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HomeMy WebLinkAboutCC WS PACKET 03192024- Joint with Planning- CanceledCITY OF SAINT ANTHONY VILLAGE WORKSESSION AGENDA Tuesday, March 19, 2024 at 5:30PM There is also a dial -in option available. Members of the public who wish to attend the meeting may do so in person. Worksession Topics Long -Term Rental Housing Ordinances Steve Grittman, City Planner, presenting. COVER MEMO.PDF MAPS OF RENTAL HOUSING LICENSES.PDF SINGLE FAMILY RENTALS MAP.PDF PROPERTY VALUES MAPS - RENTAL SFH.PDF LHTF_2023_UPDATE.PDF Adjournment If you would like to request special accommodations or alternative formats, please contact the City Clerk at 612 -782 -3313 or email city@savmn.com . People who are deaf or hard of hearing can contact us by using 711 Relay. Our Mission is to promote a high quality of life to those we serve through outstanding city services. 1. A. Documents: 2. THIS PAGE LEFT INTENTIONALLY BLANK MEMORANDUM To:Mayor Webster and St. Anthony Village City Council St. Anthony Village Planning Commission Charlie Yunker, City Manager From:Stephen Grittman, City Planner Date:Joint Work Session Meeting – March 19, 2024 GC Project No.140.00 Topic/Request:Long-Term Rental Housing Ordinances Background and Analysis In November of 2023, the City Council and Planning Commission met to discuss rental housing in the Village, including a broad range of issues and potential objectives for monitoring and/or regulation of rental housing. Short Term Rental. The prior meeting resulted in a consensus on a few of the issues raised, primarily that of Short-term rentals. This aspect of rental housing – a form of transient commercial lodging – was viewed with concern primarily for maintenance, and the potential disruption to the neighborhoods in which it might be located. The direction of the Work Session participants was to create a limited allowance for such housing, but ensure that it was for an extended period of time (to avoid 1- or 2-night party rentals), and to reexamine the monitoring of property maintenance as a component of licensing these uses. A draft ordinance will be developed that establishes a minimum rental time period for short-term rental for review and consideration as a part of the larger discussion on rental housing. Long Term Rental. Policy direction for long-term rental housing was less clear. City Officials decided to carry over discussion on the topic to 2024. Issues include (1) Working toward the creation of affordable housing opportunities; (2) Identifying strategies that can foster “Naturally Occurring Affordable Housing” (NOAH), through home ownership; (3) Balancing impacts of market influences with local regulations; (4) Potential use of outside agencies or strategies that could realistically assist St. Anthony in reaching its goals as they may be defined. To help resolve and clarify objectives regarding long-term rental regulations, in service of creating appropriate code and policy, the following questions are intended to help guide discussion at the March 2024 Joint Work Session: March 19, 2024 Page 2 1.Can (or should) St. Anthony rely primarily on existing tools and strategies (e.g. Housing Trusts, Property Maintenance, Zoning, and other Codes, Market-based Demand, etc.) to resolve the issues related to affordable housing? 2.How does the Council and Commission view controls aimed at limiting “corporate” housing ownership (and how might we define “corporate”)? (This was one aspect of limitations for which prior officials expressed some consensus). 3.Is there a role for the Village in limiting overall rental housing quantities – especially single family home rentals? 4.If the Village chooses to limit rental housing, is there a preferred strategy option (such as (a) limits on total rental units, (b) limits on geographic distribution by neighborhood, (c) limits on geographic distribution by block, etc.)? 