steps. BACKGROUND: The Southwest Corridor Housing Inventory was completed in November 2013 and the findings were presented to the City Council at the November 25, 2013 Study Session. The purpose of the housing inventory was to identify the current housing stock along the Southwest Corridor at various intervals from the specific station areas. The inventory did not provide future projections related to housing demand, future market supply, potential housing gaps and how those gaps could be addressed through the use of specific tools and strategies. The Housing Gaps Analysis which was completed in September 2014 specifically answered those questions and more including: • What housing types and values are missing from the Corridor? • What are the strengths and weaknesses along the SWLRT line? • Where are the optimal sites for housing development within ¼ mile of station areas? Page 2 • Where is the greatest risk of gentrification? • What tools and strategies will be most useful in achieving the goal of a full range of housing choices? The complete SWLRT Housing Gaps Analysis can be accessed on the Southwest Transit way website at: http://www.swlrtcommunityworks.org/beyond-rails/planning-information/housing- inventory Based upon the findings in the gaps analysis and the recommendation on ways that those gaps could be addressed, the Southwest Corridor Community Works prepared a draft Corridor-wide Housing Strategy in March 2015. Southwest Corridor Community Works is now seeking input from stakeholders including the cities along the corridor and various interest groups; residents, developers, finance organizations, schools and housing advocates. St. Louis Park Housing staff participated on the SW Housing Committee assisting in the review of the Housing Inventory and Gaps Analysis and providing input in the development of the draft SW Corridor-wide Housing Strategy. The SW Community Work’s guiding principal to provide a full range of housing choices along the SWLRT corridor closely aligns with the City’s overall housing vision to promote a balanced and enduring housing stock that offers a continuum of diverse life-cycle housing choices suitable for households of all income levels. Also, the objectives and many of the implementation strategies included in the Strategy are consistent with both the City’s current housing goals and housing related initiatives already being undertaken in the City. The Strategy will not take the place of each City’s need to identify and implement Housing goals specific to meeting their communities housing needs, but it will guide and support communities in promoting a shared vison to create sustained healthy communities with a full range of housing choices along the corridor. NEXT STEPS: Throughout September/October/November, Southwest Corridor Community Works is seeking stakeholder input on the draft Strategy. A final draft of the Strategy will be presented to the Community Works Steering Committee for action in November. Following approval by the Steering Committee, the SW Corridor Community Works will be seeking support from Southwest Corridor Cities for the implementation of the Corridor Wide Housing Strategy. Attachments: Summary – Draft Southwest LRT Corridor-Wide Housing Strategy Draft Southwest LRT Corridor-Wide Housing Strategy City Housing Goals Prepared by: Michele Schnitker, CD Deputy Director/Housing Supervisor Draft housing strategy highlights for the SOUTHWEST LRT CORRIDOR October 2015 SOUTHWEST LRT COMMUNITY WORKS housing workgroup Why do we need a coordinated, corridor-wide housing strategy? MAINTAIN AND GROW DESIRABLE, COMPETITIVE COMMUNITIES Vibrant, livable neighborhoods for people with a range of incomes are critical for the Southwest corridor to retain jobs and residents – and attract new ones. Strong communities have a positive impact beyond their borders. EFFICIENCY Corridor cities can do more together – and do it better – than they could alone, while also achieving their individual hous- ing goals. The cities and Hennepin County can also better compete for and leverage resources, both public and private. ATTRACT RESOURCES AND INVESTMENT By providing a clear vision and consistent approach to hous- ing, we aim to attract quality developments across all income levels. Cities and the county can grow their tax bases by maximizing the unique transit-oriented development (TOD) opportunities that come with LRT. minnetonka Steering committee partners CONSTRUCT 11,200 housing units 3520 will be affordable to households with moderate and lower incomes, typically less than 80% of area median income (AMI). PRESERVE 3,800 unsubsidized affordable rental units (less than 60% AMI) From the 2014 inventory of 6700 such units Achieving the goal CORRIDOR-WIDE STRATEGIES • Develop mixed-income policy language for corridor cities • Evaluate existing agreements for subsidized properties • Maintain and improve existing affordable aging rental and ownership stock • Promote the corridor and its housing vision • Establish a TOD housing fund with private capital • Engage corridor employers in preservation and development of workforce housing • Examine technical, financial and regulatory structures • Develop metrics to track progress STRATEGIES WITHIN A HALF-MILE OF LRT STATIONS • Clear, consistent housing goals and affordability targets for corridor cities • Maintain and enhance policies to promote denser neighborhoods