HomeMy WebLinkAbout2009-01-14 HRA Packet
AGENDA
MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY
WEDNESDAY, January 14, 2009
7:00 P.M.
CITY HALL, CITY COUNCIL CHAMBERS
1. Call to Order
2. Roll Call
3. Approval of Agenda
4. Approval of Minutes
June 25, 2008
5. Communications
6. Unfinished Business
a. Comprehensive Plan update-Review of Housing Chapter Final Draft
7. New Business
a. Metrostudy Report "Twin Cities 2008 Report and 2009 Housing Outlook"
b. Discussion: What would the HRA Wish to Explore in 2009?
c. Election of Chair and Vice Chair for 2009
8. Date of Next Meeting
February 11, 2009
9. Adjournment
DRAFT
MINUTES OF THE MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY
1830 COUNTY ROAD BEAST, MAPLEWOOD, MINNESOTA
WEDNESDAY, JUNE 25, 2008
CITY COUNCIL CHAMBERS
I. CALL TO ORDER
Chairperson Pearson called the meeting to order at 7:00 p.m.
II. ROLL CALL
Commissioner Rita Andreoli
Commissioner Josh Richter
Chairperson Gary Pearson
Commissioner Joy Tkachuck
Vice-Chairperson Beth Ulrich
Present
Present
Present
Present
Present
Staff Present: Tom Ekstrand, City Planner
III. APPROVAL OF AGENDA
Commissioner Tkachuck moved to approve the amended agenda, adding "Update on Code
Enforcement Officer" under item 6.a. and "Web Cast Meeting Discussion" under item 6.b.
Commissioner Ulrich seconded.
The motion passed.
Ayes - all
IV. APPROVAL OF MINUTES
a. April 9, 2008
Commissioner Richter moved approval of the April 9, 2008 minutes as presented.
Commissioner Andreoli seconded
Ayes - Andreoli, Richter, Pearson, Tkachuck
Abstention - Ulrich
The motion passed.
V. COMMUNICATIONS
None
VI. NEW BUSINESS
a. Gethsemane Senior Housing Planned Unit Development and TIF Financing Request
City planner Tom Ekstrand presented the staff report for the request from Presbyterian Homes of
Minnesota and Gethsemane Lutheran Church to build a 111-unit senior housing facility.
In response to questions from the commission on issues relating to TIF, Mr. Robert Van Slyke of
Presbyterian Homes addressed the commission. Mr. Van Slyke explained there have not been any
taxes paid by this property for the past 25 years since it was used as parkland. Mr. Van Slyke
explained that under TIF, the property owner would pay the taxes on the property and then some
Housing and Redevelopment Authority -2-
Minutes of 06-25-08
of the money would be rebated back to them. Mr. Van Slyke said TIF then requires the developer
designate twenty percent of the units in the project as affordable units. Mr. Van Slyke explained the
projected rental costs compared to the reduced affordable rental rates. Mr. Van Slyke said the TIF
reduced rental rate is planned by the developers to continue for an additional ten years through
year twenty of the project.
Mr. Van Slyke introduced Pastor Richard White from Gethsemane Lutheran Church and Greg
Kinney of Pope Architects.
Pastor White explained that Gethsemane Lutheran Church has agreed to the affordable rental
rates for an additional ten-year period. Pastor White said the church has committed to create an
endowment fund for senior housing that will be funded up front with this property so these units will
be continued as affordable after ten years.
Pastor White said the parking lot would also be shared with park visitors and the runoff will flow to
a pond area on the south side of the property.
Commissioner Tkachuck moved to:
A. Adopt the resolution approving a conditional use permit for a planned unit development (PUD)
for Gethsemane Senior Housing project. This PUD also allows the reduction in living-unit floor
areas from 580 to 337 square feet for memory-care units and from 580 square feet to 566
square feet for assisted-living units. Approval is based on the findings required by ordinance
and subject to the following conditions: .
1. All construction shall follow the approved site plan. The planning staff may approve minor
changes.
2. The proposed construction must be substantially started within one year of council approval
or the permit shall become null and void.
3. The city council shall review this permit in one year.
4. The proposed senior housing development shall remain for use as senior housing unless
the city council approves a change in use.
5. The owner/operator of the senior housing development shall obtain a cross easement from
Gethsemane Lutheran Church for access and overflow parking before the city will issue a
building permit for this development.
6. Compliance with the city's engineering report by Steve Kummer dated February 13, 2008.
7. The city engineer shall explore the closure of Bartelmy Lane at Brand Avenue through 7'h
Street and the posting of Bartelmy Lane to prohibit truck access.
B. Approve the use of TIF for the proposed senior housing development.
1. The developer will make payment of $8,000 per year through the term of the district to
defray costs that the city may incur related to providing services to the facility.
Commissioner Ulrich seconded
The motion passed.
Ayes - all
Housing and Redevelopment Authority -3-
Minutes of 06-25-08
VII. UNFINISHED BUSINESS
a. Update on Code Enforcement Officer
City planner Ekstrand reported that Gene Johnson has been hired temporarily as the new code
enforcement officer until Michael Samuelson returns from medical leave.
b. Web Cast Meeting Discussion
Commissioner Andreoli reported on a meeting held to discuss Web casting. The commission
discussed this issue, related costs and possible future consideration. .
