HomeMy WebLinkAbout2016-01-05 City Council Work SessionAgenda
Work Session
City of Edina, Minnesota
Edina City Hall Community Room
Tuesday, January 5, 2016
5:30 PM
I.Call To Order
II.Roll Call
III.Southwest LRT Corridor-Wide Housing Gaps Analysis & Draft
Housing Strategy
IV.Correspondence protocol
V.Adjournment
The City of Edina wants all residents to be comfortable being part of the
public process. If you need assistance in the way of hearing ampli(cation, an
interpreter, large-print documents or something else, please call 952-927-8861
72 hours in advance of the meeting.
Date: January 5, 2016 Agenda Item #: III.
To:Mayor and City Council Item Type:
Other
From:Joyce Repya, Senior Planner
Item Activity:
Subject:Southwest LRT Corridor-Wide Housing Gaps
Analysis & Draft Housing Strategy
Information
CITY OF EDINA
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
ACTION REQUESTED:
None
INTRODUCTION:
Kerri Pearce Ruch from the Southwest LRT Housing Workgroup will review the 2014 Housing Gaps Analysis.
Ms. Pearce Ruch will also present the most recent draft of the Corridor-wide Housing Strategy. These plans
support and encourage a full range of housing choices along the Southwest Corridor (Green Line Extension)
station areas.
ATTACHMENTS:
Description
Southwest LRT Corridor-wide Housing Strategy
Corridor Housing Strategy
A plan to support and encourage a full range of housing
choices in METRO Green Line Extension station areas
www.hennepin.us/southwestlrt
HENNEPIN COUNTY
SOUTHWEST LRT
COMMUNITY WORKS
minnetonka
2 | Southwest LRT Community Works Corridor Housing Strategy
Southwest LRT Community Works Corridor Housing Strategy | 3
TABLE OF CONTENTS
Acknowledgments 4
About the strategy
About the Housing Workgroup
Housing Workgroup members
Vision — goals — investment guiding principle
Background 6
Why a coordinated housing strategy?
Why work together?
Successful collaboration and shared benefits
How was the strategy created?
Housing goal and affordability targets 10
Allocating housing along the Southwest Corridor
How much do people pay for “affordable” housing?
Why set corridor affordability targets?
Achieving the goal 16
Corridor-wide objectives
Implementation strategies
Partners in implementation
Next steps
4 | Southwest LRT Community Works Corridor Housing Strategy
ACKNOWLEDGEMENTS
About the strategy
In May 2012, the Southwest LRT Community Works Steering
Committee endorsed the creation of a housing strategy for the
Southwest Corridor and directed the program’s Housing Workgroup
to carry out the development process. The purpose of this strategy
is to help fulfill the Southwest Community Work’s vision, goals and
investment guiding principles to position corridor communities
as places for all to live, providing a full range of housing choices,
especially within a half-mile of the METRO Green Line Extension.
About the Housing Workgroup
The Housing Workgroup for Southwest LRT Community Works
comprises staff from all six corridor cities, Hennepin County, Family
Housing Fund, Twin Cities LISC, Minnesota Housing, Metropolitan
Council, the Southwest Corridor Project Office and ULI-Minnesota.
Workgroup members have collaborated on background research
and funding to support development of a corridor-wide housing
strategy for the Southwest Corridor (METRO Green Line Extension). It is
acknowledged that there may be many ways for communities to meet
local and regional housing goals and that each community, through its
elected and appointed leaders, will have its own legitimate priorities,
funding and policy choices and may seek different balances at different
points in time.
We present this document to identify options for strategies and goals
and to provide considered staff input on a coordinated approach. There
is no single or particular vision of urban development, and corridor
communities have leeway to adopt various policies necessary to achieve
their valid interests. It is also recognized that multiple factors go into
investment decisions and locations for constructing or renovating
housing units.
Southwest LRT Community Works
Vision
Collaborate and partner so that Southwest Corridor
becomes a premier destination that is
accessible, livable and vibrant
Southwest LRT Community Works Corridor Housing Strategy | 5
Housing Workgroup members
Tara Beard, Metropolitan Council
Cathy Bennett, ULI-Minnesota
Theresa Cunningham, City of Minneapolis
Margo Geffen, Hennepin County
Elise Durbin, City of Minnetonka
Kathryn Hansen, Southwest Project Office
Margaret Kaplan, Minnesota Housing
Molly Koivumaki, City of Eden Prairie
Tania Mahtani, City of Eden Prairie
Alysen Nesse, City of Eden Prairie
Gretchen Nicholls, Twin Cities LISC
Kerri Pearce Ruch, Hennepin County
Joyce Repya, City of Edina
Elizabeth Ryan, Family Housing Fund
Brian Schaffer, City of Minneapolis
Michele Schnitker, City of St. Louis Park
Libby Starling, Metropolitan Council
Stacy Unowsky, City of Hopkins
Katie Walker, Hennepin County
For additional information on Southwest LRT Community Works,
its members, partners and initiatives, as well as contact information,
please visit www.swlrtcommunityworks.org.
