Loading...
00-266��� V���� Presented By Green Sheet # �� 5�.00 l RESOLUTION OF SAINT pAUL, MINNESOTA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Referred To a� Council File # �� � c�.�G Resolution # Committee: Date Resolution Approving the Housing Action Plan 2000 WHEREAS, the City Council adopted a Housing Plan, a chapter of the Saint Paul Comprehensive Plan, on March 24, 1999; and WHEREAS, the Housing Plan states the City should develop an annual housing action plan; and WHEREAS, a task £orce was co-convened by the Local Initiatives Support Corporation and the Housing Roundtable to review and comment on a draft action plan prepared by staff of the department of Planning and Economic Development and WF3EREAS, the Housing and Redevelopment Authority Board of Commissioners reviewed and endarsed the Housing Action Plan 2000 and recommend to the City Council the adoption of the Housin� Action Plan. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Ciry of Saint Paul, Minnesota, that the Housing Action Plan 2000 is approved. Requested by Department of: Planninq & Economi Development By: �— Jl'� ` � [ � Adoption Certified by Council Secretary gy: � a- � �- - � Approved by Mayor: Date /.{/[� `� L^o"�� By: Form Approved by City orney By: Approved by Mayor for Submission to Council g : l%�� G:�Shared�PELTIER�hap\OOccresavpd Adopted by Council: Date ��._� a•�- ��G7�p DEPARTMENT/OFFICE/COUNCII,: DATE INITIATED GREEN SHEET NO.:IOZOOl O PED March 10, 2000 CONTACI' PERSON & PHONE: TE ii`7iTTnIeDA'1'E Gary Peltier, 6-6619 � 1 D�e�z�rn�Nr Dm. a ciTYCOUrrcu. r MUST BE ON COUNCII, AGENDA BY (DATE) �ICTN ? CITY ATTORNEY _ CITY CLERK FINANCIAL SERV DIR FINANCIAL SERV/ACCTG � �� g pg BER 3 MAYOR (ORASST.)��"U�_ CIVII, SERViCE COMIvIISSION ROUTING ORDER TOTAL # OF SIGNATURE PAGES 1_(CLIP ALL LOCATiONS FOR SIGNAT[7RE) ACT[ON REQUESTED: RECObIIvIENDATIONS: Approve (A) or Rejea (R) PERSONAL SERVICE CON1'RACTS MUST ANSWER THE FOLLOWING QUESTIONS: PLANNII IG COMMISSION 1. Has this peisonlfirm evec wotked under a contract for this depsmnem? CIB WMA�IITTEE Yes No CIVIL SERVICE COMMISSION 2. Hu [his person/film ever been a ciTy employee? � X HRA Yes No 3. Does this person/firn� possess a slull not nomialty possessed by any cuaent city employee? Yes No Explaiu alI yes answers ou separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTONTTY (Who, What, Wheu, Where, Why): Resolution approves the City's annual housing action plan, outlining the goals, priorities, etc., for the implementation of housing activities during year 2000. ADVANTAGESIFAPPROVED: � Sets housing goals and priorities for PED, other departments related to housing activities, and the community to achieve goals in the Ctiy Council adopted Housing Plan, a chapter of the City's Comprehensive Plan. DISADVANTAGES IF APPROVED : None. DISADVANTAGES IF NOT APPROVED. Commuinity will be uncertain what the housing goals and priorities are for yeaz 2000. TOTAL AMOUNT OF TRANSACTION: $ NA COST/REVENTJE BUDGETED: NA I� fJNDING SOURCE: NA ACTIVITY NUMBER: NA �y�gp g* �� � ���� FINANCIAL DVFORMATION: (EXPLAIN) Na `�_��� �. � 2�QQ K:VShared�PELT[ERW ap\OOgmsht f Oa-�b • Draft 1/14/00 �� � �� � Housing Plan The Saint Paul Comprehensive Plan Housing Action Plan 2000 � • City of Saint Paul Department of Planning and Economic Development ao -�`� � � n � Housing Action Plan 2000 Table of Contents 1.0 Introduction 2.0 HousinQ Plan Policies Emphasized in 2000 3.0 Prioritv Actions for 2000 3.1 3.2 ,� 5.0 �, �.� 3.4 3.5 3.6 3.7 New Housing Production Existing Housing Rehabilitation 3.21 Code Bnforcement Preservation of Low Income Housing Low Income Housing and Homeless Services Plan Mortgage lending Resowces for 2000 Obstacles to Implementation Other Housin¢ Related Activities 4.1 4.2 43 4.4 4.5 4.6 4.7 4.8 4.9 Housing Roundtable Housing Resource Center Business Connection Issues to be Addressed during 2000 Legislative Initiatives Zoning Studies, Neighborhood Planning and Reseazch Support Key Partners Housing Activity Reporting Other Actions Process for Preoazation and Review of Housine Action Plan Exhibits E�ibit 3.1, Housing Activities Projections 2000 Exhibit 3.2, PED Housing Development Projects E�ibit 3.3, Cunent or Potential Preservation Projects Exhibit 3.4, Potential City/HRA 2000 Capital Funds Appendices A. Implementation Principles B. 1999 Accomplishments C. Task Force Participants �. _ _ , . Housing Action Plan 2000 1.0 Introduction The Housing Action Plan Z000 (HAP) presents housing implementation activities proposed by the Department of Planning and Economic Development (PED), in coordination with other City departrnents, and other public and private partners. The Housing Plan, adopted by the City Council on Mazch 24, 1999, calls for the prepazation of an annual Housing Action Plan. Additionally, the Housing Action Plan incorporates actions from the Saint Paul-Ramsey County Five-Year Low Income Housing and Homeless Services Report and Plan (Homeless Plan) adopted by City Council in April, 1999. The Housing Action Plan is an implementation plan on what actions will be taken during 2000 to implement the polices in the Housing Plan and the recommendations in the Homeless Plan. The City of Saint Paul's role in the implementation of housing related activities includes several department and offices of the City, including the Public Housing Agency. However, this Housing Action Plan is primarily the priority actions undertaken by PED, with brief inention of the work of the City's building and code enforcement offices. Other related activities include the Housing Information Office. � The HAP 2000 will also serve as Saint Paul's action plan required by the Metropolitan Livable Communities Act. In that capacity, it will be submitted to the Metropolitan Council to document the City's intended actions to carry out its agreed upon housing goals. The HAP 2000 is arranged in the following order: Section 2.0 Hozrsing Plan Policies Emphasized in 2000 Section 3.0 Priority Actions for 2000 Section 4.0 Other Housing Related Activities The three strategies outlined in the Housing Plan aze used to organize the HAP 2000. These strategies aze: Take care of what we have Meet new market demand Ensure availability of affordable housing The procedure used to prepaze this annual plan is outlined in Section 5.0. The section includes a recommended action to consider during 2000 what, if any, changes should be made to the procedure for the prepazation of the HAP for 2001. An appendix includes implementation principles. These principles will guide the � as _ - . implementation of housing activities. They incorporate the ten principles for city development, originally developed as part of the Saint Paul on the Mississippi Development Framework Another appendix provides a summary of housing accomplishments during 1994 including indicating incomes served. It is expected that the Housing Action Plan 2000 will be approved by Mayor Norm Coleman and the Saint Paul Ciry Councii. � � 2 �b ° � � � Housing Action Plan 2000 2.0 Housing Plan Policies Emphasized in 2000 The Housing Plan outlines three distinct—but highly inter-related--strategies. In each of the three strategies, certain policies or actions aze outlined. Below as part of each strategy is a list of the policies/actions that will be emphasized in 2000. The policies that will be emphasized in 2000 are briefly stated below each strategy, and aze stated completely in the Housing Plan 2.1 Strategy 1: Take Care of What We Have • Continue and expand efforts to enhance the city's traditional neighborhood design. • Preserve historically and architecturally significant buildings and neighborhoods. • Step up code enforcement. • Strategically focus efforts to stem deterioration and declining values. • Improve management and maintenance of rental properry. • Priority will be given to projects that commit to the long-term affordability of housing units. 2.2 Strategy 2: Meet New Mazket Demand � • Encourage the production of housing. • Promote good design solutions. • Encourage the production of rental housing. • Encourage a diversity of building and unit types. • Encourage innovative development through regulatory reforms. • Assess and meet the demand of seniors. 23 5trategy 3: Ensure Availability of Affordable Housing • Challenge the region to provide a full range of housing choices to meet the needs at all income levels. • Identify and secure significant additional resources to preserve and construct affordabie housing within the city and the region. • Preserve existing federally assisted housing. • Provide 10 percent of the newly constructed units to be affordabie to households at 50% of the area median, 10 percent of the new units affordable at 30% of azea median. • Follow the local replacement housing policy. • Support initiatives that assist lower income households achieve home ownership. • Implement the Saint Paul-Ramsey County Five-Year Housing and Homeless Services Plan. � • Explore policy options used by other metropolitan azeas. I�b - 2-� � • Housing Action Plan 2000 3.0 Priority Actions for 2000 The City and PED facilitate providing Quality Housing as defined in Appendix A. The implementation of priority actions will be guided by certain implementation principles, also outlined in Appendix A. Though the foAowing outlines specific implementation activities, the City/HRA will always consider new opporiunities as they arise during the year. Additionally, City/HRA will continue Yo create flexible funds that can better and more timely react to neighborhood and development opportunities. The priority actions outlined below, especially the projections for new housing production, is an aggressive list of housing actions. The CirylHRA embraces, encourages and welcomes housing production for all income levels. The City/HRA encourages an annual production objective of at least 4�0 new units. This production level will meet the annual objective in the Housing Plan as well as offsetting anticipated demolition of housing units. The City/HRA commits to the production of units affordable to households at 30% and 50% of area median income. It is cleazly recognized that, to attain the projected level of production of new housing units, additional public and other subsidy resources must be secured, especially to attain the 20% goal � of new production for low income households. In addition to the potential lack of adequate resources to achieve the projections, other obstacles are outlined in Section 3.7. Regazding the projection for new housing production during 2000, E�ibit 3.2 includes active housing development projects that can potentially start construction during or after 2000. Every effort will be made to start construction on these projects. However, based on experience on how long it takes major projects to begin, the new housing production projection indicated below for 2000 is 750 units. 