VIII. DATE OF NEXT MEETING
. August 13,2008
IX. ADJOURNMENT
The meeting was adjourned at 8:12 p.m.
MEMO
TO:
Tom Ekstrand, Planning Director
Housing Redevelopment Authority (HRA)
FROM:
Jennifer Haskamp, Pulse Land Group
DATE:
RE:
January 6, 2008
Comprehensive Plan Update
INTRODUCTION
On December 8, 2008 the City Council approved the Draft Comprehensive Plan Update. This action was the first step in
moving the document forward to ultimate adoption and therefore the policy direction of the City over the next ten years.
Although the Draft was adopted, there remains a bit of time in which the Council and other Commissions can review the
document to ensure that the information in the document accurately reflects the goals and objectives of the community moving
forward. As a courtesy, and in light of the timeline, the Council has directed Staff to bring the draft document to each
commission to solicit any feedback on the document in its entirety.
BACKGROUND AND TIMELlNE
The Comprehensive Plan is a large document that includes eleven chapters each addressing a different issue related to land
use, development, infrastructure or the environment The Comprehensive Plan Update process was structured to allow each
commission to comment and develop the chapter that most directly related to the responsibilities of that commission. The
HRA reviewed and commented on the Housing Chapter (Chapter 4) of the document at meetings in the fall of 2008. Since the
HRA reviewed the chapter, the Planning Commission held a public hearing to review the entire Comprehensive Plan Update
draft and recommended the document to the City Council. The document has been publicly reviewed at numerous meetings,
and there were not any comments or changes made to the Housing chapter.
CHAPTER HIGHLIGHTS
The Housing Chapter is structured to identify Housing Goals and objectives, existing conditions followed by the future plan for
housing in the community. The chapter focuses on providing a diverse housing stock, providing options for all members of the
community including lifecycle housing, and responding to the changing trends and demographics in the community. The City
has done an exceptional job providing a diverse housing stock, and that will generally help support a sustainable housing
stock into the future. New concepts or ideas in the chapter include promoting green building and development and a focus on
Iifecycle housing to provide options to an aging baby boomer population.
REQUESTED ACTION
Staff is requesting the HRA to review Chapter 4 once again to ensure that the chapter addresses the issues, concerns, or
goals for the next planning period. Staff has also provided you with a copy of the Comprehensive Plan Update in its entirety if
you are interested in seeing how Chapter 4 fits into the larger document Please come to the meeting prepared to discuss the
Housing Chapter and bring any other comments you might have about the document It is our intent to pass along all
comments/concerns to the City Council for their consideration and possible action.
DRAFT
Chapter 4: Housing
Introduction
As a mature community, Maplewood has many challenges and opportunities to maintain and provide housing choice
and life-cycle housing for its residents. Maplewood considers its housing stock to be a critical building block of its
neighborhoods and community development efforts. The livability and appearance of neighborhoods and the housing
within them, is a quality of life indicator for the City. As a sustainable community, Maplewood will provide housing
opportunities for its workforce, young professionals, families, special needs and seni~r:f;sidents as well as its
business and corporate owners. Diverse housing supports economic developme?l'~Y~keeping existing residents,
attracting new people from all social and economic classes and is essential f~[.:~~~talning an ever changing and
developing population. Businesses need employees and employees nee9~gW~ing;j~n.; City has been a leader at
providing for workforce and affordable housing and will continue to P;~~id~iopi)Qrtunit!~~i!~r additional housing for all
segments of the population'x'i'oJ.;!;;
Housing is the most significant form of development in MaPI:~BR:~;;More than 90 percent 6f'M~Bt:~00d'S 2030 land
use plan is devoted to residential land uses. The housing ~~p.plydetermines ~~p iives in Maplewo9c9"Jhe character
of neighborhoods plays an important role in shaping the char<\S!;f~nd ide?~i~'9cfthe City. The purpo~e of the
Housing Chapter of the Comprehensive Plan is to identify housing:~E:l.~:q~impdto provide a foundation for local
decision-making to guide residential deveIOpm;0i!.~}~r~developmenf7~~g~ in Maplewood.
State Law requires that the Comprehensive Plan.;~~nta!n'~...~g.u~ing elemen.!_!n~t includes "standards, plans and
programs for providing adequate housing opportuni.li:.~ to me~t.;~i~li~g andprp):9!ed local and regional housing
needs, including but not limited tOl~.;:~se of OffiCial(;~m;OIS an9Imnd~~~Rla?ningto promote the availability of land
for the development of low an9:mg~~X~!S:ig9ome hOU~i~H;'J~i96esota StatgJ~s, Section 473.859, Subd. 2c), The
Comprehensive Plan mus~.r!$Rtinclude ab~~~ing implell"l~?tation program that describes "official controls to
implement the housinglfl.3ment of the land~$~ plan, Which;~ill provide sufficient existing and new housing to meet
the local unit's share oftH~rn;tropolitan~[7~n;;dfor low aQQirroderate income housing" (Minnesota Statutes,
Section 473.859, Subd, 4). Th~.~g~S'!Q~;~baPt!1r!~~~~7~.g?M.<\piewood's housing goals and objectives, not on the
background shaP:lf~i!~Jlse plans. Informatiq.non housing in Maplewood can be found in several
places. chapt~9(Chapter 2) includes a summary of key community characteristics and recent
.
stock.
of housing units by type.
