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HomeMy WebLinkAbout2011-02-02 PACKET 04.D.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # q0 DATE 2/2/11 PREPARED BY Community Development Howard Blin ORIGINATING DEPARTMENT STAFF AUTHOR COUNCIL ACTION REQUEST Consider the adopting the 2020 Housing Action Plan. STAFF RECOMMENDATION Adopt the 2020 Housing Action Plan. ADVISORY COMMISSION ACTION ❑ PLANNING El El El ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ ❑PARKS AND RECREATION ❑ ® ❑ ❑ HUMAN SERVICES /RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ __ ❑ ❑ ❑ SUPPORTING DOCUMENTS ❑ MEMO /LETTER: Memo from John M. Burbank dated 1/27/11 ❑RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: ® OTHER: Housing Action Plan ADMINISTRATORS COMMENTS � City Administrator Date COUNCIL ACTION TAKEN: APPROVED ❑ DENIED ❑ OTHER CITY OF COTTAGE GROVE MINNESOTA TO: Mayor and Members of the City Council Ryan Schroeder, City Administrator FROM: John M. Burbank, Senior Planner DATE: January 27, 2011 RE: 2020 Housing Action Plan .•s The City Council is asked to approve the 2020 Housing Action Plan for submittal to the Metro- politan Council. In October 2010, the City adopted Resolution 2010 -161 committing to the continued participa- tion in the Local Housing Incentives Program under the Metropolitan Livable Communities Program. One component of this participation is the provision of an updated Housing Action Plan. In compliance with direction by the Metropolitan Council, the City has prepared the 2020 Housing Action Plan which is in conformance with the Metropolitan Livable Communities Act. The main goal of the Action Plan is to promote low and moderate income affordable housing within the City of Cottage Grove and to ensure a balanced range of housing opportunities within the community for people of all ages, incomes, and origins. The City's last Housing Action Plan was completed in 1996. That plan identified a goal of 956 affordable units in Cottage Grove by the year 2010. The amount of affordable housing pro- duced in Cottage Grove between 1996 and 2008 as reported by the Metropolitan Council was 717 total units. This number includes owner - occupied and rental units. The City's allocation of affordable housing for the next ten -year planning cycle is similar to the last goal and is set at 985 units. In the adoption of resolution 2010 -161, the City has agreed to meet this new goal. The majority of the Action Plan details were included in the Housing chapter of the 2030 Comprehensive Plan, which is referenced in the report. The main points in the Housing Plan are: ® 2020 Goals ® Existing Housing Efforts ® Financial Assistance Programs ® Housing Development Programs ® Housing Maintenance, Rehabilitation, and Redevelopment Programs 0 Local Initiative Programs Honorable Mayor, City Council, and Ryan Schroeder Housing Action Plan February 2, 2011 Page 2 of 2 • Local Controls • Authority • Implementation There are no requirements that the City has to meet the proposed goals, but the act of partici- pating in the Local Housing Incentives Program enables the City to apply for any funding opportunities that become available through the Metropolitan Livable Communities Program. Recommendation Adopt the 2020 Housing Action Plan. MOMAMMMIM I�Ftii TMAI I. Introduction IL 2020 Goals III. Existing Housing Efforts IV. Financial Assistance Programs V. Housing Development Programs VI. Housing Maintenance Rehabilitation and Redevelopment Programs VII. Local Initiative Programs VIII. Local Controls IX. Authority X. Implementation XI. Summary XII. Appendix City of Cottage Grove Pape 2 of 12 2011 Housina Action Plan I. Introduction In compliance with direction by the Metropolitan Council, the City has prepared a Housing Action Plan that is in conformance with the Metropolitan Livable Communities Act (LCA) of 1995 (Minnesota Statute 473.25- 473.254). The main goal of the Action Plan is to promote low and moderate income affordable housing within the City of Cottage Grove, and to ensure a balanced range of housing opportunities within the community for people of all ages, incomes, and origins. In October of 2010 the City adopted Resolution 2010 -161 committing to the continued participation in the Local Housing Incentives Program under the Metropolitan Livable Communities Program through 2020. This resolution is attached as Appendix A. One component of this participation is the provision of an updated Housing Action Plan. The City's last Housing Action Plan was completed in 1996. That plan identified a goal of 956 affordable units in Cottage Grove by the year 2010. The amount of affordable housing produced in Cottage Grove between 1996 and 2008 as reported by the Metropolitan Council was 717 total units. This number includes owner - occupied and rental units. The tables below show the numbers for all communities within Washington County and are included for comparative purposes. Affordable Housing Production in the Tctin Cities 2010 :.