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HomeMy WebLinkAbout2021-03-25 HRA Regular Meeting MinutesMINUTES OF THE REGULAR MEETING OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY MARCH 25, 2021 7:30 A.M. I. CALL TO ORDER Chair Hovland called the meeting to order at 7:32 a.m. and noted the meeting was being held virtually to comply with the Governor's Stay at Home Order due to the COVID-19 pandemic then explained the processes created for public comment. It. ROLLCALL Answering rollcall were Commissioners Jackson, Pierce, Staunton, and Chair Hovland. Absent: Commissioner Anderson. III. PLEDGE OF ALLEGIANCE IV. MEETING AGENDA APPROVED - AS PRESENTED Motion by Commissioner Jackson, seconded by Commissioner Pierce, approving the meeting agenda as presented. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. V. COMMUNITY COMMENT No one appeared. VI. CONSENT AGENDA ADOPTED AS PRESENTED Member Jackson made a motion, seconded by Member Pierce, approving the consent agenda as presented: VI.A. Approve minutes of the Regular Meeting of March 11, 2021 Rollcall: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. V►1. REPORTS/RECOMMENDATIONS VI►.A. AMENDMENT TO NEW MULTI -FAMILY AFFORDABLE HOUSING POLICY — APPROVED Affordable Housing Manager Hawkinson shared a report regarding an amendment to the new multi- family affordable housing policy. She stated the for -sale requirements for the new Multi -Family Affordable Housing Policy indicated the maximum sale price was $425,000 and although this was the cap for the Come Home to Edina program that was directed to allow for single family home acquisition. She said as this policy covered multi -family ownership, $425,000 did not meet the threshold for being affordable per the Metropolitan Council or Minnesota Housing. Ms. Hawkinson stated in order to count towards the goal of creating 992 new affordable units, staff proposed decreasing the ownership sales cap to serve households with incomes at 80% of AMI, which equaled a housing value of $293,500, adjusted annually. She stated with construction costs increasing, the cost to develop an affordable unit within either a market rate development or on its own was also increasing and staff proposed the buy -in fee increase to $125,000 per affordable unit not being included in a market rate development. She noted the buy -in fee had not increased since first introduced in 2018. Page 1 Minutes/HRA/March 25, 2021 The Commission commented how this was a cost that resulted directly from climate change due to the nation's forest fires that eventually resulted in a needed policy change in Edina. They supported the increase in the buy -in and asked what do we do with those funds to keep progressing towards our goals. Ms. Hawkinson said we could use the buy -in funds to further different goals where there was not another source of funds identified and suggested partnering with Homes within Reach for opportunities for homebuying for lower income households. The Commission asked more about the drop in acquisition limit from $425,000 to $293,500 and the difficulty to buy at that level. They spoke about strategy and how they could use buy -in funds to achieve objectives and stressed the importance of the continuum of affordability and difficulty with this goal based on where the subsidy comes from. Ms. Hawkinson explained how the policy pertained to multi -family and not single family and the other mechanisms for single family. She noted it was unlikely that an area would be used to build 24 new single-family homes but could be used for condos or townhomes that would serve households at 80% of area medium income and could include cost saving measures if possible and if not then subsidies would be needed. The Commission asked more about unintended consequences as increasing the buy -in could affect the market and drive away developers which could result in both lost housing and funding for future housing. The Commission noted the policy had been amended over time and could be amended again if needed and that this proposal was based on good data. They spoke about the affordability period of 20 years and if needed could amend the policy to include building units that were permanently affordable too. Ms. Hawkinson agreed the affordability period could be reconsidered then noted Edina was an appealing community to develop in and the buy -in was more appealing than including affordable units due to the high cost of construction. Motion by Commissioner Staunton, seconded by Commission Pierce, to approve the proposed changes to the new multi -family affordable housing policy. Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried. VII.B. AFFORDABLE HOUSING FINANCING TOOLS - RECEIVED Ms. Hawkinson introduced Nick Anhut from Ehlers who presented various financing tools available to the HRA to support affordable housing development. Mr. Anhut reviewed affordable housing and the need for public financing, local roles, and examples of public assistance. He said the need for public financing was important because private financing was limited and explained how an affordable housing project reduced the project's overall return potential due to the size of a mortgage and making it a less attractive return because of the lower rent, therefore creating a gap. Mr. Anhut explained how public financing options included grants or fill-in funds over time through cashflow supplements then reviewed development roles of HRAs that ranged from public incentives to policy to using funds to acquire sites to attract developers to build the affordable housing. He reviewed tools available to HRAs which included tax increment financing or tax abatement, HRA levy, revolving loan funds, housing improvement areas, public project bonding, and regulatory incentives. Commission consensus was to continue this topic to a future meeting. VIII. HRA COMMISSIONERS' COMMENTS — Received IX. EXECUTIVE DIRECTOR'S COMMENTS - Received X. ADJOURNMENT Motion made by Commissioner Jackson, seconded by Commissioner Staunton, to adjourn the meeting at 8:24 a.m. Page 2 Minutes/HRAJMarch 25, 2021 Roll call: Ayes: Commissioners Jackson, Pierce, Staunton, and Chair Hovland Motion carried, Respectfully submitted, '-,--S'c'ott Weal, &ecutive Director Page 3