and mixed-use development • Implement infrastructure recommendations from the Southwest Community Works investment framework Next steps for 2016-2017 • Secure support from corridor cities and Hennepin County • Work with cities to identify a mix of housing at various afford- ability levels for each station area • Develop a work plan to track progress • Ensure this strategy remains up-to-date Southwest LRT Community Works housing workgroup members Cities of Eden Prairie, Edina, Hopkins, Minneapolis, Minnetonka and St. Louis Park, Family Housing Fund, Hennepin County, Metropolitan Council, Minnesota Housing, Southwest Project Office, Twin Cities LISC, ULI-Minnesota Read the full strategy or get more information at www.swlrtcommunityworks.org, or contact Kerri Pearce Ruch 612-348-3080, kerri.pearce.ruch@hennepin.us * Income data varies depending on the size and population of the area surveyed. This data is for the Metropolitan Statistical Area that includes the Southwest LRT corridor. % of area median income (AMI) 30% AMI 60% AMI 80% AMI 100% AMI 120% AMI Salary for a family of four (HUD, 2014)$24,850 $49,740 $63,900 $82,833 $99,400 Affordable monthly housing payment (30% of income)$621 $1244 $1598 $2071 $2485 What does “affordable” cost?* OUR GOAL Provide a full range of housing choices in the Southwest corridor within a half-mile of stations on the METRO Green Line Extension. SOUTHWEST LRT Corridor-wide Housing Strategy A plan to support and encourage a full range of housing choices along the Southwest Corridor (Green Line Extension) station areas DRAFT - October 30, 2015 Prepared for: Southwest Community Works Steering Committee 2 Partners This document was prepared by the Southwest Community Works Housing Workgroup. The Workgroup is comprised of partner staff from all six Corridor cities, Hennepin County, Family Housing Fund, Twin Cities LISC, Minnesota Housing, Metropolitan Council, the Southwest Corridor Project Office and ULI-Minnesota. Workgroup members have collaborated on background research and funding to support development of a corridor-wide housing strategy for the Southwest Corridor (Green Line extension). It is acknowledged that there may be many ways for each community to meet local and regional housing goals and that each community, through its elected and appointed leaders, will have its own legitimate priorities, funding and policy choices and may seek different balances at different points in time. We present this document to identify options for strategies and goals and to provide considered staff input on a coordinated approach. There is no single or particular vision of urban development, and stakeholders have leeway to adopt various policies necessary to achieve their valid interests. It is also recognized that there are multiple factors that go into investment decisions about where to construct or renovate housing units. Housing Workgroup Members Tara Beard, Metropolitan Council Cathy Bennett, ULI-Minnesota Theresa Cunningham, City of Minneapolis Margo Geffen, Hennepin County Elise Durbin, City of Minnetonka Kathryn Hansen, Southwest Project Office 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 Brian Schaffer, City of Minneapolis 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 Community Works, its members, partners and initiatives, as well as contact information, please visit: www.swlrtcommunityworks.org 3 • Economic competitiveness and job growth - promote opportunities for business and employment growth • Housing choices - 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 – improve affordable regional mobility for all users. “providing a full range of housing choices – positioning the Southwest LRT communities as a place for all to live” “collaborate and partner so that Southwest Corridor becomes a premier destination that is accessible, livable and vibrant” Southwest Community Works Adopted Goals Southwest Community Works Vision Southwest Community Works Guiding Principle – Housing 4 Background In May 2012, the Southwest Community Works Steering Committee endorsed creation of a corridor- wide housing strategy for the Southwest LRT Corridor and directed the Housing Workgroup to carry out the development process. The outcome of the strategy is to help achieve the Southwest Community Work's vision, goals and investment guiding principles to position the Southwest LRT communities as a place for all to live, providing a full range of housing choices, especially within ½ mile of the Green Line Extension station areas. Southwest Community Works and their 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 deep understanding of the current and potential local, county, state and federal technical and financial resources to support a full range of housing choices. Some of the Southwest-specific studies and resources that inform this work include: • Southwest Corridor- wide Housing Inventory (2013), which chronicles existing housing and demographics along the corridor; • Southwest LRT New Starts Affordable Housing Rating Evaluation Summary, MZ Strategies (2013), which outlines existing SW Corridor Cities plans and programs that support affordable and workforce housing that can be applied to the LRT Corridor. • Southwest Corridor Investment Framework (2013), which provides Transitional Station Area Action Plans (TSAAPs) for each of the 17 station areas, including recommendations on likely sites for housing