10/04/2010 Council Packet - Laserfiche WebLink

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Based on its analysis, the Metropolitan Council's new affordable housing goal for Lino Lakes is to create 560 new affordable housing units between 2011 and 2020, which represents 35 percent of forecasted household growth. Based on the 2030 future land use map and the minimum proposed residential densities (i.e., 7 units per acre for high density and 8 units per acre for selected mixed use areas), the City has the capacity to accommodate the affordable housing goal. The level of affordability is important to understand when assessing the amount of current affordable housing and the price point for new units to meet this goal. According to Metropolitan Council 2007 Affordability Limits, the area median income for the seven -county Minneapolis -St. Paul (MSP) area adjusted by HUD to be applicable to a family of four is $78,500 in 2007. Eighty percent of the median household income is $62,800; 60 percent is $47,100 and 50 percent is $39,250. Applying an interest rate on a 30 -year fixed -rate home loan of 6.2 percent for 2007 and other payment factors to the 80 percent area median income, yields an affordable purchase price of $206,800 in 2007. According to Anoka County Assessor's data there are 779 homesteads, or 13 percent of total 2007 households, that fall under this 80 percent purchase price limit in Lino Lakes. The price point for an affordable home at 60 percent of area median income drops to $152,000. There are currently only 82 existing homesteads, or 1 percent of total 2007 households, in Lino Lakes at or below $152,000 (Anoka County assessor's data /GIS). It is the new 60 percent measurement that will be required for the potential affordable housing units anticipated between 2011 -2020 in Lino Lakes. Achieving this new affordability goal will be very difficult without the funding tools that have in the past been offered by the Metropolitan Council and other agencies. Future Affordable Housing A ert• s To provide eppertenities for affordable housing in the community, the City is taking the appropriate regulatory measures within the Comprehensive Plan by guiding areas for higher density housing and including policies to prereete- integrate affordable housing in all residential land use districts. These regulatory measures represent one of the City's most effective tools encourage for the development of affordable housing. To meet affordable housing goals, the City has planned for potential new growth with a variety of residential land use types and densities for te- -preniete the development of life -cycle and affordable housing across the city. The city's future land use plan can accommodate the goal of 560 High Density and Mixed Use units at a minimum density of 7 units per net acre by 2020 incrccsc appo tics€er e#erdable -litc -etele #reusing in- theeemniunity; While the City is doing its part in creating a regulatory land use plan to guide areas for higher density housing, which is where most affordable housing will likely occur, barriers to development of affordable housing still exist in Lino Lakes and the region. Some of these barriers are beyond the City's control, including the following: • Steady increases in land prices and construction costs. • Physical limitations of land due to wetlands, poor access, poor soils that would increase the cost of land development or construction. • State, county and local tax structures. There are some significant barriers to construction of new affordable housing, and the above list includes just a few of these barriers. Despite these difficulties, the provision of affordable housing is an important effort that cities undertake. The most effective role Lino Lakes will have in the provision of affordable housing is its regulatory tools, including land use and zoning regulations that do not impede the construction of affordable housing. Many of these tools can be used to encourage developers. Flexibility, through the use of the Planned Unit Development (PUD) 4 -10