� ....., Afton '10119 0 .. 1997 0 . '199H 01 :990 0 "Aar -'UW 0 2DA1 0 '2002 0 01 0 0 .2d" a - 2 01 '00 0 0 Baveort 0 0 1 0 1 3 0 01 1 0 0 01 1 7 BaVtown T. 0 0 01 1 0 16 0 01 0 0 0 0 0 17 Birchwood Village o 2 0 0 D 0 0 0 0 0 a o 0 2 Cottage Grove 112 99 91 0 31 119 155 37 33 40 0 0 0 717 eellwood 0 0 0 0 0 0 0 0. 0 0 0 0 0 0 QenmarKT . 0 0 0 0 0 0 0 fl 0 0.. 0 1 0 1 Forest Lake 38 10 43 35 20 0 0 D 22 0 15 16 1 199 Grant It 1 0 0 0 0 0 0 0 a a 0 0 2 Grey Cl oud island Twp. 0 D 0 01 0 0 0 0 0 a a 0 0 a Hued 1 44 5 11 701 162 90 72 541 161 282 163. 1,97 124 1,289 Lake Elrod D 0 0 01 6 0 a 01 0 0 0 1 0 1 Lake St. Croix Beach 0 0 0 ol 0 0 0 01 0 0 0 0 0 0 Lakeland 0 0 0 0 0 0 1 Q 0 0 a 0 1 2 Lakeland Shores 0 0 0 0 0 0 a 0 0 0 0, 0 a LandFal 0 0 0 0 0 fl 0 0 0 0 0 b o 0 Martomed 0 0 40 0 0 0 0 0 0 0 0 30 0 70 Marine on St. Croix 0 0 a 0 0 0 0 0 0 0 0 0 0 0 May Twp. 0 0 0 0 0 © 0 0 0 0 0 0 0 0 Ne ort 7 0 7 5 6 4 3 2 4 0 7 43 Oak Park Hei hts 0 7 0 0 8 0 0 0 0 0 1 16 oakciale 154 72 34 18 31 36 51 10 23 11 14 476 Pine s nn s 0 0 0 a 0 fl 0 0 a 0 0 0 Scandia 0 0 0 0 o D 0 D 0 0 d 0 St Mary's Point 0 _ 0 _ a 0 _......._:_ 0 0 __— 0 0 o 0 0 0 St. Paul Park 0 0 1 a 5 2 0 26 38 10 19 107 0 10 52 20 0 40 0 5 J207 170 0 0 0 0 1 0 0 0 0. 0 '1 wWet Lakeland T _ 0 0 0 0 0 0 0 0 0 0 0 0 witletme 0 0 0 2 1 0 1 2 1 0 0 7 adU 378 331 566 259 36 0 8 44 57 33 34 1,858 Affarda6le+5wner Totals 734 527 809 399 311 323 311 175: 234 376 258 4,985 Table 1 Source: Metropolitan Council CitV of Cottage Grove Pape 3 of 12 2011 Housing, Action Plan A ffordable Dousing Production in the Twin Cities February 2010 Table 2 Source: Metropolitan Council Through most of the 1996 -2008 period Cottage Grove was on track to meet its goal before the decline in housing production during the later years of the period prevented the City from achieving its goal. The City's allocation of affordable housing for the next ten -year planning cycle is similar to the last goal. Achieving the goals will be challenging until such time as the housing market stabilizes and significant new construction occurs. In order to make the established goals a reality, the information included in Sections II through XII was compiled to identify the means in which the City of Cottage Grove can facilitate the achievement of the established 2020 affordable housing goals. �� /XM The 2010 City Council goals related to housing are as follows: ® Ensure that all rental housing units are identified and monitored for code compliance. City of Cottage Grove Page 4 of 12 2011 Housing Action Plan Ito Table 2 Source: Metropolitan Council Through most of the 1996 -2008 period Cottage Grove was on track to meet its goal before the decline in housing production during the later years of the period prevented the City from achieving its goal. The City's allocation of affordable housing for the next ten -year planning cycle is similar to the last goal. Achieving the goals will be challenging until such time as the housing market stabilizes and significant new construction occurs. In order to make the established goals a reality, the information included in Sections II through XII was compiled to identify the means in which the City of Cottage Grove can facilitate the achievement of the established 2020 affordable housing goals. �� /XM The 2010 City Council goals related to housing are as follows: ® Ensure that all rental housing units are identified and monitored for code compliance. City of Cottage Grove Page 4 of 12 2011 Housing Action Plan • Aggressively monitor foreclosed properties. • Provide for additional empty nester housing and consider density bonuses to provide for this housing type. • Master plan the Langdon neighborhood including high density and apartment style housing as part of a transit plan. • Provide opportunities for high density townhomes, apartments, and