5.Other questions that require additional attention? There are a number of resources that may be relevant to this discussion. Most recently, the Minneapolis Federal Reserve published another of its series of research projects on Twin Cities housing markets. They can be found at the following links (there are other related articles that can be found with these): https://www.minneapolisfed.org/article/2024/how-new-apartments-create-opportunities-for- all https://www.minneapolisfed.org/article/2024/twin-cities-region-meets-ambitious-housing- goals-for-second-year-but-has-much-work-left-to-do Attached to this memorandum is much of the material provided for the prior discussion. The work session discussion of these questions, and other issues that may be raised, will help staff prepare additional research or code language that can help target the full range of issues and objectives. Other background can be found in the materials prepared for prior discussions, including the agenda website links to the Planning Commission’s public hearing on 10/17/23, and the City Council/Planning Commission Work Session on 11/21/23. https://webstreaming.ctv15.org/viewer.php?streamid=6653 City Council Worksession Meeting Agenda & Packet- Joint with Planning Commission ATTACHMENTS Mapping of all Rental Units Mapping of Single Family Rental Units Mapping of Selected Property Values Local Housing Trust Funds Background information All Residential Rental Licensed Parcels THIS PAGE LEFT INTENTIONALLY BLANK Single Family Zoned Parcels with Rental Licenses (highlighted in Black) 54 parcels total THIS PAGE LEFT INTENTIONALLY BLANK SILVER LAKE RD37TH AVE NE 29TH AVE N E 37TH AVE N E 33RD AVE N E 36TH AVE N E 31ST AVE N E HIGHWAY NO 88BELDEN DRSTINSON BLVD N EST ANTHONY BLVDFOSS RD39TH AVE NE 32ND AVE N EEDWARD ST N EOLD HWY 8SILVER LN K EN ZIE TERRANKIN RDHIGHCREST RDASH 30TH AVE N E H C R R A C O R R I D O R 34TH AVE N E TOWNVIEW AVE PAHL AVEHARDING ST N E27TH AVE N EWILSON ST N EELM SKYCROFT DRCOOLIDGE ST N ECROFT DRMURRAY AVE ARMOUR TER W PENROD LNSTINSON BLVD NESTINSON PKWY N EP I N E CHANDLER DRFORDHAM DRCRESTVIEW DRSHAMROCK DREDGEMERE AVE 38TH AVE NE WENDHURST AVE ROOSEVELT ST N EANTHONY LASKYCROFT CIRLOCUST K E N Z IE T E R SILVER LNSILVER LAKE RDSKYCROFT DRCROFT DRROOSEVELT ST N EHIGHCREST RDCOOLIDGE ST N ESILVER LAKE RDCROFT DR0 1,750 Feet Ü St. Anthony Comprehensive Plan Single Family Rentals St. Anthony, MN Single Family Rental 10 Units 5 Units THIS PAGE LEFT INTENTIONALLY BLANK Selected Property Values in Neighborhoods with Rental Single Family Homes Northeast Quadrant – Penrod Lane to Fordham Drive, North of 39th Ave. NE Northwest Quadrant – Stinson to Belden Drive, north of 34th Ave NE Southwest Quadrant – Stinson to Wilson, South of 29th Ave NE THIS PAGE LEFT INTENTIONALLY BLANK Southeast Quadrant – 29th Ave NE to 31st Ave NE, East of Silver Lake Road THIS PAGE LEFT INTENTIONALLY BLANK LOCAL HOUSING TRUST FUNDS IN MINNESOTA Local Housing Trust Funds (LHTF) are funds established by a local government by dedicating local public revenue for housing. They are a consistent, flexible resource for housing within a local jurisdiction. Trust funds help communities leverage public and private resources and jumpstart projects that draw investment and jobs. LHTFs enable prioritizing developments that maximize benefit to the community. In 2017, the Minnesota Legislature defined a LHTF in law, providing clarity to assist local jurisdiction with housing investments. In 2021, to incentivize LHTFs, they authorized a state match fund of $1 million, providing a one-to-one match on the first $150,000 of new revenue invested in housing trust funds by cities and counties, and a one-to-two match on the next $150,000 of available funds. Since 2017, Minnesota has seen a steady increase in LHTFs, as 20 cities and counties across the state have adopted them, with more on the way. This report includes information from MHP’s third annual survey of cities and counties regarding LHTF. 1 Benefits of LHTFs Leverage private dollars Provide flexibility to meet