Purpose
The intent of the
. Quantify the
. Describe the services and amenities that affect the quality and desirability of neighborhoods.
. Set goals for affordable housing and a mix of housing types to meet the life-cycle housing needs of
Maplewood residents.
. Identify strategies for achieving those goals.
Housing 4.1
DRAFT
Goals and Objectives
The City of Maplewood has developed housing goals and objectives. The goals and objectives are the foundation of
this plan. The City's housing plan is based on these goals and objectives. Further discussion in the chapter will
address how certain future decisions will achieve these goals and objectives.
The goals and objectives are listed below.
Goal 1 : Encourage that the quality of housing in residential neighborhoods
of current and future residents.
Objectives:
to meet the needs
1. Have a vartety of housing types for ownership and rental for
2, Have a balanced housing supply, with housing
3, Accommodate all racial and ethnic groups in the
4. Promote housing development that respects the
need for a variety of housing types and costs.
5. Promote sustainable housing that is e?~Z~X~ffiCient,
funding programs for housing rehabilitation:
in the City.
meet the
all
at all
the life-cycle,
building techniques, and targeted
6. Have single-family detached houses with an average density of at per acre and multifamily
housing with an average density of at least 10 units per acre. .
7. Promote the availability of a full-range of services and facilities for its residents, and the improvement of
access to and linkage between housing and employment.
Housing
4-2
DRAFT
Goal 3: Accomplish adopted Livable Communities Goals for affordable housing.
Objectives:
1. Maintain strong partnerships with the Metropolitan Council and other agencies/programs to
provide affordable housing, support programs and services, and for assistance with the
available financing programs.
2. Encourage future affordable housing units (funded by other agencies) as part of mixed-use projects
and/or as a component of new owner-occupied multiple-family.
Goal 4: Maintain city-wide housing goal of 75 percent
Objectives:
1. Work with lenders and social service agencies to proyid$financialliteracy
to encourage and increase homeownership.
25 percent rental units.
programs
2. Concentrate housing redevelopment efforts tdW~rd providing life,cycle housing in
Existing Housing Stock
The overall condition of the City's housing units is good, although there are small, isolated areas that have homes
with the potential to deteriorate. However, as the housing stock in Maplewood continues to age, steps need to be
taken to ensure high quality ensure this, the City adopted a housing maintenance code that enables
officials to require owners to basic repairs to their structures. The City also has a "Truth-in-
Housing" ordinance that buyers make a more-informed buying decision.
Construction during
1998 in Maplewood. As of April 2006, there were 14,643
that single-family detached units represent about 61 percent of the
units.
MUlti-Famil
Manufactured Housin
Total
Source: US Census
Percent
61.3%
33.1%
5.6%
100.0%
Multi-family housing consists of 33.1 percent of the City's housing stock and manufactured housing consists of 5.6
percent.
Housing
4-3
DRAFT
Housing Types and Trends
Table 4.2 data reveals that nearly 58 percent of the City's housing stock has been built since 1970.
Percent
381 2.7%
1,000
1,410
18.3%
19.6%
1,642 11.7%
Built 1999 to March 2000
Built 1995 to 1998
Built 1990 to 1994
Built 1980 to 1989
Built 1970 to 1979
Built 1960 to 1969
Built 1950 to 1959
Built 1940 to 1949
5.0%
Built 1939
869
14,005
6.2%
Total:
Source: US Census
100.0%
';";>............."."."."i>: ','i::'
Maplewood has traditionally had a higher than average percentage of owner-occupied housing units. The ratio of
owner-occupied to rental housing rose slightly over the last decade. According to Table 4.3, more than three-fourths
of the occupied and one-quarter are rental units.
Table 4.3
Ow dR to' dU 't
ner an en er ccuCle nlS
1990 2000
Percent Percent
Owner
occupied 69% 76%
Renter
occupied 31% 24%
Source: US Census
There is a diversity of styles and price ranges in the homes in Maplewood. Older homes on smaller lots provide
opportunities for first-time buyers in the Western Hills, Parkside and Gladstone neighborhoods. Opportunities for
low- and moderate- income households are available in manufactured home parks and in a variety of types and
locations of multiple dwellings. The move-up housing market is strong with these choices available throughout the
City. Buyers can find more expensive housing in the Hillside, Vista Hills, Highwood and Kohlman Lake
neighborhoods.
Housing
4-4
DRAFT
According to Table 4.3, the median value of a home is roughly $14,000 lower than the rest of the Twin Cities.
Table 4.3
Median Home Value, 2000
Median value
Maolewood $ 125,900
Twin Cities $ 139,200
Source: US Census
Table 4.4 shows that median rent is slightly higher in Maplewood than the rest of the Cities.
Table 4.4
Median Rent, 2000
Median Rent
Manlewood $ 688
Twin Cities $ 641
Source: US Census
Housing Assistance
Maplewood participates in severai programs that assist householdsi~ the.City. The Metropolitan Housing and
Redevelopment Authority manage the Rehabilit~tion Loan Program, the Section 8 and Section 236 Rental
Assistance Programs. In addition to the individual system of vouchers, there are four complexes providing
subsidized housing for families and the elderly: Maple Ponds, 1816 and 1854Beebe Road; Maplewood Gardens,
410 South McKnight Road; Maple Knolls, 1880 Mesabi Road; andContordia Arllls, 2030 Lydia Avenue.
Maplewood participates in s~v~rallbarlprbgrams funded by the Minnesota Housing Finance Agency and managed
by local lenders. These irslHpe the Great ~irnesota Fix-ypFund, the Home Energy Loan Program, the MHFA
Single-Family Mortgage F~~.n Program, the Home Ownership Assistance Fund, the Purchase Plus Program and the
Urban Indian Housing Program.
Developni~rlt OrdinarlC~s
The Mapl~~ood Zoning Ordinanp7includes.s~~~n districts which permit single-family detached housing. The
minimum lot~r~as range from 7,5Q8.to 40,000 square feet. The R-2 district also allows two-family dwellings, and the
R-3 district perl'l1itsmulti-family dev~19pments ranging upwards from four units per acre. It shouid be noted that when
this Comprehensive plan is adoptedlNork will begin on updating the City's residential Zoning Ordinances.
The City has also adopted.l'l1~nY.brdinances that affect development and housing. These include a Shoreland
Overlay District to protect sh9reland areas, an Environmental Protection Ordinance to protect areas of significant
natural features (including wetlands and large trees), a Pipeline Setback Ordinance to protect buildings from pipeline
leaks, and a Housing Maintenance Code. The City also has a "truth-in-housing" ordinance. Maplewood intends this
ordinance to help purchasers make an informed buying decision. The ordinance also may promote privately
negotiated housing repairs at the time of sale. The City requires sellers to have a housing disclosure report that
discloses information about the condition of the property, and highlight any potential repair needs or housing code
deficiencies.
Housing
4-5
DRAFT
Housing Needs and Trends
The demographic information contained in this chapter and Chapter 2 of the Comprehensive Plan suggests that
major changes in the composition of the populations will affect the City of Maplewood over the next 20 years. The
large group of baby boomers, born between 1946 and 1965, sharply boosted housing production during the 1970s
and 1980s as they formed new households. A generation has followed the baby boomers that is smaller in numbers.
As these two groups move through their life-cycles, they will change the housing market. Some changes include:
.
There may be less demand for rental housing as the typical renter age group moves into owner-
occupied structures. However, the elderly may be looking to move fromowner-occupied units to rental
units - offsetting the decline.
Household composition has shifted. The US Census Bureau.estimat~s~hat, between 1985 and 2000,
69 percent of the growih in new households will be in nontraditional households. Almost 14 percent will
be in female, single-parent families whose median incom~ is less than halfthe regional median. Of
these, more than 30 percent will be living in poverty. This may not only affect the housing market, but
may also place a greater strain on the public to provide more affordable housing opti~ns.
There may be less subsidized housing. The changing household structure is occurring when the future
of much of the region's subsidized housing is unclear.purin~the 1990s, more than 5,000 contracts for
subsidized housing units betweenthefederal governmentand investment housing owners expired.
The federal government did not replace many of these contra~s..
Rehabilitation needs may increase. As the housing stock continues to age, residential properties will
need more repairs and maintenance.
The need for elderly housihg i~ increasing and may increase sharply as the baby boomers age.
.
.
.
.
Livable Communities Act
On November 13,1995 the Maplewood City Council adopted a resolution to participate in the Metropolitan Livable
~~~~~~i~~:i:~~~~:t~e:ct requires the participating communities to adopt housing agreements and to set an action
A major focus of the Livable Communities Act is to promote the development and preservation of affordable and life-
cycle housing throughout the metropolitan area. The Metropolitan Council has set the goal of an additional 333
affordable units in Maplewood by 2020.
Housing Affordability
Housing costs continue to rise throughout the region for a variety of reasons. These include increasing land and
construction costs, utilities and taxes, declines in government aid programs and, indirectly, land use regulations.
These cost increases greatly affect low- and moderate-incomes households. Changes in mortgage interest rates
also affect the affordability of housing.