Southwest LRT Community Works Adopted Goals
Economic competitiveness and job growth
promote opportunities for business and employment growth
Housing choices
position the Southwest LRT communities as a place for all to live
Quality neighborhoods
create unique, vibrant, safe, beautiful, and walkable station areas
Critical connections
improve affordable regional mobility for all users.
6 | Southwest LRT Community Works Corridor Housing Strategy
BACKGROUND
Southwest LRT Community Works and its funding partners have been
working together since 2012 to inventory existing housing options in
the corridor, understand what the future housing demand may be and
the likely demographics of people interested in living along the corridor.
In addition, the work includes developing a deep understanding of
the current and potential local, county, state and federal technical and
financial resources to support a full range of housing choices. Informing
this work was a series of stakeholder engagement activities in 2015 to
gather feedback from groups including funders, developers, housing
advocates, city councils and commissions, along with Southwest
Corridor-specific studies listed in the box below.
Additionally, individual cities have undertaken housing studies, outlined
tools and strategies in their comprehensive plans and set individual
housing goals. These efforts, along with other resources and technical
assistance, have been compiled and taken into consideration to inform
a Southwest Corridor-wide Housing Strategy along the Green Line
Extension. Southwest LRT Community Works envisions this corridor-
wide strategy as a complement to other housing planning and policy
work. It provides objectives, suggested housing targets and potential
implementation strategies that are options to help Corridor stakeholders
work towards a full range of housing choices in LRT station areas.
Recent Southwest Corridor housing studies
Southwest Corridor-wide Housing Inventory (2013)
a chronicle of existing housing and demographics along
the corridor
Southwest LRT New Starts Affordable Housing Rating
Evaluation Summary, MZ Strategies (2013)
an outline of existing SW Corridor Cities plans and programs
that support affordable and workforce housing that can
be applied to the LRT Corridor
Southwest Corridor Investment Framework (2013)
Transitional Station Area Action Plans for each of the
17 station areas, including recommendations on likely
sites for housing development
Southwest Corridor Housing Gaps Analysis (2014)
projects future housing demand, provides market analysis
and outlines recommendations and tools to achieve a full
range of housing choices.
Southwest LRT New Starts Submittal (2014)
updated information on costs, ridership and land use/
economic development both current and future, as part
of the federal LRT funding process
Southwest LRT
Community Works
Guiding Principle
for investment
— Housing
Providing a full range
of housing choices —
positioning the
Southwest LRT
communities
as a place for all to live
Southwest LRT Community Works Corridor Housing Strategy | 7
Why a coordinated housing strategy?
The Southwest LRT Corridor is well known as job-rich, with over
270,000 jobs expected by 2030. Housing will play a key role in
maximizing economic development and supporting job growth
along the Southwest Corridor, as well as in helping the LRT line to be
successful. Workers who can live close to their jobs save money in
transportation costs; a full range of housing choices within station areas
will help support a balanced employment base; and lifecycle housing
in communities and increased housing density around transit stations
will support the LRT line with consistent or increased ridership.
However, studies along Southwest Corridor point to the majority of new
housing being high-end /luxury development. This leads to a concern
that without a coordinated strategy, development in station areas may
not produce a full range of housing choices, either by cost or unit size
and type. Recent studies by the Dukakis Center for Urban and Regional
Policy of 42 neighborhoods and 12 metropolitan areas revealed that
when transit is added, housing stock becomes more expensive. These
and other studies indicate that existing and future housing located
strategically near light rail transit experiences a rise in value and rents
at a more rapid pace than the general market. This increase helps to
spur economic development and at the same time has a tendency to
reduce the opportunities for lower-to-moderate income people and
transit-dependent individuals who may desire and benefit most by
living in station areas. Rising housing costs generally hit low-income
working households the hardest, which elevates the risk of involuntary
displacement for people already living in those areas, who may no
longer be able to afford to own or rent due to the increase in values.
Why work together?
Creating a full range of housing choices is a difficult challenge, yet it
will be one measure of the success of Southwest LRT (METRO Green
Line Extension) and the communities it serves. Collaboration is key
to adequately addressing the challenges, particularly in developing
affordable housing.
