Inclusionary Housing Policy Items Housing Policy & Development - PowerPoint PPT Presentation

CITY OF MINNEAPOLIS Inclusionary Housing Policy Items Housing Policy & Development Committee Meeting November 28, 2018 1

Inclusionary Housing Policy Proposed Actions and Timeline December 7, 2018 City Council Meeting • Adopt Minneapolis 2040 Comprehensive Plan • Approve Framework for Inclusionary Housing Policy • Approve Interim Inclusionary Zoning Ordinance • Adopt Unified Housing Policy Amendments • Approve Staff Direction to return with financing program for Interim IZ Ordinance TODAY: November 28, 2018 HPD Committee: • Framework for Inclusionary Housing Policy • Unified Housing Policy Amendments • Staff Direction to return with financing program for Interim IZ Ordinance 2

Inclusionary Housing Policy Proposals • Recommendations made by Grounded Solutions Network based on financial feasibility analysis, policy research regarding national best practices, input from development community and affordable housing advocates • City staff team from Community Planning and Economic Development (CPED) Housing, Development Services, and Long-Range Planning, City Attorney's Office and Finance • Recommendations were presented to HP&D Committee August 22, 2018, City Council approved staff directions to return with: • Framework for Inclusionary Housing Policy • Interim Inclusionary Zoning Ordinance 3 • Unified Housing Policy Amendments

Inclusionary Housing Policy Framework • Proposed Minneapolis 2040 Plan allows for greater residential and mixed-use building density • Support affordable housing goals of Minneapolis 2040, promote mixed-income development • Applies city-wide to any project seeking site plan approval (subject to certain threshold size to be determined) • Rental projects: 10% units affordable @ 60% AMI; or 20% units affordable @ 50% AMI (with City financial assistance) • Ownership projects: affordability requirements tbd based on further analysis • Affordability period is 20 years with no city financial assistance; 30 years if financial assistance included 4 • Feasible and recommended by 3 rd party consultant

Inclusionary Housing Policy Framework • Proposed action: Direct staff to develop comprehensive inclusionary housing policy for adoption in 2019 5

Unified Housing Policy Amendments • Supports Interim Inclusionary Zoning Ordinance • Considered by Zoning & Planning Committee 11/29/18 • Applies only to projects seeking substantial additional development capacity (60% or more) • In effect January 1, 2019 until replaced by permanent Inclusionary Zoning Policy • Affordable requirements of Interim IZ Ordinance: • Rental projects (same as proposed for permanent IZ policy): • 10% units affordable @ 60% AMI (no subsidy) • 20% units affordable @ 50% AMI (eligible to apply for financial assistance) • Period of affordability: 20 years (no subsidy); 30 years (with subsidy) 6

Unified Housing Policy Amendments • Ownership projects exempt (interim only) • Student housing projects exempt (interim only) • Other changes consistent with Minneapolis 2040 • Goals and policies • New statements related to anti-displacement goals and tenant and homeowner supports. • Proposed amendments released for public comment on October 10, 2018. 7

Unified Housing Policy Amendments • Interim IZ Ordinance in effect January 1, 2019, more work needed on financial assistance option of policy • Staff will return to HP&D Committee in March 2019 with proposed interim inclusionary zoning tax increment financing policy and program to support a feasible inclusionary housing policy that supports continued housing production in the City. • Public purpose of IZ ordinance is to add affordability in what would otherwise be 100% market rate development • Significant potential financial and resource implications • Effective inclusionary zoning policies are simple, provide clear rules for compliance, and administered on a reasonable timeline and at a reasonable cost 8

Unified Housing Policy Amendments Proposed actions: • Adopt amendments to the City of Minneapolis Unified Housing Policy • Direct CPED and Finance staff to return to the HP&D Committee with recommended tax increment financing policy and program to support the Interim IZ Ordinance affordability requirements (expected in March 2019) 9

Questions? 10