3.1 New Housing Production a. Support the production of ownership and rental housing in Saint Paul. At least 750 units should be under construction or completed by the end of the yeaz. b. Implement the pilot program to reduce costs and speed approvals for housing construchon. c. Work with the private and nonprofit sectors and other public agencies in developing and financing a diversity of building and unit types, rental and ownership, throughout the city, for a broad range of incomes. d. Provide financing for the conversion of non-residential properties to housing. e. Provide interim and gap financing for new replacement (infill) single family houses and the rehabilitation of vacant houses. Identify ways to increase the volume of new single family house conshuction and the rehabilitation of vacant • 0 �o -a�� • houses, including implementing the Urban HomesteadlVacant Lot initiative. f. Subsidize the provision of low income units in new housing developments. g. Work closely with the Public Housing Agency, Habitat for Humanity, the Wilder Foundation and other key partners in developing housing and providing support services to low income households. h. Support legislative and other efforts to increase Saint Paul suburban low income housing developments. Attached is Exhibit 3.1 projecting new housing production in 2000 with City/HRA assistance. Attached is Exhibit 3.2, outlining a list of active housing development projects that have a good opportunity to be started during and after 2000. 3.2 Existing Housing Rehabilitation a. Support the rehabilitation of housing in Saint Paul. At least 590 units should be under construction or completed by the end of the year. b. Provide home improvement loans for a wide spectrum of incomes. Identify ways to increase the volume of home improvement loans. c. Provide rental rehabilitation financing. Explore alternatives for owner occupancy . and rehab of small rental properties. d. Provide financing assistance for hazardous materials removal including lead- based paint. e. Originate purchaselrefinance and rehabilitation loans for a broad range of incomes. £ Provide gap financing loans to enable home owners and buyers to purchase or refinance and rehabilitate homes, where the cost of rehab exceeds the increased market value of properties. g. Provide rehabilitation loans for child caze facilities including single family houses. h. In collaboration with private, non-profit and other public partners, explore means for substantial expansion of owner and rental rehabilitation. i. Identify and market appropriate programs and other initiatives in conjunction with the residential street paving program. Attached is Exhibit 3.1, projecting rehabilitation in 2000 with City/HRA assistance, based on potential City/HRA 2000 capital funds outlined in E�ibit 3.4. 3.21 Code enforcement a. Strengthen inter-department communication working toward a coordinated effort to deai with problem properties. Explore possibilities of forming smail information focus groups of City staff to deal with specific problem properties. � bb-��� � b. Work with federal and state officials to identify and remedy the causes of building abandonment and to reduce the amount of time a building in foreclosure remains vacant. c. Expand the "Crime Free Multi-Housing Program," including making it a condition for a rental properry owner obtaining financing assistance. d. Implement new computerized record keeping systems for the certificate of occupancy records in the Department of Fire and Safety Services, and make the records accessible to other City offices. e. Focus and intensify code enforcement resources on the most serious problem properties including considering a classification system related to the frequency of inspections for all rental properties (with three or more units). £ Explore resource opportunities to go along with code enforcement in order to encourage improvement of units and reduce evictions and demolition of units. 33 Preservation of Low Income Housing a. Continue to be an active member in the Interagency Stabilization Group (ISG), through active monitoring of existing low income housing developments, and participate in the preservation and stabilization of low income housing. b. Provide financing assistance for the stabilization and preservation of federally- assisted pro}ects, and projects in which the City(HRA has made previous � investments. c. Allocate federal Low Income Housing Tax Credits in accordance with separate City Council approved criteria and procedures d. Modernize and maintain the public housing stock in accordance with the Saint Paul Public Housing Agency (PHA) Five Yeaz Comprehensive Grant Program. e. Maximize the use of the PHA Section 8 tenant-based housing assistance. Attached is Exhibit 3.2, projecting the amount of affordable housing (known at this time) in potential housing development projects to be started during or after 2000. Attached is E�ibit 33, listing the current and potential preservation projects. Attached is Exhibit 3.4, projecting the incomes served related to the potential capital funds to be available in yeaz 2000. 3.4 Low Income Housing and Homeless Services Plan a. Support activities to prevent homelessness, provide shelter and housing, provide homeless services, and secure funding for priorities. b. Assist in the financing for the development of a transitional 13-unit shelter for homeless youth. c. Assist in the financing for the development of 12 units of transitional housing for � 0 00 -acot S families. d. With the County as lead, participate in establishing a funders council to improve the system by which funding decisions aze made. 35 Mortgage Lending a. Provide financing for at least 360 home buyers (including home owners for refinance/rehabilitation) with a wide range of incomes. h. Provide special assistance loans to low and moderate income households to enabte them to be home owners. c. Continue efforts to retain home owners in danger of foreclosure. d. Provide city-wide home buying counseling and finance, including support for the Home Ownership Center. e. Continue CiryLiving marketing efforts. Attached is Exhibit 3.1, pro}ecting City(HRA mortgage lending program activities for 2000. 3.6 Resources for 2000 a. Initiate discussions with private lenders, philanthropic organizations and other � entities in the financial community to provide interim and permanent financing for new and rehabilitated housing. b. Identify and secure additional resources to produce and preserve affordable housing. This is a significant prioriry and challenge in order to achieve the production projections outlined in this plan, especially the goal to have 10% of all newly produced units affordable to househoids at 30% of the azea median income. c. Along with the Public Housing Agency and the investment banking community, explore opportunities to use "essential function" bond financing for the production of gubticly-owned housing affordable to low income households. d. In addition to funds directly administered by City/HRA outlined in Eachibit 3.4, apply for other resources including the following: Federal McKinney Supportive Housing Programs (to subsidize the acquisition, rehabilitation, and operations or human service costs for projects for families and individuals who are homeless or aze in a transitional housing program). Metropolitan Council Livable Communities Demonstration Account. MHFA Super RFPs (including funds for ownership and rental projects/programs), incorporating funds from MHFA, Met Council, the Family Housing Fund, and PHA (project-based Section 8 assistance). MHFA's Economic Development and Housing Challenge program (to support economic development or job creation by meeting locally � 7 pb - a-Co � � identified housing needs). Innovative and Inclusionary Housing Program (to support projects with a variety of prices and designs, incorporate innovative building techniques, and where communities waive local restrictions to reduce costs). Hollman Settlement Decree resources (public housing and/or Section 8 assistance) if made available in Saint Paul. Attached is Exhibit 3.4, outlining the potential City/HRA 2000 capital housing funds. 3.7 Obstacles to Implementation Following are significant examples of potential obstacles to implementing the priority actions listed above. The City/HRA and all the housing partners/stakehoiders must work together to remove these barriers: a. Inadequate housing subsidy resources. b. Inadequate resources for redevelopment costs; e.g., site assembly including residential/business relocation and soil remediation. c. The need to identify and the complexiry to incorporate multiple funding sources in housing development financing. d. Need for zoning and related changes for specific projects. � e. Neighborhood and other support; e.g., land use, density, design and affordability issues. £ Challenging site topography. g. Developer selection/predevelopment processes. h. Recent new federal lead-based paint abatement requirements. � D�� 3�� � Housing Action Plan 2000 4.0 Other Housing Related Activities 4.1 Housing Roundtable a. Continue to facilitate meetings of the Roundtable, including a wide-range of public and private representatives, to act as a sounding board for ideas, questions and proposals, providing a valuable, real world perspective about urban housing issues. b. Provide meaningfixl input and comment in the development of the annual housing action plan and to make recommendations on specific implementation strategies. c. Help identify and secure potential additional resources that may be available to support the successful implementation of the annual housing action plan. d. Specific issues the Roundtable may address aze outlined in Section 4.4 below. 4.2 Housing Resource Center a. Continue to develop the Housing Resource Center among City departments and offices involved in housing, working towards establishing a one-stop, publicly identifiable entity to coordinate all housing related housing activities. � b. Consider using the City's web page as an effective means to distribute information. 