A collaborative approach increases the corridor’s ability to be
competitive and adds leverage to secure public and philanthropic
resources. It also sends a positive message to the development
community that the corridor cities are “all-together” in supporting a
mix of housing choices, and helps to create alignment to achieve
regional housing goals.
“ Ensuring that there is
a full range of housing
choices with access to
transit in our cities builds
economic prosperity
and competitiveness by
attracting and retaining
residents to support
key employers. “
— Family Housing Fund
“… we must act now to ensure
that the housing built in
these locations provides for
a mix of incomes or a once-
in-a-lifetime opportunity
will be lost.”
— Center for Transit
Oriented Development
8 | Southwest LRT Community Works Corridor Housing Strategy
Successful collaboration and shared benefits
A Housing Strategy for the Southwest Corridor may enable corridor
cities, Hennepin County and other public and private partners to do
more — better — together than they can do alone. For instance, it may
help them to:
Create and sustain healthy communities
By providing a full range of housing choices all along the Southwest
corridor, cities will be better able to create and sustain the livable,
vibrant neighborhoods that contribute to overall city well-being.
Housing that is affordable to a mix of incomes around all station areas
increases choices for residents looking to live near work, family or
educational opportunities. It also reduces transportation costs and
creates equity in communities.
Provide lifecycle housing for existing residents
Whether it’s housing for young people just out of college, move-up
housing for growing families or housing options for seniors looking to
age in place, the right mix of housing can help cities retain residents
and build strong, stable communities. A Corridor-wide Housing Strategy
will help cities respond to the needs of their existing residents and
accommodate community needs.
Achieve individual city goals:
The Housing Strategy will assist cities in meeting their individually
adopted housing goals and may allow them to increase their Housing
Performance Score to qualify for resources from the Metropolitan
Council including the Livable Communities Demonstration Account
program (LCDA) and other sources.
Leverage resources
Southwest Corridor cities and Hennepin County can use the housing
strategy to leverage additional public and private resources, compete
better for limited grant funds and philanthropic dollars and attract
greater private development than any entity may be able to do in
acting alone.
Increase economic competitiveness
There is an economic case for providing the best opportunities for
access to quality housing for those with modest incomes. If essential
workers along the corridor cannot afford to live there anymore, it
impacts not just individual cities but also the economic growth and
competitiveness of the corridor and entire region.
Southwest LRT Community Works Corridor Housing Strategy | 9
Offer consistency of approach
Quality developers have a limited capacity to pursue projects. Project
costs increase when inconsistent visions, goals and processes result
in developers spending substantial time pursuing needed capital
and regulatory approvals. By contrast, developers may be drawn to a
redevelopment-ready area that has a collaborative housing approach
and consistency of vision. This reduces the complexities of development,
helps to solve problems and manages development risks. A corridor-
wide Housing Strategy can provide clarity and consistency to the local
and national development community, allowing cities and the County
to take full advantage of unique transit-oriented development (TOD)
opportunities and to be creative in development near transit that will
grow the tax base now and into the future.
Sustain and improve the Southwest LRT New Starts Score
The Federal Transit Administration (FTA) considers policies, planning
and programs that support development and retention of affordable
housing along transit corridors. In its most recent New Starts ranking,
the FTA spoke highly of the coordinated planning efforts and programs
along Southwest Corridor, noting that “The region appears to have
one of the most comprehensive sets of affordable housing initiatives in
the country.” FTA ranked Southwest LRT “high” based on coordination
and planning efforts around affordable housing, but ranked it only
“medium-low” based on the formula for counting legally-binding
affordable housing along the corridor. In order to make the LRT project
as competitive as possible for federal funding, FTA will be looking for
further action, such as adoption of a corridor-wide housing strategy,
when it reviews Southwest LRT for the Full Funding Grant Agreement.
How was the strategy created?
The Southwest LRT Community Works Steering Committee has adopted
goals and guiding principles for investment that ground the work of this
Housing Strategy. They provide the overarching strategy goal, as well
as the basis for recommended targets for constructing and preserving
housing and implementation strategies.
This document aims to provide one measure of what a “full range of
housing choices” means within a specific time period. It also lays out a
menu of implementation strategies and action steps as well as identifies
key partner roles. While no one entity is likely to take on all of the
implementation strategies, cities along the corridor can work together
to share resources and information and use the strategies that best meet
their community’s needs.
… The region appears to
have one of the most
comprehensive sets
of affordable housing
initiatives in the country.
