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HomeMy WebLinkAboutItem 10September 7, 2010 Item No. Continued Participation in the Local Housing Incentives Account Program Under the Metropolitan Livable Communities Act Proposed Actions Staff recommends adoption of the following motion: Move to adopt a Resolution Electing to Continue Participating in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act for Calendar Years 2011 Through 2020. Passage of this motion will result in the City's continued participation in this program for the next ten years and the establishment of goal ranges for both affordable housing and life -cycle housing and approval of a plan to endeavor to meet these established goals. Overview The City has been a voluntary participant in the Metropolitan Livable Communities Act Local Housing Incentives Account (LCA LHIA) since the program began in 1996. Participation qualifies cities to compete for grants and loans that help the City meet its affordable and life cycle housing goals, clean up polluted sites, and support demonstration projects linking jobs, housing and transit. Since the beginning of this program, $712,717 in grants have been provided for four different workforce housing projects in Lakeville that consist of 148 units of workforce housing developed by the Dakota County CDA. The Metropolitan Council has established new goal ranges for both affordable and life cycle housing units for Lakeville for the period from 2011 through 2020. These ranges are 1582 — 2260 units of affordable housing and 2260 — 8200 of life cycle units. These goals were determined through a fairly complex formula developed by the Metropolitan Council and household growth forecasts included in the City's approved 2008 Comprehensive Plan Update. Attached is a copy of the memo that was provided to the City Council on this issue for the August 23 Council Work Session that provides more detailed information. Staff recommends approval of the resolution authorizing the continued participation in this program. Primary Issues to Consider • What are the consequences if the City fails to meet the established LCA affordable and life cycle housing goals? There are no penalties for failure to meet the established goals. However if the City does not participate in the program, it is not eligible for LCA grants. Supporting Information • Res • on authorizing continued participation in the LCA LHIA program. D ?i: . O son Community & Economic Development Director Financial Impact: $ 0 Budgeted: Y/N N Source: RESOLUTION NO. RESOLUTION ELECTING TO CONTINUE PARTICPATING IN THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT CALENDAR YEARS 2011 THROUGH 2020 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, is 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 sites 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. Affordable Housing Goals Range Life -Cycle Housing Goals Range 1582 — 2260 Units 2260 — 8200 Units NOW, THEREFORE, BE IT RESOLVED THAT the City of Lakeville: 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 years 2011 through 2020: 3. Will prepare and submit to the Metropolitan Council a plan identifying the actions it plans to take to meet its established housing goals. Approved: , 2010. By: By: Holly Dahl, Mayor Charlene Friedges, City Clerk Memorandum Item No. City of Lakeville Community and Economic Development To: Mayor and City Council Members Steven Mielke, City Administrator From: David L. Olson, Community & Economic Development Director Copy: Allyn Kuennen, Associate Planner Adam Kienberger, Economic Development Specialist Date: August 20, 2010 Subject: 2011 -2020 Livable Communities Act Housing Goals The City of Lakeville has been a voluntary participant in the Metropolitan Livable Communities Act Local Housing Incentives Account (LCA LHIA) since the program began in 1996. Participation qualifies cities to compete for grants and loans that help the City meet its affordable and life cycle housing goals, clean up polluted sites, and support demonstration projects linking jobs, housing and transit. Since the beginning of the program, $712,717 in grants were provided for four different workforce housing projects developed in Lakeville by the Dakota County CDA. The CDA developed a total of 148 units of work force housing with these projects. The 1996 LCA goals for Lakeville are attached as Enclosure A. Each year the City is required to complete a report of the housing development statistics from the previous year and submit it the Met Council. Based on the housing unit numbers reported to Met Council through 2008, the City has met 30% of its affordable owner - occupied housing goal and 60% of it affordable rental housing goal that were established in 1996. It should be noted that the housing goal categories have changed since 1996. There are now only two categories of goals which are affordable and life cycle and they are no longer differentiated by owner occupied and rental units. A number of the assumptions and forecasts used by the Met Council to determine these goals were established prior to the recession and the significant slow down in the housing market. The Met Council will also be revisiting their population and household growth forecasts after the 2010 Census Data becomes available. The City is required to submit a plan that identifies the actions it plans to take to meet these housing goals by the end of 2010. That plan will consist of primarily information already included in the City's approved Comp. Plan. The Met Council has established new goals for both affordable and life cycle goals for the period from 2011 -2020. Lakeville's fair share of 2,260 affordable housing units for the next ten years was established by the Metropolitan Council through a somewhat complex allocation formula. The affordable housing goal range for 2011- 2020 for Lakeville is 1,582 — 2,260 units. The high end of the range is the number of the fair share number of affordable units for Lakeville as determined by the Met Council and was adopted by the City as part of the comprehensive plan update process. The lower number is 65% of the higher number reflecting currently available funding levels for the development of affordable housing. The life cycle housing goals established by the Met Council are intended to diversify the type and density of housing to meet residents changing needs and preferences. The Met Council has established a goal range of 2,260 to 8,200 units over the next ten years. The lower number represents the City's total fair