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HomeMy WebLinkAbout2022/04/06 - ADMIN - Agenda Packets - Planning Commission - Regular Planning commission meeting April 6, 2022 6:00 p.m. If you need special accommodations or have questions about the meeting, please call Sean Walther at 952.924.2574 or the administration department at 952.924.2525. Planning commission The St. Louis Park Planning Commission is meeting in person at St. Louis Park City Hall, 5005 Minnetonka Blvd., in accordance with the most recent COVID-19 guidelines. Some members of the planning commission may participate by electronic device or telephone rather than by being personally present at the meeting. Members of the public can attend the planning commission meeting in person or watch the meeting by webstream at bit.ly/watchslppc and on local cable (Comcast SD channel 17 and HD channel 859). Visit bit.ly/slppcagendas to view the agenda and reports. Due to technical challenges, courtesy call-in public comment is not available for this meeting. You can provide comment on agenda items in person at the council meeting or by emailing your comments to info@stlouispark.org by noon the day of the meeting. Comments must be related to an item on the meeting agenda. The city recognizes the value of the call-in opportunity to provide access to those who can’t attend meetings in person and is working on a reliable solution. Agenda 1. Call to order – roll call 2. Approval of minutes – March 16, 2022 and March 23, 2022 3. Hearings 3a. STEP Expansion preliminary and final plat Applicant: Derek Reise on behalf of St. Louis Park Emergency Program (STEP) Case No.: 22-08-S 4. Other Business 5. Communications 6. Adjournment Future scheduled meeting/event dates: April 20, 2022 – planning commission regular meeting May 11, 2022 – planning commission regular meeting May 18, 2022 – planning commission regular meeting June 1, 2022 – planning commission regular meeting 1 Planning commission meeting April 6, 2022 STUDY SESSION 1. Wooddale Station Development discussion (no report) 2. Comprehensive plan implementation – diversity, equity, and inclusion policy report 3. Comprehensive plan implementation update – housing activity report 2 Planning commission March 16, 2022 6:00 p.m. If you need special accommodations or have questions about the meeting, please call Sean Walther or the administration department at 952.924.2525. Planning commission Members present: Jim Beneke, Matt Eckholm, Jessica Kraft, Michael Salzer, Tom Weber, Joffrey Wilson Members absent: none Staff present: Jennifer Monson, Gary Morrison Guests: Members of Sherman and Associates 1. Call to order – roll call 2. Approval of minutes – Feb. 16, 2022 Commissioner Weber made a motion, seconded by Commissioner Eckholm to approve the Feb. 16, 2022, minutes of the planning commission as presented. The motion passed 6-0. 3. Hearings 3a. Beltline Station Development Applicant: Sherman Associates, Inc. Case No: 22-05-S, 22-06-PUD Ms. Monson presented the applications. Commissioner Salzar asked if the city is setting a precedent by putting all the affordable housing in one building or if this has been done in the past. Ms. Monson stated typically the city’s policy does require the affordable units to be spread throughout the development evenly but noted this is a unique site with a high number of affordable two- and three-bedroom units that make funding virtually impossible unless it was its own affordable housing building. She added the city is also an owner of the site and will sell the site to Sherman, so while it’s not ideal, it does help the city achieve many of its goals on this site. Commissioner Weber asked if this entire project is contingent on having a grocer that signs on and if something falls through, is the city back to square one. Mr. Anderson of Sherman Associates stated this project is not contingent on securing a grocer on that site but certainly that is the ideal scenario for the project to move forward. He added the developer is willing to move forward with the project without the grocer also if that 3 occurs. He stated the developer is committed to mixed-use development and to complex urban infill development and have done projects like this before. Commissioner Salzar asked if the original project agreement was February 2018. Ms. Monson stated yes. Commissioner Salzar stated there was a change to the green requirement in 2020 and asked if this project now meets that standard. Ms. Monson stated yes. Commissioner Salzar asked if there are any other changes in city requirements since 2018. Ms. Monson stated there have been numerous changes for the inclusionary housing policy. She added this project complies with and exceeds the city’s requirements for inclusionary housing policy and green building policy. Chair Beneke opened the public hearing. Mr. Anderson stated Sherman is a local developer in business over 40 years and are long-term members of the community in which they do development. This drives them to produce quality long-term assets. Chair Beneke closed the public hearing. Commissioner Weber thanked staff for their work on this project which is a long time coming. Chair Beneke agreed. Commissioner Salzar asked about parking requirements. Ms. Monson stated the park and ride stalls are open to the public and the renters will utilize the security parking in the ramp as well as open surface parking spaces. She added it’s up to the developer to run the parking and to ensure there are enough parking spots, while no on-street parking will be allowed in the area. She noted the first couple of spots will be reserved for park and ride users. Ms. Monson also noted there are separate entrances for all three parking areas with controlled door access and only accessible by each building resident. Commissioner Wilson stated that he appreciated the diversity, equity, and inclusion goals that were presented and asked the developer to consider DEI goals during the construction hiring process. Commissioner Kraft asked when the project would be complete. Ms. Monson stated the start of construction will be in June with grading and the affordable building will start in July, after financing is closed. She added three of the four structures start in 2022 with building 3 beginning construction in early 2023. Commissioner Salzar stated he is supportive of this project, with some concerns about the clustering of the affordable housing and to make sure the dignity of all residents is taken into consideration. Mr. Anderson stated Sherman and Associates is a strong advocate of affordable housing and one of the larger affordable housing builders in the mid-west. He stated having all the units in one affordable structure is better for the 4 financing and over 80% are two- to three-bedroom units. He stated the product delivered is quality. He noted several of the amenities within the affordable building, including two bathrooms in the two- to three-bedroom units, a children’s play area and a pool area. Commissioner Weber made a motion, seconded by Commissioner Salzar to approve the preliminary and final plat and preliminary and final PUD subject to conditions recommended by staff. The motion passed 6-0. 4. Other Business 4a. 9920 Wayzata Blvd. EDA land sale conformance with the comprehensive plan Ms. Monson presented the report. Commissioner Weber made a motion, seconded by Commissioner Salzar to adopt the Resolution finding the proposed EDA land sale for 9920 Wayzata Blvd to be in conformance with the comprehensive plan of the City of St. Louis Park. The motion passed 6-0. 5. Communications Mr. Morrison stated there is a special meeting on March 23, 2022. He noted on the April 6 meeting agenda will be an action item on a preliminary and final plat at STEP and a discussion on the Wooddale Station. 6. Adjournment – 6:47 p.m. ______________________________________ ______________________________________ Sean Walther, liaison Jim Beneke, chair member 5 6 Planning commission March 23, 2022 6:00 p.m. If you need special accommodations or have questions about the meeting, please call Sean Walther or the administration department at 952.924.2525. Planning commission Members present: Jim Beneke, Matt Eckholm, Jessica Kraft, Michael Salzer Members absent: Tom Weber, Joffrey Wilson Staff present: Laura Chamberlain, Sean Walther 1. Call to order – roll call 2. Approval of minutes - none 3. Hearings 3a. Wooddale Avenue Apartments Applicant: Real Estate Equities Case No: 22-02-CP, 22-03-S, 22-04-PUD Ms. Chamberlain presented the report. Chair Beneke asked if there is no way to cut through this land without going through the parking garage. Ms. Chamberlain stated that is correct and presented this information on the slide, noting that only those using the garage will have the southern access. Chair Beneke asked if there is any other potential development in that area in the future. Ms. Chamberlain stated there is possibility of developments near the light rail station. Mr. Walther added there are still parcels to be developed but no plans beyond the Wooddale Station development at this time. He added someday the Micro Center and Burlington sites may be developed. Other areas are on 36th Street and Alabama Avenue, the former Jonny Pops site, owned by Nordic Ware. He also noted there has been interest in the Jessen Press building as well but nothing has formally been submitted. Commissioner Salzer asked if primary access for the garage is from the north. Ms. Chamberlain stated yes and added there is a secondary access to the south, as well. Commissioner Salzer asked about fee-based parking in the garage. Ms. Chamberlain stated the developer could answer that. She noted the garage parking is not included in the monthly rent, however, they will comply with the city’s inclusionary housing policy. 7 Commissioner Salzer asked if there are any sound barriers being added in the area as it is so close to Highway 100. Ms. Chamberlain stated not to her knowledge and no indication from MNDOT on this either. Chair Beneke opened the public hearing. Alex Bisanz, partner at Real Estate Equities, introduced himself and his team who are available to answer questions. Andy Wenzel, 5607 Cambridge Street, asked what the reason is for the new Cambridge access. He also noted the traffic and 70% of access will come through Highway 100 or 7 and noted those are folks that have a garage. He asked if there will be restrictions for on-street parking in front of the development if it passes. Dale Tatarek, 5826 Cambridge Street, stated he was not sure how the traffic study was done and noted streets have already been narrowed. He noted there are traffic jams occurring and could affect this area. He also noted Jonny Pops is moving out and he worries about parking in the area. He also noted the SWLRT adding there will be issues there and it would cost more to cancel the project vs. building the light rail project. He noted there is parking at the Louisiana Station and not at the Wooddale Station; maybe if it were eliminated it would save costs, as well. Ali Keyes, 3816 Wooddale Avenue, asked about minimum parking requirements and now we hear the garages will cost more. She asked about noise and light pollution with putting in 450 additional residents across from her home. She added the Micro Center and Burlington projects are staying but we do not know for how long. She noted the landscaping does not meet the minimum requirement and asked where will it be planted and placed. Luke Hodgdon, 5924 Cambridge Street, stated he is not aware of the traffic audit and where the numbers are coming from. He stated this will impact Cambridge Street and using the light rail as leverage for this whole development. With Jonny Pops leaving, the traffic coming through this area of Wooddale and Alabama will impact the neighborhood. He added there are many children in the neighborhood and all this added traffic and construction will be highly impactful. He fears for children’s safety and overall lifestyle of those living in the area. Daryl Eastburg, 3944 Xenwood Avenue South, asked in the winter, to keep the lots clean, where will all the snow go. He stated if there is less parking because of snow, they will park in the streets. Brian Fuchs, 5818 Goodrich Avenue South, noted traffic is addressed, but the MNDOT recommendation is to add a left turn lane. The packet stated the traffic will not be impactful in the area. He stated this site will create significantly more traffic and that intersection should be reviewed and redeveloped as well. He stated the recommendation from MNDOT and the traffic study should be required. 8 Blake Chaffee, 5713 Cambridge Street, stated he opposes the project and the change in zoning. He stated the density is not reasonable and the traffic into the Elmwood neighborhood is not reasonable. He added there used to be some access behind the church allowing cut through traffic and people drove very fast there. He stated this will create more traffic problems than they had before and that is a safety issue; it is too much. He stated there is a place for this sort of development but not in a residential area. He has serious concerns and hopes this will not move forward. Ben Petersen, 3940 Xenwood Avenue South, noted the traffic study said 400 trips at the church per day, not 200 which seems more reasonable, but the delta of 85 seems unrealistic. He added if street parking becomes an issue, restrictive parking would be added and he would support that if needed. Joel Coleman, 5900 Cambridge Street, stated he also is worried about the traffic impact and the size of development in the neighborhood. He stated Jonny Pops make sense but this single development will add 30% of new residents to the neighborhood, which is 500 people. He stated this might not be the best place to add this high density to this quiet neighborhood. He stated high density would be better in the Burlington parking lot area instead. Ali Keyes, 3816 Wooddale Avenue, asked if anyone has consulted with the Fire Department and impacts to them. Andy Wenzel, 5607 Cambridge Street, stated he would like to know how many housing units have been added in St. Louis Park in the last 20 years and how many new parks have been added in the last 20 years. He noted this site would be a perfect place for a park, to handle all the new housing destined for the area. Chair Beneke closed the public hearing. Mr. Walther answered questions raised during the public hearing. He stated the Cambridge south access was removed initially in the concept plans and then after the traffic study results, it was at staff’s request that they include the south access again. This was because of the relatively low number of resulting trips to and from the south access. He noted staff presented that information at the February neighborhood meeting. He stated the neighborhood felt the south access was undesirable. There were concerns from neighbors about the intersection at the Wooddale cul du sac intersection, as well. He noted the traffic study concluded that any of the access scenarios would work at the site with little or no impact to the level of service. He stated this site is adjacent to the existing public street at Wooddale and prohibiting any access to it from this site did not seem reasonable to city staff. Mr. Walther added the Fire Department was consulted on the project and there were no concerns with traffic at this site. He noted there was some benefit with the south access for the Fire Department as well for emergency response to the building. 