43 Business Connection a. Work collaboratively with the business sector and other stakeholders to identify measures to increase employer involvement in housing. b. Identify and initiate an appropriate employer-assisted housing initiative(s). c. Explore empioyer-assisted housing as an option for developing housing affordable to low income households. d. Submit an application to MHFA for Economic Development and Housing Challenge Grant program. 4.4 Issues to be Addressed during 2000 A number of housing related issues will be addressed during 2000. These issues may be topics for the Housing Roundtable to discuss, and may be appropriate for the Mayor and City Council/HRA to estabiish policy direction. These issues include the following (Iisted in potential priority order): a. Pilot program to reduce costs and speed approvals for housing construction. (This is a current City/LIEP initiative.) � 00-3-� � * b. Identification of additional housing resources. c. Participation in the Section 8 program be a condition for a rental housing developer/owner obtaining City/HRt1 financing assistance, and consideration of other "smart growth" incentives/financing conditions. d. The level of subsidies. e. Housing developmenUconstruction costs (cost reduction). f. Insufficient number of contractors. g. Method(s) to select projects and awazd of City resources; e.g., RFP process, participation in MHFA 5uper RFPs, etc. h. Construction quality and design standazds. i. Education of the community/neighborhoods and residents about increased housing density, rental housing, affordable housing, etc. � 4.5 Legislative Initiatives a. Improve acquisition of tax forfeited properties. b. Support continuation of funding for state programs like the State Chailenge Grant, and Innovative and Inclusionary Housing funding. c. Urge the legislature to support initiatives which encourage the production of low income housing outside the core cities. d. Support changes in tax increment, tax-exempt bond, tax credit and other financing methods that will enhance the City's ability to meet its housing goals. e. Consider and support the legislative agenda of NAHRO, MALHFA and other housing related entities. 4.6 Zoning Studies, Neighborhood Flanning and Reseazch (These items are listed in potential priority order): a. As authorized by State law, consider taking steps to allow rezonings to be done by a non-petition process. b. Consider appropriate zoning code changes to implement urban village improvements. c. Continue appropriate neighborhood and project planning for each potential development site outlined in Exhibit 3.2. d. Continue and initiate new appropriate neighborhood and project planning for new development opportunities; following are potential examples: • Franklin/IJniversity • Pennsylvania/Rice • West 7`'' Street (neaz River Centre complex) East 7�' Street Concord Mainstreet • 10 i� - � Phalen Corridor Initiative development strategy sites e. Initiate appropriate 40-acre land use and zoning studies for potential development areas; following aze potential examples: a. Shepazd/Davern (overlay zoning) b. Koch/Mobil site c. Franklin/CJniversity d. Como/Dale f. Take necessary steps for city-wide zoning code to comply with the Land Use Plan. g. Consider zoning provision changes to allow accessory housing. h. Explore policies, programs and initiatives of other metropolitan areas to identify any new approaches to housing production, rehabilitation, financing, and affordable housing. 4.7 Support Key Partners a. Support the LISC sponsored National Community Development Initiative (NCDI) and participating CDCs that includes the objective to develop or improve 2000 housing units by the end of yeaz 2000 (2000 X 2000 initiative). b. Support the Public Housing Agency (PHA) in the operation of public housing, � Section 8, and homeownership programs, and possible housing development activity. c. Work with the Minneapolis Community Development Agency (MCDA) in the delivery of joint mortgage revenue bond loan programs. d. Support the Home Ownership Center in providing a continuum of home buyer and owner services, including the Mortgage Foreclosure Prevention Program. e. Support the work of the Family Housing Fund and other low income housing advocates in providing funds to support development activities and services for low income families. £ Work with the Minnesota Fannie Mae Partnership Office, the Minnesota Mortgages Bankers Association, and other parties in the private lending industry in providing a wide range of financing alternatives for ownership and rental housing activities. g. Work with key public funders in providing resources and other services for a vaziety of housing activities, including the Minnesota Housing Finance Agency (MHFA) and the federal Department of Housing and Urban Development (HUD). h. Support the activities of the Wilder Foundation in the ownership and development of "serviced enriched" housing for families, frail elderly and single adults i. Support the development activities of Habitat for Humanity. C� 4.8 Housing Activity Reporting il r� -a-(� � • a. Produce a regular report about PED housing activities (including subgrantees) including: type activity, units, City/HRA funds, total development costs, and incomes served. b. Produce an end-of-the-yeaz report includin�: PED activity, activity by other public agencies, subsidized housing (gain/loss), affordable housing generally, and housin� units in the city (gain/loss). 4.9 Other Actions Sponsor jointly with Minneapolis the Saint Paul/Minneapolis Home Tour. � � 12 r. , , , � Housing Action Program 2000 5.0 Process for Preparation and Review of Housing Action Plan 5.1 Background/Context The implementation chapter (7.0) of the Housing Plan calls for the creation of an annual housing action plan. The purpose of the annual housing action plan is to outline the specific actions that will be undertaken and the specific objectives that will be met over the course of the yeaz in fiirtherance of the broader strategies and polices outlined in the Housing Plan. The Housing Plan calls for the creation of a task force, to be convened with the assistance of LISC, that will include balanced representation and will work closely with City staff on the development of the annual housing action plan. LISC's involvement in this process was intended to help assure that many of the organizations and institutions that would be vital to the City's success in implementing the Housing Plan would be engaged in and supportive of the City's plans. 5.2 Preparation of Housing Action Plan 2000 LISC staff and City staff discussed how to best structure and carry-out the process � described in the Housing Plan. There was agreement that the process should be designed to achieve the following: Balanced and focused input from a broad representation of important stakeholders in housing. Meaningfut engagement of individuals and institutions that aze critical to the successful implementation of the plan. Timely completion of the plan and the efficient and effective use of City staff time and the time of those that participate in the process. In order to meet the intent of the Housing Plan and to achieve the outcomes listed above, LISC recommended that a task force be created. To take advantage of the Housing Roundtable fonun that existed, LISC co-convened the task force with the Housing Roundtable. 5.3 Chazge of Task Force The work of the task force focused mostly on reviewing and commenting on the plans and budget decisions that were already in place. The setting of broader housing policy was not the purview of this group. The chazge of the task force was twofold: � • To provide meaningful input and comment in the development of the housing 13 �s . . . � action plan and to make recommendations to the City on specific implementation strategies. To help identify and secure potential additional resources that may be available to support the successful implementation of the annual housing action plan. 5.4 Composition of the Task Force The task force has abaut 15 members and includes representatives of the following groups: LISC Housing Roundtable Private Lender(s) Investment Banker Fannie Mae MHFA PHA Family Housing Fund Private Developer(s) CDC(s) � Housing Advocacy Organization(s) District Council(s) The intention is to involve a balanced cross-section of stakeholders while keeping the size ofthe group manageable. 5.4 Preparation of Housing Action Plans in the Future The intent is to have the task force involved on an annual basis in the development of the housing action plan. In future yeazs, the task force wiil convene earlier and will follow a timeline intended to produce the housing action plan in time for it to inform the development of the City's budget for housing. The Housing Roundtable and the task force brings people and institutions together that can help the City achieve its housing goals, and supports and strengthens genuine partnerships between the City and key stakeholders that aze needed to get results. ►..J 14 �a,-+' � � � O O O N C O w u � .� •--� � M L �a � � W � y u � � .� '_ � x 0 0 O N C R a � 0 u Q OL a ._ 0 x � o t� c [� M o iD t� M e V' v> o N o e o N �n �n 7 o N M� f^ ° '/� � e M� W — _ M Q V' C'1 N •-• •-• � � M n N E 0 u e � w M oo c� �� v v oo �� r' o e o� � c� �� o+ e� ' e N � N M o o t'� O� N o o V' V' O [� e o M e R W N M��li N M� � t � ^ V V�i � M� v e � � 3 � � � N C U V U U u L W e V V O 00 o e f� (V O� o o h o y� •--• �D o a en o c p o '- N W � e e lV [� O� o e o e ^ i N M1 e e V1 e e e � �,�„ N ^ M y� � N M ^ O M N M ,e � E E � E E � � U R M u V u u _ y 9 .•" a+ C L� �n Q O �p O O M e0 ^ e O O O �� v. O � � V1 � l� vl � N 00 = OO e U U 0� N _ E � o � � e = � o z ^� � = � � � � � � C � N N Y c0 R �.�t �.�J. V U � 6 n. � c�C z m C N M V' ^ O O '- � O 00 ^^, v� e7 R [� � N � v� O� sT O M N �O O p G N R t� t� N VI M N � f7 l� F� — ^ � r � ° R O � o J vi N C L R ti O � bll .� ' � � y ° � z � F � � O � � � .°� � c z �a > �- o U � E" ` ia C c��c .� F" � V = ° F ° r c ':- W Q � °'�' O " ° o _ .� a bb � � � Q U � v c U C7 ��, a 6. � :° p o :v ti � c `� C � �'' � 3 00 �� 3 �� w�� o ! � 0 'O P z R a. � C � y G `L� �n y G T. � �°, [..`a O „� = � 0 .' ,, R R S � Q r.n ..] .] ' 0" y Q� � d � Q O � b0 L � t�.0 Q Q � ;� a� � F �� � F � i•R � '� r F F G Z�n O � � 'C,' S ce F �, g� a � � O O • • � � 0 z O vi � N CJ CJ L � � � � L �' � r .