condo projects along with a non - senior assisted living project. It is anticipated that similar goals will be established for 2011. Past City Councils have repeatedly established a community goal to provide life -cycle housing within Cottage Grove. In order to promote low and moderate income affordable housing within the region and specifically the City of Cottage Grove, the Metropolitan Council has established local allocations or goals of affordable housing for each community in the region. Based on current forecast methodology utilized by the Metropolitan Council, the 2020 housing estimate for Cottage Grove is 16,500 households. This is an increase of 3,900 households between 2010 and 2020. The 2020 affordable housing goal for Cottage Grove as established by the Metropolitan Council is 985 total units. This number includes owner - occupied and rental units, and equates to one quarter of the total projected household growth between now and 2020. The tables below are the unit allocations for other communities within Washington County and are included for comparative purposes. 2011 - 2020 Allocation of Affordable Housing Need by CitylTownship September 2010 Community New Affordable Unit Need Wathingtnn Goueity Bayport 29 Cottage Grove 985 Forest Lake 66T Hugo 855 Lake Elmo 661 Mahtomedi 27 Newport 68 Oakdale 184 Oak bark Heights t 23 St Pant Park 4381 Stillwater 233: Wdlern e 2 Table 3 Source: Metropolitan Council Citv of Cottage Grove Page 5 of 12 2011 Housing Action Plan In order to promote an understanding of what affordable housing actually is, the following information is included: Household Income revel: 80% of area median income ($67,200) FFi +MMF.1;111ta'Te 7114SFI'6T,- $233,000 60% of area median incorne ($48,540) $171,000 2009 RENTAL FNEfSiNG Bedroom size: *Monthly gross rent including tenant -paid utilities, affordable at 50% of area median income Efficiency $ 733 1 bedroom $ 786 2 bedrooms $ 943 3 bedrooms $1,090 4 bedrooms $1,216 Tables 4 and 5 Source: Metropolitan Council One of the goals of the last Housing Action Plan was to provide for senior housing opportunities within the community. This goal has been met with the construction of the 146 -unit Norris Square senior housing complex, the White Pines I and II senior housing facilities that has 86 units, and the Cottages of Cottage Grove that consists of 60 senior rental units. Based on a market study completed by Mayfield Research in 2007, the member of senior housing units that will be required to meet demand by 2030 is 1,003 units. The existing 292 sensor units appear to be meeting the current market demand within the community. A continued goal for the 2011 Housing Action plan is for the City to monitor the senior housing needs within the community, and to take appropriate planning actions if it is found that this segment of the population is being underserved. The Housing Chapter of the City's 2030 Comprehensive Plan has a variety of goals and policies related to all housing needs within the community. The chapter is attached as Appendix B. The City will continue to follow these goals and policies in the attempt to maintain existing housing in the city and also ensure that new housing meets the changing needs of the community. The key to these goals becoming a reality is an active and strong real estate market in Cottage Grove. Without City of Cottage Grove Page 6 of 12 2011 Housing Action Plan a strong market, the best intentions and efforts by the City toward meeting these goals may be thwarted. III. Existing Housing Efforts Through the development of the City's 2030 Comprehensive Plan, it was determined that the City has adequate land guided for mixed -use, low, medium, and high density residential to meet the future housing needs until 2030, and the ability to develop at a density that is consistent with regional directives. The City has several zoning districts that are well suited for low and moderate income housing. The availability of land that is moderately priced and is well served by public utilities has led to the construction of many affordable residential developments. Established housing maintenance and rental housing inspection programs currently assist in the preservation of existing housing stock within the community and ensure that decent and affordable housing opportunities are available and integrated within the City. Community oriented police programs are also utilized