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HomeMy WebLinkAboutOrdinance 1059 - 2026/04/13ORDINANCE NO. 1059 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA AN ORDINANCE AMENDING THE MOUNDS VIEW CITY CODE, TITLE XI: BUSINESS REGULATIONS, CHAPTER 119, CONCERNING RENTAL DWELLING REGULATIONS THE CITY OF MOUNDS VIEW ORDAINS: SECTION 1. The City Council of the City of Mounds View hereby amends Title XI: Business Regulations, Chapter 119, Section 119.002 of the Mounds View Municipal Code by incorporating the following text in alphabetical order into the existing definitions of this section: AFFORDABLE HOUSING BUILDING means a multiple dwelling use (as defined in Section 160.012) that contains ten (10) or more dwellings/units for rent, and that meets the affordability requirements of this Chapter. AFFORDABLE HOUSING PERFORMANCE AGREEMENT means an agreement between the city and the developer which formally sets forth development approval and requirements to achieve Affordable Housing in accordance with this Chapter. AFFORDABLE HOUSING PLAN means a plan that documents policies and procedures for administering the Affordable Housing Units in accordance with the Affordable Housing Performance Agreement. AFFORDABLE HOUSING UNIT means a rental unit in an affordable housing building that rents for an amount that meets the affordability requirements of this Chapter. AREA MEDIAN INCOME (AMI) means the AMI as determined by the Metropolitan Council of the Twin Cities, and as adjusted for household size and number of bedrooms, at the time of development. CAUSE means the tenant or a member of the tenant's household materially violated a term of the lease or violated a provision of the crime -free, drug -free, or disorderly use lease requirements of this chapter. TENANT PROTECTION PERIOD means the period that commences on the date when a real estate closing transfers ownership of an affordable housing building and runs through the end of the three calendar months following the month in which written notice of the transfer is sent to each affordable housing unit tenant pursuant to this article. Ordinance No. 1059 Page 2 SECTION 2. The City Council of the City of Mounds View hereby amends Title XI, Chapter 119 of the Mounds View Municipal Code by adding the following section 119.008- 119.016 as follows: AFFORDABLE HOUSING POLICY 119.008 PURPOSE AND FINDINGS The city's Affordable Housing Policy (referred to in this Chapter as "the Policy" or "this Policy") promotes high quality housing located in the community for households with a variety of income levels, ages, and sizes to meet the city's goal of preserving and promoting economically diverse housing options in our community. The city recognizes the need to provide housing that is affordable to households with a broad range of income levels to maintain a diverse population and to provide housing for those who live, work, and play in the city. Without intervention, the trend toward rising housing prices in new developments will continue to increase. As a result, this Policy is being adopted to ensure that a reasonable proportion of new development includes units affordable to low- and moderate -income households and working families. The requirements set forth in this Policy further the goals in the city's Comprehensive Plan and Strategic Plan to create and preserve affordable housing opportunities. These requirements are intended to provide a structure for participation by both the public and private sectors in the production of affordable housing. 119.009 APPLICABILITY (A) This Policy shall apply to the following projects within the city: (1) Development of a new multiple dwelling use (as defined in Section 160.012 of the city code) that contains ten (10) or more dwellings/units for rent. (2) Renovation or Reconstruction of an existing multiple dwelling use (as defined in Section 160.012 of the city code) that contains ten (10) or more dwellings/units for rent. (B) This Policy shall not apply to the following projects within the city: (1) Development of Mobile Home Courts or Mobile Home Park use, or Nursing Homes and Senior Congregate living use (all as defined in Section 160.012 of the city code). (2) Renovation or Reconstruction of existing Mobile Home Courts or Mobile Home Park uses, or Nursing Homes and Senior Congregate living uses (all as defined in Section 160.012). (3) Development, or renovation or reconstruction, of single-family dwellings, townhouses, or cooperative housing uses (all as defined in Section 160.012). (4) Development, or renovation or reconstruction, of a building that includes a combination of residential and non-residential uses (all as defined in Section 160.012). Ordinance No. 1059 Page 3 (5) Development, or renovation or reconstruction, which does not fall under the criteria as outlined in Section 119.009(A) of this Policy as determined by the City Administrator. 