-.�+ � N h T c � o L � � � � L � � L � � C] U W � a " � w a � � � � � � pp r � � U O � O � LL .. N �a�J � . � O �e a� o � � � .�' � O U � t�<. C. � U 'a.' 'L3 w ., 'a O � O � c1 ,� . v 4-i � � .. � � a � � G N N �.--."' x .�, ,; b � ����� �y��o ,. � � � - ; U .� .0 cd ^ � � ❑ U 3 � X '. G N �� �U 0 N 'O > �> a o �a s R � � � U � � � O � y m � U in N � U .- r �. � rn ... � N p 'O p' � U � � • � �� V � � C �+ O C � � y „ y y .� � c L � ....� � iy N '_' A. N � � 'O � � bA � y ¢ � � � °' c a'�i 3 c �=�zo� -- N M 7 �/1 � .� 7 b-0 C 'a c �: N � 1. O � � O � � N .S O U N � � 0 � 9 � 8 � 0 � � _ V� i . i �� , . , I' 1 L. I � � � C.7 � �O 3..t �I �.+ �i � N � M Q � � XA Lzl o!� C .� � 0 A � � O O O N C F a c � � L" '» 7 O w � on cs a 0 U e E G 0 U 7 Q u (. 0 0 N •= C � � R y E .'7 � C G . A L Y 00 . a 7 L � a O c � i 4*] u _c,q >;'; � ;,:sc N � �';;°'�: O O � O O O : O O O O O O O O � � � 0 � � e°�Cv l� � � � � � � � . ti (V � �n � f7 � � �E?'ci � N M � N `s`w? � N O O . N � %�c� � r � � O N �/b O O O in M M N M � r. y � �p X Y c�s � 'vi vi v t i C � 'O � � �a v�i V�i � � o „�+„ \ in w N CO o � � � C' (V C � (��\ � � � O � " 4 �' � O `f � � 0 " .f . ca ' G' 'V .• i-. O O o O \ � � � ^ .�-. M U O U a a. � � a ?,;,'>:. o y . � '.:?�: N � V O N � o .� .0 � .L ._: `v` ^ O N � ~ ~ O � � O � 4 � � t � :� o :° �.�? °- p 3 � o a� � a� ;:C:"2 C � C p U G� V 'O v� n!;'a ,°'. v .°'. a y o 0 0 , , a� o� a � r, � '";�:; �� c;� c c c. z° c c°• ;.W. � y O� E o� O ,O o � o O C : : . �, Z �'��'�' . ."f< y q U��U C� ^ U V � '�' j� CJ � `.:'t�:�. � 'B � � ��„ � o � ..�. � � w � � � C >:�'3�IT.: O � C � ��.. C ° C w C � � � G � ?;:�+, :; O r. 7 N I:�Li:. N R^ � O� U U QJ �U � � .� O V O U � fs ', � 0 3 r, 'w 3°3 3'� 3 0 °� 3 3 y i�i'?�<:S w� o a� � \ �a �� z� Z° a: .� z z� '.:,."'�i.':; � 7.� z V�u z v� i�;;, <:::'.+��:;� .ii9:.> `:a�tE `:GJ:i>L. o ;w.� 'Et�:.Y.?.:' CO °::�:� � rx:� �'o '��"?';. '� :' �:.s :�. q .: `� � � >P'rs�_ � � E rn o : �>: . . �.���.%� O � � � � x �i ::.�:�"` ' Y � �i c3 � :.::M?'o_: ��if � � �j c F 'O � .. N G', ;a:'k7',' w m c' " o ^ a� � �, p ::,<:az;; � o� i o a w � ' `�� ° F " ' r� A a �� � � c�a � o ,.,��„ ¢ p �'��:''' C. v. N 'D �n C .� N cJ R7 y � � �- R � � c � i R o � � � v G � � ' N tQ `' T ° U ; _..� s;i � � av � o � .�` � o�' � �� � a� a�� �<�>< a¢¢ z¢�n aq� c��N aF ��cic=, z¢ �v�v^ :.wr.:_ ����:. :..:�:. ?::�%�}2':: .> :5.�.`:i �"�::'Qt,; N cn � v� V' 1� o0 s�a , . � � • � �+ U � .� L a C � � � Y O � � � t d WA GA ti . .3 � Q W n�r 0 0 0 N O � CL C O � V Q � L�' y 7 O x N ai bA �4 a y 0 U � U � c 0 U i A R F L O � •= C V] n- R w O � F .'� G O ,a u A bn m C � � � � �. U a O � a`aA � � � � � � � o o � � � O O � � O O O � O O O O O O O O O O O O 4'� h O O O' O N O N N ^ O v� O � G; [� M 01 V r �n O in �^ N O in O in in in f� .• N � N N N [� N V OJ � � 0 O o � � ~ N v�i � � 0. aNi � . o ' � ° o ' � � �o �e > 'o � o �, a O � � ^ O � � � p � T 0. � � O O o ,Y � O � �O �'o" O p� ¢ C 0. � O ^ i o V � �.G O � 9 U O O � V v w m 'D .p R y� i. �\° N � N O C c � c � � ti o � � � c ^ ;; o :: ^ a� a'� o ❑ o � Vl U y O V� � o U3 0 0 0 y 3 c o 3 0� �� V pp V� U ., f. �... V H 7� � f.�i � o ^ o "u \° � o � O N'^ O � U r�i� � O ti O � O O O vt y h C C C� ' �n U� U U C�' O (�j c �U � N�p y o y� y( j W c M y G y o �,X Z° 2:. Z�. ` c�i:. z ° Zc U� � N L O � C � '� � L �. �C � c C a 'b � C C'D o C'9 � C . p P. �O y E C G' O C a y � i ` O C O C y O G C O U i .j � 'p �l y 3 .fl �,. � y � � a�i ' � a � .Y �' R '�O C C� � � a? LQ p� .Ti A� '�O �� C N U o � x �'.� o �� �� ..,�� ��� o�� ��� � Y CA � ❑� N 0 N O N y 'O d y W a> y y� � `� c o°" > `°� � >c" c 3a' � ��' � ,��r� OU� �a� a�,ciiu: a.U� �vi 3 v�v� � COv� � E-�Caw O N M 'cF �n V' � �fl,a� � � � � � u � .� 0 x, a C � N � y O � � ... > '. y xA W tn c .� O O A r � ^ �I 0 0 0 N C R a _ 0 U � CiD � .� O H M N nU c6 P-� w 0 U U L c 0 U � Q R E" L O rn •G C � � R y O G F o-�. c 0 a . U �I Y 00 C � � i � a O . � � c��.ia � Q � � � � � � O O O O O O O O � h O O O O M � N O V' N N N � O � O Y O � O l� m V' 7 N � N � � � � � 0 o N o F � o � x i x � v ' F � R 3 7 N� C � o � � R � N 'D G. y �� O \ � i .�. � o °� 3 c o �� a a ' � �, o � a� a� � � �- :c � °�' `�' '�' � z y v �y a�i o s: �r s". �o �� �x o� u � � c° C K o � Y o�o �. h w ti� o E 3� ��; '8 E 0 0 0� N Qc o 0 0� o o a y� .� N . o t° ,."C� `° ° , 3 v' , o �' �� ° ° ,° � `�' \° '-�' � . . t0 ` `�' � " w � � � � ,-, � O o s � v . N . c .�.� �O ° °° 0 o na /�� �i � G U O D U^ �^ ��° m � ° y y� y � y y Y �Z� �Z oa � 00 2G z ca Z° z Z A. b � � o R M X' O � X ,� y c�a 0�0 N O � � � � � y � � � � i- = A �J � �C " � O 'm O � O � O v� ^� .p pp � N ^� a 4J R N F N ��.��+ c�d a��.. O�� c�C O i.� ^r V] p � '� Q W [� �p � � p '� U � .`.� � i, a y F � ¢ �� z '� �.a v� a�i a"'�i � a W � ` � o� a�i m` � 3 o F m � o rn R n. U� d v� civS �v��"� �� F 3�� c7 �� �¢t� zzcb� ^ � � O .-� N M 7 N N N N N r� - � �1.�+ c� a� ._, 0 s. a � � N � � M O ... ...i ..O � � X A W tA C .� .'3 � A � R� O O O N C R a c 0 � V � CO C . O O '. C� � � � � a � � 0 � > � a � 0 F � � N .� � � � CT i. F � C O c . U Q v � � G 7 v v c i� „] O CJ u C`.WCa O O O m O m O in .� v .-. v r a� w 0 � � � O T � �� w � .D R > � °�' ° � °' � a�i o 7 7 N � 7 �' �rn '� � R � � C N x x � o x � � H � � � 8 � ° o 0 o a¢ o 0 0 `� � � . �„ l� .. V 7 U U = v� .3 � N .� U N y y � �^ �> m W � O � i � '� ❑ 0 3 '�, 0 0 � � � � o � � � 3 � � c�' �; 0 � c o c � H � U P. V F. > > U � m � � '�O � F CO w ` ��„ � 4; 'O �O C C L'. �" '� c O � '� . Ti . O , �y � a� .�.. � a`i 0.l N � N � y � t�tl 7 V y � O �� tn N � R t�C p R yU dv� � ;� � ❑E"' wU coU'D �U 3¢ zaiw" 3 � c�� ti¢ �¢c� c�E �A \D l� 00 G1 O N N N N N N M M e't ao�a�� � � G � .� O L � � G � N � � M O ;� � .� � WA CD C .� � 0 x A a 0 0 0 N G R a � 0 y u Q CD C ._ 0 W �� � � � � � 0 � a U > U �- � O E"� L O v� G 'C � � R y O G F � G a . a v co a � � 'O L a`�i C u a o ^ Q v .� P� G � M N V' � 'V N � N .. N M� w � o � F o � � O O U � y c. a a�i � N y � N O y y U � � � � z ,� O O y �� o 0 0 0 o a 3� � � � � � �� c "-' T� rn m v� �n m ' w � � N O O O O O �� i U U U U U y y ..�+ � C �w z z z z z ?.� � C��J U � y � � s . � � � R y � � � y � x U N V �. c� �� °' 3 � a'� t° a p�n a�i p = p �id °? ca c�i � C O G�� '`"�� � �� y Q� � V] r � w 7� a> a> C� � d '� �, . rn . o c. � a, � w � o �� wE-� W �vi0 Uvi �vi d �n c7 7 N 'V 1� 00 G1 t'1 M t+1 M M M M 0 v U 6 00 .a� � � Housing Action Plan 2000 E�ibit 33 Current or Potential Preservation Projects Following aze existing low income housing projects that aze being reviewed by the Interagency Stabilization Group (ISG) and(or the City/HRA is actively involved in refinancing and stabilization/preservation activities: Liberty Plaza Lonnie Adkins Court Community Plaza Cornerstone Skyline Towers Hampden Square Units 163 77 40 12 506 86 Following are other existing low income projects that aze on the ISG Watch List that are potential 2000 preservation projects: St. Alban's Park � Vista Village Wiider Square Cooperative Shamrock Court Rockwood Place 74 47 135 147 167 � i� ' " . Housing Action Plan 2000 Exhibit 3.4 Potential City/HRA 2000 Capital Funds Below is a summary of anticipated/estimated capital funds to be available durin� 2000 applicable to housing projects and programs. Based on past experience, though these funds aze expected to be available and committed to projects/pro�ams during 2000, it is not expected all the funds will be closed during the year. CDBG (Community Development Block Grant Program) Following is a sulnmary of CDBG programs in the proposed 2000 budget PED Proerams Home Purchase and Rehab Fund Home Ownership Opportunities Fund Housin� Real Estate Development Fund Suberantee Housine Proerams East Side Revolving Loan Fund (DBNHSBSNDC) � Home Improvement Plus (NENDC) Frogtown CDC Facelift Home Rehab Frogto��n CDC New Constnxction Project 2000 Loan Fund (H-MARC) 2. �.. 1,000,000 1,000,000 1,000,000 350,000 150,000 300,000 50,000 150,000 The siimmary does not indude the allocated program/project fi�nd balances from prior years that are available/uncommitted through 1999. HOME (Federal Home Investment Partnership Program) $2,321,000 is the estimated annual federal award amount. (This is based on the 1999 award of S2,321,000.) The above amot�nt does not include allocated program/project fund balances from prior years thaZ are available/uncommitted through 1999. STAR (Sales Tax Revitalization Program) During the 2000 RFP competitive cycles, it is anticipated the following funds will be available: Small grants Large grants/loans 400,000 6,100,000 %� � / i � The above does not include all prior cycle unexpended fund balances, including the STAR Bank Prograrn, and the loan pool available year round.. HRA (Housin� and Redevelopment Authority) Follo�ving is a smnmary of funds available for housing projects/programs in the proposed 2000 budget: Home Purchase and Rehab Hame Ownership I?evelopment Housin� Real Estate Development Housin� UDAG Neighborhood Development RLF Rental Rehab-HiID � � r.a 7 100,000 1,OOO,Q00 1,000,000 300,000 500,000 350,000 MRB/MCC (Mortgage Revenue Bonds/Mortgage Credit Certificates) Each year the City/HRA has the authority to issue up to approxnnately � 16 million of taac-exempt bonds for mortgage revenue bond loan/mortgage credit certificate programs, rental housing or other eligibie uses. $16,000,000 is the estimated allocation for 2000. (The 1999 allocation was $16,048,000.) The above does not include the current balances in existingfzrst-time and middle income mortgage loan programs, the mortgage credit certifzcate program, and any carry- forward uz�thority from prior years. LIHTC (Low Income Housing Tax Credits) Each year the City/HRA has the authority to allocate up to approximately $380,000 of low income housing tax credits, which generates private equity investments in eligible rental housing developments. The estimated allocation is $380,000 for 2000 which can generate an estimated $2.8 million of private equity investment. (The 1999 allocation was 5386,364.) TIF (Tax Increment Financing) In the New Housing and Blighted Lands Tax Increment Financing district, the budget was amended to include the following significant funds for the listed housing projects: Railroad Island 1,039,534 North Quadrant 5,196,015 � Etna/Birmingham 915,101 Johnson Liquor Store site 635,000 2 � �e-�� 8. �ESG1(Emer�gency Shelter Grants) Each yeaz the City receives an annual federal awazd_ $350,000 is the estimated awazd amount for 2000. Following is a summary of the above: Summary—Potential City/HRA Housing Capital Funds-Year 2000 Esrimated Incomes Served' Resources Budeet <30% <50% <80% CDBG 4,000,000 500,000 1,325,000 2,175,000 HOME 2,321,000 1,161,000 1,161,000 0 STAR' 3,250,000 812,000 812,000 812,000 HRA 3,250,000 0 0 1,625,000 Subtotal' 12,821,000 2,473,000 3,298,000 4,612,000 LIHTC 2,800,000 1,400,000 1,400,000 0 TIF 7,785,650 600,000 600,000 600,000 ESG 350,000 350,000 0 0 � � Subtotal 23,756.650 4.823.000 5.298.000 5,212,000 Subtotal <80% 15,333,000 (65%) Expected levera�e 54,640,000^ Estimated TDC 78,396,650 MRB/MCC 1b,00q000 0 1,600,000 4,000,000 Total 39.756.000 4.823.000 5.298.000 13212.000 Total <80% 20,933,000 (53°l0) Expected leverage 54,640,000° Estimated TDC 94,396,000 �The amounts projected to be expended serving certain levels of income are estimates based on past experience with each source of income. Z The amount of STAR funds is based on an estimated 50% of the total STAR funds being awazded to housing projects/programs. 