— Capital Investment
Program Project Profiles,
Federal Transition
Administration, 2016
10 | Southwest LRT Community Works Corridor Housing Strategy
HOUSING GOAL AND AFFORDABILITY TARGETS
The Housing Gaps Analysis examined each station area and suggested
development scenarios. These included potential numbers for new
construction and also identified existing rental units in need of
preservation. These scenarios form the baseline for unit targets along
Southwest corridor by 2030, ten years after METRO Green Line Extension
LRT service begins operations.
The Gaps Analysis suggests that if housing development is left solely to
market forces, new development around station areas will be market-
rate and luxury rental options — not the mix of housing types desired by
corridor communities. Therefore, this housing strategy pays particular
attention to tools and resources that support affordable housing
development and preservation.
The Gaps Analysis also took a fiscally constrained approach to
affordable housing recommendations in the corridor, which means that
affordability targets may be lower than measures of affordability need.
However, the implementation strategies include options to bring new
resources to affordable housing development and preservation. Success
with these strategies could allow additional units above the baseline
targets to be created.
There is a need for a variety of options in terms of housing unit sizes,
for-sale as well as rental opportunities and affordability levels. A key
reason for this is the desire to retain community residents as their
housing needs change and evolve over a lifetime. Larger housing sizes,
especially three- and four-bedroom units, may be of particular need, as
well as senior housing and entry-level home ownership opportunities.
Additionally units for those earning 30% of area median income are
particularly needed.
These baseline targets may be modified over time to respond to
market conditions and new housing policy direction, including
2018 comprehensive planning. While cities are not expected to plan
for all of their affordable housing need to be located in areas within
a half-mile METRO Green Line Extension stations, this LRT transit
investment provides unique opportunities to increase the likelihood
that all income levels have access to TOD housing.
Southwest LRT Community Works Corridor Housing Strategy | 11
Southwest LRT Community Works Housing Goal:
Position the Southwest LRT communities as a
place for all to live.
Southwest LRT Community Works guiding principle for
investment: Provide a full range of housing choices.
New Construction: Add 11,200 new units within ½ mile of the Corridor,
including 3,520 units affordable low to moderate income households
(up to 100% AMI), with 2,265 of those units affordable to those at
80% AMI or below by 2030. This target also includes 1,314 new home
ownership units, with 950 of those affordable to entry-level and mid-
market owners.
Preservation: Preserve 3,800 unsubsidized affordable (<60% AMI) rental
units by 2030, out of 6,700 unsubsidized affordable units within ½ mile
of the Corridor.
Affordability targets for new construction:
Rental
Homeownership
0–30% AMI
6.4%31–60% AMI
6.4%
61–80% AMI
10%
81–100% AMI
12.5%>100% AMI
64.7%
36%
120% AMI
or less
64%
120% AMI +
Defining affordable:
• Area Median Income (AMI)
is a calculation that funders
and policymakers use to
gauge affordability.
• Affordable housing is
typically defined as housing
that is affordable to low- or
moderate- income families.
• Affordable housing costs
should, in general, comprise
no more than 30% of
household income.
57%
Preservation target
43%
Remaining
unsubsidized
Corridor Preservation Target
Unsubsidized affordable
rental = 6700 units
12 | Southwest LRT Community Works Corridor Housing Strategy
Allocating housing along the Southwest Corridor
The affordable housing strategy targets for Southwest LRT Corridor
represent about about 35% of Metropolitan Council’s Need Allocation
for the five Corridor cities.
Southwest Corridor-wide Housing Strategy new development target
rental housing: 2,265 units affordable at 80% AMI or below*
0 – 30% AMI: 635 units
31 – 60% AMI: 635 units
61 – 80% AMI: 995 units
81 – 100% AMI: 1,255 units
> 100% AMI: 6,402 units
Total units: 9,922
Metropolitan Council allocation of need for affordable housing
within five of six corridor cities 2021–2030: 6,495*
City-wide allocation of
need for affordable housing
in five of six corridor cities,
per Metropolitan Council
0 – 30% AMI: 3,124 units
31 – 50% AMI: 1,443 units
51 – 80% AMI: 1,928 units
* new development is allocated to the five corridor cities with METRO Green Line
Extension LRT stations: Eden Prairie, Hopkins, Minneapolis, Minnetonka and
St. Louis Park. Edina is a corridor city but does not have a LRT station within
its boundaries.
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8000
31–60%0–30%61–80%81–100%
635 units 635 units
995 units
1,255 units
6,402 units
of Area Median Income (AMI)
>100%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
31–50% AMI0–30% AMI 51–80% AMI Total units
1,443
units
3,125
units
1,928
units
6,495
units
About allocation of need:
The Metropolitan Council
developed a process of
forecasting the region’s need
for housing units affordable
to low- and moderate-
income households. Local
governments use these
“need” numbers to aid
them in fulfilling their
affordable housing planning
responsibilities.