119.010 AFFORDABLE HOUSING UNITS Applicable projects shall provide dwelling units at the following affordability levels. The Affordable Housing Units shall be located within the development. For developments that consist of multiple buildings, the Affordable Housing Units shall not all be located within a separate building. (A) Rental: (1) 10% of units at 30% AMI, and 10% of units at 50% AMI; or (2) A combination of units at the above affordability levels that results in 20% of units being affordable. 119.011 LENGTH In developments subject to this Policy, as outlined in Section 119.009, the period of affordability for the Affordable Housing Units shall be at least twenty-five (25) years. 119.012 STANDARDS FOR AFFORDABLE HOUSING UNITS (A) Size. The size and interior design of the affordable dwelling units should be consistent and comparable with the market rate units for the rest of the project. (B) Appearance. The exterior materials and design of the affordable dwelling units in any development subject to this Policy shall be indistinguishable in style and quality with the market rate units in the development. The interior finish and quality of construction of the affordable dwelling units shall at a minimum be comparable to other units within the proposed development. Construction of the affordable dwelling units shall be concurrent with the construction of market rate dwelling units. (C)Tenants. Affordable Housing Units shall be rented only to income eligible families during the period of affordability. An income eligible family may remain in the affordable dwelling unit for additional rental periods if the income of the family does not exceed one -hundred twenty percent (120%) of the applicable AMI. 119.013 INCENTIVES The city can provide a combination of the following to projects that meet the requirements of this Policy. Said incentives cannot be combined with any requirements or standards that are waived or varied as part of a Planned Unit Development that is permitted in accordance with Section 160.317. Ordinance No. 1059 Page 4 (A) Building Height. The maximum height allowed in the underlying zoning district can be increased by up to ten (10) feet or one story. (B) Density. The maximum allowed units in the underlying zoning district can by increased by up to two units up to a maximum of a 50% increase over current zoning. (C) Site Area. The minimum lot area per unit required for a multifamily or multiple family use (as listed in Section 160.056(B)(2)(c) can be reduced by 10%. (D) Open Space. If applicable, the minimum open space required can be reduced by 10%. 119.014 ALTERNATIVES Developments that are unable to comply with Sections 119.009 — 119.012 shall meet the following options: (A) Developers may propose a mixed -use development that includes residential components, provided the following conditions are met: (1) Mixed Use PUD following Section 160.317(C) of the city code. (2) The development must be submitted as a Conditional Use Mixed Use PUD, incorporating both commercial uses and market -rate multi -family residential units. Approval is subject to review and authorization by the appropriate governing body. (3) If the Mixed -Use PUD is to be constructed in multiple phases, the proportion of residential development completed at any given stage, when averaged with all previously completed stages, shall not exceed the overall proportion of residential development planned for the entire PUD. This ensures a balanced and consistent integration of residential and non-residential uses throughout the development timeline. (4) Developments utilizing this alternative pathway shall not be eligible for any incentives related to increased building height, density, or other dimensional standards. All such developments must comply with the base zoning requirements applicable to the site. (5) If the commercial uses are specific businesses, such as medical offices or restaurants, applicants may be eligible for up to 5% cashback of the land cost if the site was owned by the city, or the city's Economic Development Authority (EDA). 119.015 AFFORDABLE HOUSING PLAN (A) Applicability (1) Developments that are subject to this Policy shall include an Affordable Housing Plan as described below. An Affordable Housing Plan describes how the developer complies with each of the applicable requirements of this Policy. (B) Approval Ordinance No. 1059 Page 5 (1) The Affordable Housing Plan must be approved by the City Council. (2) Minor modifications to the plan are subject to approval by the City Administrator. Major modifications are subject to approval by the City Council. Items that are considered major and minor will be designated in the Affordable Housing Plan. (C) Contents (1) The Affordable Housing Plan shall include at least the following: i. General information about the nature and scope of the development, subject to these regulations. ii. The total number of market rate units and Affordable Housing Units in the development. iii. The floor plans for the Affordable Housing Units showing the number of bedrooms and bathrooms in each Unit. iv. The approximate square footage of each Affordable Housing Units and average square foot of market rate unit by types. v. Building floor plans and site plans showing the location of each Affordable Housing