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Item No: 07A Meeting Date: July 11, 2016 Type of Business: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Public Hearing, Second Reading and Adoption of Ordinance 921, an Ordinance Opting Out of the requirements of Minn. Stat. §462.3593, which Defines and Regulates Temporary Family Health Care Dwellings Introduction: The Governor has signed into law a bill which allows “Temporary Dwellings” to be located in residential districts so that physically or mentally impaired family members can live on the property of a relative for up to 12 months. The effective date of the law is September 1, 2016, at which time the City would have to start taking permits for such housing, unless an ordinance is passed barring such units. The City Council discussed this legislation on May 23, 2016 and directed staff to draft an ordinance to opt out as allowed by law. The Council considered and approved the first reading at its June 13, 2016, meeting. Discussion: According to the League of MN Cities, “The main stated motivation behind the new law is to provide transitional housing for seniors. For example, if a family wanted to keep a close eye on grandma while she recuperates from surgery, they could have grandma stay in a temporary family health care dwelling in the yard or driveway. The law has a broader effect than that, however, with anyone who needs assistance with two or more “instrumental activities of daily life” for mental or physical reasons eligible to be housed in this manner.” Because of potential issues associated with the timely removal of such units upon expiration of the 12 months, verification of familial status, and confirmation of qualifying physical or mental conditions, the Council has asked staff to prepare an ordinance consistent with the model ordinance supplied by the League of MN Cities. Many cities are choosing to adopt ordinances to opt out of the new law, with some communities taking issue with the “intrusion upon local government zoning authority” and other reasons, such as: • no meaningful ability to enforce removal at the end of the “temporary” period • difficulty in controlling where they can go • concerns about them becoming a spare “room” for people that don’t actually have a health condition, and • Lack of controlled sewer and water connections. A recent survey conducted by one community resulted in 35 responses, with 34 communities indicated that they have or intend to “opt out” with only one city taking no action, reasoning that they did not expect any residents to want such a temporary dwelling. Some communities responded that they either have in place regulations that permit accessory dwelling units or are considering allowing such ADUs.