Housing
4-6
DRAFT
Financing
The City, through its Housing and Redevelopment Authority (HRA), will explore all avenues for financing affordable
housing, including:
. Use of tax-exempt and tax-increment financing
. Programs; including grants, loans and federal tax credits, for housing assistance, development and
rehabilitation. The Minnesota Housing Finance Agency has the following programs:
o Minnesota Mortgage Program
o Homeownership Assistance Fund
o Purchase Plus Program
o Partnership for Affordable Housing
o Entry Cost Homeownership Program
o Low Income Housing Tax Credit
o New Construction Tax Credit
o Low and Moderate Income Rental Program
o Deferred Loan Program
o Revolving Loan Program
o Great Minnesota Fix-Up Fund
o Mortgage Revenue Bonds
o Mortga~~Credit Certificates
. Programs available throughtheU.$. Departmen{of Housing and Urban Development. These
programs include:
o Section 8Rental Vouchers and Certificates
o Home Investrnent Parthership Program
o Section 202 - Elderly
o ~B~ti~n 811 - ~f8~icapped
Program~fn~ r.wn~~.available through the Metropolitan Housing and Redevelopment Authority and
through the Metropolitan Council's Livable Communities Act.
.
. Community Development Block Grants and other programs through Ramsey County.
Maplewood already participates in several of the above-listed programs, with other government agencies and with
developers.
Rental Assistance
The City, through the HRA, will continue to participate in rental assistance programs, including those available
through the Metropolitan HRA and the federal government.
Housing
4-7
DRAFT
Energy Efficiency
The City will promote energy efficient improvements in all types of housing units to help keep them affordable.
Maplewood will provide information and, when availabie, financial help for both owner-occupied and rental units.
Housing Diversity
Most of Maplewood's housing is single-family homes. The Metropolitan Council hasi~goal cailing for each
community to provide housing types other than single-family homes. The CitYIViIl.c;ontinue to work toward this goal
through its land use plan and zoning ordinances. The City will make effort~toproyi8~ for the housing and service
needs of the elderly and disabled. The City will also encourage development of housing and services which meet the
needs of nontraditionai households.
Neighborhood Quality
It is important to assure that the efforts to provide life-cycle housing are a(;()?mplished so that it is compatible with the
character of existing neighborhoods and with respect to the environm~~t.lt is also important to prevent housing in
older neighborhoods from deteriorating. Much oflhish?using was built b~fpre Maplewood became a village, when
building codes were not in place. There are deterforatil1g~~u~ing units scatt~r~d throughout the City. In the future,
these units may become less attractive to home buyers, thereby depreciating housing vales.
To address these concerns, the City adopts the folloWing policies:
1. Plan and design ne;y housing to:
a. Protect eXisting housing, natural features,and neighborhood identity and quality.
b. Assure thllrllare adeqUate Utilities, community facilities and convenient shopping.
2. M~intail1or strengthen the.character or neighborhoods and assure that all housing units are safe, sanitary,
s~cure, and free from blight.
The City also adopts the followillgneighborhood quality policies:
1. fhep,ty will work to prohi0the integrity and long-term viability of residential neighborhoods and reduce
potential negative effects o(commercial or industrial land uses through zoning, site plan review and code
enforcement.
2. Maplewood willrequir~ and enforce high design and maintenance standards for multi-family residential
development. DeSign standards will include provisions about building massing, architectural design, off-
street parking ratios and location, access, traffic impacts, landscaping, fencing or screening, trash handling,
tot lots and parks.
3. The City will allow affordable housing in any location suitable for residential uses.
4. The City will assure that new development respects the natural environment to the maximum practical
extent.
Housing
4-8
DRAFT
5. Maplewood will continue to use its Shoreland, Floodplain and Environmental Protection Ordinances to
assure protection of lakes, streams, ponds, wetlands, steep slopes and woodlots.
6. The City will continue to encourage the maintenance of its housing through its housing maintenance codes.
The City's truth-in-housing program also should encourage housing maintenance.
7. The City, through its HRA, will participate in programs to help property owners with home maintenance and
improvements through loans and, if available, grants.
Housing Action Plan
Table 4.5 on the next two pages lists activities that the City should
out the Housing Plan.
Housing
4-9
DRAFT
Table 4.5
Housino Action Plan
Action Responsibility Timing Funding Coordinate with
Explore all options for financing HRA, Plan Ongoing CDBG, TIF, EBF, Land Use Plan,
affordable housing MHFA, LCA, other Metro HRA
local, state and
federal programs
Continue to provide rent assistance HRA, Pian, CC Ongoing Section 8 Program, Metro HRA
to needy households other state and
federal' programs
Provide information and assistance HRA, Plan Ongoing State and federal Metro HRA
to encourage energy efficiency programs
improvements ....
Provide dispersed locations for PC,CC .UI'~VII'Y None Land Use Plan
variety of housing types, styles,
prices ....... ...'
Review and update Codes that PC, CC ,HRA, Ongoing Nbne Land Use Plan
affect housing Plan
....
Provide for the housing and service HRA, PC, CC U"YUII.'Y State andfederal Metro HRA,
needs of the elderly and disabled programs Land Use Plan
Provide housing and ser\li8~~ to un" "" State and federal Metro HRA
n",:"vv .UI'YVII'Y
meet the needs of non-traditional programs
households
..,...