by the City to help keep crime rates curbed and ensure that all areas of Cottage Grove are safe places in which to live. These programs have proven very effective in neighborhoods that have a high number of affordable rental units and publicly assisted housing. The City also works with the Washington County Housing and Redevelopment Authority (HRA), Two Rivers Land Trust, Habitat for Humanity, and private developers to provide opportunities for affordable housing within the community. The HRA provides a variety of services within Cottage Grove. A list of these services is included as Appendix C. Some of the programs of note are rental assistance, housing counseling, and foreclosure counseling, which are all very appropriate in this economy. There are many federal and state financial assistance programs that are being, have, or will be utilized by the City to assist in the establishment of affordable housing in Cottage Grove. The following section lists a number of the available financial programs and agencies that can assist individuals in obtaining affordable housing. These programs can also be utilized to help influence the real estate market to grow in Cottage Grove. Over the course of the next ten years, the City will promote the available programs to the general public and utilize appropriate assistance programs when facilitating projects that can be better utilized to attain housing goals. IV. Financial Assistance Programs A. Program Information The City currently relies on the Washington County Housing and Redevelopment Authority (HRA) to administer all housing assistance within the community. A list of these services is included in Appendix C. For detailed information on the programs and services offered, go to www.wchra.com. Housing assistance programs were created and are available to assist low and moderate income families in obtaining decent housing, suitable living environments, and expanded home ownership possibilities. Many of the programs offer loans with minimum down City of Cottage Grove Page 7 of 12 2011 (-lousing Action Plan payments and below market interest rates. Other programs actually subsidize housing payments. Additional information on housing assistance programs and other programs listed in this plan can be found at www.wchra.com. B. Program Qualifications The majority of the financial assistance programs in the community are targeted to individuals or families with incomes at 50 to 80 percent of the median income level. Programs that financially assist in the construction of new housing often link program qualification to the availability of housing affordable to people in this income bracket. C. Housing Assistance Programs The following is a listing of housing assistance programs that are potentially available to assist individuals in obtaining home ownership or rental opportunities. 1) Federal Government i) Section 8 Rental Vouchers and Certificate Programs ii) Shelter Plus Care (S +C) 2) Minnesota Housing Finance Agency a) Minnesota Mortgage Program b) Community Activity Set Aside (CASA) Program c) Homeownership Assistance Fund d) HOME HELP e) Homeownership Opportunity Program f) Urban Indian Housing Program, Tribal Indian Housing Program g) Land Acquisition for Affordable New Development (LAAND) Initiative h) Minnesota City Participation Program i) Housing Trust Fund Rental Assistance (HTF -RA) j) Bridges V Housing Development Programs Housing development programs were created and are available to promote a variety of redevelopment and development activities that provide for additional low and moderate income affordable housing units within communities. The following financial assistance programs are potentially available to assist individual builders in obtaining funding for the development of affordable rental housing within the community. 