9 Mr. Walther stated the parking here meets city requirements and they used the standard counts under the city ordinance. He noted the garage parking was always proposed to be at a fee and discussed at the first neighborhood meeting. He noted right now parking in allowed on Wooddale south of the cul-de-sac and it is wide enough to accommodate parking on both sides. Staff did not see a reason people would need to park there but added people would be able to park there. He stated any limitations on parking can be looked at later but staff does not expect it to be a problem at this time. Mr. Walther stated the Jonny Pops business is relocating to a different city. The property owner has said they will continue use the building as a warehouse and have no current interest in redevelopment at this site. Mr. Walther stated 2027 is now the projected opening of SWLRT and noted they did not discount the traffic generated by the development in the traffic study or required parking based on the future SWLRT. He noted noise and light pollution usually does not generate complaints and the lighting ordinance is rather strict to avoid nuisances. He noted the lighting will face downward and not spill over into the adjacent properties. He noted the landscaping plan has fewer shrubs than required; this is not unusual for this type of development. The code includes a provision for alternative landscaping that are not plantings and include amenities such as the tot lot paly equipment and dog run. He added the ordinance does not allow for snow to be stored on required parking spaces and must be pushed onto the green space or hauled away. Mr. Walther stated the left turn lane was recommended to be explored in the traffic study and MNDOT suggested it should be installed. However, he added this does not guarantee MNDOT will approve the turn lane. He noted staff is exploring this left turn lane further. He added it is not included as a condition of approval because the city and developer do fully control the decision; MNDOT will have the final say on this. Mr. Walther stated the number of new households added in the last 20 years can be found in the comprehensive plan on the city’s website. Commissioner Salzer asked about the minimum parking requirement and if they are based on the old or new requirement. Mr. Walther stated they are based on the new requirement. The applicant, Link Wilson, Kass Wilson Architects, stated they are sensitive to the comments made this evening. He stated both parking lots are entered from the north and do not go to the south, and that is 90 stalls. He added at peak times he would only see 59 coming and going during peak hours. He stated there are 235 total units with 27 one-bedrooms, 53 two-bedrooms, and 34 three-bedrooms. Mr. Wilson noted some would not have drivers in those units and with light rail, will be a year out from that. He stated they do not have any objection to signs but added they do meet the city ordinance. He stated all they do is multi-family housing and this is a very good multi-family site which creates a sound barrier from Highway 100. 10 He noted the Towerlight project which his firm did, was very controversial, but now has become a neighborhood amenity. He added the interior finishes they use are high quality and create a condo-like feel to the units. Mr. Wilson added they pulled the building back as far as they could from the neighborhood and is buffered by as much landscaping as possible. Commissioner Salzer asked about the buffer and if there is a sidewalk included. Mr. Wilson stated there will be a sidewalk that connects all the way north to south. Mr. Walther added the sidewalk is currently at the back of the curb of the road and will be rebuilt with a six foot wide boulevard, a six foot wide sidewalk, and berming and landscaping between the sidewalk and parking lot. Commissioner Salzer asked if there will be onsite management. Mr. Wilson stated yes and noted there will be 24-hour staff onsite. Commissioner Kraft stated after listening to the comments and reviewing the traffic study, she still has some concerns about the traffic overall and the left turn will be a concern, as well. She added at peak times that is a concern that should be addressed and will be critical since much of that traffic will be turning there. She also had concerns about the south entrance and that traffic and potential for speeding through the neighborhood. She stated perhaps the south entrance should be reconsidered. Stated overall in terms of use of this site for multi-family, she thinks that is a good use for it. She added she likes how the architecture steps down, how the is site is closer to the highway, and provides a buffer to the neighborhood. Commissioner Eckholm stated he is supportive of the project but does believe the south entrance is extraneous and they should strongly consider taking it out. He stated he is supportive of the high-density development land use and affordable housing, but if the point is moot and the traffic differences are minimal no matter which access scenario is used then why have the south driveway. He added if it was an entrance only, then he may agree, but he prefers to not have it at all and keep the traffic out of the neighborhood. He added that the things that the current residents love about this neighborhood are the same things we want future residents of this site and this neighborhood to enjoy, including the safety and walkability of the neighborhood. Putting a driveway there could ruin it for everybody. He stated generally he is supportive of this project. Commissioner Salzer stated human nature will kick in and he has walked this area extensively during covid. He stated he cannot imagine many would be exiting the parking garage from the south through the neighborhood. He added he likes that it will be a natural sound barrier. He did have some concerns about the development being so close to Highway 100 and asked if more barriers could be added. He stated parking on the street should be examined and perhaps parking stickers be used. He added he is generally in support of the project. 11 Chair Beneke added he is also generally supportive of the project, especially with the affordable units in it. He has concerns with the south exit and agrees with others to eliminate the south exit. Ali Keyes, 3816 Wooddale Avenue, stated the maximum occupancy of the building experienced in past was 60% so why cannot a smaller building be built there. Patrick Alstrom, Real Estate Equities, clarified the maximum capacity under their lease is two residents per bedroom. He noted their experience is that actual occupancy of people living in the building is 60% of that maximum. To clarify the occupancy of units rented is usually 90-95% within the whole building. Commissioner Eckholm made a motion, and Commissioner Kraft seconded, to approve the comprehensive plan amendment, preliminary and final plat, and the preliminary and final planned unit development (PUD) subject to the conditions recommended by staff, with added condition of exploring the removal of the southern driveway access to the garage from the plan. The motion passed 4-0 (Commissioners Weber and Wilson absent). Mr. Walther stated this will go to city council on April 4, 2022, for further consideration. 4. Other Business - none 5. Communications Mr. Walther stated the Human Rights Commission is accepting nominations for their annual award. He noted the nomination form is on the city website. Mr. Walther stated the city is working with a diversity equity and inclusion consultant and looking to advance equity around the city’s strategic priories, and they are seeking members of boards and commissions to participate in a focus group, on Monday April 4, from 3-4 p.m. He stated if anyone has interest, they should contact Mr. Walther. Since planning commissioners are also board of zoning appeals members, they can nominate two representatives. Commissioner Kraft nominated Commissioner Wilson who has a very strong interest in this topic. Chair Beneke also volunteered. April 6, 2022 is the next planning commission meeting and a public hearing is planned for the St. Louis Park Emergency Program, which is expanding their operation. He noted there will be a study session following the meeting to introduce the Wooddale Station development proposal to commissioners. 6. Adjournment – 7:20 p.m. 12 ______________________________________ ______________________________________ Sean Walther, liaison Jim Beneke, chair member 13 14 Planning commission: Regular meeting Meeting date: April 6, 2022 Agenda item: 3a 3a STEP Expansion preliminary and final plat Location: 6800 Lake, 6804 Lake, and 6812 Lake Street West Case Number: 22-08-S Applicant: Derek Reise on behalf of St. Louis Park Emergency Program (STEP) Owner: St Louis Park Emergency Program Inc. Review Deadline: 60 days: May 2, 2022 120 days: July 1, 2022 Recommended motions: Chair to open the public hearing, take testimony and close the hearing. Motion to recommend approval of the preliminary and final plat of STEP Expansion subject to the conditions recommended by staff. Summary of request: The applicant proposes to combine three parcels into one to facilitate the expansion of the STEP use into the adjacent two existing buildings and connecting them. Site information: STEP is located on the west side of Lake Street W, between Library Lane and Brownlow Avenue South. The applicant proposes to combine its property with the two properties to the north to form the proposed STEP Expansion plat. The total combined area is outlined in blue below. 15 Regular meeting meeting of April 6, 2022 (Item No. 3a) Title: STEP Expansion preliminary and final plat Site area (acres): 21,047 square feet Current uses: Surrounding land uses: 6800 Lake St: Office/warehouse 6804 Lake St: Two tenants - hair salon and office/warehouse. 6812 Lake St: STEP North: Library Ln East: Lake St South: Parking lot owned by STEP West: Metropolitan open school & office Current 2040 land use guidance Current zoning MX - mixed use MX-2 neighborhood mixed use Background: STEP is a volunteer-based organization that provides many services to the community, including operating a food shelf, and providing clothing and social services. It began operating at its current location, 6812 Lake Street West, in 2010. Present considerations: STEP has outgrown its space and purchased the two adjacent buildings to the north of its existing site. Their plan is to expand into these two buildings and connect them; however, it cannot do so until the three properties are combined into one parcel by way of the proposed preliminary and final plat. STEP would provide interior connections between the three buildings to facilitate the expansion. They do not propose expanding the existing buildings. STEP utilizes the parking lot to the south of their location. The parking lot, however, is not included in the plat because its inclusion would create a non-conforming situation to the building frontage requirement. The MX-2 district requires the front wall of the building on a lot to occupy at least 80% of the building frontage along Lake Street. The existing three buildings meet this requirement because they each exist on their own lots. If the parking lot property, however, were included in the proposed combination, then the combined front walls of the existing buildings would cover only 71% of the lot frontage along Lake Steet, which does not conform with the 80% minimum requirement. By leaving the parking lot property out of the plat, the proposed plat meets this requirement because the existing front walls of the buildings occupy 94% of the proposed lot frontage along Lake Street. The small property at the corner of Lake Street and Library Lane is not included in the plat because it is owned by the Soo Line Railroad. Analysis: The following is an analysis of the proposed preliminary and final plat. Lot: Lot 1, Block 1, STEP Expansion is the only lot proposed in the plat. It consists of 21,047 square feet. Easements: A ten-foot drainage and utility easement is proposed along the east lot line adjacent to Lake Street. The building wall along the west lot line, adjacent to the alley is only 5.7 feet from the lot line. Therefore, a five-foot drainage and utility easement is proposed along the west lot line, adjacent to the alley. No easement is proposed along north property line because the building is located 4.5 feet from the lot line, which is insufficient space for a drainage and utility easement. 