development. • Southwest Corridor Housing Gaps Analysis (2014), which 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), which provides updated information on costs, ridership and land use/economic development both presently and looking into the future, as part of the Federal LRT Funding process. • Stakeholder engagement (2015), which gathered feedback from a variety of stakeholder groups including funders, developers, housing advocates, city councils and commissions. Additionally, cities have undertaken housing studies, outlined tools and strategies in comprehensive plans and set individual housing goals. These efforts, along with other resources and technical assistance, have been compiled and taken into consideration to inform a Southwest Corridor-wide Housing Strategy along the Green Line Extension. Southwest Community Works envisions this Corridor- wide strategy as a complement to other housing planning and policy work. It provides objectives, 5 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. 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 around stations 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. However, studies along Southwest Corridor, point to the majority of new development being high-end /luxury housing products. This leads to a concern that without a coordinated strategy, development around station areas will not produce a full range of housing choices, either by cost or unit size and type. Recent studies by the Dukakis Center for Urban and Regional Policy of 42 neighborhoods and 12 metropolitan areas revealed that when transit is added, housing stock becomes more expensive. These and other studies overwhelmingly indicate that existing and future housing located strategically near light rail experience a rise in value and rents 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 reduce the opportunities for lower to moderate income people and transit dependent individuals that may desire and benefit most by living near station areas. Rising housing costs generally hit working households the hardest, which elevates the risk of involuntary displacement of people already living in those areas who may no longer be able to afford to own or rent due to the increase in values. Why work together? Creating a full range of housing choices is a difficult challenge yet will be one measure of the success of Southwest LRT (Green Line Extension) and the surrounding communities. In order to adequately address the challenges, particularly in developing affordable housing, collaboration is key. A collaborative approach increases the corridor’s ability to be competitive, adds leverage to secure public and philanthropic resources, sends a positive message to the development community that the “Ensuring that there is a full range of housing choices with access to transit in our cities builds economic prosperity and competitiveness by attracting and retaining residents to support key employers. “ -Family Housing Fund “… we must act now to ensure that the housing built in these locations provides for a mix of incomes or a once-in-a- lifetime opportunity will be lost.” – Center for Transit Oriented Development 6 corridor is “all-together” in supporting a mix of housing choices along the Southwest Corridor, and creates alignment to achieve regional housing goals. Successful collaboration creates shared benefits and enables cities to do more – better - together than they can do alone. By coming together to create a Corridor-Wide Housing Strategy for Southwest Corridor, the cities, Hennepin County and other public and private partners may be better able to: • Create and sustain healthy communities: By providing a full range of housing choices all along Southwest Corridor, cities will be able to create and sustain the livable, vibrant neighborhoods that contribute to overall city well-being. Housing that is affordable to a mix of incomes around all station areas increases choices for residents looking to live near work, family or educational opportunities, 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, cities know that retaining residents helps to 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 Corridor-wide Housing Strategy will assist cities in meeting their individually adopted housing goals for their community and may allow them to increase their Housing Performance Score for resources from the Metropolitan Council’s LCDA program. • Leverage Resources: The Corridor-wide Housing Strategy will enable Southwest cities and Hennepin County to leverage additional public and private resources, compete better for limited grant funds and philanthropic dollars and attract greater private development than may be possible acting individually. • Increase Economic Competitiveness: There is an economic case for providing the best opportunities for access to quality housing for those with modest incomes. If the essential workers along the corridor cannot afford to live there anymore, it impacts not just each individual city but the economic growth and competitiveness of the corridor and region as a whole. • Provide Consistency of Approach: Quality development capacity to pursue projects is limited. Project costs increase when developers must spend substantial time pursuing needed capital and regulatory approval due to inconsistencies of visions, goals and processes. Developers will be drawn to an area that has a