Protect inte~ri.~~f,~nd prevent PC, Plan, HRA Ongoing None Land Use Plan
deterioration in, existing
neighborhbods
Encouragehigh design and . PC, CC, Plan, Ongoing None Land Use Plan
maintenance standards for multi- CDRB
family housing
Assure that new development is PC, CC, Plan Ongoing None Land Use Plan, RW,
compatible with, and sehsltiveto, SC, DNR, CE
the environment
Continued on page 4.11
Housing
4-10
DRAFT
Continue to review and enforce HRA, Plan Ongoing GF
housing maintenance code
Participate in rehabilitation and HRA, Plan Ongoing CDBG, State of Metro HRA, Ramsey
grant programs Minnesota County
Develop programs to help first-time HRA, CC Ongoing GF MHFA, Metro HRA
home buyers
Abbreviations
HRA = Maplewood Housing and Redeveiopment Authority
PC = Planning Commission
CC = City Council
Pian = Planning Staff
CDBG = Community Development Block Grant Funds (federal)
TIF = Tax increment financing
EBF = Essential bond financing
GF = General fund
LCA = Livable Communities Act
MHFA = Minnesota Housing Finance Agency
METRO HRA = Metropolitan Housing and Redevelopment
RW = RamseYWashington Watersh~d District
SC = Soil Conservation District
DNR = Minnesota DepartmenfbfNaturalResources
CE = Army Corps of Engineers .
CDRB = Community Design RevieW Board
Housing
4-11
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
Acting City Manager
Tom Ekstrand, Senior Planner
2008 Metrostudy Report on Housing
January 7,2009
Members of the planning staff recently attended the December Sensible Land Use
Coalition meeting and heard a presentation by Metrostudy, a provider of primary and
secondary market information on housing and related industries.
The attached report is for the HRA's information.
p:HRAIMetro Study Housing Report Memo 1 09
Attached:
Metrostudy Report: "Twin Cities 2008 Report...2009 Housing Outlook"
metrostudy
Housing Starts
TWIN CITIES
Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing and related industries
nationwide. Services are available through an extensive network of offices strategically located in major metropolitan areas
throughout the country. Our researchers drive the streets of every platted new home subdivision, inspect every home site
and record primary data on housing activity every 90 days -- providing the most complete and accurate information on
undeveloped and vacant developed lots, housing starts and closings, product and pricing.
Services
. Metrosearch - The most complete database of primary market research combined with the power and flexibility of
an easy to use computer application.
. Quarterly Executive Summary - Information with analysis on what is happening in the Twin Cities housing market,
including statistical observations on the economy, demographics and market trends.
. Quarterly Group Briefing - A meeting with an interactive format designed to provide an in-depth look at local
housing market conditions as well as a unique opportunity to network with other Metrostudy clients.
. Consulting - Based on our database of information and local market knowledge, we provide insights and analysis
on your current and future projects through phone consultations, personal meetings and site-specific market
stud ies.
The Metrostudy Twin Cities Division
Ryan Jones
Director, Twin Cities Division
Ryan Jones is the Director of the Twin Cities Division and
has been with Metrostudy since 2002. Ryan started his
career in the Chicago Division where he worked for two
years as a market analyst consulting on the Chicago
housing market. In 2004 Ryan was given the opportunity
to open up the Twin Cities Division and has been
instrumental in every aspect of the expansion process.
Ryan is responsible for all operations there including
surveying, consulting and managing local client
relationships. Ryan regularly meets and consults with
many of the top homebuilders in the Twin Cities market
as well as lenders and governmental institutions
concerning trends in the Twin Cities housing market.
Ryan has quickly made a name for himself throughout
the Twin Cities real estate industry and is regularly
quoted in the Minnesota Real Estate Journal,
MinneapolisjSt. Paul Business Journal, as well as local
newspapers. Ryan is a graduate of the Business School
at the University of Iowa.
The Metrostudy Twin Cities Market Area
Metrostudy covers all of the Twin Cities MSA: a total of
13 counties, including Wright, Sherburne, Isanti and
Chisago as well as two counties in Wisconsin. Our trained
research team drives over 10,000 miles tracking over
2,400 developments every 90 days providing the most
detailed lot by lot census of new home inventory and lot
supply in the Twin Cities.
[!~!!Ostudy
metrostudy
Housing Starts
Metrostudy-Who are we?
· Nations leading provider of primary market
information to the housing and related industries
nationwide
· Cover all of the Twin Cities MSA - 13 counties
· Research team drives over 10,000 miles tracking
over 2,400 developments every 90 days
· Physically inspect every platted new home
subdivision in each market every 90 days
· Take inventory of every home site
· Provide the most complete & accurate information
· Undeveloped and developed lots, housing
inventory, new home starts and closings, product
and pricing
[!~!!Ostudy
National
us Job Growth - Annual Rate
3
4,000,000
o
3,000,000
2,000,000
1,000,000
-1,000,000
-2,000,000
-3,000,000
Noy-9S
Noy-OO
Noy-02
Noy-04
Noy-06
Noy-OS
National
us Unemployment Rate
4
7.0
6.5
6.7%
6.0
5.5
Hi9hest in oyer 10 years
5.0
4.5
4.0
3.5
3.0
Noy-9S
Noy-OO
Noy-02
Noy-04
Noy-06
Noy-OS
[!~!!Ostudy
National
MSA Job Growth Ranking - Through October 2008
5
Houston
Dallas
Washington
San Antonio
Austin
Virginia Beach
New Orleans
Raleigh
Charlotte
McAllen, TX
Pittsburgh
Baltimore
Oklahoma City
EI Paso, TX
Columbus, OH
Minneapolis
"
, '"
"
."
