04/06/2009 Council Packet - Laserfiche WebLink

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• • • Using Ordinances to attain public values Staff has researched a number of model ordinances used by other cities around the country to promote affordable housing. No cities within the Twin Cities metro area mandate affordable housing. Most cities locally, and around the country, encourage it through their Comprehensive Plans, provide incentives, and work in partnership with other public agencies and nonprofits. Other cities, such as Chaska and Plymouth, have required that affordable housing be a component of a residential development if TIF or government backed bonds are used. Woodbury allows higher densities if the developer agrees to an affordable component. According to their housing director, this has worked only in townhome projects to date, as the price points are too high in single family developments. Forest Lake is considering a mandatory affordable housing ordinance, however it has not been drafted. Short of mandating affordable housing or providing cash incentives, the Comp Plan identifies Planned Unit Development (PUD) as a major tool for working with developers to implement the goals and policies of the Comp Plan and support all the city's public values. A PUD is the city's most effective tool for encouraging affordable housing. It takes a holistic approach by allowing flexibility to work with developers to attain as many of the high public values as possible on a case by case basis, with affordable housing being one of those values. The draft Comp Plan lists methods to pursue to encourage public values using incentives and financial tools such as density bonuses, TIF, reduced fees and cash subsidies. It encourages partnerships with housing agencies and nonprofits to assist developers in meeting the city's affordable housing goals. A common tool is the density bonus, which allows a development to increase above the base density of the zoning district if certain public values are met. These density bonuses range anywhere from 10 -50 %, with 20% a common allowance for increased density. If Lino Lakes were to increase its density bonus, the following table show the differences in density that would apply: Housing Type Current Densities Maximum Units /Acre 20% Bonus Maximum Units /Acre 30% Bonus Maximum Units /Acre 40% Bonus Maximum Units /Acre 50% Bonus Maximum Units /Acre Single Family 3.5 4.2 4.55 4.9 5.25 Medium Density 6.9 8.28 8.97 9.66 10.35 High Density 12 14.4 15.6 16.8 18 If the city established an ordinance that provides additional density as an incentive to building affordable housing, other variables come into play that the ordinance should address, such as: • The minimum size of a development to which the ordinance applies • Whether it applies to ownership, rental, or both • Whether the affordable housing must be built on site or whether provisions can be made to build it nearby, in case of hardship • Income level or price defined as "affordable" • Appearance and integration of the affordable housing units • Whether a density bonus is enough to get the public values met, or are additional incentives needed 5