16 Regular meeting meeting of April 6, 2022 (Item No. 3a) Title: STEP Expansion preliminary and final plat Easements are not proposed along the south property line because it is an interior side lot line, with the existing building located 6.2 feet from the side lot line. Right-of-way dedication: Right-of-way dedication is not requested or proposed. The city engineering department determined that no additional right-of-way is needed for existing or future public improvements. Park dedication: Park dedication is not requested because this plat is a combination of existing platted lots, because these were existing platted lots, and the use is not being intensified. Next steps: City council is tentatively scheduled to consider the preliminary and final plat on May 16, 2022. Recommendation: Staff finds the proposed preliminary and final plat meets city requirements, and recommends approval of the preliminary and final plat of STEP Expansion subject to the following conditions: 1. Prior to the city signing and releasing the final plat to the developer for filing with Hennepin County a financial security in the form of a cash escrow or letter of credit in the amount of $1,000 shall be submitted to the city to ensure that a signed Mylar copy of the final plat is provided to the city and that property corner irons are placed as indicated on the plat. Supporting documents: Preliminary and final plat Prepared by: Gary Morrison, zoning administrator Reviewed by: Sean Walther, planning manager 17 18 19 20 Planning commission: Study session Meeting date: April 6, 2022 Agenda item: 2 2 Comprehensive plan implementation – diversity, equity and inclusion policy report Summary: The planning commission expressed interest in receiving information about some of the city’s activities and progress to implement the 2040 comprehensive plan goals and the strategic priorities listed below. St. Louis Park is committed to: • Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. • Continue to lead in environmental stewardship. • Providing a broad range of housing and neighborhood-oriented development. • Providing a variety of options for people to make their way around the city comfortably, safely and reliably. • Creating opportunities to build social capital through community engagement. City staff committed to providing written reports periodically to help keep planning commission informed of the city’s efforts to implement the comprehensive plan. The purpose of this report is to update commission on the city’s new diversity equity and inclusion policy (DEI Policy). This report is informational. No action is required. Background: The economic development authority (EDA)/city council directed staff to develop a DEI Policy. The policy includes the purpose, applicability, definitions, general expectations (the targets), agreements, and reporting requirements. Review process: The DEI Policy was reviewed by the city attorney and EDA legal counsel. Based on their legal advice, the DEI Policy is not able to include policy requirements, but rather establishes policy goals to create more opportunities in the development community for historically under-represented women and BIPOC/non-white individuals. Like other EDA/city policies, the development must comply with the DEI Policy in effect at the time of the application date of planning and zoning applications and/or signed preliminary development agreements. Additionally, the policy was reviewed by the local development community including market rate and non-profit developers currently working on projects in St. Louis Park. Specifically, this policy was reviewed by Sherman Associates and their contractor who are developing the Beltline Station Development, Opus Development Group who is developing and building Beltline Residences; Saturday Properties and Anderson Companies which are jointly developing the Wooddale Station development; Project for Pride in Living and their contractor for the Union Park Flats development, and Common Bond who is developing Rise on 7. In general, the developers that community development staff communicated with were supportive of the policy goals and offered feedback that was taken into consideration when in the final draft of the DEI Policy. They expressed willingness to track and report on the metrics. They also indicated that implementation of these goals would likely add to the overall costs of projects in the city. 21 Choose an item. meeting of April 6, 2022 (Item No. 2) Title: Comprehensive plan implementation – diversity, equity and inclusion policy report Policy highlights: The policy sets goals for the hiring of women and BIPOC/non-white business organizations, business enterprises, workforce, and peripheral enterprises for all new and renovated commercial and multifamily residential buildings receiving $200,000 or more EDA/city financial assistance. Participation Goals Women BIPOC/non-white Business Organization 10% 13% Business Enterprises 6% 13% Workforce 6% 32% Peripheral Enterprises 6% 13% The goals for business organizations and business enterprises are like the goals established in Minnesota Housing’s Minority or Women Business Enterprises Compliance Guide. These goals are increasingly becoming well known and more widely implemented by Twin Cities area developers and contractors. As a result, area companies have developed systems for tracking and reporting these metrics for metro cities and state agencies. In addition, the policy includes goals for workforce and peripheral enterprises to include opportunities for women and BIPOC/non-white construction workers and other businesses hired by the developer in connection with the development (attorneys, financial consultants, accountants, etc.). The workforce and peripheral enterprise goals are unique to St. Louis Park. The developer will be required to use reasonable efforts to meet these business enterprise, workforce, and peripheral enterprise participation goals in conjunction with the development and will be required to track those efforts. Participation goals will be applied to the developer’s project as a whole and pertain to the total amount of construction and related contracts. Verified businesses: The policy itself does not specify the lists of verified women and BIPOC/Non-white businesses to which developers will be referred but will be included in the policy’s user guide. Two lists have been identified and have been requested to be included by developers. These lists include the Disadvantaged Business Enterprises (DBE) list found on the Minnesota Unified Certification Program website (www.mnucp.org), and businesses approved by the Central (Cert) Certification Program, which is a small business certification program recognized by Hennepin County, Ramsey County, the City of Minneapolis, and the City of St. Paul. The Cert list is found online at www.cert.smwbe.com. The MNUCP DBE program is for “business owners that are socially and economically disadvantaged. Women and African Americans, Hispanics, Native Americans, Asian-Pacific and Subcontinent Asian Americans are presumed to be socially and economically disadvantaged.” This program also may qualify other individuals as socially and economically disadvantaged on a case-by-case basis. Per the website, “to be regarded as economically disadvantaged, an individual must have a personal net worth that does not exceed $1.32 million. To be seen as a small business, a firm must meet Small Business Administration size criteria and have average annual gross receipts not to exceed $23.98 million when averaged over a three-year period. The owner must have technical competence and experience directly related to the type of work in which certification is being sought and must be a United States citizen or a lawfully admitted permanent resident of the United States.” 22 Choose an item. meeting of April 6, 2022 (Item No. 2) Title: Comprehensive plan implementation – diversity, equity and inclusion policy report To be considered an eligible women or BIPOC/non-white owned business in the CERT program, the business must be at least 51% owned by one or more women or BIPOC/Nonwhite persons and has its management and daily business operations controlled by one or more women or BIPOC/Nonwhite persons who own it. Additionally, the business must be at least 51% owned by one or more native or naturalized U.S. citizens, or lawfully admitted permanent residents of the United Stations; is not a broker or manufacturer’s representative, does not operate as a franchisee or under a franchise agreement, and is not a business in which the owner is also owner or part owner of one or more businesses that dominate the same field of operation; performs a commercially useful function; and has been in operation for at least one year, or in operation for less than one year and is able to provide documentation showing that it has an established record of generating revenue. Next steps: The policy took effect March 29, 2022, for all newly submitted projects requesting financial assistance from the EDA/city. The policy does not apply to applications previously submitted or projects not requesting financial assistance. City staff will inform developers of this and other policies at the outset so that they can factor these costs into their proposed project proformas. Supporting documents: Diversity, equity and inclusion policy Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Sean Walther, planning manager 23 Effective March 29, 2022 SA285\3\761965.v2 Diversity, Equity, and Inclusion Policy This policy promotes the inclusion of under-represented persons and businesses in development projects receiving public financing through the Economic Development Authority (“EDA”) and City of St. Louis Park to meet the city council’s strategic priority of being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. The city recognizes the importance of creating opportunities for communities of color and indigenous people to participate more equitably in the workforce and benefit from wealth building opportunities. It is recognized that historical and institutional discrimination and racism has disproportionately created challenges for women and Black, Indigenous, and People of Color (BIPOC)/non-white communities. Women and BIPOC/non-white individuals and businesses have faced discrimination and disadvantages in employment and business opportunities which have resulted in significant disparities in wealth building opportunities. The goal of this policy is to address these disparities and to promote inclusive and equitable opportunities for women and BIPOC/non-white individuals and businesses to build wealth. The goals set forth in this policy further the city’s racial equity priorities. These goals are intended to provide an incentive for developers to seek greater participation by women and the BIPOC community in development projects funded with EDA /city financial assistance. These goals are included in the list of minimum qualifications for projects seeking tax increment financing (TIF) assistance from the St. Louis Park Economic Development Authority. This policy shall be used in conjunction with the established Diversity, Equity, and Inclusion Policy User Guide which provides further guidance on reporting requirements and EDA/city expectations. 24 SA285\3\761965.v2 Effective March 29, 2022 1. Applicability and minimum project size New construction, renovation or reconstruction projects receiving EDA/city financial assistance This policy applies to development projects that receive $200,000 or more in financial assistance from the EDA/city and includes: a) New construction, renovation, or reconstruction of commercial developments b) New construction, renovation, or reconstruction of Industrial developments c) New construction, renovation, or reconstruction of multi-family rental or for-sale housing developments d) New construction, renovation, or reconstruction of mixed -use developments The development must comply with the Diversity, Equity, and Inclusion Policy in effect at the time of the application date of planning and zoning applications and/or a signed preliminary development agreement. If building permits have not been issued within two years of application approvals or the building permits have expired or been canceled, the project must comply with updates to this policy. The EDA/city council may grant an extension of time beyond two years if a written request for a time extension is submitted to staff and approved by the economic development authority and/or city council. Requests for extension of time must be submitted to staff before the termination date. 2. Definitions A) Financial Assistance: The Diversity, Equity & Inclusion Policy applies to all new and renovated commercial and multifamily residential buildings receiving EDA/city financial assistance. Financial Assistance is defined as funds derived from EDA/city and includes, but is not limited to, the following: 1) Tax Increment Financing (TIF) and/or Tax Abatement 2) Land write-downs 3) EDA grants and loans 4) Affordable Housing Trust Fund (AHTF) grants and loans 5) Community Development Block Grant (CDBG) funds 6) Housing Rehabilitation funds 7) Revenue Bonds (private activity bonds are negotiable) 8) Housing Authority (HA) Funds 9) City of St. Louis Park funds 25 SA285\3\761965.v2 Effective March 29, 2022 B) Business Organization: the developer’s business organization, including subsidiaries and parent company. C) Business Enterprises: the contractor(s) and sub-contractor(s) hired by or on behalf of the developer for the project. D) Workforce: Employees of contractor(s) and sub-contractor(s) working on the Project E) Peripheral Enterprise(s): consultants and other businesses hired by the developer, or with whom the developer has a relationship, in conjunction with the project. This includes, but is not limited to, attorneys, financial consultants, financial institutions, suppliers, accountants, etc. F) Project: The development project as defined in the development agreement between the EDA and the developer. 3. Diversity, Equity, and Inclusion participation goals General requirements A development that is subject to this policy shall comply with the following diversity, equity, and inclusion participation business and workforce participation goals: Participation Goals Women BIPOC/non-white Business Organization 10% 13% Business Enterprises 6% 13% Workforce 6% 32% Peripheral Enterprises 6% 13% The developer will be required to use reasonable efforts to meet these business enterprise, workforce, and peripheral enterprise participation goals for women and Black, Indigenous and People of Color (BIPOC)/non-white in conjunction with construction, renovation, or reconstruction of the development. Participation goals will be applied to the developer’s project as a whole and pertain to the total amount of construction and related contracts. Developer must provide and use reasonable efforts to cause its contractors/subcontractors to provide certain information and resources to prospective contractors/subcontractors before bidding; to implement procedures designed to notify women and BIPOC/non-white about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance report(s). Refer to the Diversity, Equity, and Inclusion Policy User Guide for more information regarding performance and compliance. 