Units. vi. The pricing for each Affordable Housing Units. The pricing of each unit shall be determined at time of approval. At time of sale this price may be adjusted if there has been a change in the AMI or a change in the formulas used in this Policy. vii. The order of completion of market rate and affordable dwelling units. viii. Documentation and specifications regarding the exterior appearance, materials and finishes of the development for each of the Affordable Housing Units illustrating that the appearance of affordable units is comparable to the appearance of the market -rate units. ix. A Management Plan documenting policies and procedures for administering the Affordable Housing Units, in accordance with the Affordable Housing Performance Agreement. x. All other information that the city may require that is needed to achieve the Council's affordable housing goals. 119.016 RECORDED AGREEMENTS, CONDITIONS, AND RESTRICTIONS (A) An Affordable Housing Performance Agreement shall be executed between the City and a Developer, in a form or format approved by the City Attorney, based on the Affordable Housing Plan described in Section 119.015, which formally sets forth development approval and requirements to achieve Affordable Housing in accordance with this Policy and location criteria. The Agreement shall identify: (1) The location, number, type, and size of affordable housing units that are to be constructed. (2) Sales and/or rental terms; occupancy requirements. (3) A timetable for completion of the units; and (4) Restrictions to be placed on the units to ensure their affordability and any Ordinance No. 1059 Page 6 terms contained in the approval resolution by the City as applicable. (B) The applicant or owner shall execute all documents deemed necessary by the city, including, without limitation, restrictive covenants, and other related instruments, to ensure the affordability of the affordable housing units in accordance with this Policy. (C) The applicant or owner must prepare and record all documents, restrictions, easements, covenants, and/or agreements that are specified by the city as conditions of approval of the application prior to issuance of any zoning permits or approvals for any development subject to this Policy. (D) Documents described above shall be recorded with the County Registry of Deeds by the applicant or owner, with copies of recorded documents provided to the city. SECTION 3. The City Council of the City of Mounds View hereby amends Title XI: Business Regulations, Chapter 119 of the Mounds View Municipal Code by adding the following section 119.030- 119.034 as follows: SALE OF AFFORDABLE HOUSING BUILDINGS 119.030 PURPOSE The purpose of this article is to provide housing stability, protection, and notification to tenants in rental housing during an ownership transition. This article requires notice to tenants and to the city whenever title to property containing three (3) or more rental housing units is conveyed or otherwise transferred. Under this article, the owner would be required to pay resident relocation benefits if they take certain actions during the three- month tenant notification period and the resident needs to move as a result of that action. 119.031 NOTICE. (A) Notice to tenants. Whenever title to property containing three (3) or more rental housing units, as defined in this Chapter, is conveyed or otherwise transferred, the new owner must, within 30 days after the real estate closing, deliver written notice to each housing unit tenant of the housing building that the property is under new ownership. The notice must include, at a minimum, the following information: (1) The name, mailing address, and telephone number of the new owner. (2) The following statement: "Mounds View City Code Title XI, Chapter 119 provides for a three-month tenant notification period for housing unit tenants. Under the ordinance, a housing unit tenant may be entitled to relocation assistance from the new owner if, during the three-month tenant notification period, the new owner: i) Terminates or does not renew the tenant's rental agreement without cause; ii) Raises the rent and the tenant terminates their rental agreement due to the rent increase; Ordinance No. 1059 Page 7 iii) Requires existing tenants to be rescreened or comply with new screening criteria and the owner or tenant terminates the tenant's lease; or iv) Imposes a material change in the terms of the lease and the owner or tenant terminates or does not renew the tenant's lease." (3) Whether there will be any rent increase within the three-month tenant notification period and, if so, the amount of the rent increase and the date the rent increase will take effect. (4) Whether the new owner will require existing housing unit tenants to be rescreened or comply with new screening criteria during the three-month tenant notification period and, if so, a copy of the applicable screening criteria. (5) Whether the new owner will, without the tenant's consent, impose a material change in the terms of the lease during the three-month tenant notification period, and, if