"
'"
."
, :11
."
"
."
., :ill
l!lfli ~
IllI!l! ,
-
."
-15,000 -5,000
5,000
15,000 25,000 35,000 45,000 55,000
National
us Single Family Housing Starts
6
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
o
Oct-98
Oct-OO
Oct-O 2
Oct-04
Oct-06
Oct-08
[!~!!Ostudy
National
MSA Annual Housing Starts
7
Houston
Dallas
Atlanta
Phoenix
Washington
Chicago
New York
Austin
Charlotte
Raleigh
Philadelphia
Seattle
Riverside
Orlando
Las Vegas
Minneapolis
: :.
. ..
o 5,000 10,000 15,000 20,000 25,000 30,000 35,000
National
S&P Case/Shiller Home Price Index
8
20.0%
5.0%
15.0%
10.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
Sep-04
Sep-05
Sep-06
Sep-07
Sep-OS
[!~!!Ostudy
Twin Cities
Employment Totals
9
1,850,000
1,800,000
1,750,000
1,700,000
1,650,000
1,600,000
1,550,000
Oct-98 Oct-99 Oct-DO Oct-Ol Oct-02 Oct-03 Oct-04 Oct-oS Oct-06 Oct-07 Oct-oS
Twin Cities
Annual Job Growth
10
60,000
50,000
40,000
30,000
20,000
10,000
o
-10,000
-20,000
-30,000
-40,000
46,200
-28,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
[!~!!Ostudy
Twin Cities
MLS Active Listings
11
10,000
12.0
70,000
60,000
10.0
50,000
8.0
40,000
6.0
30,000
4.0
20,000
2.0
o
0.0
3Q05
1Q06
31106
1Q07
3Q07
1Q08
31108
~ Active Listings
_ Annual Sales
-+-- Mas
Twin Cities
MLS Median Sales Price
240,000
12
230,000
220,000
210,000
200,000
190,000
180,000
Oct-03
$180,000
Oct-04
Oct-OS
Oct-06
Oct-OJ
Oct-08
[!~!!Ostudy
Twin Cities
3Q08 Annual Starts & Closings
13
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
o
# ~ ~ ~ ~ ~ # ~ #
".i o.~ '" 'V ,.,~ Oi '" '}~ ".i
II Annual Starts. Annual Closings
Twin Cities 14
3Q08 Housing Inventory
Housing Inventory = (Homes Under Construction, Homes
Finished But Vacant & Builders Model Homes)
Months of Supply (MOS.) = Represents length of time
that the current supply of inventory will last based on the
annual closings rate.
Housing Inventory - Down 34%
3Q07 = 8,000 Units (9.2 mos.)
3Q08 =
Finished Vacant Inventory - Down 330/0
3Q07 = 3,600 Units (4.1 mos.)
3Q08 =
[!~!!Ostudy
15
Twin Cities Housing Inventory
20,000 10.0
18,000 9.0
16,000 8.0
14,000 7.0
12,000 6.0
10,000 5.0
8,000 4.0
6,000 3.0
4,000 2.0
2,000 1.0
o 0.0
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
",0; ~ ~ ~ ",0; ~ ~ ~ ",0; ~ ~ ~ ",0;
__ Annual Closings .""""""" Housing Inventory ~ Month's Supply
Twin Cities
3Q08 Vacant Developed Lot Inventory
Vacant Developed Lot (VOL) = lots on a
recorded plat with streets and utilities in place,
ready for vertical improvements.
VOL = 34,800 lots
88 Months of Supply
3Q07 = 35,600 Units (52 mos.)
3Q08 =
[!~!!Ostudy
Twin Cities
3Q08 Vacant Developed Lot Inventory
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
o
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
",a; ~~~",a; ~~~",a; ~~~",a;
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
"'"",,,,,,,. Annual Starts __ VOL Inventory ~ VOL Mos
Twin Cities
3Q08 Closings
18
1,800
1,537
3Q07
"3Q08
[!~!!Ostudy
Twin Cities - Metro 7 Counties
3Q08 New Home Starts by Price Range
19
450/0
400/0
Townhome
III 3Q06 1113Q07 1113Q08
50/0
350/0
300/0
250/0
200/0
150/0
100/0
00/0
<$199k $200-$299 $300-$399 $400-$499 $500-$599 $600-$699 >$700
Twin Cities - Metro 7 Counties
3Q08 Housing Inventory
20
Housing Inventory - Down 33%
3Q07 = 5,500 Units (9.0 mos.)
3Q08 =
Finished Vacant Inventory - Down 350/0
3Q07 = 2,150 Units (3.5 mos.)
