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

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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
• Unified Housing Policy Amendments

3

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
• n further analysis
• Affordability period is 20 years with no city financial

assistance; 30 years if financial assistance included

• Feasible and recommended by 3rd party consultant

4

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)

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Questions?

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