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HomeMy WebLinkAbout2023/04/10 - ADMIN - Agenda Packets - City Council - Study Session AGENDA APRIL 10, 2023 Members of the public can attend the meeting in person, watch by webstream at bit.ly/watchslpcouncil, or watch on local cable (Comcast SD channel 17/HD channel 859). Recordings are available to watch on the city’s YouTube channel at https://www.youtube.com/user/slpcable, usually within 24 hours of the end of the council meeting or study session. 6:00 p.m. 2023 ST. LOUIS PARK LOCAL BOARD OF APPEAL AND EQUALIZATION – council chambers Action items 1. 30 min. Convene the St. Louis Park Local Board of Appeal and Equalization 6:30 p.m. STUDY SESSION – council chambers Discussion items 1. 60 min. American Rescue Plan Act (ARPA) spending recommendations Recess (at approximately 7:55 pm) -- The city council will take a short recess so that those who observe Ramadan may break their fast. Discussion items continued 2. 30 min. Public sewer and water utilities protection program 3. 30 min. Bulk material containers in the right of way Written reports 4. Minnehaha Greenway – Cedar Lake regional trail connection 5. 2022 housing activity report 6. Adjustment to allowable hours of construction The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available after noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Local Board of Appeal and Equalization Meeting date: April 10, 2023 Action agenda item: 1 Executive summary Title: 2023 St. Louis Park Local Board of Appeal and Equalization Recommended action: Mayor to convene the meeting, following agenda is suggested. 1.Convene the St. Louis Park Local Board of Appeal and Equalization 2.Roll Call of Board Members – Declaration of Quorum 3.Motion to Appoint Chair 4.Acknowledgement of Trained Member (Nadia Mohamed & Sue Budd) 5.a. Accept Roster of Appellants b. Call for Any Additional Appellants 6.If necessary – Motion to set Date and Time for Continued Proceedings (Reconvene) Suggested as April 24, 2023 prior to Study Session 7.Instruct Assessor to: a. Inform Appellants of Reconvene Date & Board Process via Telephone and Mail b. Inform Appellants of the County Board Application Date (May 17 Requested) c. Re-Inspect and Re-Appraise Parcels Under Appeal 8.Completion of the Local Board Certification Form 9.Motion to Recess Policy consideration: Local Boards and/or Open Book Meetings are required by law. The Board must complete its business within 20 days (April 10 is day one, April 29 is therefore the deadline). Summary: Minnesota statute requires that all properties are valued at full market value. All property owners, tenants and those having an interest in real property are entitled to appeal their classification and market value. The property classification is determined by the actual use of the property. The market value is an opinion based on records maintained for every property and the market conditions as of the date of assessment (January 2). Financial or budget considerations: Not applicable for budgeting from the perspective of the taxing jurisdictions. Changes made by the Board may affect the property owner’s share of the total property tax budgets as levied for the Payable 2024 tax period. Strategic Priority Consideration: Not applicable. Supporting documents: Summary of duties and responsibilities Sample letter – to be sent to each appellant on April 12 Board of Appeal and Equalization Training (state.mn.us) Prepared by: Cory Bultema, city assessor Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager Page 2 Local Board of Appeal and Equalization of April 10, 2023 (Item No. 1) Title: 2023 St. Louis Park Local Board of Appeal and Equalization SUMMARY OF DUTIES AND RESPONSIBILITIES Local Board of Appeal and Equalization Most of the responsibilities listed under the Local Board of Appeal and Equalization are statutory, primarily found in Minnesota Statutes 274.01. Additional reference is provided by the MN Department of Revenue Board Training Manual (updated 12-2021 – direct link on page 1). •The valuation notices shall be in writing and sent by ordinary mail at least ten calendar days before the meeting. The valuation notice will include the date, place and time set for the meetings of the Local Board of Appeal & Equalization as well as the County Board of Appeal & Equalization. •The City Clerk shall give published notice and posted notice of the meeting. The meetings must be held between April 1 and May 31 including reconvene meetings. The board must complete its work and adjourn within 20 calendar days – convene date is day one. In terms of practical compliance, the Local Board should not run later than early May in order for the County Board to effectively operate within its statutory time window (June). •The Local Board of Appeal and Equalization is an official public meeting similar to a City Council public hearing and cannot convene without a quorum. The city assessor, the county assessor, or one of their assistants are required to attend. •At least one member present at each meeting of the Local Board of Appeal and Equalization must be certified as having completed the Minnesota Department of Revenue (MN DOR) Board of Appeal and Equalization training. Training is good for four board years as listed on the MN DOR record. •The board should run the meeting as a fair and impartial review of the appeals. The property owner is the appellant and assessing staff are the respondent. The board may ask questions to clarify facts and background. It is suggested all appeals are heard before the Board begins deliberations on each. •Local Boards of Appeal and Equalization must see that all taxable property is properly valued and classified for the current assessment year only. The board does not have the authority to reopen prior assessments on which taxes are due and payable (taxes may not be appealed). The board may add a property to the assessment roll if it has been omitted. •Individual board members cannot participate in actions or discussions of appeals involving their own property, property of relatives, or property in which they have a financial interest. •The Local Board may not increase or decrease all assessments in a district of a given class of property. Changes by class may be made by the County Board of Equalization. •The Local Board may not make a market value or classification change that would benefit the property in cases where the owner or other person having control over the property will not permit the assessor to inspect the property and the interior of any buildings or structures. •Although the Local Board of Appeal and Equalization has the authority to increase or decrease individual assessments, the total of such adjustment must not reduce the aggregate assessment by more than one percent. If the total reductions would exceed one percent, none of the Page 3 Local Board of Appeal and Equalization of April 10, 2023 (Item No. 1) Title: 2023 St. Louis Park Local Board of Appeal and Equalization adjustments may be made. The assessor shall correct any clerical errors or double assessments discovered by the board without regard to the one percent limitation. •If an assessment was made after the local board meeting or if a taxpayer can establish not having received the notice of market value at least five days before the meeting, they can appeal to the County Board of Appeal and Equalization. •The board may find instances of undervalued properties. The board must notify the owner of the property that the value is going to be raised. The property owner must have the opportunity to appear before the board if they so wish. •The local boards do not have the authority to address exemption issues. Only the county assessor (and the tax court) has the authority to exempt property. They also have no jurisdiction over special programs for which an application process is required (Veterans Exclusion, Market Value Homestead Exclusion, Blind/Disabled, Low Income Rental Classification, Green Acres, etc.). •A taxpayer may appear in person, by council, or written communication to present his or her objection to the board. The focus of the appeal should center on the factors influencing the estimated market value or classification placed on the property. •All changes will be entered into the record as required by the MN Department of Revenue. •Before adjourning, the local board should prepare an official list of the changes. The law requires that the changes be listed on a separate form. All assessments that have been increased or decreased should be shown on the form along with their market values. •Administrative Rules from the Department of Revenue (2013): The Assessor may not make administrative changes to the valuation or classification less than 10 days prior to the Board. All contemplated changes should be brought to the Board for review and approval. •Directive from the Department of Revenue (2015): assessing staff from Hennepin County will attend Local Board meetings. The purpose of attendance is to assure legal compliance. •Directive from the Department of Revenue (2017): the Board is required to hear appeals from date of the published meeting through adjournment. A comment: It had been the practice of the St. Louis Park Board to close the roster at the completion of the initial convene meeting date as formally published – the directive effectively eliminates roster closure until adjourned. To comply, it is recommended that the Board decide last moment appeals on a case-by-case basis as best possible. Action may include resolving the appeal or simply accepting the appeal with no change to preserve the owner’s right to be eligible for the County Board. •Following each board meeting, a letter is sent to the owner of each property in appeal. The sample letter following the initial convene meeting is attached. •At the convene meeting on April 10, the Board will be given two outlines to assist in conducting an efficient and productive meeting. One will be the Agenda as the Board process is quite specific in format. The other will be the Board appellant roster which is updated at 4:30 pm. Page 4 Local Board of Appeal and Equalization of April 10, 2023 (Item No. 1) Title: 2023 St. Louis Park Local Board of Appeal and Equalization SAMPLE LETTER TO ALL BOARD ROSTER PROPERTIES Address line 1 April 12, 2023 Address line 2 Address line 3 Re: St. Louis Park Local Board of Appeal & Equalization Subject Address (generally three lines) Property ID #: xx-xxx-xx-xx-xxxx Dear : The Board convened on April 10 and the above-referenced property has been entered onto the appeal roster. You are receiving both a telephone call and this written communication to inform you that the reconvene date has been scheduled for x:xx pm on April 24, 2023. The meeting will be at city hall in the Council Chambers. Should the meeting format need to shift to virtual access, we will inform you as soon as possible and also send you the log-in directions when they are available. Appeals will be reviewed at this meeting. The following are important for you to know: •The Board encourages assessing staff and owners to discuss the valuation questions to resolve them to mutual agreement. This is an important component of the Local Board process. If the assessing staff and you as the owner can mutually agree to resolve the matter, the agreement will be reported to the Board. While it is common that that the Board ratifies mutual agreement, please note that the Board is the decision maker on the issue. This method of resolution is often preferred by property owners as it is not necessary to prepare presentation materials or to provide testimony before the board. •For the cases that are not resolved, the following format and process are outlined to assist you in the next steps on how the Local Board functions. •If your property is income producing (i.e. rental), please submit a building floorplan showing gross and net rentable square footages, rent roll as of the assessment date, complete copy of the executed lease(s), annual income & expense statement for the prior year and the budget forecasted for the current year. This information will be reviewed for valuation via the Income Approach. The information submitted will be held confidential and not released to the public. Failure to provide the information will result in my formal request to the Board to sustain the value due to the