26 SA285\3\761965.v2 Effective March 29, 2022 4. Agreements A development agreement shall be executed between the EDA and the developer, in a form approved by the EDA legal counsel, which formally sets forth development approval and requirements to achieve diversity, equity, and inclusion goals in accordance with this policy. 5. Reporting Requirements The developer will be required to provide written reports to the EDA on a quarterly basis from the date the development agreement is entered into until six months after the project receives its certificate of occupancy from the city. The established Diversity, Equity, and Inclusion Policy User Guide provides further guidance on reporting requirements. At a minimum, the reports must include the following information: 1) Total number of construction-related business enterprises (e.g. general contractor, subcontractors) with a) percentage of women-owned enterprises b) percentage of BIPOC/non-white-owned enterprises c) percentage of total development dollars paid to women-owned enterprises d) percentage of total development dollars paid to BIPOC/non-white -owned enterprises 2) Total number of construction workforce employees with a) percentage of women construction workforce employees b) percentage of BIPOC/non-white construction workforce employees c) percentage of total construction hours women constructio n workforce employees worked d) percentage of total construction hours BIPOC/non-white construction workforce employees worked 3) List of peripheral enterprises with self-reported total number of employees, percentage of women and percentage of BIPOC/non-white employees 4) Summary of efforts made to reach participation goals and ongoing efforts to reach and/or maintain participation goals 27 28 Planning commission: Study session Meeting date: April 6, 2022 Agenda item: 3 3 Comprehensive plan implementation update - housing activity report Summary: The planning commission expressed interest in receiving information about some of the city’s activities and progress to implement the 2040 comprehensive plan goals and the strategic priorities listed below. St. Louis Park is committed to: • Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. • Continue to lead in environmental stewardship. • Providing a broad range of housing and neighborhood-oriented development. • Providing a variety of options for people to make their way around the city comfortably, safely and reliably. • Creating opportunities to build social capital through community engagement. City staff committed to providing written reports periodically to help keep planning commission informed of the city’s efforts to implement the comprehensive plan. The purpose of this report is to update commission on city housing programs and activity. This report is informational. No action is required. The housing activity report has been prepared and given to council annually since 2005. The executive summary provides a brief overview of the detailed report. The report provides information on new housing policies and initiatives, historical trends, program descriptions, affordable housing data and information on housing programs in St. Louis Park. The policies and programs in the housing activity report can be found on the St. Louis Park city website. Supporting documents: 2021 housing activity report Prepared by: Marney Olson, housing supervisor Reviewed by: Sean Walther, planning manager 29 Page 1 2021 Housing Activity Report 2021 Housing Activity Report Executive summary The purpose of this report is to provide city policy makers with an overview of housing program activity during 2021. The report provides information on new initiatives and updates as well as historical trends, program descriptions, and data on city and federally funded housing programs and activity that are in line with the city’s housing goals. 1.New initiatives and updates in 2021 a. First Generation Homeownership Program b.Housing dashboard 2.City housing policies a.Inclusionary Housing (30%, 50% and 60% AMI) b.Tenant Protection Ordinance (60% AMI and below) c.Housing Trust Fund d. NOAH preservation strategies: i.4D tax incentive program (60% AMI and below) ii.Multifamily rental rehab program (60% AMI and below) iii.Legacy program (60% AMI and below) 3.Remodeling activity a.Housing rehab projects (general remodeling) remained steady in 2021, but the permit valuation was up considerably. Most projects were financed without using city loans. b.The city’s Architect Design Services and Remodeling Advisor Services continued to be great tools for residents, and usage is in line with previous years. c.Major remodeling projects continue to be strong in 2021 with increases in additions and major remodels. There were 63 additions and 104 major remodels in 2021 with average valuations at $163,458 and $63,527 respectively. d.The Construction Management Plan program has been in place since November 2014. In 2021, 43 neighborhood notification letters were sent for Construction Management (CMP) plan projects: 37 major additions, four demo/rebuilds, two new builds only and one demo only. A map is included in the report showing the location of these projects. This is an increase in the number of CMP projects. 4.Affordable home ownership, Community Development Block Grants and emergency rental assistance a.There were 24 buyers under the Live Where You Work (LWYW) program during its 10-year run. In 2019, the new Down Payment Assistance (DPA) program provided loans to eight first-time homebuyers in St. Louis Park (120% AMI), 10 loans in 2020 (100%/115% AMI) and 10 in 2021. b.West Hennepin Affordable Housing Land Trust added two homes in St. Louis Park in 2021 and now have 21 affordable homes in the community. c.CDBG funds were used to fund the Deferred Loan Program for low-income residents in St. Louis Park and the West Hennepin Affordable Housing Land Trust (WHAHLT) dba Homes Within Reach. (80% AMI) d.The city provides an emergency repair grant for low-income homeowners in St. Louis Park. There were seven emergency repair grants issued in 2021 (50% AMI). e.Annually, the city provides funds to STEP for emergency rental assistance. In 2021, STEP received $65,000 in rental assistance, in addition to administrative and program-specific funding. Page 2 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 30 Page 2 2021 Housing Activity Report 5.Housing Matrix a.Owner occupied (no rental license) properties comprise 55% of the housing market with rental properties (units with a rental license) at 46%. b.The single-family home ownership rate is 93%. c.There are nearly 1200 units of senior housing in St. Louis Park. d.Maxfield Research completed their rental study in the end of 2017 and of the 7,000 rental units surveyed 49.3% are affordable at 60% AMI or below. Funds have been budgeted to update the study in 2022. e.The 2021 affordable ownership purchase price was $316,000 and 52% of homes in St. Louis Park are assessed at or below this affordability limit. These homes are comprised of single family, condominiums, and townhomes. 6.Foreclosures a.The foreclosure rate remains extremely low with only four residential foreclosures in 2021. 7. Federally Funded Housing Programs a.The St. Louis Park Housing Authority affordable rental housing and rental assistance programs served approximately 500 households with rental assistance in 2021. Income eligibility limits are 50% AMI for the housing choice voucher (HCV) program and 80% for public housing, although the majority of households served in public housing and the HCV program are below 30% AMI. 79% of households served by the HCV and public housing programs (housing authority rental assistance programs) are at or below 30% AMI and 19% are between 31-50% AMI. b.Family Unification Program and Mainstream Vouchers (50% AMI and below). c.The St. Louis Park Housing Authority, in partnership with Hennepin County, has continued administering the Stable HOME rental assistance program which provides housing assistance to homeless or previously homeless individuals and families in Suburban Hennepin County. 41 households were served in 2021. (50% AMI) d.Kids in the Park program – increased funding and is currently serving 20 families (50% AMI and below). e.Lou Park Apartments – 21 tenants residing at Lou Park with project-based vouchers were transitioned to tenant-based vouchers administered by the Housing Authority (50% and below AMI). Households served by housing authority rental assistance programs as of 12/31/2021 30% AMI 50% AMI 60% AMI 80% AMI Over 80% AMI Number of Households 349 71 11 6 5 Percentage of Households 79% 17% 2% 1% 1% 8.Program Descriptions: This section gives detailed descriptions of the various housing programs. Page 3 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 31 Page 3 2021 Housing Activity Report 2021 Housing Activity Report 1.New initiative and updates in 2021 First generation program It’s recognized that historical and institutional racism has disproportionately created housing challenges and disparities for Black communities, as well as members of communities who do not identify as white, and other underserved low-income communities. Additionally, the income and education gap between households of color and white households has resulted in difficulty for Black and African American people and households of color to obtain mortgages, leading to ongoing wealth accumulation equity issues. The first-generation homeownership program is designed to address these historic injustices and inequities and to support inclusive and equitable communities by facilitating affordable homeownership and providing a means for wealth-building. The goal is to address housing disparities; build power in communities most impacted by housing challenges and disparities; pilot an innovative program to address housing challenges for Black communities as well as members of communities who don’t identify as white, and other underserved low-income communities. To be considered for the program, a buyer must be a first-generation homeowner meaning they have never owned a home and parents must have never owned a home. The program is available to homebuyers with a maximum household income at or below 80% of area median income. The maximum loan amount is based on the household’s income and purchase price of the homes with a maximum of $75,000. The loan is forgiven at 5% per year over a 20-year owner occupancy period. Housing staff have partnered with several non-profits on the development of the program as well as outreach to first generation homeowners. These non-profits work with first time home buyers and are also dedicated to advancing homeownership equity in Minnesota. The program was launched in November 2021. There have been several inquiries on this program, but no loans were closed in 2021. Housing Dashboard The City of St. Louis Park is committed to promoting quality multifamily development and affordable housing options for low- and moderate-income households. In 2015, the City of St. Louis Park adopted an inclusionary housing policy with the goal of increasing the number of affordable rental units in the city. The multifamily housing dashboard shows the total number of rental units and the number of affordable units created since the inclusionary housing policy was adopted. Note that it does not reflect the total number of affordable rental units in the city, nor does it reflect affordable units that have been approved but have not yet been completed. The dashboard also includes a second tab, affordable housing goals, that shows the progress the city is making towards the affordable housing goals set by the Metropolitan Council. Page 4 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 32 Page 4 2021 Housing Activity Report 2.City housing policies The City of St. Louis Park has undertaken new initiatives and updates to current policies to address affordable housing needs in the community. Inclusionary housing In June 2015, the city council adopted an Inclusionary Housing Policy that requires the inclusion of affordable housing units for lower income households in new market rate multi-unit residential developments receiving financial assistance from the city. The goal of the Inclusionary Housing Policy is to increase the supply of affordable housing and promote economic and social integration. Updates to the inclusionary housing policy since the adoption of the policy include: •2017; increased the percentage of required affordable units and added a requirement that developments covered by the policy must not discriminate against tenants who pay their rent with government provided Housing Choice Vouchers or other public rent subsidies. •2018; increased the percentage of required affordable units at 60% AMI, added a 30% AMI option, and changed the ownership to require a payment in lieu. Payment in lieu provides the city the opportunity to create long-term affordable homeownership housing, as opposed to the home only being affordable to the initial buyer. The income limit eligibility for existing tenants was amended in 2018 to be consistent with the tax credit income limits. •2019; in an effort to expand the eligibility of developments obligated to comply with the policy requirements and ensure that any NOAH units lost due to multi-family residential development are replaced, the policy was again updated to apply to market rate multi-unit residential developments that receive financial assistance from the city, seek PUD land use approvals or request a comprehensive plan amendment, and includes: a)new developments that create at least 10 multi-family dwelling units; or b)any mixed-use building that creates at least 10 multi-family dwelling units; or