Southwest LRT Community Works Corridor Housing Strategy | 13
Note on Edina: No Southwest LRT stations are located in the City of
Edina. However, a small portion of Edina falls within 1/2 mile of the Blake
and Downtown Hopkins stations. Portions of Edina also fall within 1 mile
of the Shady Oak, City West and Golden Triangle stations. Affordable
housing development in Edina can contribute to affordable housing
availability in the larger Southwest LRT Corridor area.
How much do people pay for “affordable” housing?
$82,833
Area median income (AMI) for a family of four in the Minneapolis/
St. Paul/Bloomington Metropolitan Statistical Area (MSA)
Based on area median income (AMI) for a four-person household*
Monthly rent AMI Annual income
$0 – $621 0 – 30% up to $24,850
$622 – $1244 31% – 60%$24,851 – $49,740
$1,245 – $1,598 61% – 80%$49,741 – $63,900
$1,599 – $2,071 81%– 100%$63,901 – $82,833
$50,580 Corridor household median income**
Southwest Corridor median income for workers
Household
income
Percent of
corridor workers
Affordable
monthly rent
$1,250 and less 21% $375
$1251 – $3333 27%$376–$1,111
$3,334 and greater 52%> $1,112
* United States Department of Housing and Urban Development 2014
** Southwest Corridor-wide Housing Inventory, 2013
Affordable rents, based on sample occupations and their
average salaries
$776 assembly worker
$595 home health aide
$772 nursing assistant
$755 teacher assistant
$844 school bus driver
$571 restaurant cook
$640 bank teller
Source: Family Housing Fund, Southwest Housing Gaps Analysis, 2014
0
300
600
900
1,200
1,500
$875
$1,250
monthly income
$375 rent
Edina citywide allocation of
need: 878 units
0 – 30% AMI: 365 units
31 – 50% AMI: 234 units
51 – 80% AMI: 279 units
14 | Southwest LRT Community Works Corridor Housing Strategy
Why set corridor affordability targets?
The diverse cities along the corridor are each taking steps to plan for
land uses; they also have housing strategies and goals outlined in their
comprehensive plans. In addition, all of the corridor cities work toward
housing goals that were negotiated with the Metropolitan Council.
So what are the benefits of setting affordability targets together?
There are many, including the following:
Respond to regional and federal funders
• Federal Sustainable Communities Grant: In 2011, Hennepin
County was a sub-recipient of a federal Sustainable Communities
Grant. Combined with Living Cities resources through Corridors of
Opportunity, the Southwest Corridor was tasked with developing
a set of measurable unit goals for housing along the corridor.
• Corridors of Opportunity Transit Recipients need to address
Fair and Affordable Housing: In September 2011, the Corridors of
Opportunity Policy Board adopted several recommendations for
regional transit corridors to address Fair and Affordable Housing in
their overall TOD strategies. The primary recommendation was for
the adoption of measurable, corridor-wide goals and strategies to
ensure sufficient housing, both new production and preservation,
to serve a full range of incomes.
The Sustainable Communities grant and Corridors of Opportunity program
have both ended. However, their guidance and best practices are still
applicable for work in the Southwest Corridor. There are also important
funding opportunities in the future, both for the LRT project and for
competitive development resources.
Competitiveness for Federal Transit Administration (FTA) funding
of infrastructure
In 2013, the FTA released new guidance for scoring transit projects
that include existing and future plans for affordable housing. The FTA
seeks to “ensure that as service is improved over time, there is a mix of
housing options for existing and future residents.” In anticipation of
the METRO Green Line Extension’s FTA application for the Full Funding
Grant Agreement (FFGA), commitment and progress toward meeting
affordable housing goals is essential, as this will be viewed competitively
against other regions seeking the same limited funds.
Alignment with Metropolitan Council Housing Policies
A coordinated strategy along the corridor that aligns with Metropolitan
Council‘s housing policies, including the Housing Policy Plan (2014),
will help cities in planning, tracking progress and addressing regional
housing needs. Metropolitan Council has allocated new affordable
housing need numbers, and will be negotiating affordable and life-
cycle housing goals with participating cities in the future. A corridor-
wide strategy that aligns with regional housing policies will help cities
improve their competitiveness when seeking council resources.
The FTA seeks to “ensure
that as service is improved
over time, there is a mix of
housing options for existing
and future residents.”