collaborative housing approach, a consistency of vision and is redevelopment ready. This reduces the complexities of development, helps to solve problems and manages development risks. A Corridor-wide Housing Strategy will provide clarity and consistency to the local and national development community, allowing cities and the County to 7 take full advantage of the unique 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 Federal Transit Administration considers policies, planning and programs that support development and retention of affordable housing along transit corridors. In the most recent New Starts ranking, FTA spoke highly of the coordinated planning efforts and programs along Southwest Corridor, noting that “The region appears to have one of the most comprehensive set of affordable housing initiatives in the country.” FTA ranked Southwest LRT “high” based on coordination and planning efforts around affordable housing but the line only ranked “medium-low” based on the formula for counting legally-binding affordable housing along the corridor. In order to make the LRT project 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. 8 How was the strategy created? The Southwest Community Works Steering committee has adopted goals and guiding principles for investment. The adopted housing goal and guiding principle for investment ground the work of this Strategy and provide the overarching strategy goal as well as the basis for recommended targets and implementation strategies. This document aims to provide one measure of what a “full range of housing choices” means within a specific time period. It also lays out a menu of implementation strategies and action steps as well as identifies key partner roles. While no one entity is likely to take on all of the implementation strategies, working together cities can share resources and information along the corridor and use the strategies that best meet their community needs. Corridor-wide affordability targets The Housing Gaps Analysis examined each station area and suggested development scenarios. These included potential unit number for new construction as well as identified existing rental units in need of preservation. These scenarios form the baseline for unit targets along Southwest Corridor by 2030, ten years after LRT is operational. The Gaps Analysis suggested 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 strategy pays particular attention to tools and resources to support affordable housing development and preservation. The Gaps Analysis took a fiscally constrained approach to affordable housing recommendations in the Corridor, which means that affordability targets may be lower than measures of affordability need. However, the implementation strategies include options to bring new resources to affordable housing development and preservation. Success with these strategies could allow additional units above the baseline targets to be created. There is a need for a variety of housing options in unit sizes, for-sale as well as rental options and across affordability levels. A key reason is the desire to retain community residents as their housing needs change and evolve over a lifetime. Housing options with larger unit sizes, especially 3 and 4 bedroom units, may be of particular need as well as senior housing and entry-level home ownership opportunities These baseline targets may be modified over time to respond to market conditions and new housing policy direction, including 2018 comprehensive planning. While cities are not expected to allocate all of their affordable housing need to Corridor station areas, the LRT transit investment provides unique opportunities to increase the likelihood that all income levels have access to TOD housing. 9 Southwest Community Works Housing Goal Position the Southwest LRT communities as a place for all to live Southwest Community Works guiding principle for investment : Provide a full range of housing choices. • New Construction: Add 11, 200 new units within ½ mile of the Corridor, including 3520 that are affordable to lower (<60% AMI) to moderate income (60% - 80% AMI) households by 2030. • Preservation: Preserve 3800 unsubsidized affordable (<60% AMI) rental units by 2030, out of 6700 unsubsidized affordable units within ½ mile of the Corridor. Affordability targets for new construction: 6.4 6.4 10 12.564.7 New Construction -Rental Affordability Targets 0% -30% AMI 30% -60% AMI 60 % -80% AMI 80% -100% AMI 100%+ AMI 36% 64% New Construction - Homeownership Affordability Targets 120% AMI or less 120% AMI + 10 % of median income Metro median in come for a family of 4 (HUD, 2014) Metro affordable monthly housing payment (30% of income) 30% AMI $24,850 $621 60% AMI $49,740 $1244 80% AMI $63,900 $1598 100% AMI $82,833 $2071 120% AMI $99,400 $2485 Why set corridor affordability targets? Each of the diverse cities along the corridor are individually taking steps to plan for land uses along the corridor, and have housing strategies and goals outlined within their comprehensive plans. All of the cities work toward housing goals that were negotiated with the Metropolitan Council. So what is the benefit of setting affordability targets together? • Respond to regional and federal funders. o 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. o Corridors of Opportunity Transit Recipients need to address Fair and Affordable Housing. In September 