3 The above resoutces aze those funds in which the City(HRA has discrerion on how to use the funds. The other resources below are for specifically defined purposes. � ° Expected levera�e is based on actual 1998 figures. Total development cost (TDC) is the sum of City funds and expected leveraQe. 3 ii _ , � . Housing Action Plan 2000 Appendix A Implementation Principles The City of Saint Paul and the Department of Planniug and Econoimic Development facilitate providing Quality Housing across the income spectrum and life-cycle throughout Saint Paul and the metro azea. Qualiry Housing in which PED is involved is sustainable, supplements the private sector, and satisfies unmet needs. A. Quality Housing includes being affordable to the household, which represents a spectrum of house values and apartment rents so as to serve individuals and families at all income levels; 2. in sound condition by complying with or exceeding building, housing and health code standards; and 3. a suitable housing unit for the household, which requires a variety of building and unit types so as to serve the vazied mazket demands and needs of households at different stages of the life-cycle (e.g., detached and attached units and differing � unit size and number of bedrooms). B. Additionally, QuaIity Housing is in an attractive neighborhood setting, which includes confidence in the basics of the living environment such as safety, quality schools, public and private services that meet expectations, property taxes that are not out of line with other communities, open space and recreational opportunities, etc; and 2. linking new development to broader community objectives. C. Furthermore, Quality Housing includes necessary support services for the residents to attain economic and personal stability including home owner and tenant training and counseling, and has convenient access to public transportation and employment, etc.; and 2. requires responsible, financially strong, local, hands-on owners and managers of rental housing. � 1 Y �1 � � � The following operating principles guide the implementation of housing activities in Saint Paul. i. Role ofPrivate Sector Housina development and finance acrivities in Saint Paul should be done by the private sector. Individual properry owners are encouraged to undertake maintenance and repair of their houses and, where possible, acquire and rehabilitate houses that require substantiai improvement. Owners and properry managers of rental housing shouid practice sound properiy and asset management including cost containment measures for development and operating costs, and ensure responsible tenant behavior. Lending for housing maintenance, home improvement, and development should be done by private lenders. Private lenders should be encouraged to create special lending activities and be fu11y enga�ed in community investrnent and revitalization. 2. Role of Public Sector Where there are special or unmet needs that are not adequately served by the private sector, the City should facilitate activities to meet these needs. Sound lending through a public program can effectively meet unmet needs or provide important incentives not adequately addressed by the private sector. � The City's housing development funds should be used to fund the "gap" between total development costs and the amount that can be reasonably provided by the private sector when the project will yield substantial public benefit. City funds should be provided in the least amount with the best terms so as to ma�cimize leverage of other resources. PED/HRA funds are administered in conformance with established HRA and department approved credit procedures. Ownership Interest Housing infrastructure is best maintained when the occupants, including renters, have a vested interest in the property. This can be achieved through direct ownership, or shared ownership through condominium associations and equity cooperatives. Altemative forms of ownership, including leasehold cooperatives and other altemative forms of rental "ownership," will continually be explored for those households for whom traditional ownership is not possible. 4. Strategic Investments Limited housing resources must be targeted strategically to effectively address housing conditions or reverse negative trends. Limited public resources should be tazgeted in the most fragile neighborhoods and to households whose needs are not met by � the private housing mazket. Targeting may also be necessary to achieve adopted Ciry 2 Ia . - � objectives. Tazgeted programs should be considered as an implementation measure of a City approved plan or initiative. Funds available to lower income households including emergency funds for immediate mechanical or structural house repairs and mortgage loans should always be available city-w 5. Neighborhoods as Urban Villages Improvements and new developments should contribute to a high quality, visually inviting, pedestrian-friendly enviornment. The unique chazacter of neighborh000ds should be maintained and enhanced. The "traditional neighborhood design" or the "new urbanism" movements represent recognition of the value of neighborhoods in contrast to typical suburban development. 6. Integrated & Holistic Development Activities A comprehensi�•e housing strategy must be more than the "bricks & mortar" of housing development. Housing activities must be integrated with community development and include support systems and services for residents to achieve personal and economic self-sufficiency. The City supports human services, such as home ownership • counseling and training, mortgage foreclosure prevention, and planning for homeless, and potentially homeless, persons and families, that increase the abilities of households to acquire or rent and maintain Quality Housing. Holistic development is attained only when housin� activities are planned as part of lazger neighborhood improvement initiatives. 7. Collaboration Planning and implementation of all housing activities (including new development, rehabilitation and financing) should be done in collaboration and partnership with appropriate stakeholders including neighborhood residents and other housing agencies. 8. Delivery of Public Resources Public resources for housing improvement and new development must be delivered in a balanced manner to serve the needs of the city and each neighborhood. There aze generally three neighborhood conditions in Saint Paul: (1) sound neighborhoods that have strong private in� estment pattems that require little public intervention; (2) transitional neighborhoods �rith some disinvestment that require public immediate attention to ensure they grow into sound neighborhoods; and (3) fragile neighborhoods that have experienced prolon�ed disin� estment and require substantial attention and public assistance. The City � and each neighborhood should have a continuum of improvement approaches that combine is --� � private and public resources. Delivery decisions (e.g., a request for proposals or a first-come-first-served process) are decided on a resource-by-resource or program-by-program basis. 9. Quality and Mazket Driven Housing City/HRA resources should be used to maintain or develop housing units that are high quality and meet long-term market demands. Development decisions should give careful consideration to the type of unit, site and neighborhood setting. In treatment of existin� units, esterior site plans and interior unit layouts should be improved to better serve current mazket demands and the structure rehabilitated to a high standazd of quality when possible. 10. Building Code Enforcement & Compliance Responding to acute housing complaints while addressing chronic problem properties is critical in maintaining the residential quality of Saint Paul. Compliance with established building and housing codes must be enforced. I 1. Historic and Architecturally Significant Buildings . Historic and architecturally significant buildings are a unique asset of our housing stock and should be preserved whenever possible. The quality, materials and design of older buildings meet the needs of one portion of the mazket that cannot by supplied in suburban communities. 12. Balance Between Increasing Tax Base and Meeting Other Needs Housing and neighborhood improvement activities should balance the objectives of increasing the tas base, and meeting needs of Saint Panl residents that do not directly contribute to aa increased property value. However, increasing the taY base should be a primary public benefit from the investment of pubiic resources in neighborhood and housino improvement. 13. Regional Distribution The City supports improved regional distribution of housing, opportunities for lower income househoids. The City will continue to be an active partner with other funders in addressing affordable housing needs in the region, and continue to be active in initiatives with suburban housing officials. The City should look for opportunities to provide low income housing in less integrated neighborhoods of Saint Paul as weil. i uRas!