09/02/2008 Council Packet - Laserfiche WebLink

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• • • from the City's 2006 System Statement (accommodating 1,600 new sewered households by 2020), which are lower than the revised market -based forecasts developed during this Comprehensive Plan process. Because the City is planning to accommodate an increased number of total housing units (4150 new households by 2020), it will also have to plan for an increased number of affordable units. The Comprehensive Plan provides the opportunity for 30 — 32 percent of its forecasted household growth be affordable. Based on the revised household forecasts, the 2030 future land use map, and the minimum proposed residential densities (i.e., 8 units per acre for high density and selected mixed use areas), the City has the capacity to accommodate a minimum of 1,275 affordable housing units by 2020, which is 30.7 percent of the total additional 2020 units. The actual number of affordable units may be higher since densities greater than 8 units per acre could be achieved in some areas guided High Density Residential and Mixed Use (see Figure 3 -3, 2030 Future Land Use Map). 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 1,275 new 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 Opportunities To provide opportunities 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 promote affordable housing in the community. These regulatory measures represent one of the City's most effective tools to encourage 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 to promote the development of life -cycle and affordable housing across the city. The city's future land use plan has the capacity to accommodate 1,275 High Density and Mixed Use units at a density of 8 units per net acre by 2020, which will greatly increase opportunities for affordable and life -cycle housing in the community. 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. 4 -17