share of affordable housing as determined by the Met Council and the high end of the range is the number of units that could be developed in the areas identified as medium and high density residential along with the forecasted household growth numbers included in the City's approved Comp. Plan. While it is unlikely that the City will be able to meet either the affordable or life cycle goals that have been established for the next ten years, there are also no penalties or consequences not being able to meet the goals. As indicated in this memo, the City has benefited by more that $700,000 in grant funds being approved for projects in Lakeville in part because we were participating in the Local Housing Incentives Account program. Staff Recommendation Staff recommends that Council adopt a resolution at its next regular meeting for the City to continue to participate in the Local Housing Incentives Program under the Metropolitan Livable Communities Act for calendar years 2011 -2020 and endeavor to meet the affordable and life cycle housing goals cited in this memo and the attached draft resolution. Metropolitan Council AA June 25, 2010 Mr. Steven Mielke City Administrator City of Lakeville 20195 Holyoke Ave Lakeville MN 55044 -9047 Dear Mr. Mielke: The City of Lakeville previously elected to be a participant in the Metropolitan Livable Communities Act Local Housing Incentives Account (LCA LHIA). Participation in the voluntary LCA LHIA provides the City with the opportunity to compete for grants and loans to support activities that help the City meet its affordable and life cycle housing goals, clean up polluted sites, and support demonstration projects linking jobs, housing and transit. The City's previously adopted LCA LHIA affordable and life cycle housing goals were negotiated with the Metropolitan Council for the period 1996 — 2010. Those goals are indicated in Enclosure A. If the City elects to continue its participation in the LCA, it must establish new affordable and life -cycle housing goals for the next decade (2011 through 2020). As part of the City's recently submitted 2030 Comprehensive Plan Update, it acknowledged its fair share of the region's affordable housing need. For the City of Lakeville the fair share number is 2,260 units over the next 10 years. Although the Council fully supports the need for this total number of new affordable units over the next decade, it also acknowledges the reality of limited funding available to create new affordable housing opportunities. For this reason, the Council asks the City establish its LCA affordable housing goal as a range of 1,582 to 2,260 units for the period 2011 to 2020 with the low end of the range representing the number of units that can be accomplished at currently available funding levels region -wide. Regarding the City's life -cycle housing goal to diversify the type and density of housing to meet residents' changing housing needs and preferences, the Council asks the City establish a goal range of 2,260 to 8,200 units over the next decade. The low end of the range represents the community's total share of the region's affordable housing need and the high end is the potential number of units permitted by the land use guiding in the City's 2030 Plan Update for medium, high, mixed use, redevelopment, TOD or similarly named residential development, or the total forecasted household growth for the community to 2020, whichever number is less. www.metrocouncil.org 390 Robert Street North • St. Paul, MN 55101 -1805 • (651) 602 -1000 • Fax (651) 602 -1550 • TTY (651) 291 -0904 An Equal Opportuntty Employer City of Lakeville, Cont. Enclosed with this letter is a listing of the grants awarded to the City of Lakeville through the LCA and a list of projects the City applied for, but where funding was not awarded. See Enclosure B. To make official the City's decision to continue participation in the LCA, the Metropolitan Council is asking the City to adopt these new affordable and life -cycle housing goal ranges, by passing a resolution that incorporates the numbers described above. A sample resolution is enclosed; however, the City may craft the resolution in the manner that best meets its needs as long as the affordable and life -cycle goals are part of the resolution. The Council asks that the City pass a resolution and provide a copy to the Council no later than September 1, 2010. See Enclosure C. Additionally, before December 1, 2010 the City must develop a Housing Action Plan outlining the steps the City will take to help meet its LCA goals. Much, if not all of this Action Plan can be taken from the housing implementation section of the City's Comprehensive Plan Update. A checklist to assist in the development of the Housing Action Plan is attached as Enclosure D. We have also attached an information item about the LCA, (Enclosure E), and additional information is available on the Council's website at http://vvww.metrocouncil.org/planning/index.htm The LCA emphasizes cooperation and incentives to achieve goals. The Metropolitan Council looks forward to continuing to work with the City through its continued voluntary participation in the LCA to continue to meet the affordable and life -cycle housing needs of the City and the region. If you have any questions or need additional information please feel free to contact your Council staff Sector Representative, Patrick Boylan, at (651) 602 -1438 or patrick.boylan @metc.state.mn.us. Sincerely, Guy Peterson, Director, Community Development Division Metropolitan Council Enclosures for the City of Lakeville: A: 1996 to 2010 LCA Goals B: Funded and unfunded LCA projects /grants C: Sample city resolution D: Housing Action Plan checklist E: Information on the LCA cc: Patrick Boylan, Sector Representative Enclosure A City of Lakeville Livable Communities Act (LCA) Goals* 1996 -2010 New Affordable Ownership Units: 4,834 New Affordable Rental Units: 393 New Rental Units - All: 1,229 * When communities established LCA goals in 1995, the goals were expressed as percentages of the communities' housing stock (ownership and rental). The numbers above represent the unit numbers extrapolated from the percentages. Enclosure B Funded and Unfunded Projects /Grants Funded LCA Grants 1996 — 2009 for the City of Lakeville 1997 $100,000 Cedar Valley Family Townhomes 1999 $166,000 Country Lane Family Townhomes 2002 $195,000 Downtown Family Townhomes 2004 $126,717 Meadowlark 2007 $125,000 Meadowlark II - 7:41-( , 71 ?i7 Unfunded LCA Grants 1996 - 2009 for the City of Lakeville (None)