1) Federal Government a) Public Housing b) Supportive Housing Demonstration Program — Transitional Housing Component c) Federal Home Loan Bank — Affordable Housing Program d) Home Investment Partnership Program (HOME) e) Section 202 - Elderly f) Section 811 — Handicapped City of Cottage Grove Page 8 of 12 2011 Housing Action Plan 2) Minnesota Housing Finance Agency a) Housing Tax Credit Program (HTC) b) Low and Moderate Income Rental Program (LMIR) c) Economic Development and Challenge Program (EDI IC) d) Preservation Affordable Investment Fund (PARIF) e) Publicly Owned Housing Program (POHP) f) Ending Long Term Homelessness Initiative Fund (ELHIF) g) Flexible Financing for Capital Costs (FFCC) h) Land Acquisition for Affordable New Development (LAAND) Initiative 3) Metropolitan Council a) Local Housing Incentives Account b) Livable Communities Demonstration Account c) Land Acquisition for Affordable New Development (LAAND) 4) Family Housing Fund a) Metropolitan Housing Resource Program 5) Twin Cities Habitat for Humanity 6) Community Land Trusts 7) City of Cottage Grove a) Conduit revenue bonds b) General obligation bonds c) Housing revenue bonds d) Taxable revenue bonds e) Land write -down or sale f) Credit enhancements g) Sanitary sewer rate adjustments h) Demolition ordinances i) Local community mortgage assistance programs j) Mortgage revenue bonds k) Low - income housing tax credits 1) Local fee waivers or reductions m) Local tax abatement n) Local property tax levy o) Tax - increment financing (TIF) / " , I , / 11 Housing maintenance programs were created and are available to acquire, demolish, rehabilitate, or build new low and moderate income affordable housing within targeted blighted residential areas. The following financial assistance programs are potentially available to assist individuals in obtaining funding for maintenance and redevelopment of the existing housing stock within the community. Citv of Cottage Grove Page 9 of 12 2011 Housing, Action Plan 1) Federal Government a) Federal Horne Loan Bank — Affordable Housing Program b) Home Investment Partnership Program (HOME) c) HOPEIII 2) Minnesota Housing Finance Agency a) Housing Tax Credit Program (HTC) b) Low and Moderate Income Rental Program (LMIR) c) Economic Development and Housing Challenge Program (EDHC) d) Preservation Affordable Investment Fund (PARIF) e) Publicly Owned Housing Program (POHP) f) Ending Long Term Homelessness Initiative Fund (ELHIF) g) Flexible Financing for Capital Costs (FFCC) h) Rental Rehab Loan Program i) Community Revitalization Fund j) Fix -Up Fund k) Community Fix -Up Fund 1) Rehabilitation Loan Program 3) Center for Energy a) Minnesota Fix up Fund b) Home Energy Loan Program c) Rental Energy Loan Fund d) MHFA Rental Rehabilitation Program VII. Local Initiative Programs Local initiative programs were created and are available to financially assist communities in attracting and implementing development or redevelopment programs within their jurisdiction. The following assistance programs are available through cooperation with local governments for the creation of additional low and moderate income housing within communities. 1) Federal Government a) Community Development Block Grants (CDBG) 2) Minnesota Housing Finance Agency a) Non -Profit Capacity Building Revolving Loan Program b) Mortgage Revenue Bonds c) Mortgage Credit Certificates (MCCs) d) Community Reinvestment Act Incentive Program (CRAIP) e) Minnesota's Communities Program 3) City of Cottage Grove a) Tax Increment Financing b) Local HRA Tax Levy c) Local Government Essential Function Bonds City of Cottage Grove Page 10 of 12 2011 Housing Action Plan VIII. Local Controls The creation of low and moderate income housing within communities is ultimately market driven. In an attempt to create a favorable housing market climate, Cottage Grove can impact housing opportunities through the promotion of available housing financial assistance programs. Additionally, zoning and land use regulations will encourage a variety of housing opportunities. Expeditious application and approval processes also aid in the attractiveness of the City as a place to develop low and moderate income housing. The City's current regulations on zoning, land use, building construction, and maintenance have all functioned well in the past towards developing Cottage Grove as a diverse community in which to live. The establishment and use of these controls to promote life cycle housing will continue, and controls should balance the community's desire to provide a safe and attractive environment in which to live and the regional goals for affordable housing. The existing Housing Element of the City's Comprehensive plan, which was created prior to the adoption of the LCA, has several specific goals and policies targeting life -cycle housing. The first goal of the Element states that the City will "utilize the uniform Building Code and the City's Zoning Ordinance and Subdivision Regulations to maximize the opportunities