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Home My WebLink About2010-10-20 PACKET 04.H.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # DATE 10/20/10 P PREPARED BY Community Development Howard Blin ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider adopting a resolution agreeing to the goals for production of affordable housing in Cottage Grove through 2020 as a preresiquite for continued participation in the Metropolitan Council's Livable Community Program. STAFF RECOMMENDATION Adopt the resolution. BUDGET IMPLICATION $N /A BUDGETED AMOUNT ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICES /RIGHTS ❑ ECONOMIC DEV. AUTHORITY SUPPORTING DOCUMENTS DATE $N /A N/A ACTUAL AMOUNT FUNDING SOURCE REVIEWED APPROVED DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ® MEMO /LETTER: Memo from Howard Blin dated 10/13/10 ® RESOLUTION: Draft ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ❑ OTHER: ADMINISTRATORS COMMENTS ' C Ayti' C dministrator Date COUNCIL ACTION TAKEN: MAPPROVED ❑ DENIED ❑ OTHER CITY OF COTTAGE GROVE MINNESOTA TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: Howard Blin, Community Development Director DATE: October 13, 2010 RE: Metropolitan Council Affordable Housing Goals ••• The City Council is requested to adopt a resolution in which the City agrees to goals for pro- duction of affordable housing in Cottage Grove through 2020. Agreement with the goals is a prerequisite for continued participation in the Metropolitan Council's Livable Community Program. The Metropolitan Council Livable Communities Program provides grants to cities in the metro- politan area. The program provides annual funding of $4 million to $6 million for development and redevelopment projects in the following areas: • Projects which demonstrate compact development practices. • Clean up of contaminated sites. • Production of affordable housing. Cottage Grove has received funding from the program to prepare the East Ravine Master Plan. In recent years, the City has also unsuccessfully sought funding from the program for the Hamlet Park ponding project and the planning for a civic campus. To be eligible for the program, cities must agree to attempt to meet goals established by the Metropolitan Council for production of affordable housing. Affordability is defined as an owner - occupied or rental unit which is affordable to families with incomes of 60 percent of the median household income for the Twin Cities area. For owner- occupied houses, an affordable unit is considered anything valued at $179,100 or less. Z= For Cottage Grove, the Metropolitan Council has forecasted that 4,400 new housing units will be produced by 2020. Given current production of approximately 80 units per year, reaching this forecast is unlikely. Of the total units forecast, the Metropolitan Council has set a goal for Cottage Grove to produce 640 to 985 units of affordable units. This goal includes only new units. The City gets no credit for the thousands of existing units that are considered affordable. Honorable Mayor, City Council, and Ryan Schroeder Metropolitan Council Affordable Housing Goals October 13, 2010 Page 2 of 2 The Metropolitan Council also has established a goal for life -cycle housing of 985 to 1,120 units by 2020. Life -cycle units include senior units and those built for empty nester households. In the attached resolution the City is agreeing to accept the goals in order to continue in the Livable Communities program. This resolution will be followed by a plan that lists actions the City will take to try to achieve these goals. Most of these actions will cite the Cottage Grove Comprehensive Plan and its policies to produce multiple family and senior housing, housing types which typically qualify as affordable. Although it is unlikely these goals will be met, it is recommended that the resolution be ap- proved. Acceptance of the goals is necessary for any future application for Livable Communi- ties funding and there are no penalties for not achieving the goals. In conversations with staff from other cities, it appears that this is a common approach being taken to the Livable Com- munities goals. Recommendation It is recommended that the City Council approve the resolution. C i 0► ►•. _.1 1 •.. • _. •. *. -_,�.� ... -_ is ... WHEREAS, the Metropolitan Livable Communities Act (Minnesota Statutes sections 473.25 to 473.255) establishes a Metropolitan Livable Communities Fund which is intended to address housing and other development issues facing the metropolitan area defined by Minnesota Statutes section 473.121; and WHEREAS, the Metropolitan Livable Communities Fund, comprising the Tax Base Revitalization Account, the Livable Communities Demonstration Account, the Local Housing Incentive Account, and the Inclusionary Housing Account, in intended to provide certain funding and other assistance to metropolitan -area municipalities; and WHEREAS, a metropolitan area municipality is not eligible to receive grants or loans under the Metropolitan Livable Communities Fund or eligible to receive certain polluted cleanup funding from the Minnesota Department of Employment and Economic Development unless the municipality is participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254; and WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan Council to negotiate with each municipality to establish affordable and life -cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide; and WHEREAS, previously negotiated affordable and life -cycle housing goals for municipalities participating in the Local Housing Incentives Account Program expire in 2010; and WHEREAS, a metropolitan area municipality can participate in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254 if: (a) the municipality elects to participate in the Local Housing Incentives Program; (b) the Metropolitan Council and the municipality successfully negotiate new affordable and life -cycle housing goals for the municipality; (c) the Metropolitan Council adopts by resolution the new negotiated affordable and life -cycle housing goals for the municipality; and (d) the municipality establishes it has spent or will spend or distribute to the Local Housing Incentives Account the required Affordable and Life -Cycle Housing Opportunities Amount (ALHOA) for each year the municipality participates in the Local Housing Incentives Account Program. NOW THEREFORE BE IT RESOLVED, that the City of Cottage Grove, County of Washington, State of Minnesota: Resolution No. 2010 -XXX Page 2 of 2 1. Elects to participate in the Local Housing Incentives Program under the Metropolitan Livable Communities Act for calendar years 2011 through 2020. 2. Agrees to the following affordable and life -cycle housing goals for calendar year 2011 through 2020: Affordable Housing Goals Range , Life -Cycle Housing Goals Range (640 to 985 units 985 to 1,120 units 3. Will prepare and submit to the Metropolitan Council a plan identifying the actions it plans to take to meet its established housing goals. Passed this 20th day of October 2010. Myron Bailey, Mayor Attest: Caron M. Stransky, City Clerk