local needs Encourage local contributions Establish dedicated sources of revenue February 2023 Local Housing Trust Funds by the numbers: 20 Number of LHTFs in MN 2023 2017 35 $75,000 $10,000,000+ Range of Fund Sizes Communities Interested in LHTFs From big to small, rural to metro, LHTFs can serve the housing needs of communities of all types and sizes. Counties (7): Chisago Crow Wing Goodhue Hennepin Lake Otter Tail Swift Cities (13): Alexandria Bloomington Duluth Eden Prairie Edina Minneapolis Minnetonka Northfield Red Wing Richfield Rochester St Louis Park St Paul Local Housing Trust Funds in Minnesota Local Housing Trust Funds Across Minnesota 8 7Common Uses For LHTFs Homebuyer Assistance Preservation Gap Financing Creating Deeper Affordability Housing Stability 2 Common Funding Sources For LHTFs HRA Levy Housing Related Funds One-time Funds Federal and State Formula Funds Donations Local Housing Trust Funds in Minnesota 3 Duluth Population: 86,372 After years of careful planning, Duluth’s Housing Trust Fund, a partnership between the City of Duluth and LISC Duluth, was launched in 2022. The partnership came together after Mayor Larson and city staff, along with LISC Duluth, attended a National League of Cities’ training on housing and health equity. Upon his return, Mayor Larson established the Mayor’s Housing Task Force, which issued a 2020 report including recommendation for a housing trust fund. The partnership has resulted in a HTF established by the city, LISC Duluth, and other partners, with initial funds of $16 million: approximately $4 million to be administered by the city and $12 million administered by LISC Duluth. A committee appointed by Mayor Emily Larson and confirmed by the Duluth city council provides oversight and recommendations on HTF applications, both those administered by the City and those by LISC Duluth. Funds have already been allocated to several projects. The unique partnership between the City of Duluth and LISC Duluth has provided resources for a broader range of housing goals. The City and LISC Duluth have different purposes for their funds. City of Duluth funds primarily help projects get started, including options for revolving funds to provide construction financing to projects experiencing short-term funding gaps. LISC Duluth intends to focus funds it administers in big multifamily developments and other large projects. “Having unique objectives for the funds administered by the City and LISC is helpful, as there are so many important but competing priorities in housing. This approach allows funds to better support our significant housing needs in Duluth through multiple strategies focused on a range of housing types,” says Adam Fulton, Deputy Director, Planning and Economic Development Department, City of Duluth. Featured Stories: Photo: Skyline of Duluth, MN TIF Pooling 4 Local Housing Trust Funds in Minnesota Minnetonka Population: 53,266 In 2020, the City of Minnetonka established its Affordable Housing Trust Fund (AHTF). While the fund was initially created to provide rental assistance to households impacted by COVID-19, in 2021 the city received special legislation to transfer the existing balance of “pooled” tax increment, approximately $5 million, to its HTF for expanded affordable housing opportunity. The special legislation allowed the city to diversify the level of affordability beyond the requirements under TIF law. Currently, Minnetonka’s AHTF has approximately $7 million. Accomplishments to date include assisting 187 households with up to $1,500 in rental assistance, ensuring deeper affordability for more units in three large mixed-income rental properties, and providing emergency assistance to households at risk of homelessness. Plans for 2023 include expanding a down-payment assistance program. Chisago County Population: 57,469 “Having the Housing Trust Fund in our toolbox has been getting the attention of developers and we are optimistic to have projects underway in the near future.”