��r � 14. Affordable Low Income Housing Activities Central Saint Papl neighborhoods will require public assistance in order to improve the quality of affordable housing and thereby, the quality of the neighborhood. The current location of services, public transportation, and ethnic/social relationships will maintain a high level of demand for low income affordable housing in central Saint Paui neighborhoods. Current economic factors make it di�cult for the private sector to provide quality affordable housing causing a lazge amount of low income affordable housing to be met through substandard housing. PED will continue to participate in the Interagency Stabilization Group (ISG) to monitor and determine appropriate actions for the preservation and stabilization of existing, quality, subsidized rental housing. Building, unit and neighborhood density will be reduced whenever appropriate. Decent, suitable, reasonable affordable housing is a proven ingredient in the m'vc of supports that can enable households to becoming self-sufficient--the most important route to less poverty. The income to housing cost gap is substantial for a large segment of Saint Paul's population and continues to grow. The City/HRA should promote economic self-sufficiency by seazching for opportunities to bridge this gap. A broad based approach is key to identifying strategies that can lead to acceptable solutions that ease the burden of concentration of facilities and services for homeless • persons and families. A broad based planning approach should continue including Ramsey County, homeless persons, human service providers, and City and suburban officials. The planning process should be regional in scope, and be comprehensive and encourage new ideas in providing services to the homeless. The City/HRA must take appropriate steps to preserve previous HRA investments in affordable housing in accordance with approved credit process guidelines. The bono«�er/owner must demonstrate a satisfactory record of past experience and continuing long term capacity to provide sound properiy management functions. All parties to a deal must contribute a"fair share" in the financial package that provides adequate levera�e for CityIHRA funds. � 15. Real Estate Acquisition and Development The HRA should consider the acquisition of real estate when it is necessary to meet identified rede� objectives. The City/HRA should facilitate placing appropriate publicly-owned land, including tax-forfeited pazcels, back on the property taY rolls as quickl} as reasonably possible. The City wiil consider facilitatin� the development of new houses on all buildable parcels, including step-up and higher priced housing on multiple lots, Splinter pazcels should be used to increase the size of individual ad}acent lots only when the divided lot is unbuildable according to zoning requirements. L J �, , _ , � In addition to the housing implementation principles outlined above, ten principles for city development have been established. The following principles, originally developed as part of the Saint Paul on the Mississippi Development Framework, have been established as guiding principles for general development in Saint Paul. Evoke a sense of place. With each change, Saint Paul will work for a strengthened sense of place that reflects the city's natural beauty and exceptional heritage. 2. Restore and establish the unique urban ecology. Reconnection of our urban fabric to the Mississippi River that drew the azea's original inhabitants will promote a balance between urban and natural systems throughout Saint Paul. 3. Invest in the public realm. The public realm sets the stage for development and provides the network of connections. We will maintain and enhance this investment, designing improvements to promote safety and quality with an emphasis on improving the pedestrian environment. 4. Broaden the mix of land uses. We will take advantage of the diversity of activity that is recognized as a special advantage of an older city. Residence, work and cultural opportunities in close proximity can reduce travel costs and enrich community life. � 5. Improve connectivity. Improvement of urban life in Saint Paul will occur by facilitating movement, access and connection among activities and places. 6. Ensure that buildings support broader city goals. Saint Paul will consider each addition to the community fabric as an opportunity to enhance its broader location. 7. Build on existing strengthens. We will make every effort at city and neighborhood levels to recosnize and enhance the treasures we have in our economic, cultural, architectural and natural heritages. 8. Preserve and enhance heritage resources. Saint Paul will continue to preserve and enhance its rich legacy of historic resources. 9. Provide a balanced network for movement. Provisions wiil be made for movement by caz, public transportation, bicycle and on foot in a balanced manner throughout 5aint Paul. 10. Foster pubiic safety. We will keep pubic safety at the forefront in design and management of the public realm and apply safety criterial in the evaluation of any proposed private redevelopment. L_J � ���� Local Initiatives Support Corporation MEMORANDUM • �J To: Honorabie Mayor Norm Coleman Council President Dan Bostrom Councilmember Jay Benanav Councilmember Jerry Biakey Councilmember Chris Coleman Councilmember Pat Harris Councilmember Kathy Lantry Councilmember Jim Reiter cc: Brian Sweeney, PED Director �8 -a.�� From: Michaei Olsen and Paul Williams: Co-Chairs of the Housing Action Plan Task Force Date: January 12, 2000 Re: Summary Task Force Report We are pleased to transmit to you the summary report from the housing action plan task force. The report provides some background information on the creation and the role of the task force and summarizes the main themes that surfaced during the deliberations of the task force. We appreciate the opportunity to be a part of the task force. The membership of the task force represents many sectors and brings a variety of important perspectives to the table. We commend you for incorporating the task force process into the development of the annual housing action pian. This process, albeit on an extremely tast track this year, provided a unique oppostunity for constructive discussion and comment on the actio� plan by many of partners that are critical to the successful implementation of the broader policies and strategies outlined in the City's Housing Pfan. If you have any questions about the task fiorce or the content of ihis report, piease feei free to contact either of us. __����� � � � Michael Olsen Paul Williams Twin Cities L�SC � Hamline Park Plaza, 570 Asbury Street, Suite 207, SL Paul, MN 55104 TeL (651) 649-1709 • Fax: (651) 649-i i 12 •a -� � HOUSING ACTION PLAN TASK FORCE SUMMARY REPORT - January 2000 - Background 7he implementation chapter (7.0) of the St. Paul Flousing Plan calis for the creation of an annual housing action plan. The purpose of the annual housing action pian is to outline the specific actions that will be undertaken and the objectives that wifl be met over the course of the year in furtherance of the broader strategies and polices outlined in the Housing Plan. The Housing Pian also calis for the creation of a task force, to be convened with the assistance of the Local Initiatives Support Corporation (LISC), that includes balanced representation and works closely with City staff on the development of the annua! housing action p(an. This year, the Housing Action Plan Task Force was co-convened by LISC and the St. Paul Housing Roundtable, an existing network of private sector and community-based groups that meets regularly to explore city housing issues. � LISC and the Housing Roundtabte, in consultation with City staff, designed a review and comment process for the task force intended to: • Provide balanced and focused input from a broad representation of important stakeholders in housing; • Encourage meaningful engagement of individuals and institutions that are critical to the successful implementation of the plan; • Assure the timely compietion of the plan and the efficient and effective use of City staff time and the time of those that participate in the process. The task force was comprised of a broad cross section of representatives from the public, private, nonprofit sectors. A lisi of the members is attached to this report. Paut Williams, LISC Program Director, and Michael Olsen, Co- Chair of the Housing Roundtable and a Realtor with Coldweli Banker Burnet, served as the co-chairs of the task force. The task force met twice, on November 22, 1999 and on December 9, 1999. Charge of Task Force The task force was charged in the Housing Plan with working in close � collaboration with the City on the development of the City's annual housing action plan. This year, since the process started later then anticipated, the 1 6 Z� � �� • work of the task force was focused mostly on reviewing and commenting on the pfans and budget decisions that were already in place. In future years, the task force wiil convene eariier and follow a timeline intended to produce the housing action plan in line with the City's budget process. The focus of the task force was on imptementation and the development of specific workplans. The setting of broader housing policy was not the purview of this group. The charge of the task force was twofold: • To provide meaningful input and comment in the development of the housing action plan and to make recommendations to the City on specific implementation strategies. • To help identify and secure potential additional resources that may be available to support the successful implementation of the annual. housing action plan. Framing the Discussion Staff from the Department of Planning and Economic Development completed an initial draft of the annual housing action plan. The action plan • was organized around the three major strategies articulated in the City's Housing Plan: ■ Take care of the existing housing stock we have in the city; • Meet new and emerging market demand for housing in St. Paul; and • Ensure the availability of affordable housing for those who need it. The task force acknowledged and was supportive of the City pursuing these three distinct but interrelated strategies in 2000. Given the age, relative affordability, and character of the City's housing stock, the task force agreed that the City needs to continue to invest in the preservation and improvement of the existing stock of housing. The task force also recognized that there is a need and some very reai opportunities for the City to meet new and emerging market demand for housing. An aggressive production agenda is needed in order for St. Paul to keep pace with the region's projected growth. {t is also clear that there