12/11/1995 Council Packet - Laserfiche WebLink

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Le----Of'.-1995 16 = 33 h# Ic 612 595 '7,48.Se Part of the single family home values are directly related to environmental protection and development costs imposed by the City. These requirements are necessary to establish a quality living environment. While some townhome development has occurred, the current demand for the alternative owner occupied housing units has not yet presented itself in Lino Lakes. 4. The City staff questioned the need to have 68% to 69% of the City owner occupied fall below the affordability guidelines: a. The affordable housing standard is based on households having income at or below 80% of the region's median income. In 1990, only 36% of the total household count in the Twin Cities SMSA fell below 80% of the median income. When considering that lower income household in this group may still not qualify for home ownership, the percentage of lower and moderate households that may become homeowners is further reduced. Maintaining 68% to 69% of the City owner occupied housing stock as affordable provides more than twice the number of affordable housing units when compared to the number of housbholds intended to be benefitted regionally_ b. Currently having 68% of its housing stock as affordable, Lino Lakes has numerous households that may be able to afford more housing than they presently live in. The current wave of higher value homes provides move -up housing both locally and regionally, freeing existing affordable housing stock for the new households. The City of Lino Lakes recognizes that some variety and choice must be available in affordable housing, providing approximately 2+ units per benefitted moderate income household may be excessive. If the City provides 1.5+ affordable housing units per the regional ratio of low and moderate household, the City's affordable owner occupied housing goals will be 54% of its owner occupied housing stock. The City wishes to establish housing goals that are achievable_ Current market trend in single family housing values suggest that the City may already be falling below the suggested benchmarks This tendency at the beginning of this program undertaking is not seen as desirable. In establishing a lower 54% affordable goal, the City is still attempting to achieve the regional objective, but also recognizing the current local development trends Using 54% as the affordable housing goal, the City hopes to establish a standard that not only be achieved but exceeded. 2