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HomeMy WebLinkAboutHousing Task Force - 03/11/2020EDEN PRAIRIE HOUSING TASK FORCE MINUTES Wednesday March 11, 2020 HTF Members  Chair Joan Howe-Pullis Vice Chair Lyndon Moquist Carol Bomben Pedro Curry Terry Farley Marlene Fischer Mohamed Nur Joan Palmquist Anne Peacock Ken Robinson Emily Seiple  Staff  Jonathan Stanley, Housing and Community Services Manager Amanda Pellowski, Community Development Administrative Assistant   CALL TO ORDER AND APPROVAL OF MINUTES Howe-Pullis called the meeting to order at 5:36 pm. Members absent were Curry, Peacock, Fischer and Nur. Bomben moved, and was seconded by Robinson, to approve all past Housing Task Force minutes (June 2019, July 2019, August 2019, September 2019, October 2019, November 2019, December 2019, January 2020 and February 2020) without modifications. Motion carried 7-0. RECAP OF CITY COUNCIL WORKSHOP ON FEBRUARY 18 Stanley stated he received good feedback from City staff about the Council Workshop. Although it didn’t come up at the workshop, Stanley heard the Mayor didn’t envision adopting anything until after the final written report is presented. The Task Force will go before City Council one more time to present the report, then the Council will take some time to consider their recommendations before possibly adopting an ordinance. Palmquist asked for clarification whether the focus should be on the Inclusionary Housing Policy. It seems the Task Force keeps adding to their list of things to do. She asked if everything needs to be addressed during the final presentation to the Council, or if they can present the Inclusionary Housing recommendations to the Council and then work on the other items. Stanley’s impression is the Council wants the Task Force to wrap up their work by June to avoid keeping them beyond their original commitment. Stanley has been told the written report doesn’t need to be long or elaborate. The additional topics the Task Force wants to cover could be very short sections. Howe-Pullis’ understanding is each area of the policy would have its own chapter or heading. She envisions sections for: production (the inclusionary policy is about productions of affordability), protection (as in tenant protections), preservation (NOAH - Naturally Occurring Affordable Housing), and out of the box ideas. Howe-Pullis asked if the Task Force will present at another workshop. Stanley responded he thinks the presentation will be at a Council Meeting. Howe-Pullis asked how much time they’ll have. Stanley wasn’t sure, but feels that Inclusionary Housing and Tenant Protection recommendations should be preeminent in the presentation. The rest may not be fully formed, but could still be mentioned. Stanley asked Palmquist for her impressions from the workshop. Palmquist’s main takeaways were that Mayor Case, and perhaps the rest of the Council, want to see the Task Force’s work – their recommendations, the why behind them, and the possible risks. The Council also requested several types of metrics. Palmquist wasn’t sure if some of the requested metrics are available. For example tracking how much affordable housing is for singles, families and seniors. Howe-Pullis stated it’s important to understand the questions the Council is asking of the Task Force, but also keep in mind the Task Force has the ability to answer those questions in some fashion while also showing their point of view in their report. As the Task Force writes the report, they can be clear what their recommendations are, why they’ve made those recommendations, and how they relate to Aspire 2040. Palmquist also noted during the workshop it sounded as though the Council would prefer a Tenant Protection Ordinance (TPO) that applies beyond the sale of a property; they’d like some solution that would help with situations like Arrive. Seiple asked about the request for metrics on the number of tenants that graduate from affordable housing. None of the Inclusionary Housing ordinances reviewed by the Task Force indicate other communities track that sort of information. The population an Inclusionary Housing policy is meant to serve isn’t always likely to have a change in circumstance that would enable them to afford market rate housing. Howe-Pullis remembers there was discussion in Eden Prairie several years ago whether tenants were meant to stay in affordable housing forever, or whether affordable housing was meant to help tenants “graduate” and move on. Seiple stated the discussion presents an opportunity to clearly define perpetuity and how it’s a key component to building a stable community. Palmquist added that PROP does track something similar, as they’re aware that generally a third of the clients they’ve helped are no longer clients by the end of the year. PROP uses that information for grant applications. Farley felt it would be a good statistic, that’s specific to Eden Prairie, to include in the written report. Farley asked if PROP also has statistics on rental assistance. Palmquist stated they do, and they also do follow-up surveys. She’s going to see if she can access some more information. Howe-Pullis thought perhaps some of the questions that came up in the workshop were curiosity and didn’t necessarily have to be addressed. In response to the Council’s wish to see their work, Palmquist partnered with Howe-Pullis to create an example of what that might look like. Mayor Case asked to know the why behind their recommendations, all of the alternatives, the advantages and disadvantages, and the rationale and logic. She walked through how perpetuity might look in the written report. Howe-Pullis suggested using “good, better, best” and making the connection of how each recommendation ties into the 2040 plan. Farley suggested first giving the Task Force’s recommendations and the why’s behind them, then listing other options. Moquist felt City Council should read the minutes from all the past Task Force meetings and stated his concerns about perpetuity. Palmquist returned to the Council’s requests and shared that Council Member Nelson expressed interest in allowing people to use parts of their home to rent, with the thought this might allow seniors to stay in their homes longer. It was the thought, at the workshop, that Eden Prairie allows this as long as the rented area isn’t separated or closed off from the main unit. There was discussion at the workshop of whether to take it a step farther and allow residents to turn their homes into duplexes. The Council would like more information about it. Stanley added it might be useful to go a step farther and research whether residents should be allowed to build a small structure on their property. Seiple suggested adding this in the production section and stating the use of existing infrastructure is much less expensive than building new. Palmquist shared Council Member Aho’s request for metrics from cities that have adopted Inclusionary Housing Policies. Council Member Narayanan asked whether there are metrics showing how many residents graduate from affordable housing. Stanley is going to see if there is any information available on that. Howe-Pullis suggested interviewing a couple residents of Briarhill and Prairie Meadows who have moved on, in order to include anecdotal accounts in the written report. Palmquist suggested checking with properties to see how many affordable units were renewed. Palmquist referred to Mayor Case’s request for more information about Edina’s payment in lieu option. The City Manager stated during the workshop that he didn’t think it had been used. Stanley clarified it hadn’t been used for single family housing, but it has for multi-family. He heard the funds from it are plentiful. He’ll make some calls to try and get specifics. Palmquist referenced Council Member Nelson’s question whether it’s possible to track number of affordable units meant for singles, families and seniors, as she feels the focus should be on young families. Moquist suggested tracking that by the number of bedrooms a unit has. Seiple believes units with more bedrooms would be beneficial for Eden Prairie residents. Palmquist shared that Mayor Case asked if perpetuity would limit the City since our neighbors don’t have it. That question should be addressed in the written report. There was a comment at the workshop that it isn’t possible to build a single family home in Eden Prairie for less than $500K. Palmquist asked if that was true. Robinson and Moquist agreed it is true due to the cost of land. Palmquist wondered if it would it be possible to build a house for less than $500k if land was donated. She contacted someone from Habitat for Humanity and is waiting to hear back. Palmquist continued with the items discussed during the workshop and shared there was concern about how to handle large properties like Arrive going downhill. Howe-Pullis asked if the Task Force should recommend a TPO that goes beyond affordable housing. Palmquist strongly recommended the City instead focus on referring residents to resources and providing information in appropriate languages. Stanley stated he read the statement differently and thought it was more general about keeping buildings from going downhill and wasn’t about TPOs. Farley thought inspections could be an option to address the deterioration of properties, but leveraging them more will require more resources from the City and the question of enforcement would need to be addressed. Those options could be included in the written report. Seiple suggested also including partnerships with organizations that may not have extra money but that have extensive connections to services like translators or that have rapport with families in the community. That takes the burden of solving everything off the City. Palmquist agreed it makes sense for the City to act as a resource and refer residents to organizations that already provide services instead of trying to take on additional roles. Stanley stated in his experience, Eden Prairie’s inspections department does a great job working with the community. One of his staff members regularly goes on inspections with them and talks to families about their experiences and concerns. Palmquist commented at the workshop that the Task Force had been operating under the assumption that all development needed to be mixed income. Towards the end of the workshop she asked the Council to reconsider and allow development that’s 100% affordable, as most developments are now going to be small and sprinkled throughout the City. Palmquist presented her preliminary draft of how the written report might be organized. She included a section on customized inclusions – the recommendations that differ from neighboring cities - such as perpetuity. She asked Stanley for existing examples of when the City has been able to negotiate affordability so those can be incorporated in the report. Howe-Pullis suggested not achieving the goals in the comprehensive plan be added as a risk. Moquist asked that the report call out the 600 locations referenced as having certain components of the ordinance are not neighboring cities. Farley suggested adding examples of affordable units that have been lost. Robinson asked if it’s possible to find out how many affordable units there are in the City. Stanley responded the number of affordable units is known, but amount of NOAH housing isn’t as of yet. Howe-Pullis mentioned the Broadmoor Apartments and wondered how they had become so dilapidated. It was highly affordable for tenants, but wasn’t the sort of affordability that should be encouraged as it wasn’t being maintained. She wondered how that was allowed to happen. Palmquist continued with the draft. Farley suggested including the alternatives that were considered for number of units, the why behind the Task Force’s recommendation, and the threshold neighboring cities are using. She also suggested mentioning the option of payment in lieu for single family developments. Howe-Pullis asked if the reason there’s never been perpetuity for affordable units is because they’ve always been tied to TIF, which ends after a period of time. In her opinion perpetuity should be a condition in order to receive benefits that are often permanent. Farley agreed that could be part of the rationale under perpetuity - some of the benefits developers receive from the City last in perpetuity, therefore why shouldn’t affordable units be required for that long. The obligation should match the benefit. Palmquist included in the draft a “what’s next” section and an appendix that includes background, purpose, scope, inclusionary policy, and who they’ve had as guest speakers. Howe-Pullis asked if items directly connected to Aspire should have a separate page or be included with the other items. Palmquist believed they should be included with each item. Farley suggested starting the presentation with the goal. Howe-Pullis brought up the comment from the workshop that the goal is never going to be met. She’d like to address that in the report by writing that the Task Force was created to find ways to meet those goals. No matter how difficult they may seem, the goals have been set and we need to strive to meet them. Moquist asked if it makes sense to recommend reducing permit fees. Stanley said there was a bullet in the presentation at the workshop about creating a list of options for cost offsets. Seiple pointed out the large number of parks in Eden Prairie and suggested park dedication fees could be an option for the list of cost offsets. Stanley agreed that option has been used previously by the City. Palmquist asked about flexibility with requirements for construction materials. Stanley stated the City’s stance on that is pretty firm, for both market rate and affordable projects. However, he’s never heard of a project being abandoned because of construction material requirements. Density bonuses wouldn’t be a great option since the City doesn’t get requests for them. That likely has to do with construction heights—the type of building that would lend itself to a density bonus is often not the type built in Eden Prairie. Howe-Pullis volunteered to create the first draft of the inclusionary policy using the PowerPoint as a guide. She’ll circulate the draft to get suggestions and recommendation on the best way to phrase their recommendations. Moquist did a quick Google search and found the average cost of city permit fees for new construction is around $62K. That’s a significant amount to be used as an incentive. Stanley will research some of the City’s fees, but reminded the group that the infrastructure many fees support is expensive. Seiple asked if there were incentives that would make sense close to transit, such as parking reduction. Stanley agreed that makes a lot of sense to him. Howe-Pullis stated it also makes sense to push for more affordability near transit. Moquist suggested removing all zoning in Golden Triangle so there are no restrictions. Seiple would prefer to avoid single family development near transit, but agrees more density makes sense. She asked if zoning, as it is now, in those areas would trigger a PUD. Stanley responded it would. Seiple asked if housing developments in those areas are more difficult. Stanley responded they’re not. Howe-Pullis asked if the group had any additional thoughts on inclusionary housing to be included in the draft. Seiple suggested calling more attention to TOD opportunities. Perhaps even recommend 100% affordable developments near TOD. Palmquist will add the suggestions made at the meeting and send the PowerPoint to Howe-Pullis and Farley. MENU OF OPTIONS Stanley wanted to discuss menu of options with the group because it was a theme that was emphasized at the workshop and that he’s also heard from City staff. Any item in the report they’re spending time on should include a menu of options, but at the same time the report needs to be concise. Seiple asked if that means providing options for the main policy, or options for the items within the policy. Stanley replied it could mean both. For Inclusionary Housing he could see it meaning something as basic as whether the City should even adopt a policy or not – status quo could be an option, which would be easy to list disadvantages for. Seiple stated the request sounds a lot like grant writing where it’s important to use key words such as “menu of options” and “toolbox”. UPDATES FROM WORKGROUPS Tenant Protection Ordinances: Howe-Pullis reached out to organizations that might be able to help identify specific needs in Eden Prairie so they can address those needs versus blindly following what every other city has done. (Robinson exited at 6:47pm.) Some of the really big recommendations from HOME Line might be good to include in the report as aspirational for the future. Seiple asked if they should recommend against certain actions, such as the crime free ordinance St Louis Park is dealing with. Howe-Pullis believes Eden Prairie has a version of that and will investigate what it actually says. Farley reminded the group that Peacock had referenced some studies on that topic, which might be good information to reference. Stanley stated St Paul just came out with an ordinance that doesn’t seem radical. Affordable Housing Trust Fund: Farley handed out notes she and Seiple compiled about affordable housing trust funds. The notes detail what a trust fund is, the benefits and drawbacks. Having the structure of a trust is more likely to bring in donations and potentially matching legislative funds. Bomben asked if the fund had levy ability from the Council. Stanley stated levies can be assessed. St Louis Park for example has a levy that automatically seeds its AHTF with a certain amount per year. Bomben stated Eden Prairie does not, but that could be something to recommend as an option. Stanley was recently at conference on housing and had a conversation with someone from Urban Land Institute. He asked her thoughts on the benefit of having a trust fund. She responded a big benefit is a trust fund helps engage the business community, especially with employers that want to contribute to housing for their staff without having to get involved in development. Farley continued to review the notes: how trusts are funded, what they can be used for, and additional considerations such as who will manage it. Some communities, like Minneapolis, have very detailed plans. Some have a non-profit manage the fund while others leave the management to City officials. The fund could be set up just for Eden Prairie or it could be for a larger area. Moquist stated if it was just for Eden Prairie perhaps the Eden Prairie Foundation could manage it. Seiple stated that could be a good fit, as the Eden Prairie Foundation is working on a strategy around poverty that focuses on housing and transportation. Farley stated a trust fund can be created by ordinance. Minneapolis’ ordinance is specific and 15 pages long. St Louis Park’s is more general, it’s only 3 pages, and allows for more flexibility. The group agreed it would be best to emulate St Louis Park’s ordinance. Howe-Pullis suggested referencing trust funds throughout the final report, but also giving it a separate section. Out of the Box Ideas: Moquist and Robinson have had some conversations. They would like to focus on encouraging activity, for example soliciting ideas through social media and being open to the creativity. He invited anyone interested to join them to generate ideas. Seiple and Stanley have ideas they’d like to discuss. Moquist suggested spending some time at an upcoming meeting to talk about them. Howe-Pullis agreed any ideas that will be mentioned to the Council should be discussed. Moquist will start a list of possibilities. ADJOURN Howe-Pullis stated there will be a pre-read of the inclusionary policy at next month’s meeting. Palmquist suggested answering questions posed by Council Members at the workshop. Howe-Pullis asked if that should be a separate section in the report. Seiple volunteered to draft a response to the question about the tenants in affordable housing. Palmquist encouraged folding answers to Council questions into the presentation. Farley stated if there are questions that don’t fit into any section, then include them at the end. Seiple suggested including a chart to show income limits for affordable housing and the average income of some professions such as nurses, teachers, police officers, etc. Howe-Pullis adjourned the meeting at 7:23 pm.