2011, the Corridors of Opportunity Policy Board adopted several recommendations on how regional transit corridors should address Fair and Affordable Housing in their overall TOD strategies. The primary recommendation was for the adoption of measurable, corridor-wide goals and strategies to ensure sufficient housing, both new production and preservation, 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 corridor. There are also important funding opportunities in the future, both for the LRT project and for competitive development resources. • Competitiveness for FTA Funding of Infrastructure. In 2013, the Federal Transit Administration released new guidance for scoring transit projects that included existing and future plans for affordable housing. FTA is seeking to “ensure that as service is improved over time, there is a mix of housing options for existing and future residents.” 11 In anticipation of application to the FTA for the Full Funding Grant Agreement (FFGA) for Southwest Corridor, commitment and progress toward meeting affordable housing goals is essential to be viewed competitively against other regions seeking the same limited funds. • Alignment with Metropolitan Council Housing Policies: 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 housing needs. Metropolitan Council will be allocating new affordable housing need numbers, along with negotiating affordable and life-cycle housing goals with participating cities in the future. A corridor-wide housing strategy that aligns with regional housing policies will help cities improve their competitiveness when seeking Council resources. • Align development policies and resources throughout the corridor Corridor-wide affordable housing targets, developed in collaboration and tied to existing city plans and Metropolitan Council housing goals, will allow partners to focus efforts and public resources to identified gaps. Collaboration between partners will allow sharing of 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 on Central Corridor, a Corridor-wide affordable housing target will allow cities, Hennepin County and funders to track progress over time to ensure that the corridor is moving towards its policy goals. Having specific numeric targets allows measurement 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 also requires recipients of federal funding to affirmatively further fair housing. A corridor-wide housing strategy can assist all Southwest 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 achieve its fair housing requirements 12 Achieving the Goal: Corridor-wide Objectives To promote the Corridor-wide goal and the unit targets, Southwest Community Works supports four Corridor-wide objectives. Each goal has related implementation strategies, which are offered as options among a range of tools, in support of the Corridor-Wide objectives. Through public/private partnerships, the strategies and implementation steps detailed below may help achieve the objectives: Objective #1 - Development of new housing opportunities Create new housing that includes a mix of unit types with values and rents affordable to people with a full range of incomes. Focus on creating mixed income neighborhoods as well as opportunities for mixed income projects. Support opportunities in home ownership as well as rental. Implementation strategies: • Develop Coordinated Mixed Income (Inclusionary Housing) policy language o This language would apply to new housing development within corridor cities, particularly in areas targeted for new transit oriented development. o 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. o Link development prospects to Regional Pre-development Funders Roundtable to assist developments in navigating complex financing challenges. o Participate in the evaluation of private/public TOD Housing fund. o 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. o Engage employer groups in the Corridor on workforce housing needs. o Encourage employers to participate in private/public TOD Housing fund or other strategies to increase mixed income housing. • Develop and adopt a clear and consistent vision, goals and affordability targets for housing development within ½ mile of LRT stations. o Increase developers’ knowledge of City and County expectations in advance, rather than negotiating on every project. 13 • Maintain and enhance policies around station areas to promote increased density and include a mix of uses consistent with federal and regional transportation policies. o Provide flexibility to allow less parking around transit areas. • Implement infrastructure recommendations from the Investment Framework to provide connectivity in and around station areas and maximize development potential at station sites. Objective #2 - Preservation of existing housing opportunities Preserve and enhance existing subsidized and unsubsidized housing stock to reduce the involuntary displacement of low to moderate income residents. Develop preservation criteria for unsubsidized housing stock. Maintain opportunities to use Housing Choice vouchers in corridor units. Implementation strategies: • Review existing affordability agreements for subsidized properties o Determine length of contracts and assess conversion risk o Develop policies to preserve legally binding affordable housing units along the Corridor. o Engage owners early in maintaining affordability and extending agreements o Pay particular attention to preservation of units affordable to the lowest income households, 30% AMI and below, up to 60% AMI. Prioritize preservation at lowest income levels. o Track use of Housing Choice vouchers along the corridor and actively work to preserve units accepting vouchers. • Maintain and improve the quality of existing aging rental and ownership housing stock o Focus primarily on properties that are at values and rents affordable for low to moderate income people. o Develop programs together, with regional partners, that provide for strategic acquisitions, low-interest loans and public-private partnerships. o Work with owners to match lower income residents with unsubsidized affordable housing units and create a structure to maintain that affordability. 