so, the language of the material change and explanation of its effect. (6) Whether the new owner will terminate or not renew rental agreements without cause during the three-month tenant notification period, and, if so, notice to the affected housing unit tenants whose rental agreements will terminate and the date the rental agreements will terminate. (7) Whether the new owner intends to increase rent, require existing tenants to be rescreened to determine compliance with existing or modified residency screening criteria, terminate or not renew housing unit rental agreements, or impose a material change in the terms of the lease without cause within 30 days immediately following the tenant notification period. (8) The date that the tenant notification period will expire. (B) Notice to the city. The new owner must deliver a copy of the notice required by this article to the City Administrator and the Community Development Department at the same time that the notice is delivered to tenants. (C) Required tenant notification period. The new owner of a housing building must not terminate or not renew a tenant's rental agreement without cause, raise rent, rescreen existing tenants, or impose a material change to the terms of the lease during the tenant notification period without providing the notices required by this article. 119.032 RELOCATION ASSISTANCE (A) When required. Anew owner of a housing building must pay relocation assistance to housing unit tenants if, during the three-month tenant notification period, the new owner: (1) Terminates or does not renew the tenant's rental agreement without cause; (2) Raises the rent and the tenant terminates their rental agreement due to the rental increase: Ordinance No. 1059 Page 8 (3) Requires existing tenants to be rescreened or comply with new screening criteria and the owner or tenant terminates the tenant's lease; or (4) Imposes a material change in the terms of the lease and the owner or tenant terminates or does not renew the tenant's lease. (B) Amount. Relocation assistance is an amount equal to three months of the current monthly lease rent. (C) When paid. The new owner shall, when required, pay relocation assistance to the tenant of a housing unit within 30 days after receiving tenant's written notice of termination of the lease or within 30 days after the owner notifies the tenant that the lease will be terminated or not renewed. 119.033 TENANT COMPLAINTS A tenant of a housing unit who believes the new owner has not provided the tenant with the notifications required under this section may submit a notice of violation to the city. The purpose of the notice is to inform the city of an alleged violation of this article to assist the city in determining whether to impose an administrative penalty provided for in this article. The city is not required to take any particular action in response to a notice of violation and any enforcement action it does take shall be on behalf of the city, not the tenant. Filing a notice of violation does not prohibit the tenant from pursuing any remedy available to the tenant under the law. 119.034 PENALTIES AND ADMINISTRATIVE CITATIONS. (A) A violation of this article is an administrative offense that may be subject to an administrative citation and civil penalties. (B) The procedure for administrative citations for violation of this article shall be as provided in Title I, Chapter 10, Section 10.999. (C)The penalty for a violation of this ordinance shall be the sum of the applicable amount of relocation assistance plus $500. (D)A violation of this article shall constitute a separate offense for each dwelling unit affected. (E) Within 30 days after a person pays the penalty in subsection (C) of this section to the city, the city shall pay to the displaced tenant of the housing unit in which the violation occurred an amount equal to the relocation assistance amount specified in section 119.032. SECTION 2. In accordance with Section 3.07 of the City Charter, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: Ordinance No. 1059 Page 9 On April 13, 2025, the City Council adopted Ordinance No. 1059 by amending the Mounds View City Code, Title XI: Business Regulations, Chapter 119, by amending the definitions in Section 119.002, adding Sections 119.008 through 119.016 concerning affordable housing in new construction in the city, and adding Sections 119.030-119.034 concerning obligations to tenants upon sale of certain rental property. A printed copy of the ordinance is available for inspection during regular business hours at Mounds View City Hall and is available online at the City's web site located at www.moundsviewmn.org. SECTION 3. This ordinance shall take effect and be in force 30 days from and after its passage and publication, in accordance with Section 3.09 of the City Charter. Introduction and First Reading by the Mounds View City Council on March 23, 2026. Second Reading and Adoption by the Mounds View City Council on ,�rfil 13, 2026. Publication Date: April 16, 2026. h Lindstrom, Mayor Attest: Brian Be an, Acting City Administrator (SEAL)