for an adequate supply of safe, sanitary, decent, and aesthetically pleasing housing, as well as a choice of housing types and residential locations, in price ranges affordable to all individuals who wish to live in Cottage Grove." The City has been actively striving to meet this goal since its inception. IX. Authority A. Authority Many housing assistance programs require local government administrations. Minnesota tax increment statutes allow cities to develop low and moderate income rental units and owner occupied housing through utilization of tax increment programs. The County HRA can utilize tax levies to accomplish assistance programs. B. Cooperatives Cottage Grove relies heavily on the Washington County HRA to coordinate the availability of housing assistance programs in the community. C. Activities The Washington County HRA is actively involved in assisting individuals in finding affordable housing in Cottage Grove. X Implementation After the 2010 census information is obtained, the City will analyze the housing changes that have occurred since 2000 and determine if any additional measures or actions are required to meet the established housing goals. On a continuing annual basis the City will strive to meet or exceed the housing goals. The following lists the primary tasks for achievement of the City's housing goals: City of Cottage Grove Page 11 of 12 2011 Housing Action Plan 1) The first priority of the City will be to increase the education and public awareness of the different housing financial assistance programs available to individuals in the Community. 2) The second priority will be to review the local controls in relation to the promotion of low and moderate income housing. 3) The third priority will be to ensure that there is an adequate amount of land available that is designated for medium and high density residential development. 4) The fourth priority is to provide for flexible development standards. XI Summary When the housing market returns to the new nonnal and new development begins to steadily occur in the community, the City recognizes the need to scrutinize all development requirements and policies and to allow for reasonable flexibility in the process when warranted in order to create viable developments that meet all housing needs of the community. The completion of this Action Plan and involvement in the Metropolitan Livable Communities Program by the City of Cottage Grove shows another aspect of the community's desire to provide balanced non - exclusionary housing opportunities for all types of people within the community. XII. Appendix Appendix A — Resolution 2010 -161 Appendix B — 2030 Comprehensive Plan Housing Chapter Appendix C — HRA's Livable Communities Action Plan City of Cottage Grove Page 12 of 12 2011 Housing Action Plan Append&A METROPOLITAN S COMMUNITIES l 1 ... i.' '• 1 1 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 -161 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. yron ail air Attest: Caron M. Stransky, City Clepk Appendix B S . L m o a Q) 0 G j a C o E V O) o O '- a c CD Y c p Y O a u E E C V 010 N -_ 0 ° o E N > _N m O N m L ca) +, E X O 0 2 0 W c o 0 C m 0 C L L 0 - O O G w m 3 v a) E ° a G T G C $mCmc Z�0 E a o o o o 3 G V C 01 c oZ E o m O O = 0 O N L Q) a v C O 11 0 m� 0 E 0 010)— N Z C c ._ O 0.- m O n L U N C. Qj0)`"�c C m c o 0 c = mu E o C1 SO C G Y N O o G c n °c o 0), a w Q) o c o L ° Um uQ)E O > z o C7 m a c y E h N v� C a) O O 0) �� 0) m C N H 0 O fl Q V) >' N — L m C > a) Vf Y m O N O W O y _ m W O'00 -C S VI L Y V a) O . 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For more information on any of the following programs please visit our website at www.wchra.com or contact us at 651- 458 -0936 ext. 555. Affordable Rental Housing The HRA owns and operates 252 of affordable rental housing units in Cottage Grove at 2 developments: Woodland Park and Parkside Apartments. Woodland Park Apartments and Townhomes 7815 -7920 Hearthside Ave. 180 units — rents are affordable to households with incomes at or below 60% of the area median income (AM]) 60 one - bedroom units: $739 56 two- bedroom units: $859 48 two- bedroom townhome units: $899 16 three - bedroom townhome units: $1,089 The Woodlands 7752 -7822 Hemmingway Ave. 72 units — rents are affordable to household with incomes at or below 50% of the area median income (AM[) 2 two- bedroom units: $739 70 three - bedroom units: $739 Public Housing The HRA owns and operates 11 public housing units in scattered site locations in Cottage Grove. The HRA receives operating subsidy from the U.S. Department of Housing and Urban Development to operate this program. Tenants pay 30% of their income for rent. There is tremendous demand for this program. The waiting list for the HRA's 56 -unit countywide program is currently closed, with 879 households on the waiting list. Housing Counseling Program The HRA is a certified by the U.S. Department of Housing and Urban Development (HUD) as a Housing Counseling Agency. The HRA provide pre - purchase counseling and education and foreclosure prevention counseling services. All counseling services are provided free of charge. First Time Homebuyers The HRA provides pre - purchase counseling and education to first time homebuyers in Cottage Grove. The Homestretch Homebuyer Education workshop is an 8 -hour course held each month that teaches first time homebuyers the basics of budgeting, credit, real estate, home inspections, mortgages and what to expect at closing. It is also one of the qualifiers for the First Time Homebuyer First Mortgage Program. This program allows for a low fixed rate mortgage for first time home buyers that meet the requirements for income, home purchase price limits, and have acceptable credit. In 2010, the HRA participated in Minnesota Housing's Minnesota City Participation Program, through with Minnesota Housing provided First Time Homebuyer First Mortgage financing to eligible buyers in Washington County. Foreclosure Prevention Counseling The HRA provides free and confidential foreclosure prevention counseling services. The HRA has partnered with the Washington County Library to provide weekly foreclosure workshops at different library branches. Workshops are frequently held at the Cottage Grove library branch. Rental Assistance Programs The HRA administers several rental assistance programs in the County. The largest of which is the Section 8 Housing Choice Voucher Program. This program offers rent subsidies to households to use in privately owned market rate housing in the County. The HRA is currently administering 454 vouchers county -wide. There is substantial demand for this program. The waiting list is closed with 265 households on it. The HRA administers specialized rental assistance programs that primarily serve homeless and /or disabled families and individuals in the County, described as follows: The Bridges rental assistance programs assist homeless persons and /or persons with serious and persistent mental illness. These provide temporary rental assistance for a limited number of people who are ready to live independently and are on waiting lists for a more permanent housing subsidy such as Section 8. Currently there are 37 households served by the program County -wide. Shelter Plus Care is a HUD funded rental assistance program targeting specifically homeless persons diagnosed with chronic substance abuse or persistent mental illness. The Washington County HRA is the grantee for this program and disburses rental payments to a sponsor. A sponsor is typically a mental health and /or substance abuse treatment facility that provides an array of supportive housing services. Currently there are 22 participants in this program County -wide. Homeless Prevention and Rapid Re- Housing Program (HPRP) is a program funded by the St. Paul Foundation and the American Recovery and Reinvestment Act of 2009. The HPRP assists transition age youth ages 16 -21, with preventing homelessness, and housing homeless youth. Currently there are 12 youths being assisted County -wide. n u Deferred Loan Program Fact Sheet What is the Washington County Deferred Loan Program? Washington County and the Housing Resource Center -Saint Paul have partnered to assist homeowners with home improvements. Funds are available for both exterior and interior home improvements. Who does the program serve? This program serves low- income persons within areas of Washington County. All communities are served, except Marine on St. Croix, Denmark Township and Grey Cloud Island Township. What is the maximum loan amount? Qualifying participants can receive up to $12,500 for home improvements. What are the loan terms? The loan has 0% interest and no monthly payments. The full loan amount will become due when the homeowner sells, transfers or refinances for cash out. All loans will be secured by a mortgage. Can homeowners complete the work themselves? No. Work cannot be performed by the owner(s) /borrower(s) on a sweat equity basis. 