12/14/1998 Council Packet - Laserfiche WebLink

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December 9, 1998 Livable Communities Program page 2 Participation in the Program To be eligible for any of the funds under the Act, a city agrees to work toward promoting a greater variety of housing. To provide some sort of indication of progress, the city sets long -range goals regarding housing affordability, life cycle housing, and development densities. The long -range goals are not hard standards. There is no implied guarantee that we will reach the goals. In fact, current housing market conditions make it difficult to make progress toward the goals. A second difficulty is the data used to examine the housing picture. The primary data source is the census, and that data is eight years old. The Metropolitan Council is aware of these difficulties. The housing picture will be re- examined after the year 2000 census and the goals will be adjusted. Numerous market conditions exert heavy influence on housing prices and demand. High - end housing dominates the market. In addition, current housing is appreciating in value, which puts more housing units above the affordability threshold. There is some life cycle housing being provided in the Metro Area in the form of townhouses and senior housing, but the demand is high. Density, to some degree is affected by the market as well. However, there are some things under local control that influence affordability, availability of life cycle housing, and density. This will be discussed below. The goals should not be viewed as strict requirements. Rather, they are targets to aim for over the long term. Several of the goals rely on 10 -year census data. It is clear that the goals are aggressive in many communities and will not be met. For participation in the program and eligibility for funds, the most important things are the elements that the City controls in the larger housing picture. Housing Elements That Are Under Local Control There are a number of things that a City can do to remove barriers to the availability of affordable and life cycle housing. Requirements of the zoning ordinance have powerful effects and often increase the cost of housing. These requirements combine to make it more difficult for the market to supply life cycle housing. For example, garages increase the cost of new housing. A requirement for a three stall garage typically puts the cost beyond many prospective home buyers. Large lot size minimums also raise the cost, because more of the buyer's available cash must go toward