— New and Small Starts
Evaluation and Rating
Process Final Policy
Guidance, August 2013
Southwest LRT Community Works Corridor Housing Strategy | 15
Align development policies and resources throughout the corridor
Corridor-wide affordable housing targets, developed in collaboration
and tied to existing city plans and Metropolitan Council allocation
of need, will allow partners to focus efforts and public resources to
identified gaps. Collaboration between partners will allow sharing of
tools and information, while preserving each entity’s unique identity
and role in housing creation.
Track progress over time
Similar to the work being done along the along the METRO Green
Line’s Central Corridor, an affordable housing target in the Southwest
Corridor will allow cities, Hennepin County and funders to track progress
over time to help determine whether the corridor is moving towards
its policy goals. Having specific numeric targets allows measurement
against a baseline and can also help identify where targets may need
adjustment due to market trends or development activity.
Promote fair housing
The Fair Housing Act of 1968 prohibits discrimination in housing and
also requires recipients of federal funding to affirmatively further
fair housing. A housing strategy can assist all Southwest Corridor
communities in reducing barriers to and promoting fair housing and
equal opportunity, while recognizing that each community will be
balancing many policy options and may have multiple ways to meet
its fair housing requirements.
16 | Southwest LRT Community Works Corridor Housing Strategy
ACHIEVING THE GOAL
Corridor-wide objectives
To promote the corridor-wide goal and housing unit targets, Southwest
LRT Community Works supports four objectives. Each objective has
related implementation strategies, which are offered as options among
a range of tools, in support of the corridor-wide objectives. Through
public/private partnerships, the implementation strategies detailed
below may help achieve the objectives.
Objective 1
Develop new housing opportunities
Create new housing that includes a mix of unit types with
values and rents affordable to people with a full range of
incomes. Focus on creating mixed income neighborhoods
as well as opportunities for mixed income projects. Support
opportunities in home ownership as well as rental units.
Implementation strategies
Develop coordinated mixed-income (inclusionary housing) policies.
• These policies would apply to new housing development within
corridor cities, particularly in areas targeted for new transit
oriented development.
• Seek support for policy adoption by corridor cities.
Leverage private and philanthropic investments locally, regionally
and nationally, along the corridor through a TOD Housing Fund.
• Link development prospects to Regional Pre-development
Funders Roundtable to assist developments in navigating
complex financing challenges.
• Participate in the development of private/public TOD Housing fund.
• Work with private lenders to evaluate underwriting criteria for
TOD projects
Engage large corridor employers to strategically invest in the
preservation and production of housing opportunities for low-to-
moderate income employees.
• Engage employer groups in the corridor on workforce
housing needs.
• Encourage employers to participate in private/public TOD Housing
fund or other strategies to increase mixed income housing.
Southwest LRT Community Works Corridor Housing Strategy | 17
Develop and adopt a clear and consistent vision, goals and
affordability targets for housing development within a half-mile
of LRT stations.
• Increase developers’ knowledge of city and county expectations
in advance, rather than negotiating on every project.
Maintain and enhance policies around station areas to promote
increased density and include a mix of uses consistent with federal
and regional transportation policies.
• Provide flexibility to allow less parking around transit areas.
Implement infrastructure recommendations from the Southwest
Corridor Investment Framework to provide connectivity in and
around station areas and maximize development potential at
station sites.
Utilize creative tools and resources to engage the public and policy
leaders around key development opportunity sites.
Objective 2
Preserve existing housing opportunities
Preserve and enhance existing subsidized and unsubsidized
housing stock to reduce the involuntary displacement of
residents with low to moderate incomes. Develop preservation
criteria for unsubsidized housing stock. Maintain opportunities
to use Housing Choice vouchers in corridor units.
Implementation strategies
Review existing affordability agreements for subsidized properties.
• Determine length of contracts and assess conversion risk.
• Develop policies to preserve legally binding affordable housing
units along the Corridor.
• Engage owners early in maintaining affordability and extending
agreements.
• Pay particular attention to preserving units affordable to the lowest-
income households: 30% AMI and below, up to 60% AMI. Prioritize
preservation at lowest income levels.
• Track use of Housing Choice vouchers along the corridor and
actively work to preserve units accepting vouchers.
18 | Southwest LRT Community Works Corridor Housing Strategy
Maintain and improve the quality of existing aging rental and
ownership housing stock.
• Focus primarily on properties that are at values and rents
affordable for low to moderate income people.
• Develop programs together with regional partners that
provide for strategic acquisitions, low-interest loans and
public-private partnerships.
• Work with owners to match lower income residents with
unsubsidized affordable housing units and create a structure
to maintain that affordability.