refusal to provide information that is highly germane to the value question. •The Board has directed that they will review written information regarding your opinion of the market value as of January 2, 2023 before the meeting. We strongly recommend factual transactions (sales, rents, construction costs) that relate directly to your property. The initial assessed market values for all property types are set using market information in the time period just before the assessment date. This is very important in setting the assessment as the value influences are equalized relative to the market at that point in time. The potential value influences arising from the pandemic and/or recent interest rate changes have been viewed from the perspective of the market in setting the 2023 assessment. Page 5 Local Board of Appeal and Equalization of April 10, 2023 (Item No. 1) Title: 2023 St. Louis Park Local Board of Appeal and Equalization •Assessing staff likewise prepares written information on each open appeal and submits it to the Board prior to the meeting. If you would like your materials to be included in the Board packet, please provide it to me by e-mail attachment by 12:00 Noon on Tuesday April 18 to allow time for addition to the Board packet. •The Board has directed that they will hear testimony during the meeting. When mutual agreement cannot be reached, the Board hears the case. You, as the appellant, are allowed about 5-10 minutes to present your written and verbal information on the market value. The assessing staff, as the respondent, are allowed about 3-5 minutes to review their information and value conclusion. The Board hears the information and decides the market value and/or classification as of January 2, 2023. •The Board has full authority to sustain, increase, or decrease individual assessments. In the event that assessing staff revaluation review is a recommendation to the board for value increase – you will be notified prior to the meeting. •The Board does not have authority to reopen prior assessments. The Board does not have authority to change current and past real estate taxes. •If the Assessing staff has not already inspected your property within the last year, they must complete an interior and exterior inspection to form the basis of a revaluation. Important: Refusing access precludes the Board from taking action that would benefit the owner (MN statute 274.01). •Upon completion of the Local Board, you will be notified via letter of the Board action. If you do not agree with the Local Board decision, you are eligible to attend the Hennepin County Board of Appeal & Equalization which convenes in June. An application to appear before the County Board is requested by May 17, 2023. If you have any further questions on the Local Board process, do not hesitate to contact me directly. Cory Bultema, City Assessor Assessing Office | City of St. Louis Park 5005 Minnetonka Blvd, St. Louis Park, MN 55416 Direct: 952-924-2536 | Fax: 952-924-2170 www.stlouispark.org Experience LIFE in the Park Meeting: Study session Meeting date: April 10, 2023 Discussion item: 1 Executive summary Title: American Rescue Plan Act (ARPA) spending recommendations Recommended action: Provide direction to staff on allocation of remaining ARPA funds. Policy consideration: 1.Does council support staff’s recommendation to allocate approximately $517,000 of ARPA funds toward internal service and customer support projects so that the city can continue providing high-quality service to customers and employees? 2.Does council support allocating all or a portion of the approximately $2,123,131 remaining ARPA funds in the following manner (select a, b, or c)? a. Existing or anticipated city projects that are ARPA eligible, align with adopted strategic priories, and provide relief to the general levy? b.New city projects that are APRA eligible and align with adopted strategic priorities? c.Requests from external agencies? Summary: In 2022 and 2023, the city received a total of $5,317,881 from the American Rescue Plan Act (ARPA). The city must obligate these funds for specific purposes by December 31, 2024, and spend the funds by December 31, 2026. Treasury regulations stipulate how funds can be expended as well as restrictions on the use of the funds. The allowable expenditures are as follows: •Replace lost public sector revenue •Support the COVID-19 public health and economic response •Invest in water, sewer, and broadband infrastructure. The option that allows the most flexibility is using the funds for the replacement of lost public sector revenue. This money can be spent on government services. This includes any service traditionally provided by a government. Staff have suggested additional projects and programs that meet the guidelines for spending and have a positive impact on our community. Financial or budget considerations: Decisions made will have lasting financial and operational impacts on St. Louis Park. See report for specifics and options. Strategic priority consideration: Depending on allocation decisions, any number of the city’s strategic priorities could be advanced. Supporting documents: Discussion Prepared by: Jean McGann, interim finance director Cheyenne Brodeen, administrative services director Reviewed by: Cindy Walsh, deputy city manager Approved by: Kim Keller, city manager Study session meeting of April 10, 2023 (Item No. 1) Page 2 Title: American Rescue Plan Act (ARPA) spending recommendations Discussion Background The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program, a part of the American Rescue Plan Act (ARPA), delivered $350 billion to state, local, and Tribal governments across the country to support their response to and recovery from the COVID-19 public health emergency. Funds were dispersed directly to local government agencies to determine how best to allocate the funds. In 2022 and 2023, the city received a total of $5,317,881 ARPA funds. The city must develop a plan to spend these funds for specific purposes by December 31, 2024, and spend the funds by December 31, 2026. Treasury regulations stipulate how funds can be expended as well as restrictions on the use of the funds. The allowable expenditures are as follows: • Replace lost public sector revenue • Support the COVID-19 public health and economic response • Invest in water, sewer, and broadband infrastructure The option that allows the most flexibility is using the funds for the replacement of lost public sector revenue. This money can be spent on government services. This includes any service traditionally provided by a government. Some examples would include, but not be limited to: • Road building and maintenance and other infrastructure • Health services • General government administration, staff, and administrative facilities • Environmental remediation • Provision of police, fire, and other public safety services (including purchase of fire trucks and police vehicles) The following are ineligible uses or restrictions on the funds: • Offset a reduction in net tax revenue – If taxes are cut during this period, the city must demonstrate how it paid for the tax cuts from sources other than ARPA • Deposit into a pension fund • Making debt service payments • Replenishing or building up fund balance • Satisfying settlements and judgments This report outlines a plan in which to spend the funds that have been allocated to St. Louis Park. The guiding principles that were used to develop this plan are: alignment with the city’s strategic priorities, the ability to continue to provide high-quality services to residents that fit our operational and service delivery needs, and reduced pressure on the general levy. The report provides a summary of decisions-to-date regarding ARPA funds, staff recommendations on funds needed to continue offering high-quality operations, and an outline of potential city expenditures that would meet our city priorities while reducing pressure on the general levy. Study session meeting of April 10, 2023 (Item No. 1) Page 3 Title: American Rescue Plan Act (ARPA) spending recommendations Current state Projects and programs previously directed by council The council previously provided direction to expend ARPA dollars in a number of ways with flexibility to ultimately expend the dollars to maximize both ARPA and general fund revenue. Ultimately, ARPA dollars have been or are expected to be expended as follows: Project Total allocation Budget year(s) City priority Vaccine incentives $2,750 2022 Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. May 26 and June 3, 2022 watermain break recovery $ 1,500,000* 2022 and 2023 Providing a variety of options for people to make their way around the city comfortably, safely and reliably. Various capital project investments $1,000,000 2023 and 2024 Providing a variety of options for people to make their way around the city comfortably, safely and reliably. Hennepin County Social Worker $65,000 2023 Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. Dakota Park Bridge $110,000** 2024 Providing a variety of options for people to make their way around the city comfortably, safely and reliably. *The program closes on August 1, 2023 and final dollar figures should be available in September 2023. **Council previously provided direction to expend $110,000 on replacing the Dakota Park Bridge. With the increase in total cost to $220,000, council directed staff to do further engagement to inform their decision on replacement or rerouting. This decision will come to the Council later this spring. If Council elects to reroute the trail rather than reinstall a bridge, a portion of the $110,000 could be used for another program or project. Estimated ARPA dollars remaining for future allocation After subtracting for previously allocated funds, staff estimates $2,640,131 of ARPA funds will remain once the final watermain break expenses are determined. Direction needed Staff is requesting direction to help guide decision-making for the remaining ARPA funds. Staff recommends capturing a portion of the remaining dollars to fund important projects that are critical for internal services and ensuring our ability to serve customers and employees. The final dollar amounts will continue to be refined throughout the 2024 budget process. Internal service and customer support projects Staff recommends allocating approximately $517,000 for internally facing projects that enable the city to deliver high-quality public service as an employer and service-delivery organization. Study session meeting of April 10, 2023 (Item No. 1) Page 4 Title: American Rescue Plan Act (ARPA) spending recommendations • Financial and utility billing software ($167,000): The existing financial and utility billing software has been in use since 2001. The city is scheduled to replace its financial and utility billing software in 2024. The full cost of the new system is programmed to be $467,000; $300,000 of this is already budgeted in the Capital Improvement Plan (CIP). Staff recommends funding the remaining expense via ARPA funds. • Financial services contract ($350,000): The upcoming financial and utility billing software conversion and vacancies in the finance division have led the city to utilize contract services. The contract encompasses several bodies of work, and staff recommends funding a portion of the contract via ARPA dollars. The contract will be brought to council on April 17 for final approval. Strategic priority-based projects After allocating $517,000 for internally facing projects, there is $2,123,131 remaining to allocate. Staff suggests consideration of the following capital and operational needs that are ARPA-eligible, advance the city’s strategic priorities, and provide relief to the general levy. Staff has developed an option to utilize the remaining funds while meeting all three of the objectives above. The table below outlines staff’s best current analysis of projects that meet the criteria established above. Council should expect specifics to continue to be refined as additional project and funding details are solidified throughout the year. Project + description Strategic priorit(ies) Recommended total investment Race Equity and Inclusion: Community engagement to develop a race equity and inclusion policy Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. $30,000 Civic and community engagement: Community and civic engagement to 1) create community identity, and 2) guide development of and implementation toward Vision 4.0 and strategic planning Creating opportunities to build social capital through community engagement. Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. $100,000 Water infrastructure: Underwrite a portion of needed watermain infrastructure in 2024-2025 pavement management projects Providing a variety of options for people to make their way around the city comfortably, safely and reliably. $693,131 Cedar/Louisiana project: Underwrite a portion of the project, reducing needed General Obligation bonds Providing a variety of options for people to make their way around the city comfortably, safely and reliably. $1,000,000 Energy improvements: Underwrite additional energy improvements or programming in city facilities; potentially including city owned housing units. Continue to lead in environmental stewardship. $300,000 Study session meeting of April 10, 2023 (Item No. 1) Page 5 Title: American Rescue Plan Act (ARPA) spending recommendations Alternative proposal Alternatively, council could direct staff to come back with a plan that focuses on: 1. Different strategic priorities or criteria 2. Requests from external agencies 3. A combination of “1” and “2” Next steps Council is asked to provide direction on two policy questions. Staff will incorporate this direction into the 2024 budget process. Meeting: Study session Meeting date: April 10, 2023 Discussion item: 2 Executive summary Title: Public sewer and water utilities protection program Recommended action: Direct staff to continue the development of an ordinance to support public sewer and water utilities. Policy consideration: Does council want to reaffirm a previous direction to staff to develop an ordinance for establishing a public sewer and water utilities protection program. Background information: This report was previously submitted for discussion during the August 12, 2019 study session. At that time, the council consensus was to support a public sewer and water utilities protection program (fats, oils and grease (FOG) and backflow program) and for staff to prepare the first reading of the ordinance. Due to the pandemic, this ordinance was not brought forward. Staff is recommending continuing the process for implementation in 2024. Summary: This report discusses protecting two aspects of utility infrastructure by: 1) reducing potential for sewer backups by limiting FOG generated by food service businesses from entering sanitary sewer lines; and 2) testing of water backflow devices to verify they are operational in preventing public water supply contamination from private building processes. FOG generation is primarily from commercial food preparation and dish washing. A functioning grease interceptor should collect much of the grease. However, when clogged or not functioning properly, FOG bypasses the interceptor and flows from the building drain into city sewer mains. Once FOG cools, it will solidify in the pipe and cause blockage. When a blockage occurs, a sewage back-up affecting many properties may occur. Developing a proactive annual business licensing and inspection program to help ensure grease traps are properly sized, installed, and operating is proposed. Protection of potable water from contaminates originating within buildings is regulated by the MN state plumbing code. Industrial processes, boilers, and irrigation systems often utilize chemicals that are dangerous if consumed. Specific types of backflow valves must be installed when these sources could allow transfer of chemicals into the municipal water supply. Backflow valves are required to be tested annually for proper operation by the MN state plumbing code. A water backflow valve registration and formalized testing program is proposed to satisfy the city’s responsibility and protect the municipal water supply. Financial or budget considerations: The license and registration programs are being proposed as substantially fee-for-service. Details are outlined in the report. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion Prepared by: Dave Skallet, chief building official, Jay Hall, public works director Reviewed by: Brian Hoffman, building and energy director Approved by: Kim Keller, city manager Study session meeting of April 10, 2023 (Item No. 2) Page 2 Title: Public sewer and water utilities protection program Discussion Background: Public process In 2019, informational notices were sent out to residents and businesses prior to the public meetings. Meetings were held but were not well attended. At that time, staff did not receive opposition from fog or backflow owners. When the pandemic occurred in 2020, ordinance development and publishing for the first reading was paused. If council would like staff to pick up this process, staff recommends utilizing the “consult” stage of the IAP2 process. Fats, oils and grease (FOG) FOG generation and disposal primarily occurs through commercial food preparation and dish washing. A properly sized and functioning grease interceptor, located either within or outside the building, should collect and hold much of the grease. If not functioning properly however, FOG will be discharged from the building drain and flow into city sewer mains. FOG will then cool in the pipe and solidify, causing blockages. City sewer mains connected to businesses discharging FOG have a history of needing more frequent cleaning. Utility division staff maintain all sanitary sewer mains by cleaning on a regular basis of every 4-5 years. Several main lines and lift stations experiencing FOG problems need to be cleaned about every 6-months. Total annual cost of staff hours for cleaning all the city sewers is about $250,000. Approximately $30,000 of this staff time cost is due to the more frequent cleaning of areas with FOG accumulation. When FOG solidifies in a service line from a building, the sewage from that building will back up inside through floor drains or other plumbing fixtures on the lowest level. This triggers the owner to call a contractor for cleaning. Main line clogs have the potential to have significant and unpleasant effects on the greater public. When a sewer main gets plugged, the flow will back-up into other connected buildings or onto the street. This has occasionally occurred in St. Louis Park. The following link is to a short video providing a visual of how FOG can accumulate inside a sewer main, eventually resulting in a blockage: https://youtu.be/zm6QVqTUfjo City staff have been called out to find the blockage and clean mains to get the system working. Once on city streets, sewage may drain into the storm sewer system and into our lakes and creeks, resulting in the MN Pollution Control Agency (MPCA) becoming involved to ensure cleanup. Sewage backup in both commercial and residential buildings will often cause significant property damage. Businesses may also need to temporarily close. A FOG blockage is not always traceable to the source, especially with multiple restaurants in an area. To prevent FOG from entering sewers, grease interceptors are designed to help cool the hot FOG-laden water leaving a kitchen and trap the solidifying FOG. Grease interceptors may be located on or beneath the kitchen floor to collect only discharge from the three-compartment sink (where pots and pans are typically cleaned). Interceptors are also used for treating the entire kitchen area plumbing drains. These larger interceptors are often located underground outside the building and similar to a septic tank. State plumbing code has required installation of a grease interceptor where grease is likely to be generated since 2009. Interceptors were Study session meeting of April 10, 2023 (Item No. 2) Page 3 Title: Public sewer and water utilities protection program also required during earlier years for most buildings where food service was proposed. Hennepin County Environmental Health is delegated by the Minnesota Department of Health to administer the state food code in St. Louis Park for food service. This includes the licensing and inspection of approximately 150 food service establishments of various types in the city. These establishments pay an annual license fee ranging from $230 - $1,470 based on risk class and size. The Minnesota Department of Agriculture (MDA) licenses and inspects the remaining establishments involved with food manufacturing and retail food sales (retail sale of packaged food does not create FOG discharge). The state health code does not require grease trap installation or that they be kept clean and operational, therefore neither the county or state inspectors include grease trap installation, operation, or maintenance as part of regular inspections. There is currently no regulation or program in place that allows city staff to inspect grease traps and interceptors, or to respond when resulting issues are discovered. The current state plumbing code requires installation only during new buildings with grease production potential. Staff is estimating that there are about 110 establishments that would require a license for FOG generation if this program were implemented. Many communities across the country have been utilizing inspection programs for managing FOG for years. Communities with local wastewater treatment have significant concerns with main-line accumulation and end-point treatment. Locally, Golden Valley has begun a FOG management program that includes excellent educational materials. Water backflow protection valves Minnesota state statutes place responsibility for compliance with the Safe Drinking Water Act on the water purveyor through the Department of Health and the Department of Labor and Industry. The Safe Drinking Water Act and its regulations cover all potable water systems and states that “minimum" protection should include programs that result in the prevention of health hazards, such as cross connections.” Protection of potable water from contaminates originating within all buildings is regulated by the MN state plumbing code. A requirement present in the code for many years has been that backflow valves must be installed when any equipment or connection could allow transfer of chemicals into the water supply. A water main break, for example, can temporarily cause a negative pressure suction, drawing contaminates into water pipes. Most of the estimated 1,500 backflow devices currently in service are located in commercial buildings, protecting the city water supply from soaps, fertilizers, chemicals, and acids. Some residential buildings utilize these devices when potable water is connected directly to boilers or irrigation systems. The degree of hazards determines the type of backflow device required to protect the water supply. Although there are several types, the current State plumbing code requires only following specific types of backflow valves be tested due to their complexity and lack of signal if they fail: • Double check valve backflow prevention assembly (DC) • Pressure vacuum breaker backflow prevention assembly (PVB) • Spill resistant pressure vacuum breaker (SVB), Study session meeting of April 10, 2023 (Item No. 2) Page 4 Title: Public sewer and water utilities protection program • Reduced pressure principle backflow prevention assembly (RP), • Double check detector fire protection backflow prevention assembly, • Reduced pressure detector fire protection backflow prevention assembly State code previously required only RP type valves to be tested. The city has maintained an inventory of these and mails annual courtesy reminder letters to property owners. Without an ordinance specifying requirements or consequences, there is no verification and many valves go untested. The latest MN plumbing code adoption during 2016 created changes in types of backflow devices and required testing. Many cities have begun evaluation of how to comply and some have already fully implemented them. Staff has reviewed the Minneapolis, Eagan, Owatonna, and Rochester programs during the process of developing an effective and efficient proposal. Proposed programs: Fog As it affects operations and the public, utilities and building and energy inspectors have discussed the severity of this problem in sanitary sewers for several years. Grease collectors need to be maintained through good disposal practices and regular cleaning. Proper disposal of collected FOG is also part of ensuring it does not enter the sanitary system. Amending city code chapter 6 for business licensing provides a sound regulatory frame for adding a program to help reduce FOG and would utilize the current licensing system. Permit technicians, inspectors, and administrative staff within building and energy currently administer the other general business license types. Commercial and industrial businesses producing FOG with discharge to the sanitary sewer system would be added as a business license type. Program steps for a licensed food establishments follow best practices for maintenance of grease traps and interceptors, are similar to our other business license programs, and would include: 1. City sends an annual license application to each FOG-generating business during November after the fee schedule is established. 2. Business owner/manager completes application and submits with license fee by December 31. 3. City issues annual license with educational material. 4. Staff contact businesses during the year to schedule inspection. Frequency would depend on size and type of grease interceptor, amount of use, and type of cooking. 5. An inspector verifies compliance or develops a plan for improvement. Inspection to verify cleaning would occur at least annually and could be quarterly if needed. The program would also expect businesses to establish a cleaning log with verification. While some interceptors may require weekly or monthly cleaning, inspection at this frequency is not needed or possible. About 100 or more of the county licensed food establishments are grease producing and expected to be city licensed. Probably another 10 establishments under MDA licensing would also be included. The focus will be on education to encourage Study session meeting of April 10, 2023 (Item No. 2) Page 5 Title: Public sewer and water utilities protection program owners/operators to maintain proper grease interceptor operation. There may be a few businesses, due to age or changed use, which do not have a grease trap or interceptor installed. In these businesses, the city is unable to require a retrofit installation of grease collection device if the building remains in compliance with the code at the time of construction. These establishments may need assistance to install the appropriate device at a cost of $5,000 - $15,000 depending on size and location. A city loan program or property assessment program to assist with retrofit installations should be considered. Staff has inquired with Metropolitan Council Environmental Services about developing a grant program for installation. For establishments without grease interception the incidence of FOG accumulation within the city sewer main is higher. To cover the city cost of performing added preventive sewer main cleaning at these business locations, an annual city sewer cleaning recovery charge is proposed. The cost of public works staff cleaning a typical sewer main that has a food establishment service entering is several hundred dollars. A licensed FOG establishment without a grease trap or interceptor would have a cleaning fee, potentially around $350, added to their annual license cost. With financing incentives and facing a higher annual total license cost, the intent is to encourage grease trap installation and best practices. Backflow valves The city is responsible for administering the State plumbing code and keeping the potable water system safe. One responsibility is to ensure that all testable backflow prevention devices connected to the water system, on public and private property, are tested yearly by a certified tester to determine they are functioning properly. Developing a program to verify testing must account for various considerations. These include: 1) many irrigation system valves are re-installed each spring; 2) the code requires the 12-month testing interval begin when each valve is installed or replaced; 3) valves are used in both residential and commercial buildings; 4) some buildings have several valves, some installed at different times. The simplest and lowest cost method for meeting the requirements is a registration program for tracking each of the over 1500 backflow valves. Program steps would include: 1. City sends owner a letter and educational material 60-days before valve test due date as established by anniversary of installation or last test and test form. 2. Owner contacts a certified tester to complete testing of the valve. 3. Contractor completes testing form and either the contractor or owner mails form with registration fee to city. 4. If the valve fails, a licensed plumber would obtain a permit from the city and either repair or install a new valve. 5. City records test data and follows up with owners on valves not being tested within 12- months. 6. New valves installed during construction projects are added to the inventory with date of operation. Education materials will be distributed to the owner with certificate of occupancy. Study session meeting of April 10, 2023 (Item No. 2) Page 6 Title: Public sewer and water utilities protection program A testing certification can be obtained by a licensed plumber or other person completing training and passing an examination. Only a MN licensed plumber is authorized to perform repairs or replacement of the valves. Property owners would be responsible for hiring a contractor of choice. The cost will vary and is set by the individual tester. Staff has been told it may amount to a couple of hundred dollars for a single valve on a site, and less for multiple valves when done simultaneously. Financial considerations The license and registration programs are being proposed as substantially fee-for-service. With sensitivity toward small businesses still in recovery and homeowners that may have a backflow prevention device, moderate license and registration fees are proposed that would generate about 70% - 80 % of the approximately $80,000 - $120,000 in total annual city expenditures to create and operate the programs. Due to the safety benefits provided to all city infrastructure users, about thirty percent of the total program cost is proposed to be transferred annually from the water and sewer funds to provide a neutral outcome on the general fund. The responsibilities for creating educational materials, mailings, license processing, customer interaction, inspections, and follow-up would be achieved collectively by primarily building and energy staff with public works assistance. The combined duties for both programs amount to adding a full-time office assistant position and utilizing current inspectors to perform the on- site FOG inspections. Annual staffing, benefit, equipment/software costs are up to $100,000. Staff’s recommendation for annual license and registration fees will be based on what percentage of cost recovery is considered reasonable. Initial analysis indicates that an annual FOG license of $350 and a backflow valve registration fee of $25-$30 each would generate about $70,000 - $80,000 a year depending on actual number and established fee. The remaining $20,000 - $30,000 could justifiably be an internal transfer from the water and/or sewer funds. The staffing costs and fee adjustments will be incorporated into the 2024 budget process if proceeding with these programs. Next steps Unless other direction is provided by council, staff will move forward with the 2019 council direction to complete an ordinance for establishing these programs and associated fees. The programs would ideally become effective in January 2024 to coincide with licensing renewals. Meeting: Study session Meeting date: April 10, 2023 Discussion item: 3 Executive summary Title: Bulk material containers in the right of way Recommended action: The purpose of this report is to provide the council background on this topic and discuss the potential options to allow bulk material containers in the right of way. Policy consideration: Does council wish to allow bulk material containers in the right of way? Summary: Prior to 2001, the public works department issued permits for bulk material containers. This was done administratively without specific authorization via city ordinance. During 2001, permitting was codified and the permit issuance/enforcement function was assumed by the inspections department. Examples of bulk material containers are roll-off containers, dumpsters, tubs, pods, or soft-sided dumpster bags. In 2003, staff and council discussed the pros and cons of bulk material permitting as it existed in the city. Eventually, it was decided to discontinue bulk material permitting and the code was updated, prohibiting these items in the right of way. Some of the thoughts behind that action were: 1. Road safety 2. Resident complaints over bulk material containers on streets 3. Damage to streets, sidewalks and alleys Based on a discussion with the city attorney, there are no provisions in our city ordinance that would allow this section of the code to be waived. The Zoning Code has provisions to allow for variances; however, the city ordinance does not. In the ensuing years, staff has received feedback that this code does not meet community needs. There are parcels in the city that do not have space to place bulk material containers on private land. Due to this, staff would like council to reconsider the issue of allowing bulk material containers to be placed in the right of way. Financial or budget considerations: If it is determined that bulk material containers should be allowed in the right of way, a fee for services would be established to recover city costs. Strategic priority consideration: Not applicable. Supporting documents: Discussion Prepared by: Debra Heiser, engineering director Reviewed by: Phillip Elkin, engineering services manager; Jay Hall, public works director; Kala Fisher, public services superintendent/deputy public works director; Brian Hoffman, building and energy director Approved by: Kim Keller, city manager Study session meeting of April 10, 2023 (Item No. 3) Page 2 Title: Bulk material containers in the right of way Discussion Background Prior to 2001, the public works department issued permits for bulk material containers. This was done administratively without specific authorization via city ordinance. In 2001, permitting was codified and the permit issuance/ enforcement function was assumed by the inspections department. Examples of bulk material containers are roll-off containers, dumpsters, tubs, pods, or soft-sided dumpster bags. In 2003, staff and council discussed the pros and cons of bulk material permitting as it existed in the city. Eventually, it was decided to discontinue bulk material permitting and the code was updated in 2003, prohibiting these items in the right of way. Some of the thoughts behind that action were: 1. Road safety 2. Resident complaints over bulk material containers on streets 3. Damage to streets, sidewalks and alleys Based on a discussion with the city attorney, there are no provisions in our city ordinance that would allow this section of the code to be waived. The Zoning Code has provisions to allow for variances; however, the city ordinance does not. Existing city code The city code that prohibits bulk material containers in the right of way is located in Chapter 22- Solid Water Management. It reads: Sec. 22-61. Purpose. The purpose of this Article is to establish minimum standards for bulk material containers (e.g. dumpster, tub, pod, or soft-sided dumpster bag), and to prohibit placement of such containers on city property. (Ord. No. 2529-17, 12-18-17) Sec. 22-62. Regulations. 1. Container labeling. Bulk material containers shall be clearly labeled with the name and phone number of the container owner. 2. Container location. Bulk material containers shall not be located on any city property or right-of-way including streets, alleys, boulevards, or sidewalks. Containers shall be placed in a location that will ensure the least possible obstruction to pedestrian and vehicular traffic, as well as provide for the safety of the general public and residents living in the area. 3. Container specifications. (1) Bulk material containers shall be watertight. (2) Bulk material containers that are used to collect solid waste on a permanent basis, such as those located at multi-family or commercial properties, and are emptied onsite by a licensed solid waste collector are required to have a lid or cover that is kept closed when not in use or be stored inside a building or enclosure with a roof. 4. Materials collected. Materials collected in a bulk material container shall not exceed three feet in height from the top of the container, and shall not spill out to create a public nuisance. 5. Duration of time allowed. Bulk material containers that are used: Study session meeting of April 10, 2023 (Item No. 3) Page 3 Title: Bulk material containers in the right of way (1) To collect construction demolition debris shall not be located on an individual lot or parcel for more than six months during any 12-month period when an active building permit is in place with the city. (2) To collect solid waste on a temporary basis shall not be located on an individual lot or parcel for more than 14 days during any 12-month period. Current considerations Staff has received feedback that this code does not meet community needs. There are parcels in the city that do not have adequate space to place bulk material containers on private land. Due to this, staff are requesting council to reconsider the issue of allowing bulk material containers to be placed in the right of way. Staff believes that the concerns surrounding the negative impacts of this can be addressed. Currently, this ordinance is enforced on a complaint basis, along with education for customers who proactively call staff. Other community restrictions To help inform this conversation, staff reached out to other communities. Many neighboring cities allow bulk material containers in the right of way. Many of those that do not allow bulk material containers in the right of way also do not actively enforce the requirement. Here is a summary: City Ordinance Bloomington Allowed if there is not adequate space on private property Crystal Allowed if there is not adequate space on private property Edina Not allowed Golden Valley Allowed Hopkins Allowed if there is not adequate space on private property Minneapolis Allowed Minnetonka Allowed if there is not adequate space on private property New Hope City code is silent - staff practice is to prohibit Plymouth Not allowed St. Paul Allowed Options for permitting criteria There are multiple potential ways to permit bulk material containers in the right of way. Staff have identified the following three critical criteria to consider. These criteria can be mixed and matched to develop nine potential permitting paths. 1. Parcel’s access/space concerns a) Allow regardless of access/space on private property b) Allow only if there is not adequate access/space on private property 2. Type of container a) Allow all container types b) Allow only a subset of the container types 3. Time and seasonality limitations a) No limitations in these areas b) Limitations established in these areas Study session meeting of April 10, 2023 (Item No. 3) Page 4 Title: Bulk material containers in the right of way Staff recommendation Staff recommends creation of an ordinance to permit bulk material containers in the public right away for the following reasons: • Prohibiting all bulk material containers in the right of way is not practical since we do not have the resources to enforce this prohibition. • This updated ordinance would be responsive to our customers’ needs. • Staff is confident that the concerns raised in 2003 could be addressed through permit conditions. Staff further recommends a policy development process to assess the criteria outlined above and formulate a more specific staff recommendation, including an implementation plan, permitting schema, and enforcement plan. Financial considerations If bulk material containers are allowed in the right of way, a permitting process would be developed that ensures that city staff costs to monitor the program would be covered by permit fees. Next steps If the council is supportive of changing the city ordinance to allow bulk material containers in the right of way, the following steps will be completed: • Staff from engineering, fire, police, public works, and building and energy will begin the process of analyzing the conditions under which bulk material containers would be allowed in the right of way. • A draft policy will be developed, along with costs and implementation. • The attorney will be consulted to understand the city code changes that would be needed to implement. This information can be brought back to council later this year for review and consideration. Meeting: Study session Meeting date: April 10, 2023 Written report: 4 Executive summary Title: Minnehaha Greenway – Cedar Lake regional trail connection Recommended action: The purpose of this report is to provide the council background on this trail connection and to inform the council on how staff will move forward with the Minnehaha Creek Watershed District on this project. Policy consideration: No policy consideration at this time. Summary: Minnehaha Creek Watershed District (MCWD) has completed the preliminary design of a trail that connects Meadowbrook Road to the Cedar Lake Regional Trail. This is a continuation of the trail and boardwalk system located along the creek east of Meadowbrook Road. This trail was first identified during the Metropolitan Council’s preliminary design of Southwest Light Rail and the station area planning by Hennepin County Community Works over a decade ago. This trail connection is now feasible due to the recent reconstruction of the freight, light rail and regional trail bridges that span Minnehaha Creek. The bridges were widened to allow enough space for a trail to pass under the railroad right of way adjacent to the creek. MCWD has applied for funding from Hennepin County’s Transit Orientated Development grant program for this trail connection, a trail connection with the 325 Blake Road Redevelopment in the city of Hopkins and creek restoration in these areas. These connections from the local system to the regional trail system will benefit the residents of both communities and increase access to the regional trail system. Financial or budget considerations: This trail connection is in the city’s Capital Improvement Plan (CIP) for construction in 2035. The total cost estimate for the project is $885,000. The costs are proposed to be shared 50/50. If grant funds are received, these costs will be reduced. If MCWD is successful at receiving funding from Hennepin County, they have asked that we move trail construction up in our CIP for construction in 2025. Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: Discussion Location map Prepared by: Jack Sullivan, engineering project manager Reviewed by: Debra Heiser, engineering director Approved by: Kim Keller, city manager Study session meeting of April 10, 2023 (Item No. 4) Page 2 Title: Minnehaha Greenway – Cedar Lake regional trail connection Discussion Background The Minnehaha Greenway Cedar Lake Regional trail connection was first identified as part of the SWLRT Community Works station area planning that began in 2009. The idea was advanced during the preliminary design of the SWLRT. At that time, the city and watershed advocated for widening the abutments for the bridges that span Minnehaha Creek at this location to provide enough space for a trail adjacent to the creek. There were efforts to include this as a locally requested capital improvement as part of the final design of the SWLRT. However, no action was taken by the watershed or the city to include it in the final project. The city did add this trail segment to the Connect the Park implementation plan. All three bridges (freight rail, light rail and regional trail) have been reconstructed with additional width for the trail and the majority of work at this location is now complete. MCWD is moving forward with preliminary design work for creek restoration, a trail connection in Hopkins and this trail connection. The Minnehaha Creek Watershed District and the City of St. Louis Park have collaborated on trail projects adjacent to Minnehaha Creek in the past. The system of asphalt and boardwalk trails that follow the creek between Louisiana Avenue and Meadowbrook Road near the Municipal Service Center was built in 2014. This project would extend that existing trail system and connect to the Cedar Lake Regional Trail and to the recent trail improvements at Louisiana Avenue near Methodist Hospital. Financial considerations The total estimated cost for the project is $885,000. The costs are proposed to be shared 50/50. If grant funds are received, these costs will be reduced. Schedule With the opening of the Green Line Extension being delayed, the uncertainty of opening day operations and other priorities in the Connect the Park plan, staff moved the anticipated construction of this trail to 2035. If MCWD is successful with receiving grant funding from Hennepin County, they have asked us to move the project up in our CIP for construction in 2025. Next steps Staff will continue to work with MCWD over the coming months to develop preliminary design plans for the Minnehaha Greenway tail connection. Staff will update the council after Hennepin County’s Transit Orientated Development awarded grants are identified later this summer. 325 Blake Stormwater & Greenway 325 Blake Rd N Gateway to Greenway Trailhead Minnehaha Creek Preserve & Boardwalk Minnehaha Creek Greenway Blake Road Station Proposed Greenway to Cedar Lake Regional Trail Connection 1 7 612 612 615 615667 49049317 Louisiana Ave Station Legend 325 Blake Road Stormwater & Greenway Proposed Greenway to Cedar Lake Regional Trail Connection Transit Route Transit Stop Southwest LRT Southwest LRT Station Regional Trail Trail / Bikeway ¯ 0 500 1,000250 Feet 325 Blake Road / Greenway to Cedar Trail TOD Grant Application Attachment 1: Transit Map Study session meeting of April 10, 2023 (Item No. 4) Title: Minnehaha Greenway – Cedar Lake regional trail connection Page 3 4 Figure 1: Existing conditions of the assessed reach. Study session meeting of April 10, 2023 (Item No. 4) Title: Minnehaha Greenway – Cedar Lake regional trail connection Page 4 Meeting: Study session Meeting date: April 10, 2023 Written report: 5 Executive summary Title: 2022 housing activity report Recommended action: The purpose of this report is to update council on city housing programs and activity. This report is informational only. No action is required. Policy consideration: None at this time Summary: The housing activity report is prepared by staff annually and has been presented to council each year since 2005. The first two pages provide a brief overview of the detailed report. The report provides information on housing policies and initiatives, historical trends, affordable housing data and information on housing programs in St. Louis Park. Approximately every five years, the housing authority contracts to have a comprehensive housing study conducted by an independent consultant. The last housing study was completed in 2017 and is currently being updated. The housing study is expected to be completed later this summer and will be shared with council at that time. The policies and programs in the housing activity report can be found on the St. Louis Park city website. Financial or budget considerations: Not applicable Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: 2022 housing activity report Prepared by: Marney Olson, housing supervisor Reviewed by: Karen Barton, community development director Approved by: Kim Keller, city manager Page 1 2022 Housing Activity Report 2022 Housing Activity Report The purpose of this report is to provide city policy makers with an overview of housing program activity during 2022. 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. Report Overview 1.City housing policies, pg. 3 a.Inclusionary Housing (30%, 50% and 60% AMI) b.Tenant Protection Ordinance (60% AMI and below) c.Affordable 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) 2.Remodeling activity, pg. 8 a.Housing rehab projects (general remodeling) remained steady in 2022. 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. c.Major remodeling projects continue to be strong in 2022. There were 62 additions and 107 major remodels in 2022 with average valuations at $151,000 and $75,500 respectively. d.The Construction Management Plan (CMP) program has been in place since November 2014. In 2022 there was a decrease in the number of projects requiring a CMP with only 25, down from 43 in 2021. CMP letters were sent in 2022 for the following projects: i.19 major additions ii. five demo/rebuilds, and iii.one new construction only built for a project on an empty lot. A map is included in the report showing the location of these projects. 3.Affordable home ownership and Community Development Block Grants, pg. 16 a.The Down Payment Assistance (DPA) program has been utilized at maximum capacity since it replaced the Live Where You Work program in 2019. The city provided loans to eight first-time homebuyers in St. Louis Park (120% AMI) in 2019, 10 loans in 2020 and 2021 (100%/115% AMI) and 12 in 2022. b.The city launched the first-generation homeownership program in late 2021. The first loan closed in September 2022. c.West Hennepin Affordable Housing Land Trust added one home in St. Louis Park in 2022 and now has 22 affordable homes in the community. d.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), doing business as Homes Within Reach (80% AMI). e.The city provides an emergency repair grant for low-income homeowners in St. Louis Park. There were five emergency repair grants issued in 2022 (50% AMI). Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 2 Page 2 2022 Housing Activity Report 4. Housing Matrix, pg. 19 a. Owner-occupied properties (properties without a rental license) comprise 55% of the housing market, with rental properties (units with a rental license) at 45%. b. The single-family home ownership rate remained steady at 93%. c. There are nearly 1200 units of senior housing in St. Louis Park. d. Maxfield Research completed their most recent rental study in the end of 2017. Of the 7,000 rental units surveyed, 49.3% are affordable at 60% AMI or below. Maxfield Research is in the process of updating the study and the report will be completed and presented in 2023. e. The 2022 affordable ownership purchase price was $355,600 and 53% of homes in St. Louis Park are assessed at or below this affordability limit. These homes are comprised of single-family, condominiums, and townhomes. 5. Foreclosures, pg. 23 a. The foreclosure rate remains extremely low with only seven residential foreclosures in 2022. 6. Federally funded housing programs (30% AMI) and city rental assistance (50%), pg. 24 a. The St. Louis Park Housing Authority affordable rental housing and rental assistance programs served approximately 500 households with rental assistance in 2022. 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. 81% of households served by the HCV and public housing programs (housing authority rental assistance programs) are at or below 30% AMI and 15% are between 31-50% AMI. All federally funded housing programs are counted as 30% AMI units because households typically pay 30% of their income towards rent. 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 2022. (50% AMI) d. Kids in the Park program – increased funding and is currently serving 20 families (50% AMI and below). e. Lou Park Apartments – 20 tenants residing at Lou Park with project-based vouchers were transitioned to tenant-based vouchers administered by the Housing Authority (50% and below AMI). f. Annually, the city provides funds to STEP for emergency rental assistance. In 2022, STEP received $65,000 in rental assistance, in addition to administrative and program-specific funding. Households served by federally funded housing authority rental assistance programs as of 12/31/2022 30% AMI 50% AMI 60% AMI 80% AMI Over 80% AMI Number of Households 385 73 7 5 4 Percentage of Households 81.2% 15.4% 1.5% 1.1% 0.8% Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 3 Page 3 2022 Housing Activity Report 1. City housing policies The City of St. Louis Park has undertaken new initiatives and has made 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 added a one for one replacement of NOAH units being demolished or converted to a use other than lower-income dwelling units. Properties required to comply with the inclusionary housing policy include: 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 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 Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 4 Page 4 2022 Housing Activity Report Table 2: Affordable units created and approved Development Total Number 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 West End 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 Via Sol (PLACE) 217 22 130 50% 80% 66 53 17 16 Parkway Residences – rehab 24 24 50% 1 15 8 Parkway Place 94 0 Parkway Flats 6 6 60% 6 Totals 1,258 266 N/A 77 103 68 18 Under construction Parkway Commons 37 0 Caraway 207 8* 60% 2 3 2 1 Volo at Texa Tonka 112 23 50% 7 12 4 0 Rise on 7 (approved 2021) 120 19 82 19 30% 60% 80% 57 39 24 Arbor House 114 5 5 104 30% 50% 60% 27 50 37 Risor - 3510 Beltline (2021) 170 18 50% 1 11 5 1 Corsa (formerly Beltline Residences) 250 25 50% 5 15 3 2 Mera (formerly 9920 Wayzata) 233 47 50% 10 19 16 2 Totals 1189 355 N/A 25 103 68 18 Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 5 Page 5 2022 Housing Activity Report Approved OlyHi 315 32 31 50% 60% 18 23 18 4 Union Park Flats 60 16 27 17 30% 50% 60% 10 5 30 10 - 3 BR 5 - 4 BR Parkway Plaza 73 0 Beltline Station Dev. Bldg 1 152 0 Beltline Station Dev. Bldg 2 82 5 77 30% 60% 15 45 22 Beltline Station Dev. Bldg 3 146 0 Totals 828 205 N/A 28 43 93 41 *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 ***Parkway Residences, Parkway Place, Parkway Flats, Parkway Commons and Parkway Plaza were all approved under Parkway Residences and all of the affordable units are in Parkway Residences and Parkway Flats 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. 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. The dashboard does not reflect the total number of rentals and affordable rental units in the city. 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. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 6 Page 6 2022 Housing Activity Report 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: • 8 in 2018 • 3 in 2019 • 2 in 2020 • 2 in 2021 • 2 in 2022 Affordable 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 primary sources of funding for the city’s trust fund is an annual budgeted allocation of HRA Levy funds and pooled tax increment financing. 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 to provide affordable homeownership opportunities to low-income households. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 7 Page 7 2022 Housing Activity Report NOAH Preservation (Naturally Occurring Affordable Housing) Housing staff continue to participate in a Regional Housing Workgroup to review and discuss strategies for preservation of NOAH. Preservation strategies including the multifamily rental rehab program, Legacy program and 4d were approved in 2018 and implemented in 2019 to preserve NOAH properties. In addition to the preservation programs listed below, the city added a one-for-one replacement requirement for NOAH properties that are required to comply with the inclusionary housing policy. Legacy program – 60% AMI and below Investors are buying NOAH apartment properties across the Twin Cities, often renovating the properties, and then 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 and share the program through the St. Louis Park Area Rental Coalition (SPARC) e-newsletter. 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 one home was sold directly to Homes Within Reach in 2022 through the legacy program and will remain an affordable homeownership opportunity in perpetuity. 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 and limit rent increases to a maximum of 5%. 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 properties applied as of Dec. 31, 2022; however, staff were working with multiple properties in 2022 for application in 2023. 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 worked 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. One multifamily rental rehab loan closed in 2022 and additional properties have expressed interest in the loan in 2023. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 8 Page 8 2022 Housing Activity Report 2. REMODELING ACTIVITY Residential permitted activity measures remodeling and maintenance activity. This section shows historical trends of remodeling activity. 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 2022 is just under $10,000, a slight decrease compared to 2021. The number of permits has remained relatively constant over the last several years. 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. In 2020 the number of permits started to increase with a larger jump in 2021. 2022 was nearly identical to 2021 in number of permits for both reroofing and residing. Chart 2: Reroofing and Residing Permits 1011 1091 1084 1074 1203 1170 983 996 1044 1001 1018 0 500 1000 1500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Number of Permits IssuedYear Maintenance & Minor Remodeling Permits Alteration Residential (Minor) 140 161 131 104 80 107 163 162 296 591 590 73 83 70 47 86 62 85 63 122 205 205 0 500 1000 1500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Number of Permits IssuedYear Reroofing and Residing Permits Reroof Reside Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 9 Page 9 2022 Housing Activity Report Additions and Major Remodeling The number of major remodeling permits (valued at more than $37,500) and additions were consistent with last year. The average permit valuation for additions during 2022 was $151,000, which is approximately $12,000 less than the average permit valuation in 2021. The 2022 average valuation for major remodels was $75,500 which is an increase in the average value of $12,000 compared to 2021. 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). 2021 had an exceptionally high permit valuation of $40.3 million. There was a decrease in 2022 down to $33 million; however, that is more consistent with previous years. Chart 4: Permitted Residential Remodeling 71 67 73 70 59 62 67 49 49 63 6244 53 69 70 65 77 69 82 85 104 107 0 40 80 120 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Number of Permits IssuedYear Addition and Major Remodel Permit Activity Addition Residential Major Remodels $25 $16.8 $21 $23 $25.2 $26 $28 $24.6 $33$31.4 $40.3 0 20 40 60 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Permit Valuation -Million $Year Residential Remodeling Permit Valuation Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 10 Page 10 2022 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. 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 This service helps residents improve their homes (either maintenance or value-added improvements) by providing technical help before and during the construction process and tips on hiring contractors. All homeowners are eligible for this service regardless of income. Resident surveys indicate that homeowners value 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 visit – no income restrictions The Home Energy Squad 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). Depending on whether the resident chooses a “Saver”-level visit or a “Planner”-level visit, the city pays 50 percent of the $70 or $100 visit and the resident pays the other 50 percent. The program leverages funds from Xcel Energy, Center Point Energy, and CEE. Free home energy visits are available to low-income households (which was updated in 2021 from 60% AMI to 80%). The city’s portion of the visit costs are funded using the Climate Investment Fund. The Home Energy Squad expert evaluates energy saving opportunities and installs the energy-efficiency materials the homeowner choses including door weather stripping, water heater blanket, programmable thermostat, LED 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, duplex, triplex and quadplex homeowners are eligible. The Home Energy Squad visits qualify residents for CEE’s low interest financing and utility rebates, and they also notify residents of city loan and cost share opportunities. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 11 Page 11 2022 Housing Activity Report Chart 5: Technical, Design and Home Energy Visits Construction Management Plan The city recognizes that many households are looking for larger homes and supports keeping families in the city. As a result, the city has seen significant additions and/or tearing down of existing homes and rebuilding larger homes. St. Louis Park is a fully built community, so these major additions and construction of new homes can impact the surrounding neighbors. Effective November 15, 2004, 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) 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 site signage. In 2022, the following neighborhood notifications were sent: 19 major additions, five demo/rebuilds, and one new build on vacant land. This is the lowest number of CMP projects since the CMP program was initiated. The total permit valuation for CMP projects in 2022 was $7,775,842. Chart 6: CMP Activity 29 37 41 22 31 33 39 52 47 36 18 69 69 95 69 76 76 83 51 45 30 37 122 153 173 125 170 109 85 130 166 128 112 0 50 100 150 200 250 300 350 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Number of VisitsYear Technical Home Improvement Services Architect Services Remodeling Advisor Home Energy Visits 32 37 33 33 17 19 38 1918 10 9 7 8 11 4 53 6 3 2 0 2 2 13101 2 1 0 00 5 10 15 20 25 30 35 40 2015 2016 2017 2018 2019 2020 2021 2022 Number of CMP ProjectsYear Construction Management Plan Activity Additions Demo/New Build New Build Demo only Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 12 Page 12 2022 Housing Activity Report Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 13 Page 13 2022 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, the West Metro Home Remodeling Fair formalized the partnerships between the cities of Golden Valley, Minnetonka, and St. Louis Park and the St. Louis Park school districts through a Joint Powers Agreement in preparation for the 2022 and future fairs. After the two-year hiatus, the home remodeling fair returned in February 2022. The fair was sold out to exhibitors and also included seminars, an “idea center” with city and other public information booths, and an “ask the pro” area for meeting with architects, designers and landscape architects. The Minneapolis St. Paul Home Remodeling Tour expanded its geographic area to include first ring suburbs in 2022. With the expansion of what is now known as the MSP home tour and the decrease in applications for the St. Louis Park tour, as well as continued uncertainties around the pandemic, the city did not resume the home remodeling tour in 2022 and will instead focus on partnering with the MSP tour in future years. City Loans and Rebates The following chart shows the number of Move Up Loans, Discount Loans, and Energy Rebates issued in recent years. Discount Loan Program – serves households with incomes at or below $156,000 The city buys down the interest rate on the Minnesota Housing Finance Agency’s community fix up loan for the city’s discount loan program. The discount loan program has a maximum loan amount of $35,000. In 2020, interest rates dropped below the rate of the city’s subsidized rate, resulting in no loan applications for this program in 2020. This continued in 2021, so there were no discount loans in 2021 or 2022. The city will resume the buy down program in 2023. Move-up Transformation Loan – 100/115% AMI The purpose of the move-up loan is to encourage residents to move-up (expand their home) instead of moving out (to another community). The program provides deferred loans for 25% of the applicant’s home expansion project cost with a maximum loan of $25,000. The loan has a 0% interest rate and is deferred until the property is sold. If the homeowner remains in the home for 30 years, the loan is forgiven. The move-up loan has been underutilized the last several years with only two loans closed in 2022. Changes were made to income limits and maximum loan amount for 2023. Staff will monitor whether these changes to the program increase utilization. Energy Efficient Rebates – no income restrictions Xcel Energy and CenterPoint Energy offer a variety of rebate options for homeowners, including for heating, cooling and energy efficient appliances. The city matches those utility rebates for energy efficient furnaces, water heaters and air conditioners, as well as air sealing and insulation projects. Households with incomes at or below $134,900 are eligible for a 50 percent match; households above that household income are eligible for a 25 percent match. In 2023, the program will be replaced with the Climate Champions for Homes program, which pairs a Home Energy Squad visit with higher matching rebates for energy efficiency measures. Rebates are funded using the city’s Climate Investment Fund. 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. In 2022, funding for this program shifted to the climate investment fund which again allowed all income levels to be eligible for the rebate. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 14 Page 14 2022 Housing Activity Report 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 in the last five years Year Number of Loans Paid Off Amount of Loans 2018 3 $66,432 2019 1 $16,250 2020 5 $114,327 2021 4 $77,876 2022 0 $0 Total paid off $274,885 6 6 6 7 10 6 3 6 1 2 226221713116565 0 0 73 113 166 143 108 101 125 94 112 63 95 0 25 50 75 100 125 150 175 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Number Loans -RebatesYear Loans and Rebates Move up loans Discount loans Energy Rebates Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 15 Page 15 2022 Housing Activity Report Table 4: Housing programs 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 2022 2 $39,210 0 0 18 $4,050 37 $9,250 92 $19,922 112 $5910 12 $177,590 $255,932 Detailed descriptions of each of the programs are listed at the end of the report. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 16 Page 16 2022 Housing Activity Report 3. AFFORDABLE HOME OWNERSHIP, COMMUNITY DEVELOPMENT BLOCK GRANTS AND EMERGENCY RENTAL ASSISTANCE Home ownership - down payment assistance program – 100%/115% AMI and below The down payment assistance program (DPA) provides down payment/closing cost assistance for purchasing a home in St. Louis Park to first-time homebuyers, or those that have not owned a home in the last three years. 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 2021 and 12 DPA loans in 2022. 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 and build power in communities most impacted by housing challenges and disparities through 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 loan amount is based on the household’s income and the purchase price of the home, with a maximum loan amount of $75,000. The loan is zero-interest and 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 and serve a high population of prospective home buyers who are black, indigenous, and people of color. The program was launched in November 2021 and the first loan was closed in September 2022. 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, nine HIA’s have been established and nearly fourteen million dollars of improvements have been made to 1,310 units. Bridgewalk Condominium Homeowners’ Association submitted an application in 2021 and was approved by the city council in February 2022. Work began in late summer 2022 on nearly $6 million in needed improvements to the property. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 17 Page 17 2022 Housing Activity Report Emergency Repair Grant (50% AMI) The city offers emergency repair grants for households below 50% AMI to make immediate emergency repairs such as furnace replacement, roof repair, plumbing or electrical emergencies, etc. Five emergency grants were issued in 2022. The maximum grant amount is $4,000. Sustainable Resources Center administers this program for the city and works with low-income homeowners who have emergency needs that impact the health, safety and livability of their home. Community Development Block Grant (CDBG) (80% AMI) The CDBG calendar year runs from July 1 – June 30th. FY2022 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. The waiting list continues to grow for this program so additional city funding was budgeted for 2023. West Hennepin Affordable Housing Land Trust, dba Homes Within Reach (HWR (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. 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 22 homes in St. Louis Park, including one in 2022. Twin Cities Habitat for Humanity (80% AMI) The city has partnered with Habitat for Humanity 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. The Twin Cities Habitat for Humanity is expanding their services to include financing which may serve more St. Louis Park residents than their traditional program. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 18 Page 18 2022 Housing Activity Report 4. 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. • 11,715 units (45% of all housing 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 84% 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. Single-family owner-occupied houses As a fully built city, the number of single-family homes remains relatively constant from year to year. The percentage of owner-occupied units has been tracked over the years for both single-family homes as well as condos and duplexes. Chart 8: Percentage of Owner-Occupied Units *Rental license data used beginning in 2017 Investor-owned single-family homes In addition to interest in the percentage of single-family homes that are rented, the number of investor- owned properties has become a new focus as the number of investor-owned single-family houses has increased across the metro area. At the November 28, 2022 city council study session, the council discussed the impact of a single-family rental density cap in St. Louis Park. Council directed staff to monitor 91 89 89 90 89 93 94 94 93 93 93 70 67 66 67 67 78 79 81 83 80 84 0 50 100 2012 2013 2014 2015 2016 2017*2018*2019 2020 2021 2022Percentage YEAR % Owner Occupied Units Single Family Detached Homes Condos & Townhomes Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 19 Page 19 2022 Housing Activity Report the number of single-family rental licenses and investor-owned properties in St. Louis Park to determine if future action is needed. The Minneapolis Federal Reserve has created a tool to track investor-owned properties. The percentage of investor-owned properties in St. Louis Park is below the percentage for Hennepin County; however, city staff will monitor both the number of SF rental licenses and investor-owned properties in St. Louis Park and how it compares to Hennepin County and the metro. The Federal Reserve tool reports the following investor-owned properties in St. Louis Park in 2022: • 10+ investor-owned properties: 187 properties (1.6) • 5+ investor-owned properties: 235 (2%) • 3+ investor-owned properties: 298 (2.6%) The heat map below shows the distribution of single-family rentals throughout the community. The central neighborhoods have more rentals by density. Single family rentals heat map Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 20 Page 20 2022 Housing Activity Report 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 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, 2,472 – or 21% – of SLP single family homes meet this threshold. This is an increase of 31 homes since 2020 and is most likely 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 45.4% of single-family homes have less than 1,200 square feet above ground. Senior housing Table 5: Senior housing table SENIOR 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 SENIOR RENTAL UNITS: 1028 units SENIOR 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 SENIOR OWNER UNITS 166 units Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 21 Page 21 2022 Housing Activity Report Affordable Housing The Metropolitan Council sets the affordability limits at 80% of the area median income for both rental and ownership housing. In 2022, the metro area median income (AMI) for a household of four was $118,200. Under these limits, a family of four can earn up to $89,400 (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. Maxfield Research is currently working on an update to the study which will be completed in 2023. Among the 7,000+ market-rate units in 2017 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 311 vouchers that can be utilized in market-rate rentals reducing the rents to 30% of a voucher holder’s income; the average HCV client’s income is below 30% AMI. Table 6: Multifamily rental units by AMI from 2017 Maxfield Research report # 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 2022 affordable ownership purchase price is at or below $355,600, 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 $276,100 or less, which is the 60% AMI affordable ownership purchase price. • In 2022, 53% (8,079) 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 the city’s assessor. 