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 full range of housing choices. Modify regulatory tools to support housing 14 development and preservation. Actively seek opportunities for land banking and use of public land for affordable housing development. Examine legislative changes to language that inhibits higher density home ownership opportunities. Implementation strategies: • Evaluate corridor cities interest in exploring the cost/benefits, mechanics and legislative authority for joint financing mechanisms such as corridor-wide TIF, fiscal disparities sharing, and other forms of value capture. o Identify opportunity for large scale TIF agreement rather than project by project TIF o Expand housing tax increment with a particular focus on TOD locations o Explore changes to fiscal disparities policy that would allow net payer cities to receive credit that could be used towards housing development. Objective #4 - Market the Corridor - "Tell our Story to the World" Create a marketing plan to attract developers and new residents and retain 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. 15 Achieving the Goal: Implementation Strategies Implementations strategies are offered as options among a range of tools in support of the corridor-wide objectives. Through stakeholder feedback, implementation strategies have been grouped into primary strategies and secondary strategies. Primary strategies are those where there was strong interest or agreement that these tools would be useful in achieving the corridor-wide goal. Additionally, strategies are identified as corridor-wide or city/county specific. Corridor-wide strategies are ones that can be pursued collaboratively while city/county specific pertain to authorities held by cities or Hennepin County. Primary Strategies: • Evaluate corridor cities interest in exploring the cost/benefits, mechanics and legislative authority for joint financing mechanisms such as corridor-wide TIF, fiscal disparities sharing, and other forms of value capture (corridor-wide) • Develop and adopt a clear and consistent vision, goals and affordability targets for housing development within ½ mile of LRT stations (city/county specific) • 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) • Implement infrastructure recommendations from the Investment Framework to provide connectivity in and around station areas and maximize development potential at station sites (city/county specific) 16 • Maintain and enhance policies around station areas to promote increased density and include a mix of uses consistent with federal and regional transportation policies (city/county specific) • Provide marketing resources and expertise to promote the Corridor and its housing vision to developers, employers, schools and future residents (corridor-wide) • Develop metrics to track progress towards unit targets over time, using existing partners and resources (corridor-wide) Secondary Strategies: • Develop Coordinated Mixed Income (Inclusionary Housing) policy language (corridor-wide) • Review existing affordability agreements (subsidized properties) (corridor-wide) • Engage large corridor employers to strategically invest in the preservation and production of housing opportunities for low-to- moderate income employees (corridor-wide) 17 Achieving the Goal: Partners in Implementation Creating a full range of housing choices along Southwest Corridor requires partnership and cooperation between the public sector and private partners, each with unique perspectives and implementation roles. Southwest Community Works: The primary role of Southwest Community Works is as a convener of policymakers and technical staff, including housing staff. Southwest Community Works can offer guidance and technical assistance to partners as well as track progress on the Corridor-wide Housing Strategy by Community Works members. Cities: Cities are 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 plan efforts, provide tools and resources to support a full range of housing options while recognizing different development markets and constraints on city resources to support housing, along with other TOD infrastructure needs. Hennepin County: Hennepin County is a funder of affordable housing, primarily through AHIF and TOD grants. Hennepin also provides staff support to Southwest Community Works. Metropolitan Council: Provide regional guidance on the Housing Policy Plan and Comprehensive Plan implementation and alignment with the SW Corridor Housing Plan’s – work with cities on housing goals, provide technical assistance on tools and policies and provide funding in