Page 5 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 33 Page 5 2021 Housing Activity Report c)renovation or reconstruction of an existing building that contains multi-family dwelling units that includes at least 10 dwelling units; or d)any change in use of all or part of an existing building from a non-residential use to a residential use that includes at least 10 dwelling units. •2021; based on the council’s interest in creating rental opportunities for larger size families and the need to clarify language related to parking requirements, the policy was updated to require developments with 50 or more units to include a minimum number of family size units (three bedroom or larger) in the development. Parking requirements were also updated in situations where underground or enclosed parking is the only on-site parking option available for residents and requires a discount from the market rate fee. Table 1: Inclusionary housing policy requirements Initial Policy Current Policy Rental Projects •10 % of units at 60% AMI •8% of units at 50% AMI •20% of units at 60% AMI •10% of units at 50% AMI •5% of units at 30% AMI Ownership Projects 10% of units at 80% AMI Payment in lieu Page 6 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 34 Page 6 2021 Housing Activity Report Table 2: Affordable units created and approved Development Total Num ber of Units Total Number of Affordable Units Affordability Level O-bedroom Affordable Units 1-bedroom Affordable Units 2-bedroom Affordable Units 3-bedroom Affordable Units Completed projects Shoreham 148 30** 50% 4 13 13 4800 Excelsior 164 18 60% 1 10 7 Central Park West Phase 1 119 in SLP (199 total 6* 60% 1 2 2 1 Elan Central Park West Phase 2 164 5* 50% 1 1 2 1 The Quentin 79 8 50% 3 4 1 0 Elmwood 70 17 60% 5 12 Urban Park Apartments 61 0 Parkway 25 112 Totals 917 84 N/A 10 35 37 2 Under construction Via Sol (PLACE) 217 22 130 50% 80% 66 53 17 16 Parkway Residences 235 24 6 50% 60% 1 15 8 6 Totals 452 182 N/A 67 68 31 16 Approved Luxe Residential (approved in 2018) 207 8* 60% 2 3 2 1 Volo at Texa Tonka (approved 2020) 112 23 50% 7 12 4 0 Rise on 7 (approved 2021) 120 19 82 19 30% 60% 80% 57 39 24 Union Congregational Church (2021) 60 10 40 10 30% 60% 80% 3 12 30 15 Risor - 3510 Beltline (2021) 177 18 50% 1 11 5 1 Page 7 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 35 Page 7 2021 Housing Activity Report Beltline Residences (2021) 250 25 50% 5 15 3 2 9920 Wayzata 233 47 50% 10 19 16 2 Totals 1159 301 N/A 28 129 99 45 *Central Park West Phase 1 and Phase 2 and Luxe were not subject to the Inclusionary Housing Policy but voluntarily included affordable units **Shoreham is a tax credit property resulting in 20% of units affordable at 50% AMI Tenant Protection Ordinance The city council adopted a tenant protection ordinance in 2018. The tenant protection ordinance requires a three- month period following the ownership transfer of a NOAH multifamily residential property during which the new owner would be required to pay relocation benefits to tenants if the rent is increased, existing residents are rescreened, or non-renewals are implemented without cause. NOAH properties are defined as buildings where at least 18% of the units have rents affordable to households with incomes at or below 60% Area Medium Income (AMI) to match the inclusionary housing policy affordability requirements at the time the policy was adopted. The ordinance does not prohibit a new owner from taking the management actions listed above; however, the owner would be required to provide resident relocation benefits if they do take any of those actions during the tenant protection period and a tenant decides to move as a result. The three-month protection period provides a period for residents to work with housing support resources and seek alternative housing if they are facing unaffordable rent increases, new screening criteria requirements that would be problematic for them, or a thirty- day non-renewal without cause notice to vacate. The ordinance requires the new owner of a NOAH building to provide notice of the ordinance protections to tenants of affordable housing units within 30 days of the sale of the building. The three-month tenant protection period begins once the notice has been given to the tenants. NOAH properties required to comply with the tenant protection ordinance: •9 in 2018 •3 in 2019 •3 in 2020 •0 in 2021 Local housing trust fund The city council approved establishing a local affordable housing trust fund in 2018. Housing trust funds are distinct funds established by city, county or state governments that receive ongoing dedicated sources of public funding to support the preservation and production of affordable housing. Housing trust funds can also be a repository for private donations. The Minnesota Legislature passed a bill in 2017 that allows local communities to establish housing trust funds. The housing trust fund may be established by ordinance and administered by the city. Money in a housing trust fund may only be used to: •pay for administrative expenses not to exceed 10% of the balance of the fund; •make grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing; •match other funds from federal, state, or private resources for housing projects; or •provide down-payment assistance, rental assistance, and homebuyer counseling services. The city may finance the fund with any money available to a local government, unless expressly prohibited by state law. The proposed primary source of funding for the city’s trust fund is an annual budgeted allocation of HRA Levy funds, which was available beginning in 2020. The local housing trust fund guide was approved in 2019. Page 8 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 36 Page 8 2021 Housing Activity Report Land banking Land banking is the practice of aggregating parcels of land for future sale or development. The Economic Development Authority (EDA) has purchased parcels near the Beltline and Wooddale stations to facilitate future redevelopment which will include housing. The EDA also purchased one single-family home on Minnetonka Blvd in 2018, one in 2019 and two additional homes in 2020 for future redevelopment purposes. NOAH Preservation (Naturally Occurring Affordable Housing) Housing staff continued to participate in a Regional Housing Workgroup to review and discuss strategies for preservation of NOAH. Additional preservation strategies including the multifamily rental rehab program, Legacy program and 4D were approved in 2018 and implemented in 2019 to preserve NOAH properties. Legacy program – 60% AMI and below Investors are buying NOAH apartment properties across the Twin Cities, often renovating the properties and increasing the rents. The City of St. Louis Park created the legacy program to encourage multifamily NOAH property owners in our community who are thinking about selling their property to consider connecting with a socially driven investor who will preserve the affordability of their development. The city created a legacy program brochure outlining how an owner can make a difference by providing a legacy of affordable housing in St. Louis Park. The brochure was mailed to all class B and C multifamily rental properties. In 2021, the city expanded the Legacy program to include single family homes to connect potential sellers with Homes Within Reach to expand the land trust program in St. Louis Park and preserve affordable homeownership in the community. Homes Within Reach has communicated with homeowners about the program and are working with one homeowner currently. 4d - 60% AMI and below St. Louis Park’s 4d affordable housing incentive program helps preserve affordable homes in the city by providing financial incentive to qualified apartment owners for state property tax reductions if they agree to keep 20 percent or more of their rental units affordable. The program also offers grants to help owners make energy efficiency and safety improvements to their properties. This program was developed, approved, and marketed in 2018 to preserve affordable housing in St. Louis Park. One apartment building applied for 4d in 2019. No additional 4d properties applied in 2020 or 2021. Multifamily rental rehab program - 60% AMI and below The multifamily rental rehab program provides moderate rehabilitation assistance to eligible owners of St. Louis Park multifamily residential rental properties with three or more units. The targeted properties are NOAH properties that have been maintained, are in good standing, and wish to make improvements to their properties. Buildings must be at least 30 years old and meet the St. Louis Park definition of a NOAH property. The maximum loan amount per qualified rent restricted unit is $5,000 with a maximum loan per building/development of $50,000. Loans have 0% interest and are due upon the sale of the property. Owners must restrict the rents for a 10-year term or until the sale or transfer of the ownership of the property. The goal of this program is to provide a rehab incentive for NOAH properties to improve their property without raising rents above the 60% AMI rent level. No properties participated in this program in 2019. Staff began evaluating the program in 2020 and modifying the program in 2021. In 2022, housing staff will work with the city’s environment and sustainability staff on a grant to evaluate housing and energy efficiency programs for multifamily properties to identify barriers to the use of the current programs and identify what changes would make the programs more beneficial to both property owners and tenants. Page 9 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 37 Page 9 2021 Housing Activity Report 3.REMODELING ACTIVITY Residential permitted activity measures remodeling and maintenance activity. This section shows historical trends of remodeling activity. Residential properties include apartments. Permit Trends •“Alteration Residential” or General Remodeling General remodeling work includes residential projects with permit valuations less than $37,500. The average value per job in 2021 is just over $10,000, an increase of $1,100 over 2020. Permits include a wide range of projects including remodeling of existing spaces, window and door replacement, drain tile, insulation, foundation work, etc. Chart 1: Trend of General Remodeling Permits valued under $37,500 •Roofing and Siding Activity Reroofing and residing permits are tracked separately. Almost 60% of the homes in the city had roofs replaced between 2008 and 2011 due to storm damage, and we are starting to see increases in roofing and siding permits. Chart 2: Reroofing and Residing Permits 1129 1011 1091 1084 1074 1203 1170 983 996 1044 1001 0 500 1000 1500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Permits IssuedYear Maintenance & Minor Remodeling Permits Alteration Residential (Minor) 761 140 161 131 104 80 107 163 162 296 591 11773 83 70 47 86 62 85 63 122 205 0 500 1000 1500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Permits IssuedYear Reroofing and Residing Permits Reroof Reside Page 10 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 38 Page 10 2021 Housing Activity Report •Additions and Major Remodeling The number of major remodeling permits (valued at more than $37,500) and additions increased in 2021. The average permit valuation for additions during 2021 is $163,500, consistent with the 2020 permit valuation. The 2021 average valuation for major remodels is $63,500 which is a decrease in value, but an increase in the number of permits. Chart 3: Number of Addition and Major Remodeling Permits •Permit Valuation The following chart shows historical remodeling permit valuation for additions, major remodels, remodeling and maintenance, garages/decks, reroofs, and siding. Permits with additional valuations were issued for plumbing, heating, and electrical work (not shown here). Chart 4: Permitted Residential Remodeling 48 71 67 73 70 59 67 59 49 49 6346 44 53 69 70 65 69 77 82 85 104 0 40 80 120 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Permits IssuedYear Addition and Major Remodel Permit Activity Addition Residential Major Remodels 26.6 $16.8 $21 $25 $23 $25 $26 $28 $25 $31.4 $40.3 0 20 40 60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Permit Valuation -Million $Year Residential Remodeling Permit Valuation Page 11 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 39 Page 11 2021 Housing Activity Report City Housing Improvement Services, Loans Trends and Program Descriptions Home Improvement Services. The city’s architectural design service, remodeling advisor and Home Energy Squad Visits are great programs for residents who are considering a remodel or energy improvements to take advantage of. Despite COVID-19, there was an increase in Home Energy Squad visits in 2020, in part due to promotion by the Environment and Sustainability division and the CEE Home Energy Squad intercity challenge that St. Louis Park won in 2020 and were second in 2021 on a per capita basis. Chart 5: Technical, Design and Home Energy Visits Construction Management Plan Major additions (second story additions or additions of 500 square feet or more), demolitions and new construction projects need to comply with the Construction Management Plan (CMP). In 2021, the following neighborhood notifications were sent: 37 major additions, four demo/rebuilds, and two new builds on vacant land. One of the new builds on vacant land was a property that was listed as a demo only in 2020. The total permit valuation for CMP projects in 2021 was $10,603,357. Chart 6: CMP Activity 29 29 37 41 22 31 33 39 52 47 36 82 69 69 95 69 76 76 83 51 45 30 122 153 173 125 170 109 85 130 166 128 020406080100120140160180200 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of VisitsYear Technical Home Improvement Services Architect Services Remodeling Advisor Home Energy Visits 32 37 33 33 17 19 37 18 10 9 7 8 11 43 6 3 2 0 2 2 3 1 0 1 2 1 00 5 10 15 20 25 30 35 40 2015 2016 2017 2018 2019 2020 2021Number of CMP ProjectsYear Construction Management Plan Activity Additions Demo/New Build New Build Demo only Page 12 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 40 Page 12 2021 Housing Activity Report Page 13 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 41 Page 13 