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% (this is the interest rate offered in April 2022 by the Minnesota Housing Finance Agency to first-time home buyers with no origination fee). o A 28% housing debt-to-household income ratio o A 3.5% down payment o A property tax rate of 1.00% of the property sales price o Mortgage insurance at 0.85% of unpaid principal o $100/month for hazard insurance Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 22 Page 22 2022 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* (Licensed) Family sized single family homes over 1500 square feet 2022 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 (60% and below) *Does not include tenant based vouchers*** Senior Designated Single Family Detached 11,693 45% 10,890 803 2,472 800 5,040 37 public housing Duplex 436 2% 155 281 Condos and townhomes 3,561 14% 2986 575 2,667 3,039 60 Apartments 10,056 39% 10,056 4278 6184 598 1028 COOPs 114 <1% 114 106 Totals 25,860 14,145 55% 11,715 45% 2,472 21% 3467 23% 8079 53% 4278 46% 6184 67% 635 5% 1194 5% % of SF Homes % of SF, Condo & TH % of Multifamily % of Rental % of Total Housing Units *The rental unit numbers are sourced directly from rental licenses through the building and energy department.. **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 Housing Choice 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. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 23 Page 23 2022 Housing Activity Report 5. 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 and remains low with only 7 foreclosures in 2022. 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 122 59 54 47 31 36 19 15 4 4 7 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Number of Sherrif Sales Year Residential Foreclosures by Year 82 45 39 28 21 25 16 11 3 2 6 30 9 14 15 6 9 2 4 1 1 11051442100100 40 80 120 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Number Sherrif SalesYear Residential Foreclosures by Housing Type Single Family Detached Condos Townhome & DB Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 24 Page 24 2022 Housing Activity Report 6. FEDERALLY FUNDED HOUSING PROGRAMS AND CITY FUNDED 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 $15,727 which is below 30% AMI. The average income for the scattered site single-family homes and Louisiana Court public housing units is $48,170. Family sizes in Louisiana Court and the scattered site houses range from two to 11 people per home. 75% of public housing households have incomes below 30% AMI, and 15% have incomes between 31 and 50% AMI. 4% of public housing households have incomes at 60% AMI,34% 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 2022 operating expense for Public Housing was $1,227,204 and an award of $344,314 for the 2022 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 Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 25 Page 25 2022 Housing Activity Report Housing Choice Voucher Program (HCV) – 50% AMI or below The HA is allocated a total of 357 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 $14,855 which is below 30% AMI. HCV participants pay 30% of their income towards rent and can choose to pay up to 40%. The 2022 operating expense for HCV was $3,715,299. 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 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. 27 FUP vouchers were utilized in 2022. 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 or greater utilization of these vouchers. The City of St. Louis Park was offered 25 vouchers. The first referral Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 26 Page 26 2022 Housing Activity Report came in fall 2022. The SLPHA received three referrals in 2022 and all three youth were issued vouchers and leased up. 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. 10 additional Mainstream vouchers were awarded in 2022 bringing the agency’s total number of Mainstream vouchers to 25. 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 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. 16 mainstream vouchers were utilized in 2022. 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, 2022, 20 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 five years. In spring of 2022, Perspectives was notified by HUD that their continuum of care grant would not be renewed. This grant had been funded for 30 years and subsidized 11 units in their property at Louisiana Court. They requested that the HA project base an additional 10 vouchers at Louisiana Court. In April 2022, the HA board approved this request, bringing the total number of project-based vouchers at Perspectives to 22. 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. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 27 Page 27 2022 Housing Activity Report Excelsior and Grand In 2001, Excelsior & Grand and the St. Louis Park Housing Authority project-based 18 two-bedroom housing choice vouchers in the development. The contract for project-based units expired March 31, 2023 and Excelsior & Grant elected not to renew the contract. Tenants were notified in February 2022 that the project-based units were expiring and that they would receive tenant-based Housing Choice Vouchers. Housing Authority staff worked with the property management to prepare tenants for the change and help them successfully transition to new units of their choice in other developments. Table 9: HCV Lease-Up Report Housing Choice Voucher Lease up report 12-31-2022 Vouchers leased Vouchers allocated by HUD Housing Choice Voucher Regular HCV VASH (vouchers awarded April 2022) FUP FYI Tenant Protection (Lou Park) Total HCV vouchers 144 9 25 3 20 201 184 15 27 3 20 249 Project Based Vouchers Excelsior and Grand Wayside Perspectives *22 total at Perspectives but 10 counted in the FUP and Mainstream totals Vail Place Total Project Based Vouchers 10 14 12 8 44 10 16 12 8 46 Port Outs 62 Mainstream *Additional vouchers awarded Nov 2022 15 1 15 10 St. Louis Park Voucher Total 323 357 Vouchers searching for a unit as of 12/31/22 16 The Housing Authority receives an allocation of vouchers from HUD and they are issued based on maximizing the amount of funding available. HUD does not fund the Housing Choice Voucher program at 100% so the HA is unable to utilize as many vouchers as HUD allocates. 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. 43 families throughout suburban Hennepin County were served by this program 2022. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 28 Page 28 2022 Housing Activity Report 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 nine families in December 2017. In 2018, 14 families were served; in 2019, 17 families were served; and in 2020 that number increased to 20 families. In 2022, the Kids in the Park program remained at 20 families. Emergency rental assistance Annually, the City of St. Louis Park provides funding to the St. Louis Park Emergency Program (STEP) for emergency rental assistance. STEP provides rental assistance for residents of St. Louis Park who have an unexpected crisis and cannot pay rent. The crisis mut be able to be resolved 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 $65,000 in funding to STEP for emergency rental assistance in 2022. 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. Study session meeting of April 10, 2023 (Item No. 5) Title: 2022 housing activity report Page 29 Meeting: Study session Meeting date: April 10, 2023 Written report: 6 Executive summary Title: Adjustment to allowable hours of construction Recommended action: Staff recommends limiting the construction hours and amending the existing ordinance to reflect the change. Policy consideration: Does council support changing the allowable hours for construction activities from 10 p.m. to 8 p.m. on weekdays, weekends and holidays to reduce after-hours noise? Summary: Construction activities are currently allowed between the hours of 7 a.m. and 10 p.m. weekdays, and 9 a.m. to 10 p.m. on weekends and holidays, intending to limit disturbance for neighbors. The source of construction noise may be a contractor working on a business or residents working on their home. The allowance for construction noise until 10 p.m. in neighborhoods may be unreasonable to some residents. Because council and staff have received complaints about construction noise after 8:00 p.m., staff has reviewed the current ordinance. Staff recommendation: A review of nearby cities shows several communities with construction hours ending earlier than 10:00 p.m. Staff recommends changing the city hours of construction from 10:00 p.m. to 8:00 p.m. Reducing construction hours in St. Louis Park would lessen the time of disturbance to the community. Financial or budget considerations: None. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion Prepared by: Michael Pivec, property maintenance & licensing manager Reviewed by: Brian Hoffman, building & energy director Cindy Walsh, deputy city manager Approved by: Kim Keller, city manager Page 2 Study session meeting of April 10, 2023 (Item No. 6) Title: Adjustment to allowable hours of construction Discussion Background: St. Louis Park has several restrictions and prohibitions related to noise. Maximum general noise levels are set by receiving land use districts, while hourly restrictions are specific for certain operations including domestic power equipment (e.g., lawn care and snow removal equipment), construction activities, garbage collection, and parties. In the ordinance, construction activities are defined as those “involving the use of power equipment, manual tools, movement of equipment, or other activities.” Noise restrictions specific to construction activities have been set at 7 a.m. until 10 p.m. weekdays and 9 a.m. until 10 p.m. weekends and holidays. These hours have remained the same for many years. Construction activities include a resident working on the interior or exterior of their home, building a deck or fence, or a contractor remodeling a residence. There have been complaints from residents regarding construction activities occurring in the later part of the evening, such as roofing contractors completing a project or a homeowner trying to complete home projects after work. This has raised some concern that continuing to allow construction activities until 10 p.m. may be unreasonable for residents. Compliance of noise ordinance codes is managed by the Building and Energy department, however, complaints occurring in the evening are generally responded to by police and takes staff resources away from other tasks. Present considerations: A review of existing hours for construction-related activities was conducted by staff. Staff researched seven nearby communities and found end times for construction activities varied from 6 p.m. to 10 p.m. Three of those communities allow activities until 10 p.m., while others end at 7 p.m. and 8 p.m. (see table below). Construction Noise Hours Weekdays Saturday Sunday Holiday Golden Valley 7 a.m. – 10 p.m. 7 a.m. – 10 p.m. 7 a.m. – 10 p.m. 7 a.m. – 10 p.m. Edina 7 a.m. – 7 p.m. 9 a.m. – 5 p.m. 9 a.m. – 5 p.m. 9 a.m. – 5 p.m. (no work, projects >$50,000) Eden Prairie 7 a.m. – 7 p.m. 7 a.m. – 7 p.m. Not allowed Not allowed Bloomington 7 a.m. – 10 p.m. 9 a.m. – 9 p.m. Not allowed Not allowed Richfield (>85 dBa) 7 a.m. – 8 p.m. 8 a.m. – 8 p.m. Not allowed Not available Minnetonka 7 a.m. – 10 p.m. 7 a.m. – 10 p.m. 7 a.m. – 10 p.m. 7 a.m. – 10 p.m. Minneapolis (for contractors) (for residents) 7 a.m. – 6 p.m. 7 a.m. – 8 p.m. Not allowed 9 a.m. – 6 p.m. Not allowed 9 a.m. – 6 p.m. Not allowed 9 a.m. – 6 p.m. Page 3 Study session meeting of April 10, 2023 (Item No. 6) Title: Adjustment to allowable hours of construction The current city ordinance permits construction noise until 10 p.m. on weekdays, weekends and holidays. Adjusting that time to 8 p.m. would reduce evening construction by 2 hours and lessen the impact on the community, as well as free up staff time currently spent responding to construction complaints. Next steps: If council wishes to adjust the hours allowed for construction activities, staff will amend Sec. 12-124 (c) and present as a first reading.