— Nancy Hoffman, Chisago County HRA-EDA Photo: Multifamily housing building in Minnetonka, MN Chisago County adopted its HTF in 2021, with a focus on workforce housing for moderate, low and very low-income residents and households. The County designated the Chisago County HRA/EDA as the fund administrator, a good fit as the HRA/EDA brings extensive experience in developing, managing, and owning affordable properties. The HRA/EDA funded the HTF from its existing budget, with an initial fund of $150,000. It has now grown to $556,000, with funds added in 2022 and 2023 from HRA/EDA-owned housing that generates revenue. The HRA/EDA is also soliciting gifts, grants, and donations by corporations or individuals and may add proceeds from future sale of HRA/EDA parcels. According to Nancy Hoffman, Executive Director of the Chisago County HRA-EDA, “In our area (Chisago County) it can be difficult to attract affordable housing developers because we are just far enough out of the metro area that they cannot get the rents to make the project cash flow as they can just a few miles away.” Libby Murphy, Director of Policy, State Legislative Lead libby.murphy@mhponline.org : : 612-716-9703 Elizabeth Glidden, Deputy Executive Director elizabeth.glidden@mhponline.org : : 612-396-2288 MHP is an equal opportunity provider. mhponline.org. ©2023 Minnesota Housing Partnership CONTACT US Note: Sources and uses for LHTFs, and other details, are identified in this report to the best of our ability. Please contact MHP with any corrections. Local Housing Trust Funds in Minnesota Local Housing Trust Funds Established in Minnesota Date Adopted Funding Source(s) Use(s) Alexandria 2019 • TIF Pooling • HRA Levy • Housing Related Funds • Homebuyer Assistance • Preservation Bloomington 2019 • TIF Pooling • One-time Funds • Donations • Housing Related Funds • Housing Stability • Preservation • Gap Financing • Revolving Loan Fund Duluth 2022 • HRA Levy • Housing Related funds • Preservation • Gap Financing Eden Prairie 2022 • Still Determining • Still Determining Edina 2019 • TIF Pooling • Housing Related Funds • 4d Program Costs • Preservation • Gap Financing Minneapolis 2003 • TIF Pooling • One-time Funds • Federal and State Formula Funds • Gap Financing • Preservation Minnetonka 2022 • TIF Pooling • Housing Stability • Gap Financing Northfield 2022 • Housing Related Funds • Homebuyer Assistance Red Wing 2015 • HRA Levy • TIF Pooling • Homebuyer Assistance • Gap Financing • Preservation Richfield 2020 • Federal and State Formula Funds • EDA Levy • Housing Related Funds • Homebuyer Assistance • Housing Stability Rochester 2018 • One-time Funds • Donations • Deepen Affordability St. Louis Park 2018 • TIF Pooling • HRA Levy • Homebuyer Assistance • Preservation • Gap Financing • Deepen Affordability St. Paul 2019 • One-time Funds • Parking revenues • Homebuyer Assistance • Housing Stability • Gap Financing • 4d Program Costs Chisago County 2021 • Housing Related Funds • Affordable Housing Crow Wing County 2019 • HRA Levy • Gap Financing • Hombuyer Assistance • Preservation Goodhue County 2018 • HRA Levy • Homebuyer Assistance • Housing Stability • Gap Financing Hennepin County 2000 • HRA Levy • Gap Financing • Preservation Lake County 2022 • HRA Levy • Housing Related Funds • Still Determining Otter Tail County 2021 • HRA Levy • Still Determining Swift County 2020 • HRA Levy • Chippewa Valley Ethanol Company Shares • Preservation • Gap Financing Common Funding Sources • HRA levy • TIF pooling • Housing related funds (includes land sale proceeds, in lieu of fees, etc) • Federal and State Formula Funds (CDBG, HOME, ARPA, etc) • One-time Funds (intial funding, annual aprorations, etc) • Donations (individual and organizational) Common Uses • Homebuyer Assistance • Preservation (single family rehab, multi-family rehab, NOAH preservation) • Gap financing (new construction, redevelopment) • Creating deeper affordability • Housing Stability (emergency housing assistance)