2021 Housing Activity Report •Home Remodeling Fair and Tour Both the Home Remodeling Fair and Tour were cancelled in 2020 and 2021 due to the pandemic. In 2021, West Metro Home Remodeling Fair formalized the partnerships between the cities of Golden Valley, Minnetonka, and St. Louis Park along with the Hopkins and St. Louis Park school districts through a Joint Powers Agreement in preparation for the 2022 and future fairs. •City Loans and Rebates The following chart shows the number of Move Up Loans, Discount Loans, and Energy Rebates issued in recent years. The city buys down the interest rate on the Minnesota Housing Finance Agency’s community fix up loan for the discount loan with a maximum loan amount of $35,000. In 2020, interest rates dropped below the rate of the city’s buydown rate, so midway through the year no loans needed the city to buy down the rate. This continued in 2021, so there were no discount loans in 2021. The number of discount loans has remained low the past several years partially due to other loan options that do not have income limits or require a mortgage on the property, and the MHFA fix up loan offers a loan up to $75,000, but the city buy down was only for loans less than $35,000. Due to a change in funding sources for 2021, the 50% energy efficient rebate match added an income limit of 115% AMI ($120,650) which reduced the number of rebates in 2021. Chart 7: Use of City Financial Incentives Move-Up in the Park loans are deferred until the sale of the home or forgiven after thirty years. Table 3: Move-Up Transformation Loans Paid off between 2014 and 2017 Year Number of Loans Paid Off Amount of Loans 2014 2 $23,957 2015 4 $78,246 2016 4 $97,970 2017 3 $80,909 2018 3 $66,432 2019 1 $16,250 2020 5 $114,327 2021 4 $77,876 Total paid off 2014-2021 $555,967 10 6 6 6 7 10 6 3 6 1 22226221713116565 0 83 73 113 166 143 108 101 125 94 112 63 0 25 50 75 100 125 150 175 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number Loans -RebatesYear Loans and Rebates Move up loans Discount loans Energy Rebates Page 14 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 42 Page 14 2021 Housing Activity Report Table 4: Move-Up Participation and Costs YEAR Move-Up Loans Discount Loans Architectural Design Services Remodeling Advisor Services Energy Efficient Rebates Home Energy Squad Down Payment Assistance Loan Total City Cost 2006 27 $591,264 88 $186,205 102 $22,950 157 $20,410 $820,829 2007 27 $620,000 50 $74,000 62 $12,400 179 $23,270 $729,670 2008 18 $330,937 55 $114,129 49 $11,025 130 $16,900 $472,991 2009 17 $329,650 52 $106,000 12 $7,200 126 $16,380 22 $4,095 $463,322 2010 9 $209,769 64 $86,263 30 $6,750 89 $11,510 42 $7,820 $322,112 2011 10 $226,877 22 $29,213 29 $6,525 82 $10,250 83 $15,465 $288,330 2012* 6 $106,232 26 $31,276 29 $6,525 69 $8,970 73 $13,748 112 $7,320 $174,071 2013 6 $145,071 22 $33,063 37 $8,325 69 $8,970 113 $26,000 153 $10,650 $232,079 2014 6 $138,740 17 $26,079 41 $9,225 95 $12,350 166 $37,575 173 $11,390 $234,223 2015 7 $173,000 13 $17,577 22 $4,950 69 $15,525 143 $37,610 125 $6,250 $254,912 2016 10 $231,057 11 $27,001 31 $6,975 76 $17,100 108 $29,304 170 $8,510 $319,947 2017 6 $137,950 6 $5,907 33 $7,425 76 $17,100 101 $22,951 109 $5,450 $266,173 2018 3 $75,000 5 $12,904 39 $8,775 83 $18,865 125 $30,112 85 $4,250 $149,906 2019 6 $142,350 6 $16,577 52 $11,700 51 $11,475 94 $25,631 130 $6,500 8 $87,621 $301,584 2020 1 $25,000 5 $7,506 47 $10.575 45 $10,125 112 $27,491 166 $8,300 10 $135,428 $224,425 2021 2 $50,000 0 0 36 $8,125 30 $7,500 63 $16,662 128 $6,370 10 $127,900 $216,557 Detailed descriptions of each Move-Up Program are listed at the end of the report. Page 15 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 43 Page 15 2021 Housing Activity Report 4.AFFORDABLE HOME OWNERSHIP, COMMUNITY DEVELOPMENT BLOCK GRANTS AND EMERGENCY RENTAL ASSISTANCE Home ownership - down payment assistance program – 100%/115% AMI and below The city reviewed and evaluated the Live Where You Work (LWYW) program and determined that it was not meeting the goal of the program. 24 LWYW loans were issued in the 10 years the program was offered. The new down payment assistance program (DPA) provides down payment/closing cost assistance to first-time homebuyers, or those that have not owned a home in the last three years, for purchasing a home in St. Louis Park. Employees of St. Louis Park businesses may be eligible for additional funds to encourage them to live where they work. The loan is a zero percent interest deferred loan up to $15,000, not to exceed five percent of the purchase price. An additional $5,000 is available for employees of St. Louis Park businesses and St. Louis Park renters. Income restrictions apply. 10 DPA loans were administered in 2020 and another 10 in 2021. Housing Improvement Area (HIA) The HIA is a finance tool to assist with the preservation of the city’s existing townhome and condominium housing stock. An HIA is a defined area within a city where housing improvements are made, and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. The Association borrows low interest money from the city, improvements are completed, and unit owners repay the loan through fees imposed on their properties and collected with property tax payments. To date, eight HIA’s have been established and nearly fourteen million dollars of improvements have been made to 1218 units. Bridgewalk Condominium Homeowners’ Association submitted an application in 2021 and was approved by the city council in February 2022. The veto period for the Bridgewalk HIA ends in April 2022. Bridgewalk would be the city’s ninth HIA. Emergency Repair Grant (50% AMI) The emergency repair grant that had previously been funded using CDBG funds is now funded with housing rehab dollars. Seven emergency grants were issued in 2021. The maximum grant amount is $4,000. Community Development Block Grant (CDBG) (80% AMI) The CDBG calendar year runs from July 1 – June 30th. FY2021 CDBG allocations included: •$137,562 for the Low-Income Deferred Loan Program administered by Hennepin County •$30,000 for West Hennepin Affordable Housing Land Trust Low-income deferred loan program Hennepin County administers the low-income deferred loan program for St. Louis Park and other suburban cities in Hennepin County. This program is a 15-year deferred loan for low-income homeowners that is forgiven after 15 years if the homeowner remains in the home. West Hennepin Affordable Housing Land Trust, dba Homes Within Reach (HWR) - Two purchased in 2021 (80% AMI) Homes Within Reach is a program of West Hennepin Affordable Housing Land Trust that purchases properties, rehabilitates, and then sells the home to qualified low to moderate income households. Buyers pay for the cost of the home only and lease the land for 99 years. City funds are leveraged with CDBG, Hennepin County Affordable Housing Incentive Fund (AHIF), HOME Partnership, Metropolitan Council, Minnesota Housing, and other funds. Page 16 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 44 Page 16 2021 Housing Activity Report Homes Within Reach uses the community land trust model to create and preserve affordable homeownership for families in suburban Hennepin County. To date, Homes Within Reach has purchased 21 homes in St. Louis Park. 19 of the homes have been rehabbed and sold to eligible homebuyers. The two homes purchased in 2021 will be sold in 2022. Twin Cities Habitat for Humanity (80% AMI) The city has partnered with Habitat over the years to acquire nine blighted properties for rehab or tear- down for new construction. The city last assisted Habitat with the purchase of a property in 2011. Twin Cities is expanding their services to include financing which may serve more St. Louis Park residents than their traditional program. EMERGENCY RENTAL ASSISTANCE Annually, the City of St. Louis Park provides funding to the St. Louis Park Emergency Program (STEP) for emergency rental assistance (not COVID related). STEP provides rental assistance for residents of St. Louis Park who have an unexpected crisis and cannot pay rent. The crisis mut be resolvable with the ability to pay next month’s rent. Documentation is requested at the time of application. Priority is given to those with gross incomes at or below 50% AMI. STEP also receives Community Development Block Grant funds through the Hennepin County Consolidated RFP for emergency assistance. The City of St. Louis Park provided additional $65,000 in funding to STEP for emergency rental assistance in 2021. Information about STEP, county and state emergency rental assistance programs was shared with property owners and managers utilizing the SPARC e-newsletter. The information was also shared on the city’s website and via social media for residents of St. Louis Park. Page 17 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 45 Page 17 2021 Housing Activity Report 5.HOUSING MATRIX AND DEVELOPMENT The housing matrix shows the numbers and percentages of housing types, tenure (owner or rental), affordable units, senior-designated units, and large single-family homes. The matrix is a guide to evaluate future housing development proposals. •11,569 units (45% of units) in St. Louis Park have a rental license. •The chart shows percentages of rental vs. owner-occupied units over time. Prior to 2017, the chart reflects homestead vs. non-homesteaded properties. Starting in 2017, the chart uses rental licenses to count the number of rental properties in St. Louis Park since not all non-homesteaded properties are rental. •93% of single-family detached homes were owner-occupied (did not have a rental license), and 80% of condos/townhomes were owner-occupied (no rental license) •The city hired Maxfield Research to update the city’s comprehensive housing analysis. The report was completed and presented to council in 2018. The city entered into an agreement with Maxfield to update the study in 2022. Chart 8: Percentage of Owner Occupied Units *Rental license data used beginning in 2017 Family-size single-family homes One of the city’s housing goals is to increase the number of family-size homes available in the city. “Family-size single-family homes” are being defined as exceeding 1,500 square feet of living space, having 3 or more bedrooms, 2 or more baths, and at minimum a 2-car garage. According to the Assessing Department, 2,441 – or 21% – of SLP single family homes meet this threshold. This is an increase of 40 homes since 2020 (due to additions, demo/rebuilds, and remodels). Although this size home is not considered large when compared to newly constructed housing, in St. Louis Park 74% of single-family homes have a foundation size less than 1,200 square feet and 46% of single-family homes have less than 1,200 square feet above ground. 93 91 89 89 90 89 93 94 94 93 93 75 70 67 66 67 67 78 79 81 83 80 0 50 100 2011 2012 2013 2014 2015 2016 2017*2018*2019 2020 2021Percentage YEAR % Owner Occupied Units Single Family Detached Homes Condos & Townhomes Page 18 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 46 Page 18 2021 Housing Activity Report Senior housing •Ten senior (including senior preference) housing rental developments, for a total of 1,028 units. •Hamilton House offers a preference for seniors, but disability is another preference so not all residents are seniors. •Three developments are “affordable.” Hamilton House is Public Housing; Menorah West and Menorah Plaza are multi-family subsidized. •One development has a percentage affordable. The Elmwood has 17 affordable housing units required by the inclusionary housing policy. •Two senior ownership developments, for a total of 166 units. •Total rental and home ownership units is 1,194. Table 5: Senior housing table RENTAL Project name Address No. of Units Occp. Date Type of Senior Hamilton House 2400 Nevada Ave S 108 1976 Public Housing (Senior Preference) Menorah West Apts 3600 Phillips Parkway 45 1986 Affordable/Subsidized Menorah Plaza 4925 Minnetonka Blvd 151 1981 Affordable/Subsidized, Assisted Living Offered Parkshore Place 3663 Park Center Blvd 207 1988 Senior Knollwood Place 3630 Phillips Parkway 153 1987 Senior TowerLight 3601 Wooddale Ave 43 29 33 2012 Senior Assisted Living Memory Care Roitenberg Family 3610 Phillips Parkway 52/24 2002 Assisted Living/Memory Care Parkwood Shores 3633 Park Center Blvd 68 23 2001 Assisted Living Memory Care Comfort Residence at St. Louis Park 7115 Wayzata Blvd 12 10 2014 Assisted Living Memory Care The Elmwood 5605 W 36th St 53 17 2021 Market rate senior 17 affordable senior @ 60% AMI TOTAL RENTAL UNITS: 1028 units HOME OWNERSHIP Project name Address No. of Units Occp. Date Type of Senior Aquila Commons 8200 W 33rd St 106 2012 Coop Village in the Park 3600 Wooddale 60 2007 Senior Living TOTAL OWNER UNITS 166 units Page 19 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 47 Page 19 2021 Housing Activity Report Affordable Housing The Metropolitan Council sets the affordability limits for at 80% of the area median income for both rental and ownership housing. In 2020, the metro area median income (AMI) for a household of four was $103,400. Under these limits, a family of four can earn up to $78,500 (80% AMI) to qualify for affordable housing. Below is a chart showing the number of market-rate affordable (naturally occurring affordable housing) multifamily rental units in St. Louis Park with affordable levels from 30% AMI to 80% AMI based on the Maxfield Research update from 2017. Funding has been allocated to update the study and housing staff are currently working with Maxfield Research on a contract to begin updating the study in late 2022. Among the 7,000+ market-rate units that were inventoried by Maxfield Research by unit mix and monthly rents, 7.9% of the units are considered naturally occurring affordable housing to households at 50% AMI, and an additional 41.4% of the naturally occurring units are affordable at 60% AMI. These combined represent 49.3% of the market-rate rental housing inventory as naturally occurring affordable at 50% to 60% AMI. The St. Louis Park Housing Choice Voucher (HCV) program has 342 vouchers that can be utilized in market-rate rentals reducing the rents to 30% of a voucher holder’s income, and the average HCV client’s income is below 30% AMI. Table 6: Multifamily market-rate