Objective 3
Expansion and Improvement of Technical,
Financial and Regulatory tools
Utilize existing resources and develop new resources to
achieve corridor housing targets by seeking funding sources
and technical expertise to support the development and
preservation of a full range of housing choices. Modify
regulatory tools to support housing development and
preservation. Actively seek opportunities for land-banking,
land trusts, and use of public land for affordable housing
development. Examine legislative changes to language that
inhibits higher-density home ownership opportunities.
Implementation strategies
Evaluate corridor cities’ interest in exploring the costs/benefits,
mechanics and legislative authority for joint-financing mechanisms
such as corridor-wide tax increment financing (TIF), fiscal disparities
sharing, and other forms of value capture.
• Identify opportunity for large-scale TIF agreement rather than
project-by-project TIF.
• Expand housing tax increment with a particular focus on
TOD locations.
• Explore changes to fiscal disparities policy that would allow
net payer cities to receive credit that could be used towards
housing development.
• Explore creative financing tools for mixed income projects
(e.g. 4% tax credits, mezzanine loans) in collaboration with
Community Development Financial Institutions (CDFIs).
Southwest LRT Community Works Corridor Housing Strategy | 19
Objective 4
Market the corridor
Create a marketing plan to attract developers and new
residents and draw existing residents and employees to
TOD neighborhoods and a TOD lifestyle.
Implementation strategies
Provide marketing resources and expertise to promote the corridor
and its housing vision to developers, employers, schools and
future residents.
Develop metrics to track progress towards unit targets over time,
using existing partners and resources.
Seek non- and for-profit developers with proven expertise in
providing quality long-term affordable housing to the lowest
income households.
Implementation strategies
Implementation strategies are offered as options among a range of
tools in support of the corridor-wide objectives. Through stakeholder
feedback, implementation strategies have been grouped into primary
and secondary categories. Primary strategies have seen strong interest
or agreement in terms of their usefulness in achieving the corridor-
wide goal.
Additionally, strategies are identified as “corridor-wide” or “city/county-
specific.” Corridor-wide strategies can be pursued collaboratively,
while city/county-specific ones pertain to authorities held by cities or
Hennepin County.
Primary Strategies
• Evaluate corridor cities’ interest in exploring the costs/benefits,
mechanics and legislative authority for joint financing mechanisms
such as corridor-wide tax increment financing (TIF), fiscal disparities
sharing, and other forms of value capture. (corridor-wide)
• Maintain and improve the quality of existing aging rental and
ownership housing stock. (corridor-wide)
• Leverage private and philanthropic investments locally, regionally
and nationally, along the corridor through a TOD Housing Fund.
(corridor-wide)
• Provide marketing resources and expertise to promote the corridor
and its housing vision to developers, employers, schools and future
residents. (corridor-wide)
20 | Southwest LRT Community Works Corridor Housing Strategy
• Develop metrics to track progress towards unit targets over time,
using existing partners and resources. (corridor-wide)
• Develop and adopt a clear and consistent vision, goals and
affordability targets for housing development within a half-mile of
LRT stations. (city/county specific)
• Implement infrastructure recommendations from the Southwest
Corridor Investment Framework to provide connectivity in and
around station areas and maximize development potential at
station sites. (city/county specific)
• Maintain and enhance policies around station areas to promote
increased density and include a mix of uses consistent with federal
and regional transportation policies. (city/county specific)
Secondary Strategies
• Develop coordinated mixed-income (inclusionary housing) policy
language (corridor-wide)
• Review existing affordability agreements (subsidized properties)
(corridor-wide)
• Engage large corridor employers to strategically invest in the
preservation and production of housing opportunities for
employees with low to moderate incomes. (corridor-wide)
• Utilize creative tools and resources to engage the public and
policy leaders around key development opportunity sites.
(city/county specific)
• Seek non- and for-profit developers with proven expertise in
providing quality long-term affordable housing to the lowest
income households. (city/county specific)
• Explore creative financing tools for mixed income projects (e.g.
4% tax credits, mezzanine loans) in collaboration with Community
Development Financial Institutions (CDFIs). (city/county specific)
Partners in implementation
Creating a full range of housing choices in the Southwest Corridor
can be enhanced through partnership and cooperation between the
public sector and private partners, each with unique perspectives and
implementation roles.
Southwest LRT Community Works
The primary role of this partnership is as a convener of policymakers
and technical staff, including housing staff. Southwest LRT Community
Works can offer guidance and technical assistance to partners as well
as track progress on the Corridor-wide Housing Strategy.