1- - DUAL HOus!No OPPORTUNITY l trua nK Kesourr > Gmter" Does this program have income limits? Yes. To qualify for this program, your income must be at 60% of area median or less, as reported by the Department of Housing and Urban Development. Example: A family of four would earn no more than $47,100. (gross annual income) What improvements are eligible? The loans can be used to finance exterior and /or interior rehabilitation of a home and /or an existing garage. Exainples of projects include: Accessibility improvements, exterior painting, repair or replacement of electrical, plumbing, furnace, structural or foundation problems, stucco or siding, doors, windows, roof, sidewalks or steps, skylights, lead abatement, septic and well improvements, and other health and safety concerns. The repair of garages is also included, but only for Housing Code violations. Are any improvements ineligible? Yes. Items that are recreational or luxury improvements (hot tubs, children's playground equipment, underground sprinkler systems) working capital, payment for owner's labor, debt service or refinancing existing debts are ineligible under this program, as well as other work items determined by the Housing Resource Center to be ineligible. The HousingResource CenterTM is a program of the Greater Metropolitan Housing Corp. Greater Minneapolis Housing Resource Center - Service Page 1 of 1 Contact Saint Paul HousingResource Center at 651.228.1877 for more Information. Washington County Owner Occupled Residential Deferred Loan Program A 0% interest preferred loan fora maximum of $15,000. The loan is available to low -income Individuals within areas of Washington County who own a single - family home, town home, condo, or twin home. Income limits apply to this program, and are at 60%of the area median. For example, a family of 4 would earn no more than $50,400 to quality. The loan funds can be used for basic interior and exterior home improvement projects. Eligible properties must have taxable market values below the following limits: $212,000 for households of 4 or less & $249,000 for households of 5 or more. Note All areas of Washington County are served except Denmark Township, Marine On St, Croix, Woodbury and Grey Cloud Island Township MHFA Fix Up Fund Loan: This is a home improvement loan for up to $35,000 with a maximum term of 20 years. The interest rate is fixed for the tens of the loan. Contact the HousingResource Center`" for the current interest rate. The Fix up Fund loan is available to credit worthy owner - occupied homes that are one to four units. To qualify for the loan gross household income cannot exceeed $96,600. Most improvements qualify except for luxury items such as swimming pools. MHFA Rental Property loans: Maximum loan up to $100, 000 to finance rental property. ($25,000 for a single - family home or duplex; $10,000 per unit in a muitipieumn dwelling.) interest rate is 6% for up to 15 years. MHFA Rehabilitation Loan: This is a no- interest defamed loan for very low- income homeowners. Gross household income cannot exceed 30% of the area median income as defined by the U, S Department of Housing and Urban Development. The maximum loan amount is $24,999 to make improvements that directly affect the safety, livability or energy efficiency of the home. Eligible properties include single- family detached homes, duplexes, condominiums or townhomes constructed after 1978 and some mobile homes. The loan is forgiven if the homeowner lives in the home for 15 years after the loan is incurred (10 years for mobile homes). MHFA Emergency Loan: This is a no- interest defend loan for very low -income homeowners to finance repairs that address emergency conditions that are an immediate threat to health or safety. Essential accessibility Improvements for a disabled resident are also eligible. Eligible properties include single- family detached homes, duplexes, condominiums, townhomes and certain mobile homes. Gross household income cannot exceed 30% of the area median income. The maximum loan amount is $15,000. The loan is forgiven if the owner lives in the home for 15 years after the loan is incurred (10 years for a mobile home). llttp: / /www.housingresourcecenter.org /loan _programs.htin 1 /10/2011