rental units by AMI from 2017 # of bedrooms 30% AMI 50% AMI 60% AMI 80% AMI Efficiency 0 106 204 123 1 bedroom 20 370 2466 807 2 bedroom 19 198 879 929 3 bedroom 6 20 48 Total 39 680 3559 1906 Source: Maxfield Research & Consulting, LLC (2017) Affordable housing rental projects The multifamily housing dashboard shows the total number of rental units and the number of affordable units created since the inclusionary housing policy was adopted. Affordable homeownership •The 2021 affordable ownership purchase price is at or below $316,000, which is the affordable homeownership purchase price for households at 80% AMI. The matrix also shows the data for single-family homes, condos, and townhomes valued at $245,300 or less, which is the 60% AMI affordable ownership purchase price. •In 2021, 52% (7,947) of the single-family homes, condos, and townhomes in St. Louis Park were considered affordable at or below 80% AMI based on valuation data from assessing. The affordable ownership purchase price increased by $22,500 over 2020. The Metropolitan Council includes the following assumptions in determining the affordable ownership price: o Fixed-interest, 30-year home loan o Interest rate of 3% o A 29% housing debt-to-household income ratio o A 3.5% down payment o A property tax rate of 1.25% of the property sales price o Mortgage insurance at 0.85% of unpaid principal o $100/month for hazard insurance Page 20 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 48 Page 20 2021 Housing Activity Report Table 7: St. Louis Park Housing Matrix December 31, 2021 Housing Units by Type Large Single Family Homes, Affordable, and Senior Housing Housing Type Housing Units Owner Occupied (No Rental License) Rental Licenses Family sized single family homes over 1500 square feet 2021 Affordable Market Rate (NOAH) SF, Condo and TH Units 60% | 80% 2017 Maxfield Research Affordable Market Rate (NOAH) Rental Units 60% | 80% Rent restricted units *Does not include tenant based vouchers Senior Designated Single Family Detached 11,698 46% 10,827 871 2,441 803 4989 37 Duplex 436 2% 88 348 Condos and townhomes 3,558 14% 2,835 723 2958 2551 60 Apartments 9,627 38% 9627 4278 6184 546 1028 COOPs 114 <1% 114 106 Totals 25,433 13,864 55% 11,569 45% 2,441 21% 3354 22% 7947 52% 4278 46% 6184 67% 579 5% 1194 5% % of SF Homes % of SF, Condo & TH % of Multifamily % of Rental % of Total Housing Units The rental unit numbers are coming directly from the rental licenses through the building and energy department. The percentage of owner occupied (no rental license) units to rental (units with a rental license) units is 55% owner (no rental license) and 45% of units with a rental license. Met Council revised the affordable housing income standards and now considers both rental and owner occupied housing units affordable at 80% AMI. This chart shows all single family homes, condos and townhomes with an assessed value based on 60% and 80% AMI. The chart also shows multifamily rental units affordable at 60% AMI and 80% AMI based on Maxfield Research data. More data is on the previous page related to affordable rents based on the number of bedrooms in a unit. Rent restricted units include project based vouchers, public housing, and inclusionary housing units. This does not include the tenant based vouchers (Section 8), Kids in the Park, or Stable HOME vouchers which are not tied to a specific unit. Data source: St. Louis Park Community Development, Building and Energy, and Assessing departments and Maxfield Research & Consulting. Page 21 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 49 Page 21 2021 Housing Activity Report 6.FORECLOSURES Foreclosures are measured by the number of sheriff sales. The number of residential foreclosures in St. Louis Park and throughout Hennepin County has been declining since 2010. Chart 9: St. Louis Park Residential Foreclosures by Year The trend chart below shows foreclosure by housing type over time. Chart 10: Residential Foreclosures by Housing Type *Townhome & DB = Townhome and Double Bungalow/Duplex 163 122 59 54 47 31 36 19 15 4 40 40 80 120 160 200 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Sherrif Sales Year Residential Foreclosures by Year 109 82 45 39 28 21 25 16 11 3 2 40 30 9 14 15 6 9 2 4 1 18 10 5 1 4 4 2 1 0 0 10 40 80 120 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number Sherrif SalesYear Residential Foreclosures by Housing Type Single Family Detached Condos Townhome & DB Page 22 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 50 Page 22 2021 Housing Activity Report 7.ST. LOUIS PARK HUD FEDERALLY FUNDED HOUSING PROGRAMS and rental assistance The St. Louis Park Housing Authority (HA) administers programs that ensure the availability of safe and desirable affordable housing options in the St. Louis Park community. These programs include the Public Housing program, Housing Choice Voucher rental assistance program, the family self-sufficiency program, Stable HOME, and Kids in the Park programs. The HA currently serves over 560 eligible, low- income households through their housing programs. Public Housing – Restricted to households at or below 80% AMI; however, the majority of public housing residents have incomes below 50% AMI, with a significant number below 30% AMI The Housing Authority (HA) owns Hamilton House, a low-rise apartment building (108 one-bedroom units and two two-bedroom caretaker units) built in 1975, and 37 scattered site single-family units (three to five bedrooms) acquired or constructed between 1974 and 1996. Hamilton House is designated for general occupancy; however, priority is given to elderly and disabled applicants. The single-family scattered units house families with children. The HA also holds the HUD Annual Contributions Contract (ACC) and maintains a waiting list for 12 two-bedroom Public Housing apartment units located at Louisiana Court. The average annual income for households at Hamilton House is $15,982 which is below 30% AMI. The average income for the scattered site single-family homes and Louisiana Court public housing units is $47,140. Family sizes in Louisiana Court and the scattered site houses range from two to 11 people per home. 73% of public housing households have incomes below 30% AMI, and 16% have incomes between 31 and 50% AMI. 4% of public housing households have incomes at 60% AMI, 4% at 80% AMI, and 3% above 80% AMI. If a household’s income rises above the limit, on the second anniversary of being over income (100% AMI), households are given notice that they are no longer eligible for public housing and need to move on from the program. Public housing residents pay 30% of their income towards rent. The 2021 annual budget for Public Housing was $1,493,738 and an award of $281,449 for the 2021 Capital Fund Program (CFP). Table 8: Public Housing Public Housing Total Units 1-BR 2-BR 3-BR 4-BR 5-BR Hamilton House 108 108 Scattered Site Single Family 37 17 17 3 Louisiana Court, Metropolitan Housing Opportunity (MHOP) Units 12 12 Total (bedroom size) 108 12 17 17 3 Total 157 COVID response The CARES Act was signed into Law March 27, 2020, providing the Department of Housing and Urban Development (HUD) with broad authority to waive statutes and regulations for the Public Housing (PH) and Housing Choice Voucher (HCV) programs. These waivers provide administrative flexibility and relief to Housing Authorities (HA) in response to the COVID-19 pandemic. Use of these waivers for the PH and HCV programs is at the discretion of the HA. However, HUD strongly encouraged housing authorities to utilize any and all waivers and alternative requirements as necessary to keep PH and HCV programs operational in both 2020 and 2021. In addition to HUD waivers, the HA is complying with the state and federal eviction moratorium. Page 23 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 51 Page 23 2021 Housing Activity Report Public Housing waivers •Family income and composition: annual examination, income verification requirements — HA will allow self-certification of income and family composition and conduct recertifications remotely. •Family income and composition: interim examinations — HA will allow self-certification of income and family composition and conduct interim certifications remotely. •Family self-sufficiency (FSS) contract of participation; contract extension — HA will allow extension of FSS contracts for COVID-19 related circumstances. •Community service and self-sufficiency requirement (CSSR) — HA will suspend the community service requirement until December 31, 2021. •Review and revision of utility allowance — The St. Louis Park HA utilizes metro HA’s utility allowance. Waiver will be implemented if needed. •Tenant notifications for changes to project rules and regulations — Advanced notice to tenants of rule changes will be waived except for any changes related to tenant charges. •The housing authority will allow families an additional opportunity to select an income-based or flat rent. Housing Choice Voucher waivers •Family income and composition: annual examination, income verification requirements — HA will allow self-certification of income and family composition and conduct recertifications remotely. •Family income and composition: interim examinations — HA will allow self-certification of income and family composition and conduct interim certifications remotely. •Family self-sufficiency (FSS) contract of participation; contract extension — HA will allow extension of FSS contracts for COVID-19 related circumstances. •Information when family is selected: PHA oral briefing — HCV briefings are being conducted remotely using mail and telephone. •Term of voucher: extensions of term — HA will allow a 30-day extension of the voucher term beyond current adopted policy. •Absence from unit — HA will waive current policy requirements related to a family member being absent from the unit due to COVID-19 related circumstances. •Utility allowance schedule: required review and revision — The St. Louis Park HA utilizes metro HA’s utility allowance. Waiver will be implemented if needed. •HQS inspections: initial, biennial, interim, PBV turnover and contract substitutions, inspection requirements — HA will waive the requirement for conducting an on-site Housing Quality Standard (HQS) inspection prior to putting a unit under or remaining under housing assistance payments (HAP) contract and will allow owner’s certification that the owner has no reasonable basis to have knowledge that life-threatening conditions exist in the unit. •HQS: housing quality standards; space and security — HA will waive space requirements for a participant that needs to add a member to the household due to a COVID-19 related emergency. •Extension of deadline for programmatic obligation and expenditure of capital funds — Although the HA anticipates obligating and expending capital funds within the time period allocated by HUD, the extension will be utilized if needed for COVID-19 related reasons. Page 24 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 52 Page 24 2021 Housing Activity Report Housing Choice Voucher Program (HCV) – 50% AMI or below The HA is allocated a total of 342 Housing Choice Vouchers from HUD. This rent assistance program provides rent subsidies for low-income individuals and families in privately owned, existing market rate housing units. The rent subsidy is paid directly to the owner of the rental property by the Housing Authority (HA) with funds provided by HUD. The HA administers tenant-based, project-based and newly awarded special program vouchers as noted below. 54 vouchers of the HA’s allocation are designated for use in four privately owned developments (Excelsior & Grand, Vail Place, Wayside, and Perspectives) and are referred to as project-based vouchers. The average income of voucher holder households in St. Louis Park is $16,441 which is below 30% AMI. HCV participants pay 30% of their income towards rent and can choose to pay up to 40%. The 2021 annual budget for HCV was $3,778,980. Despite the number of HCV units allocated to a Housing Authority by HUD, HAs are limited in the number of vouchers that can be administered by the budget authority allocated by HUD. Family Unification Vouchers (FUP) The Housing Authority (HA) was awarded 12 Family Unification Vouchers (FUP) at the end of 2019 and an additional 15 units in 2020. FUP is a program in which Housing Choice Vouchers (HCVs) are provided in order to lease decent, safe, and sanitary housing in the private housing market to: •Families for whom the lack of adequate housing is a primary factor in either: the imminent placement of the family’s child(ren) in out of home care or the delay in the discharge of the child(ren) to the family from out of home care. There is no time limitation on family FUP vouchers, or •Youth who are at least 18 years or and not more than 24 years old who: left foster care at age 16 or older to will leave foster care within 90 days and are homeless or at risk of homelessness. FUP vouchers used by youth were previously limited by statute to 36 months of housing assistance. The CARES Act has changed the limit to 60 months The HA is partnering with Hennepin County on this program. Applicants are provided through the Coordinated Entry process. 