3Q08 =
[!~!!Ostudy
Twin Cities - Metro 7 Counties
Housing Inventory Months of Supply - County
12.0
10.0
9.1
8.8
8.3
8.0
7.6
6.8
Twin Cities - Metro 7 Counties
3Q08 Finished Vacant Inventory Supply
5.0
4.5
4.0
4.0
3.5 3.2
3.0 2.8
2.5 2.3
2.0
1.5
1.0
0.5
0.0
Anoka Hennepin So"" Ramsey Dakota Carver
[!~!!Ostudy
Twin Cities - Metro 7 Counties
3Q08 Vacant Developed Lot Inventory
Vacant Developed Lot (VOL) = lots on a
recorded plat with streets and utilities in place,
ready for vertical improvements.
VOL = 20,200 lots
64 Months of Supply
3Q07 = 21,500 Units (43 mos.)
3Q08 =
Twin Cities
Annual Closings - 3Q89 - 3Q08
24
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
o
#~~~~~~~~~~~~~~~~~~~
~~~~~~~~~~~~~~~~~~~~
_Annual Closings -10 Year Average
[!~!!Ostudy
Twin Cities
3Q08 Annual Starts & Closings Projections - 09'
25
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
o
-,,'0 -,,'0 -,," f;>" f;>" f;>" -,,'I> f;>'I> f;>'I> f;>'I> -"OJ -"OJ -"OJ -"OJ
",<:& 0.<:& .,,<:& '}~ "'~ o.~ .,,<:& '}~ "'~ o.~ .,,<:& '}<:& ",<:& 0.<:&
II Annual Starts. Annual Closings
Twin Cities 26
Population & Household Projections (Claritas)
2000 2008 2013
Population - 2,968,806 3,227,334 3,383,975
Households -
1,136,615
1,248,556 1,319,645
Avg. HH Income-
$67,670
$80,832 $89,920
Ann. % Chanae COO' - 08') Ann. % Chanae C08' - 13')
Population -
1.10/0
1.00/0
Households -
1.20/0
1.10/0
Avg. HH Income -
2.40/0
2.30/0
[!~!!Ostudy
27
metrostudy
Housing Starts
28
rr!~!!Ostudy
· Questions
· Site Overview Analysis
· Product & Pricing Detail
· Housing & Lot Supply Detail
· Absorption Projections
· Let us know how we can help
metrostudy
Housing Starts
TWIN CITIES
Metrostudy - Terms & Definitions
Start - When a previously vacant developed lot (VDL) has a slab or basement poured and is calculated as the
decrease in VDLs from last quarter to this quarter
Quarterly Starts- calculated as the number of homes started in the past 3-months.
Annual Starts- calculated as the number of homes started in the past 12-months (4-quarters).
Closing - When a home becomes occupied and is calculated as the increase in Occupied Homes from last quarter to
this quarter.
Quarterly C/osings- calculated as the number of new homes occupied in the past 3-months.
Annual C/osings- calculated as the number of new homes in the past 12-months (4-quarters).
Occupied Home - A home which is definitely lived in by someone. Signs of life in the home are apparent: window
treatments, sheets in windows, lawn art, toys, etc.
Vacant Developed Lots (VOL) - Lots are considered to be Vacant Developed when underground utilities are
installed and paving is complete in front of the lots. Once Metrostudy can drive the streets, the lots move from the
Future to VDL category so that home building can begin.
Housing Inventory - Consists of Under Construction Homes, Finished Vacant Homes and Model Homes
Under Construction - A house is considered under construction when the slab (or basement) is poured. It is carried in
this category until all signs of construction are no longer evident and the house is considered ready for occupancy.
This is when a "Start" is recorded and this home is calculated as part of the Total Housing Inventory available for sale.
Finished Vacant- A home which is completely constructed and is considered ready for move-in, but show no signs of
occupancy.
Model Homes - The builder's show home, which is often staffed by an employee of the builder and has information on
floor plans, inventory homes and community amenities. This is where Metrostudy surveyors collect the price sheets
from production builders in order to update floor plan pricing.
Month of Supply - Metrostudy uses the Month of Supply (MaS) calculations to evaluate the health of a market or
Target Market.
VDL Inv MOS = represents the length of time that the current supply of lots will last based on the annual starts rate.
'? Calculated as VDL/ (Annual Starts/12).
Housing Inv MOS = represents the length of time that the current supply of housing inventory will last based on the
annual closings rate.
'? Calculated as Housing INVT/ (Annual Closings/12). Note Housing Inventory includes Model
Homes, Finished Vacant Inventory and Homes Under Construction.
metr
study
Now you
Metrostudy is the leading provider of primary and secondary market information to the housing
and related industries nationwide. In addition to providing information, the company is recognized
for its consulting expertise on development, marketing and economic issues, and is a key source of
research studies evaluating the feasibility of residential and commercial real estate projects.
Services are offered through an extensive network of offices strategically located in major
metropolitan areas throughout the country.
.
AlbUQuerque
Springs
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
Acting City Manager
Tom Ekstrand, Senior Planner
2009 Issues of Interest
January 7,2009
At the onset of this new year, Staff is asking the HRA what matters of interest they
may wish to explore in 2009. This is merely a discussion item to give staff direction
as to whether there are any specific housing-related issues the committee would like
to review this upcoming year.
p:HRA\2009 Goals & Matters of Interest 1 09