support of affordable housing development through Livable Communities Program. Developers: For-profit and non-profit developers have a crucial role in investing in the development and preservations of housing units along the SW Corridor. Developers work with cities and other partners to meet affordability targets and create station area developments consistent with the strategy. They also provide critical input regarding market conditions, challenges and opportunities as it relates to implementation of the strategy 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 on 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 along the corridor. It will be critical to continue dialogue on financing criteria that supports a mix of housing types in station areas and ensuring that resources are aligned for preservation and creation of affordable housing along the corridor. 18 Advocates: Housing advocates have provided valuable feedback on the development of this Strategy and will continue to play an important role in identifying tools and resources for affordable housing development. The advocacy community can also help connect the Southwest Corridor Housing Strategy with larger housing policy agendas moving forward. 19 Achieving the Goal: next steps for 2016 and beyond 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 in funding allocation decisions. Incorporate and align the Corridor Housing Strategy in the development of or updates to individual housing policies and comprehensive plans. Determine mix of unit types and affordability for the corridor Ask cities to identify station area mix of housing units, types and values. Pay particular attention to targets for larger unit sizes, senior housing and housing affordable to 30% AMI and below. Calculate amount of public/private subsidy necessary to fully achieve the housing targets. Seek city goals for preservation and new construction at various affordability levels for each station area, to apply to corridor targets Adopt corridor targets that are consistent with city goals. Align with comprehensive plans Embed station area targets in city housing plans, taking into account affordable housing targets as well as market-rate unit needs. Develop Housing Workgroup work plan to move implementation strategies forward and track progress on Corridor-wide strategy implementation. Engage regularly with policymakers and stakeholders to ensure that Corridor-wide strategy reflects current goals and market conditions. 1 St. Louis Park Housing Goals Promote and facilitate a balanced and enduring housing stock that offers a continuum of diverse life-cycle housing choices suitable for households of all income levels including affordable, senior, supportive and mixed income housing disbursed throughout the City. Single Family Homes: The City places a high priority on creating, preserving, and improving the City’s single family housing stock. • Promote the creation of family sized, owner-occupied, single-family homes with more bedrooms, more bathrooms, more amenities and 2+ car garages through the expansion of existing homes and through construction of new homes. • Proactively address blighted housing properties through code enforcement and public or private redevelopment activities such as acquisition, demo and housing replacement. • Promote high-quality architectural design standards of homes through the use of good design, quality materials and superior construction. Multi-Family: The City is committed to promoting quality multi-family developments, both rental and owner occupied, in appropriate locations such as near transit centers, retail and employment centers and in commercial mixed use districts. • Promote the preservation and maintenance of existing multi-family housing stock. • Promote high-quality architectural design in the construction of new multi-family developments. • Be proactive in analyzing and guiding redevelopment opportunities for multi-family developments. Home Ownership: The City places a high priority on home ownership including affordable homeownership options. Explore traditional and non-traditional owner-occupied housing options such as; row houses, courtyard housing, high-rises, 3-story homes, Land Trust and Habitat sponsored homes, and multi-generational housing. Affordable Housing: The City is committed to promoting affordable housing options for low and moderate income households. • Affordable housing should be disbursed throughout the City and not concentrated in any one area of the City. • Support the preservation of naturally occurring affordable housing. • Promote the inclusion of affordable housing opportunities in new developments located near the Southwest Light Rail Transit Corridor and other transit nodes, retail and employment centers and commercial mixed use districts. • Future affordability goals with the Metropolitan Council should be reflective of the City’s existing affordable housing stock as well as City’s future needs. 2 Preservation, Safety and Sustainability: The City places a high priority on ensuring all housing is safe and well maintained. • Preserve and enhance housing quality through code enforcement and the promotion of housing improvement programs related to home rehabilitation, design and housing safety. • Encourage the use of green building, energy efficient products, and sustainability in both single family and multi-family housing construction.