Southwest LRT Community Works Corridor Housing Strategy | 21
Cities
Cities are on the front line in housing development and preservation
and are key players in land use and zoning control necessary to achieve
individual and corridor housing goals. It will be important to align the
corridor-wide strategy with local housing planning and comprehensive
plan efforts and to provide tools and resources to support a full range of
housing options — all while recognizing different development markets
and constraints on city resources to support housing, along with other
TOD infrastructure needs.
Hennepin County
The county is a funder of affordable housing, primarily through
AHIF and TOD grants. It also provides staff support to Southwest LRT
Community Works. This strategy can be one of the factors considered
in how the County allocates these funds.
Metropolitan Council/Southwest Project Office
The Metropolitan Council provides regional guidance on the Housing
Policy Plan; works with cities on planning housing need through
comprehensive plan implementation; negotiates housing goals;
provides technical assistance on tools and policies; and provides
funding to support affordable housing development through the
Livable Communities program. The Southwest Project Office provides
LRT project information to support developers/city infrastructure
coordination requirements.
Developers
For-profit and non-profit developers have a crucial role in investing in
the development and preservation of housing units in the Southwest
Corridor. Developers work with cities and other partners to meet
affordability targets and create station-area developments consistent
with the strategy. They also provide critical input regarding market
conditions, challenges and opportunities as they relate to implementing
strategies along the corridor.
Employers
Corridor employers have a strong interest in recruiting and retaining
top talent. Housing can be a key component in developing a stable
workforce. Identifying ways to have continued dialogue with employers
will be important to identify workforce housing needs.
Funders
Private, public and philanthropic funders play a key role in providing
critical resources to support investment in a mix of housing types
along the corridor. It will be critical to continue dialogue on financing
criteria that support a mix of housing types in station areas and ensure
that resources are aligned for preservation and creation of affordable
housing along the corridor. Examples include: private financial
institutions, public financial institutions, foundations/intermediaries,
syndicators, and entities involved in site acquisition.
22 | Southwest LRT Community Works Corridor Housing Strategy
Advocates
Housing advocates have provided valuable feedback on the
development of this Strategy and will continue to play an important role
in identifying tools and resources for affordable housing development.
The advocacy community can also help connect the Southwest Corridor
Housing Strategy with larger housing policy agendas moving forward.
Next steps
Housing Workgroup
• Develop a work plan to move implementation strategies forward.
• Track progress on corridor-wide strategy implementation.
• Engage regularly with policymakers and stakeholders to ensure the
housing strategy reflects current goals and market conditions.
Seek city/county support for the four key
Corridor-wide Objectives
• Encourage integration of strategy tools within zoning and
development plan review.
• Encourage use of strategy goals as a factor in in funding
allocation decisions.
• Incorporate and align the Corridor Housing Strategy in the
development of or updates to individual housing policies and
comprehensive plans.
Determine mix of unit types and affordability for the corridor
• Ask cities to identify station area mix of housing units, types
and values.
• Pay particular attention to targets for larger unit sizes, senior
housing and housing affordable to 30% AMI and below.
• Calculate amount of public/private subsidy necessary to fully
achieve the housing targets.
Seek city goals for preservation and new construction at various
affordability levels for each station area, to apply to corridor targets
• Adopt corridor targets that are consistent with city goals.
• Align with comprehensive plans
• Embed station area targets in city housing plans, taking into account
affordable housing targets as well as market-rate unit needs.
Southwest LRT Community Works Corridor Housing Strategy | 23
Southwest Corridor Housing Strategy
Compiled by Southwest LRT Community Works’ housing workgroup
Southwest LRT Community Works partners
Hennepin County
Hennepin County Regional Railroad Authority
Eden Prairie
Minnetonka
Hopkins
Edina
St. Louis Park
Minneapolis
Metropolitan Council
Urban Land Institute Minnesota
Minneapolis Park and Recreation Board
Minnehaha Creek Watershed District
SouthWest Transit
Hennepin County
Southwest LRT Community Works
701 Fourth Ave. S., Suite 400
Minneapolis, MN 55415
swcorridor@hennepin.us
Phone: 612-348-9260
www.southwestlrtcommunityworks.org
35-204-06-15
Date: January 5, 2016 Agenda Item #: IV.
To:Mayor and City Council Item Type:
Other
From:Lisa Schaefer, Assistant City Manager
Item Activity:
Subject:Correspondence protocol Discussion
CITY OF EDINA
4801 West 50th Street
Edina, MN 55424
www.edinamn.gov
ACTION REQUESTED:
Discussion of protocol for correspondence received by City Council.
INTRODUCTION: