HomeMy Public PortalAboutChapter 4 Housing-12-23-2016Chapter 4: Housing and Neighborhoods
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Introduction
Medina is a growing community that
provides a variety of housing types and neighborhood styles while protecting and enhancing the City’s open spaces and natural environment. Natural resources are the green infrastructure
around which housing and neighborhoods in the City will develop. The availability of land in proximity to existing urban services provides an opportunity for a range of housing types
and neighborhoods, while maintaining and protecting the existing ecological integrity of Medina’s extensive natural areas. The following sections will provide general background information
regarding housing trends, analysis and recommendations for diversifying neighborhoods and accomplishing the City’s housing and neighborhood goals.
Housing Inventory
The following section
provides a summary of the existing housing conditions in Medina and the foundation for developing the housing plan. This information has been obtained from a number of sources including
the 2010 US Census, the 2015 Annual Housing Market Report from the Minneapolis Area Association of Realtors, and City Building Permit Information.
Housing Supply
The table below indicates
that there were a total of 2,016 housing units in the City in 2014 consisting of 1,722 single family homes, 110 townhomes and 184 multi-family units (multiplexes and apartments).
Table
4-A Types of Housing Units (2014)
Housing Type
Number
Percent
Single Family detached
1,722
85.4%
Townhomes (single-family attached)
110
5.5%
Duplex, triplex and quad
(2-4 units)
23
1.1%
Multifamily (5 or more units)
161
8.0%
Mobile homes
0
0%
Total Housing Units
2,016
100%
Source: American Community Survey 2010-2014
From
2010-2015, the City issued building permits for approximately 379 single family homes and 67 townhomes. No permits for multi-family units were issued from 2010 to 2015.
Housing Tenancy
In 2010, 93%of the housing units in Medina were owner-occupied and 7 percent were renter-occupied:
Table 4-B Housing Tenure
Housing Type
Number of Units
Percent
Owner-occupied housing units
1,581
92.9%
Renter-occupied housing units
121
7.1%
Total Occupied Units
1,702
100%
Source: Census 2010
Housing Conditions
and Age
The table below shows that nearly 20% of Medina’s housing stock was built between 2010 and 2015. Approximately 31% of the housing stock in the City was built before 1980 and
is older than 35 years. Almost half of the homes in Medina were built between 1980 and 2009.
Table 4-C Housing Age (2015)
Year
Total Units
Percent
2010-2015
446
19.9%
2000-2009
401
17.9%
1990-1999
364
16.2%
1980-1989
332
14.8%
1970-1979
245
10.9%
1960-1969
242
10.8%
1950-1959
83
3.7%
1949 or earlier
132
5.9%
Source: City of Medina
Housing Costs
Table 4-D describes the existing housing values in the City, and indicates affordability by showing the percentage of the area median income (AMI) that a particular valuation
reflects. Seventy percent of the homes within the City currently exceed 100% of the AMI, which is a value of $300,500. Twenty-one percent of owner occupied housing units would be considered
affordable in the City of Medina (below 80% AMI).
Table 4-D Owner Occupied Housing Values (2015)
Housing Values
Parcels
Percent
$1 - $153,000 (50% and below AMI)
80
4%
$153,001
- $240,500 (50% - 80% AMI)
303
17%
$240,500 - $300,500 (80% - 100% AMI)
182
10%
$300,501 - $405,500 (101% - 135% AMI)
219
12%
$405,501 - $601,000 (136% - 200% AMI)
402
22%
$601,0
01 and above (Greater than 201% AMI)
634
35%
Total Owner Occupied Housing Units
1,820
100%
Source: Hennepin County 2015
The median home sale price peaked in 2005 at $625,400
prior to the national housing market decline of 2007-2012. The table below shows that the average single family home price has been steadily increasing since 2011, recovering significantly
from the decline.
Table 4-E
Housing Sales (2011-2015)
Year
Number of Home Sales
Median Sale Price
2011
53
$485,000
2012
88
$457,985
2013
119
$521,623
2014
134
$527,500
201
5
118
$555,047
Source: 2015 Annual Housing Market Report (Minneapolis Area Association of Realtors)
According to the Metropolitan Council, a home is considered “affordable”
if it costs 30% or less of the total income of a family earning 80% of the metropolitan area median income. In 2015, this calculation resulted in a home with a value of approximately
$240,500 being considered affordable.
Housing Needs
According to Metropolitan Council projections, Medina will need housing for an additional 951 households by 2040. As described above, existing housing stock is generally
high quality. The City seeks to preserve and enhance this quality while planning for projected growth.
Housing Objectives
The following objectives are consistent with the goals
and strategies identified in Section 2 of this Comprehensive Plan.
Preserve and enhance the quality of life currently enjoyed by the residents.
Provide opportunities for a diversity
of housing at a range of costs to support residents at all stages of their lives.
Provide housing that will maintain the open space and natural resources of Medina.
Preserve and protect
single family housing and the neighborhoods in which they are located; encourage upkeep and improvement of housing stock over time; require platting and design of new housing to be high
quality and consistent with the Comprehensive Plan; and encourage conservation design in new housing stock.
Support high standards for quality multi-family development in appropriately
zoned areas.
Establish new and existing housing design standards to:
(a) require quality building and site design; (b) provide for recreation, parks and trails; (c) require open
space and trails including links to adjacent neighborhoods, nearby trails, and area parks; (d) respect and protect the natural environment, especially the lakes, wetlands, steep slopes,
and woodlands.
Require lots in new subdivisions to access a local street rather than a collector street, county road or state highway.
Allow the use of conservation subdivision design
to preserve rural character, preserve ecologically significant natural resources and retain open space
Require new urban residential development to be consistent with the City’s Staging
and Growth Plan.
Affordable Housing Plan
The Metropolitan Council has identified affordable housing needs for all cities and townships in the region for 2021-2030. The housing element of each local
comprehensive plan is required to reflect each community’s share of this regional need for affordable housing. The Metropolitan Council has calculated the City of Medina’s share of
the 2021-2030 regional affordable housing need to be 253 total units. The table below indicates the expected need for affordable units in Medina by specific affordability level, with
affordability based on percentage of Area Median Income (AMI).
Table 4-G
Affordable Housing Need Allocation (2021-2030)
At Or Below 30% AMI
147
From 31 to 50% AMI
106
From
51 to 80% AMI
0
Total Units
253
Source: Metropolitan Council forecasts
Consistent with Metropolitan Council policy, the City has met affordable housing requirements by planning
for higher-density residential development. The following areas provide the primary locations for higher-density residential development:
A minimum of 186 units are planned at a minimum
of 12 units per acre at Highway 12 and Baker Park Road
A minimum of 57 units are planned at a minimum of 8 units per acre at Highway 55 and Tamarack Drive
A minimum of 30 units are planned
at a minimum of 8 units per acre at Medina Road and Brockton Lane
The City supports creating a livable community through addressing the life cycle housing needs of area residents and
the local workforce. Implementing an Affordable Housing Policy and Program in Medina is influenced by:
Socioeconomic demographics of the workforce population desiring to live in Medina
Growing
number of senior citizens in Medina
Current land costs and/or availability of land in Medina and surrounding regions
Lack of infill opportunities in Medina
Zoning regulations and fees
Eligibility for supportive grants, programs, and partnerships
Capability to maintain long-term affordability
Strength of the current housing market
Defining appropriate design standards
for the affordable housing market
Education of residents, city officials and staff concerning affordable housing
Affordable Housing Programs
Various programs and actions are available to support the development of affordable housing. The City currently partners in a number of the programs in
order to support affordable housing, including taking part in Community Development Block Grant (CDBG) pool and other opportunities with Hennepin County Housing and Redevelopment Authority.
Medina has established a goal to provide opportunities for a diversity of housing at a range of costs to support residents at all stages of their lives. To support this goal, the City
will evaluate opportunities to utilize public and non-profit programs or to partner with other agencies in these programs. The programs available to the City and developers to support
affordable housing, depending on circumstances, include the following:
Development Authorities: Medina does not have its own Housing and Redevelopment Authority (HRA) and depends on
the Hennepin County HRA for affordable housing and redevelopment services.
Housing Bonds: Minnesota State Statute allows HRAs to issue housing bonds to provide affordable housing.
Tax
Abatement: Cities may issue bonds to be used to support the construction of affordable housing, using a portion of the property tax received (tax abatement) from the development to
finance these bonds. This removes this property from paying taxes for the services needed for this property, its residents and the community in general. The City should develop a tax
abatement policy to determine if and when the level of affordable housing and the guaranteed length of affordability provide sufficient public benefit to justify the use of tax abatement.
Tax
Increment Financing: Cities may create a housing district to create a tax increment financing (TIF) district. The TIF bonds issued on this district are to be used to support the construction
of affordable housing and property taxes received above the original tax value (increment) from the development are utilized to finance these bonds. The property tax revenue that otherwise
would be available to pay for city services would be restricted and not available to pay for the services. The City may develop a TIF policy to determine if and when the level of affordable
housing and the guaranteed length of affordability to provide a public benefit is great enough to justify the use of tax abatement
Minnesota Housing Consolidated Request for Proposals:
The Minnesota Housing Finance Agency provides a once annually request for proposal (RFP) where affordable housing developers can apply for funding to construct affordable housing.
Community
Development Block Grants (CDBG): The U.S. Department of Housing and Urban Development (HUD) provides CDBG funds to communities with over 45,000 residents for the use of providing and
maintaining affordable housing. Hennepin County HRA administers these CDBG funds for the City of Medina.
HOME Funds: The Home Investment Partnerships Program (HOME) is a flexible federal grant program that allows Hennepin County to fund affordable housing activities for very low and low-income
families or individuals, homeless families, and persons with special needs.
Affordable Housing Incentive Funds(AHIF): AHIF funds are administered by the Hennepin County HRA. This loan
program funds the development of affordable housing units for very low-income households.
Neighborhood Stabilization Program (NSP) Grants: The NSP was established by HUD for the purpose
of stabilizing communities that have suffered from foreclosures and abandonment. The focus of this program is the purchase, rehabilitation and resale of foreclosed and abandoned properties.
The NSP grants are administered by the Hennepin County HRA.
Homebuyer Assistance Programs: Homebuyer assistance programs funded directly by Hennepin County HRA are currently not available.
Medina encourages residents to contact the Minnesota Homeownership Center regarding homebuyer assistance programs that are currently available.
Repair and Rehabilitation Support: The
Community Action Partnership of Suburban Hennepin (CAPSH) provides home repair and rehabilitation assistance to Medina residents who meet the eligibility requirements.
Foreclosure Prevention:
The Community Action Partnership of Suburban Hennepin (CAPSH) provides foreclosure counseling to Medina residents.
Energy Assistance: The Community Action Partnership of Suburban Hennepin
(CAPSH) administers the energy assistance program for Medina residents who meet the eligibility requirements..
Livable Communities Grants: Medina is a participating community in the
Metropolitan Council’s Livable Community Act (LCA) programs. Medina may, when applicable, apply for livable communities grant on behalf of developers who provide a level of affordable
housing and the guaranteed length of affordability that generates a public benefit greater than the resources required to apply for and administer the livable community grants.
Local
Fair Housing Policy: The Hennepin County HRA has a fair housing policy, which applies to the City of Medina. Therefore, Medina has not developed a local fair housing policy.
Fee Waivers
or Adjustments: Cities may waive or reduce fees to reduce the cost of construction of affordable housing. Conversely, State rules require that the fees that a city fee correlate to
the cost of providing the services. This waiver or reduction could create a deficiency in the funding for services, causing the City to rely on general funds to make up the deficiency.
In considering a fee waiver or reduction, the City should determine when the level of affordable housing and the guaranteed length of affordability provide a sufficient public benefit
to justify the reduction or waiver of development fees.
Zoning and Subdivision Policies: The City has the ability to adjust its zoning and subdivision regulations through a planned unit development (PUD). Zoning and subdivision regulation
are created in part to mitigate the impacts that a development may have on adjoining properties. When considering a PUD for affordable housing, the City should determine when the level
of affordable housing and the guaranteed length of affordability provide a public benefit great enough to justify the potential impacts that would result from a deviation in the zoning
or subdivision regulations.
4(d) Tax Program: The 4(d) tax program provides a 4% tax credit to affordable housing developers. This program is administered through the Minnesota Housing
Finance Agency.
Land Trusts: A land trust achieves affordable home ownership by owning the land on which a house is located, allowing the resident to seek financing only on the house.
The resident enters into a long-term lease for the home to remain on the property. The advantage of a land trust is that the trust can control the future sale of the property to ensure
that affordability can be maintained and have the ability to scatter the land trust sites throughout the community. The disadvantage of a land trust is that it will take significant
financial resources to purchase the land rights and those resources are never recovered during the period that the property remains affordable. Medina may evaluate if joining the West
Hennepin Affordable Housing Land Trust is the most efficient way to use its resources to provide affordable housing.