24 FUP vouchers were utilized in 2021. Foster Youth to Independence (FYI) – New vouchers awarded – 50% AMI and below The Foster Youth to Independence (FYI) initiative was announced in 2019. The FYI initiative allows Housing Authority’s (HA) who partner with a Public Child Welfare Agency (PCWA) to request targeted Housing Choice Vouchers (HCVs) to serve eligible youth with a history of child welfare involvement that are homeless or at risk of being homeless. Rental assistance and supportive services are provided to qualified youth for a period of up to 36 months. Hennepin County contacted the HA with a request to partner in the administration of the FYI program. The HA will administer the rental assistance vouchers for the participants, while the county is responsible for providing or engaging service agencies to provide the required support services. In addition to St. Louis Park, Hennepin County has entered into agreements with three additional metro area HAs and is seeking to issue up to 100 vouchers. The regulations overseeing the issuance and administration of the FYI rental vouchers are the same as those for Housing Choice Vouchers (HCV) with the exception of the 36-month limit on assistance. HUD is the funding source for both the housing assistance and the administration fees for the program, similar to the HCV program. The program was initially only available to HAs that did not administer FUP vouchers, but it has since been expanded to all HAs with an HCV Annual Contributions Contract (ACC). Funding is available either competitively though an FYI Notice of Funding Availability (NOFA) or noncompetitively on a rolling basis. Hennepin County is receiving vouchers through the noncompetitive process. HAs are limited to 25 vouchers in a fiscal year with the ability to request an additional 25 vouchers for those HAs with 90 percent Page 25 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 53 Page 25 2021 Housing Activity Report or greater utilization of these vouchers. The City of St. Louis Park was offered 25 vouchers. The first referral will come in spring 2022. Mainstream The Housing Authority (HA) was awarded seven additional Mainstream vouchers via the CARES Act in 2020, adding to the eight mainstream vouchers awarded previously. These Mainstream vouchers provide vouchers to assist non-elderly persons with disabilities who are transitioning out of institutional or other segregated settings, at serious risk of institutionalization, homeless, or at serious risk of homelessness. It was designed to further to the goals of the Americans with Disabilities Act (ADA) by helping persons with disabilities live in the most integrated setting. Families or individuals with a Mainstream voucher must have a household member at least 18 years of age and less than 62 years of age with a disability at the time of eligibility determination. 15 mainstream vouchers were utilized in 2021. The HA is partnering with Hennepin County for referrals for the seven additional vouchers that were awarded. The population being served by this partnership includes those that meet eligibility requirements and were not able to stay in shelter due to COVID 19 concerns and had to be placed in hotels. Lou Park Apartments Lou Park is an apartment complex in St. Louis Park owned and managed by Bigos Management. Bigos notified tenants that in 2018 they would be completing a contract transfer of their 32 project-based units to another property. As of July 1, 2019, tenants were eligible to request to move to the new property or remain at Lou Park using an enhanced voucher administered by the St. Louis Park Housing Authority. This added 32 additional vouchers to the Housing Authority’s allocation. Initially, 31 tenants chose to utilize the tenant protection voucher at Lou Park. As of December 31, 2021, 21 remained at Lou Park, the remainder have chosen to use their voucher to move to a different complex. Perspectives Perspectives is a community non-profit organization located in St. Louis Park that provides supportive housing to low-income families that are homeless and are dual diagnosed (chemical and mental health diagnosis). Perspectives is one of the largest therapeutic supportive housing programs for women and children in Minnesota, housing approximately 75 women and 130 children and has been operational in St. Louis Park for 28 years. HUD notified Perspectives in 2020 that their recent application for funding renewal of the rental subsidy was not selected for funding and their funding would expire 9/30/2020. Perspectives, Inc. made a request to the Housing Authority (HA) for an allocation of twelve (12) project- based units (PBV); two one-bedroom and 10 two-bedroom units. These PBV units would replace current income-based rent subsidies funded through HUD’s Continuum of Care Permanent Rental Assistance program. The HA board approved the additional project-based vouchers and the approval of the contract at the September 2020 meeting. The effective date of the contract for the PBV funding is October 1, 2020, and the initial term of the contract will be 5 years. As of December 31, 2021, all 12 of the units had been filled by Perspectives. Wayside The Housing Authority (HA) has provided project based assistance (PBA) to Wayside House properties located at 1341 and 1349 Jersey Avenue South since 2003. Wayside provides supportive housing and programming for women in recovery. Wayside currently has 16 project based vouchers and they self- subsidize rents on four of their units. Page 26 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 54 Page 26 2021 Housing Activity Report Table 9: HCV Lease-Up Report Housing Choice Voucher – Lease Up Report December 31, 2021 Units HUD Allocated Vouchers 342 Vouchers Issued (Executed, Pending, Outstanding and Leased Project Based, excludes Port-outs) 267 Unleased Project-Based (PB) 2 Vouchers Outstanding 4 Executed St. Louis Park Contracts: Housing Choice Vouchers 156 Tenant Protection Vouchers 21 (Lou Park) Excelsior & Grand 18 Vail Place 8 Wayside Supportive Housing 12 Perspectives 11 Mainstream 13 FUP 23 263 Port-Ins 30 Port-Outs 69 Pending Port-Outs 4 Executed and Pending 336 Total Administered 332 Summary: % Utilized, Pending, Outstanding & Unleased PB 98% Stable HOME Rental Assistance Program – 50% AMI The Stable HOME program provides rent assistance to low-income singles and families who were homeless or would otherwise be at risk of homelessness. Rent assistance is limited to three years. During the three years, participants must establish good rental histories. They must also work to improve their earnings enough to where they do not need rental assistance. The program is administered by the Housing Authority, but participants are free to choose a rental unit anywhere in Hennepin County except Minneapolis. Participants are referred to the program by Hennepin County. This program is funded with federal HOME funds allocated to the county. 41 families throughout suburban Hennepin County were served by this program 2021. Kids in the Park Rent Assistance Program – 50% AMI and below – city funded Kids in the Park provides rent assistance to households with school-age children for up to four years. Participants receive a flat, monthly rental assistance subsidy that decreases annually over the four-year period. Eligible households must have an income at or below 50% of the area median income, a child attending school in St. Louis Park, one parent or guardian that works a minimum of 28 hours per week, live in rental housing in St. Louis Park, and comply with their lease. Families with disabled and elderly heads of household do not need to comply with the work requirement and due to COVID 19 the Housing Authority temporarily waived the 28 hour per week work requirement for all households. The program was developed in partnership with the St. Louis Park Emergency Program (STEP) and the St. Louis Park School District. The Kids in the Park program began serving 9 families in December 2017. Funding was increased for 2018 to serve 14, 2019 served 17 families and in 2020 that number increased to 20 families. In 2021, the Kids in the Park program remained at 20 families. Page 27 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 55 Page 27 2021 Housing Activity Report 8. PROGRAM DESCRIPTIONS Technical, Design, and Conservation Services Architectural Design Service – no income restrictions This service provides an architectural consultation for residents to assist with brainstorming remodeling possibilities and to raise the awareness of design possibilities for expansions. Residents select an approved architect from a pool developed in conjunction with the MN Chapter of the American Institute of Architects. All homeowners considering renovations are eligible for this service; however, to ensure committed participants, residents make a $25 co-pay. Remodeling/Rehab Advisor – no income restrictions The intention of this service is to help residents improve their homes (either maintenance or value- added improvements) by providing technical help before and during the construction process. All homeowners are eligible for this service regardless of income. Resident surveys indicated that homeowners valued the service and would recommend it to others. The city contracts with the Center for Energy and Environment (CEE) for this free service to homeowners. Home Energy Squad Enhanced Visit – no income restrictions Home Energy Squad Enhanced program is a comprehensive residential energy program designed to help residents save money and energy and stay comfortable in their homes. The program, which began in March 2012, is administered by the Center for Energy and Environment (CEE). The city pays $50 per resident visit which is leveraged with funds from Xcel Energy, Center Point Energy, and CEE. The cost per resident is $50 per enhanced visit. Free home energy visits are available to low-income households. The home energy squad consultant evaluates energy saving opportunities and installs the energy- efficiency materials the homeowner choses including door weather stripping, water heater blanket, programmable thermostat, compact fluorescent light bulbs, high efficiency shower heads, and faucet aerators. They will also perform diagnostic tests including a blower door test to measure the home for air leaks, complete an insulation inspection, safety check the home’s heating system and water heater and help with next steps such as finding insulation contractors. All single family and duplex homeowners are eligible. Renters qualify for the installed visit ($30) without diagnostic tests. The Home Energy Squad Enhanced visits qualified residents for CEE’s low interest financing and utility rebates, and they also notify residents of the city loan and rebate opportunities. Annual Home Remodeling Fair The cities and school district community education departments of St. Louis Park, Hopkins, Minnetonka, and Golden Valley co-sponsor the annual home remodeling fair. The fair provides residents an opportunity to attend seminars, talk with vendors and city staff about permits, zoning, home improvement loans, and environmental issues related to remodeling. The fair is a self-sustaining event and vendor registration fees cover the costs. Home Remodeling Tour The annual tour is designed to meet the housing goal to remodel and expand single-family owner- occupied homes. The self-guided tour of six homes provides a showcase of a variety of home remodeling projects to provide ideas, information, and inspiration to other residents considering remodeling. Page 28 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report 56 Page 28 2021 Housing Activity Report Construction Management Plan The city recognizes that many households are looking for larger homes and supports keeping families in the city. As a result, significant additions and/or tearing down of existing homes and rebuilding larger homes is becoming more common. Because St. Louis Park is a fully built community, these major additions and construction of new homes impacts the surrounding neighbors. Effective November 15, 2014, major additions (second story additions or additions of 500 square feet or more), demolitions and new construction need to comply with a Construction Management Plan (CMP) per City Code 6-71. Major additions, tear downs and new construction are required to send a written neighborhood notification to neighbors within 200 feet of the property. Demolitions and/or new construction also require a neighborhood meeting and signage. Financial Programs In an effort to encourage growing families to stay in St. Louis Park, the city has developed and implemented a number of programs toward this effort. Discount Loan Program – serves households with incomes at or below $156,000 This program encourages residents to improve their homes by “discounting” the interest rate on the Minnesota Housing Finance Agency (MN Housing) home improvement loans for income eligible residents. Eligible improvements include most home improvement projects with the exception of luxury items such as pools. Implementation of discounting of MHFA loans began in late 1999 as a pilot project. In the past the city would buy down the interest rate for income eligible households. Since 2000 the interest rate has been below the buy down rates, so the city has not had to buy down the interest rate for this program in 2020 or 2021. Residents can apply through CEE to utilize this loan. Move – Up Transformation Loan – 100/115% AMI The purpose of this loan is to encourage residents with incomes at or below 100/115% of median area income ($120,600 for a family of one - four) to expand their homes. The program provides deferred loans for 25% of the applicant’s home expansion project cost, with a maximum loan of $25,000. The revolving loan pool will continue to fund future expansions. This loan requires significant upfront work by the residents, from deciding on the scope of the project to selecting contractors. Loan guidelines are: •Only residents making significant expansions are eligible. The minimum project cost must exceed $35,000. •The maximum loan amount is $25,000. •The loan has 0% interest with a carrying cost fee of 3% paid by the borrower which covers the lender’s administrative fee. •Loan is forgiven after 30 years if homeowner continues to live in the home. Green Remodeling Program & Energy Rebates – 115% AMI $120,600 The Green Remodeling Program includes the Home Energy Squad Enhanced home visit program, use of energy rebates, and access to CEE’s Home Energy Loan. The city provides a match of 50% of gas and electric utility rebates for energy efficient furnaces, water heaters, air conditioners and qualifying air sealing and insulation. CEE also provided low interest loans to residents making qualifying energy improvements and St. Louis Park residents can take advantage of this loan. This energy improvement loan has no income restrictions and there is no cost to the city. Emergency Repair Grant The city offers emergency repair grants for households below 50% area median income to make immediate emergency repairs such as furnace replacement, roof repair, plumbing or electrical emergencies, etc. This program is administered by Sustainable Resources Center (SRC). 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