is currently a renaissance in city living, both in neighborhoods as weli as in the downtown area. The market is poised to support moderate and upper income housing in ma�y neighborhoods, particufarly the downtown area. Finally, the task � force accepted, as a minimum threshold, the City's stated commitment to have 20% ofi all new housing units serve residents at or below 50% of the 2 �♦ _ � . area median income (10% at or below 30% of inedian and 10% between 3Q°lo and 50% of inedian�. Task Force Conclusions It is important to acknowledge that the deliberations of the task force, while very productive and insightful, were not exhaustive. Given the late start in the review process this year, the task force did not have the time to explore every aspect of the plan +n detaii. Rather the two meetings of the task force were structured to ensure that the task force members understood the basic components of the plan and had a chance to provide comment and feedback on those aspects of the plan that were ofi greatest interest to them. The first meeting provided an opQortunity to share initial reactions and comments to a draft of the action plan as prepared and presented by City staff. Following that meeting, City staff made revisions to the draft action plan and circulated it for review by the task force. At the second task force meeting, members reacted to the changes and provided additionai comments and feedback. Not suprisingly, given the magnitude of the need for affordable housing in St. Paul, much of the discussion at both meetings centered around the City's plans and strategies for preserving and deve{oping housing that is affordable to lower income households. � The task force process was not structured to reach consensus among members on a set of recommendations or conctus+ons. Individual members asked questions, shared comments, and made suggestions. Over the course of the two task force meetings, five main themes emerged from the deliberations of the task force. These themes are summarized briefly below. (1) The action plan is an implementation plan and, as such, it should be more specific about the particular actions or steps that will be taken, the timeline for completion, and the desired, measurabie outcomes to be achieved. Greater specificity leads to greater accountability on the part of the City and its partners. It also helps identify where and how other additional resources can be most useful. The specific information presented on projects and production figures (Exhibits 3.1 and 3.2) is quite usefu! and, with periodic updates (including information on the status of funding commitments), can be used to track progress on achieving the City's production goals. The need for greater specificity is most evident in a number of the descriptions of the priority actions for 2000. For example, the statement "encourage owner occupancy of 1-4 unit rental properties" [Section 3.2(i)] is not particularly heipful in defining the actions or implementation steps the � City is planning to take in 2000. Further discussion is needed to determine a level of specificity for the action plan that is realistic for 3 i� . . � City staff to produce, is useful for guiding the City's actions, and promotes accountability for progress and performance. (2) The projections presented in the action plan shoutd meet, at a minimum the affordable housing goal established in the Housing Plan. The action plan set a goal of 750 units of new production in 2000, with 16% of the units affordable to households earning between 31 °lo and 50% of area median and 7% affordable to households with income at or below 30% of the area median. There was concern that the goal stated in the Housing Plan of 10% of new production being affordable to households befow 30°!0 of area median income was not being met by the proposed action plan. (3) The action plan should factor in demoiition activities when establishing production targets. Concerns were expressed about the impact of demolition on the city's supply of affordable housing. It is important to understand the magnitude of demolition activity and explicitly factor in the loss of units, particularly affordable units, when establishing pians for new production. Without factoring in the loss of affordable units, the City could experience a net loss of affordable housing over time. Further information and analysis is needed in order to better � understand and address this issue. (4) The action pian identifies a Iack of adequate subsidy resources as an obstacle to achieving the affordable housing goals established in the Plan. It would be beneficial for the action plan to project the size of the resource gap, perhaps on an annual basis given the projects known to be in the production pipeline or on a two or three year rolling basis. With this information as a starting point, the City and its partners can more effectively work together to identify and secure the resources that are required to meet the City's affordable housing goats. (5) For a variety of reasons, the production of housing that is affordable to lower income households is very difficult to accomplish. The action plan acknowledges this difficulty and articulates a commitment on the part of the City to support the production of units affordable to lower income residents. Given the chalienges involved, it is important for the action plan to more clearly outline a proactive approach, including the specific actions that wiii be taken to encourage the development and preservation of affordable housing. Many members of the task force shared ideas about actions or strategies that could be pursued in � addition to what was already cited in the plan. A number of these suggestions have been incorporated into the draft of the action plan. � U� v �� • The ideas that were shared by individual task force members are outlined below. ■ Tie City assistance for new production or rehabilitation or rentai housing to a requirement that owners participate in the Section 8 program. ■ Develop a proactive strategy to use project-based Section 8 assistance and Holiman units (if that resource becomes available in St. Paul) to help reach those households at or below 30% of the area median income. • Create a pool of resources ta;geted ±o supporti�g development at 50% and 30% of area median income. Perhaps link with the MHFA Super RFP. Actively solicit proposais from developers for afforda6le housing. ■ Create a weighting system that favors providing City support to developments with affordable units. • Establish thresholds tied to the size of project. For example, if a • project has over a certain number of units, create a requirement that it meet the 20% affordability threshold (at a minimum). ■ Move to a project by project review of affordability. Use the leverage provided by the provision of public funds to assure that the 20% requirement is met on individual projects and small area plans. • Create incentives for owner occupancy of smaller rental properties (duplex, trip{ex, four-pVex properties} that condition provision of City assistance to acceptance of Section 8. • Play a more active technical assistance role by informing developers of the affordable housing goai and identifying the resources required to develop affordable units. • Determine ways to "package" developments so that a for-profit does the market rate component and a non-profit does the affordable component. ■ Explore ways in which the HRA and others could partner with the • PHA to deve�op affordable housing, perhaps using the HRA's bonding authority. 5 6d ��-�-� • • Explore empioyer assisted housing as an option for creating affordabie units. Tie-in to the work that St. Paul United Way and MHFA are doing on this. Next Steps Overall, the task force felt that this was a productive process. The members appreciated the opportunity to engage in constructive discussion on the housing pfan with persons representing a broad cross section of perspectives. It was recognized that the task force membership includes many of the key partners that need to be eng2ged ir� order for the City to successfulfy implement the broader visions and pfans articu{ated in the Housing Plan. Several next steps for the task force were agreed upon. First, the task force wiil meet on a quarterly basis. City staff will prepare a summary progress report, including the status of individual development projects, for review by the task force. Second, the task force will be convened early enough next year to be in a better position to help shape the housing action pian before budget decisions are made. Third, the task force wi11 examine whether it needs to broaden its membership to include other , important perspectives. Finally, the task force invites the City to continue to use this group as a resource when working on implementation strategies related to housing. u � bb ��� �� � Housing Action Plan Task Force Michael Olsen, Co-Chair Realtor Coldwell Banker Bumet Paul Williams, Co-Chair Program Director Twin Cities LISC Carmen Berg Executive Director Summit-University Pianning Council Jim Erchul Executive Director • Dayton's Bluff NHS Colleen Fraley Deputy DirecYor Fannie Mae, MN Partnership Office Tom Fulton President Fami{y Housing F�nd John Mathern Mendota Homes Terry McNellis Managing Director US Sancorp Piper Jaffray Gary Peltier Special Housing Advisor St. Paul Dept. PED Kirby Pittman Poficy Anafyst MHFA Vic Rosenthal Jewish Gommunity Action Caty Royce Executive Director Community Stabilization Project Stephen Seidel Executive Director Twin Cities Habitat for Humanity Barb Sporlein Deputy Director St. Paul Public Housing Agency Mary Ann Sudeith Vice President Firstar Bank � ��� V���� Presented By Green Sheet # �� 5�.00 l RESOLUTION OF SAINT pAUL, MINNESOTA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Referred To a� Council File # �� � c�.�G Resolution # Committee: Date Resolution Approving the Housing Action Plan 2000 WHEREAS, the City Council adopted a Housing Plan, a chapter of the Saint Paul Comprehensive Plan, on March 24, 1999; and WHEREAS, the Housing Plan states the City should develop an annual housing action plan; and WHEREAS, a task £orce was co-convened by the Local Initiatives Support Corporation and the Housing Roundtable to review and comment on a draft action plan prepared by staff of the department of Planning and Economic Development and WF3EREAS, the Housing and Redevelopment Authority Board of Commissioners reviewed and endarsed the Housing Action Plan 2000 and recommend to the City Council the adoption of the Housin� Action Plan. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Ciry of Saint Paul, Minnesota, that the Housing Action Plan 2000 is approved. Requested by Department of: Planninq & Economi Development By: �— Jl'� ` � [ � Adoption Certified by Council Secretary gy: � a- � �- - � Approved by Mayor: Date /.{/[� `� L^o"�� By: Form Approved by City orney By: Approved by Mayor for Submission to Council g : l%�� G:�Shared�PELTIER�hap\OOccresavpd Adopted by Council: Date ��._� a•�- ��G7�p DEPARTMENT/OFFICE/COUNCII,: DATE INITIATED GREEN SHEET NO.:IOZOOl O PED March 10, 2000 CONTACI' PERSON & PHONE: TE ii`7iTTnIeDA'1'E Gary Peltier, 6-6619 � 1 D�e�z�rn�Nr Dm. a ciTYCOUrrcu. r MUST BE ON COUNCII, AGENDA BY (DATE) �ICTN ? CITY ATTORNEY _ CITY CLERK FINANCIAL SERV DIR FINANCIAL SERV/ACCTG � �� g pg BER 3 MAYOR (ORASST.)��"U�_ CIVII, SERViCE COMIvIISSION ROUTING ORDER TOTAL # OF SIGNATURE PAGES 1_(CLIP ALL LOCATiONS FOR SIGNAT[7RE) ACT[ON REQUESTED: RECObIIvIENDATIONS: Approve (A) or Rejea (R) PERSONAL SERVICE CON1'RACTS MUST ANSWER THE FOLLOWING QUESTIONS: PLANNII IG COMMISSION 1. Has this peisonlfirm evec wotked under a contract for this depsmnem? CIB WMA�IITTEE Yes No CIVIL SERVICE COMMISSION 2. Hu [his person/film ever been a ciTy employee? � X HRA Yes No 3. Does this person/firn� possess a slull not nomialty possessed by any cuaent city employee? Yes No Explaiu alI yes answers ou separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTONTTY (Who, What, Wheu, Where, Why): Resolution approves the City's annual housing action plan, outlining the goals, priorities, etc., for the implementation of housing activities during year 2000. ADVANTAGESIFAPPROVED: � Sets housing goals and priorities for PED, other departments related to housing activities, and the community to achieve goals in the Ctiy Council adopted Housing Plan, a chapter of the City's Comprehensive Plan. DISADVANTAGES IF APPROVED : None. DISADVANTAGES IF NOT APPROVED. Commuinity will be uncertain what the housing goals and priorities are for yeaz 2000. TOTAL AMOUNT OF TRANSACTION: $ NA COST/REVENTJE BUDGETED: NA I� fJNDING SOURCE: NA ACTIVITY NUMBER: NA �y�gp g* �� � ���� FINANCIAL DVFORMATION: (EXPLAIN) Na `�_��� �. � 2�QQ K:VShared�PELT[ERW ap\OOgmsht f Oa-�b • Draft 1/14/00 �� � �� � Housing Plan The Saint Paul Comprehensive Plan Housing Action Plan 2000 � • City of Saint Paul Department of Planning and Economic Development ao -�`� � � n � Housing Action Plan 2000 Table of Contents 1.0 Introduction 2.0 HousinQ Plan Policies Emphasized in 2000 3.0 Prioritv Actions for 2000 3.1 3.2 ,� 5.0 �, �.� 3.4 3.5 3.6 3.7 New Housing Production Existing Housing Rehabilitation 3.21 Code Bnforcement Preservation of Low Income Housing Low Income Housing and Homeless Services Plan Mortgage lending Resowces for 2000 Obstacles to Implementation Other Housin¢ Related Activities 4.1 4.2 43 4.4 4.5 4.6 4.7 4.8 4.9 Housing Roundtable Housing Resource Center Business Connection Issues to be Addressed during 2000 Legislative Initiatives Zoning Studies, Neighborhood Planning and Reseazch Support Key Partners Housing Activity Reporting Other Actions Process for Preoazation and Review of Housine Action Plan Exhibits E�ibit 3.1, Housing Activities Projections 2000 Exhibit 3.2, PED Housing Development Projects E�ibit 3.3, Cunent or Potential Preservation Projects Exhibit 3.4, Potential City/HRA 2000 Capital Funds Appendices A. Implementation Principles B. 1999 Accomplishments C. Task Force Participants �. _ _ , . Housing Action Plan 2000 1.0 Introduction The Housing Action Plan Z000 (HAP) presents housing implementation activities proposed by the Department of Planning and Economic Development (PED), in coordination with other City departrnents, and other public and private partners. The Housing Plan, adopted by the City Council on Mazch 24, 1999, calls for the prepazation of an annual Housing Action Plan. Additionally, the Housing Action Plan incorporates actions from the Saint Paul-Ramsey County Five-Year Low Income Housing and Homeless Services Report and Plan (Homeless Plan) adopted by City Council in April, 1999. The Housing Action Plan is an implementation plan on what actions will be taken during 2000 to implement the polices in the Housing Plan and the recommendations in the Homeless Plan. The City of Saint Paul's role in the implementation of housing related activities includes several department and offices of the City, including the Public Housing Agency. However, this Housing Action Plan is primarily the priority actions undertaken by PED, with brief inention of the work of the City's building and code enforcement offices. Other related activities include the Housing Information Office. � The HAP 2000 will also serve as Saint Paul's action plan required by the Metropolitan Livable Communities Act. In that capacity, it will be submitted to the Metropolitan Council to document the City's intended actions to carry out its agreed upon housing goals. The HAP 2000 is arranged in the following order: Section 2.0 Hozrsing Plan Policies Emphasized in 2000 Section 3.0 Priority Actions for 2000 Section 4.0 Other Housing Related Activities The three strategies outlined in the Housing Plan aze used to organize the HAP 2000. These strategies aze: Take care of what we have Meet new market demand Ensure availability of affordable housing The procedure used to prepaze this annual plan is outlined in Section 5.0. The section includes a recommended action to consider during 2000 what, if any, changes should be made to the procedure for the prepazation of the HAP for 2001. An appendix includes implementation principles. These principles will guide the � as _ - . implementation of housing activities. They incorporate the ten principles for city development, originally developed as part of the Saint Paul on the Mississippi Development Framework Another appendix provides a summary of housing accomplishments during 1994 including indicating incomes served. It is expected that the Housing Action Plan 2000 will be approved by Mayor Norm Coleman and the Saint Paul Ciry Councii. � � 2 �b ° � � � Housing Action Plan 2000 2.0 Housing Plan Policies Emphasized in 2000 The Housing Plan outlines three distinct—but highly inter-related--strategies. In each of the three strategies, certain policies or actions aze outlined. Below as part of each strategy is a list of the policies/actions that will be emphasized in 2000. The policies that will be emphasized in 2000 are briefly stated below each strategy, and aze stated completely in the Housing Plan 2.1 Strategy 1: Take Care of What We Have • Continue and expand efforts to enhance the city's traditional neighborhood design. • Preserve historically and architecturally significant buildings and neighborhoods. • Step up code enforcement. • Strategically focus efforts to stem deterioration and declining values. • Improve management and maintenance of rental properry. • Priority will be given to projects that commit to the long-term affordability of housing units. 2.2 Strategy 2: Meet New Mazket Demand � • Encourage the production of housing. • Promote good design solutions. • Encourage the production of rental housing. • Encourage a diversity of building and unit types. • Encourage innovative development through regulatory reforms. • Assess and meet the demand of seniors. 23 5trategy 3: Ensure Availability of Affordable Housing • Challenge the region to provide a full range of housing choices to meet the needs at all income levels. • Identify and secure significant additional resources to preserve and construct affordabie housing within the city and the region. • Preserve existing federally assisted housing. • Provide 10 percent of the newly constructed units to be affordabie to households at 50% of the area median, 10 percent of the new units affordable at 30% of azea median. • Follow the local replacement housing policy. • Support initiatives that assist lower income households achieve home ownership. • Implement the Saint Paul-Ramsey County Five-Year Housing and Homeless Services Plan. � • Explore policy options used by other metropolitan azeas. I�b - 2-� � • Housing Action Plan 2000 3.0 Priority Actions for 2000 The City and PED facilitate providing Quality Housing as defined in Appendix A. The implementation of priority actions will be guided by certain implementation principles, also outlined in Appendix A. Though the foAowing outlines specific implementation activities, the City/HRA will always consider new opporiunities as they arise during the year. Additionally, City/HRA will continue Yo create flexible funds that can better and more timely react to neighborhood and development opportunities. The priority actions outlined below, especially the projections for new housing production, is an aggressive list of housing actions. The CirylHRA embraces, encourages and welcomes housing production for all income levels. The City/HRA encourages an annual production objective of at least 4�0 new units. This production level will meet the annual objective in the Housing Plan as well as offsetting anticipated demolition of housing units. The City/HRA commits to the production of units affordable to households at 30% and 50% of area median income. It is cleazly recognized that, to attain the projected level of production of new housing units, additional public and other subsidy resources must be secured, especially to attain the 20% goal � of new production for low income households. In addition to the potential lack of adequate resources to achieve the projections, other obstacles are outlined in Section 3.7. Regazding the projection for new housing production during 2000, E�ibit 3.2 includes active housing development projects that can potentially start construction during or after 2000. Every effort will be made to start construction on these projects. However, based on experience on how long it takes major projects to begin, the new housing production projection indicated below for 2000 is 750 units. 3.1 New Housing Production a. Support the production of ownership and rental housing in Saint Paul. At least 750 units should be under construction or completed by the end of the yeaz. b. Implement the pilot program to reduce costs and speed approvals for housing construchon. c. Work with the private and nonprofit sectors and other public agencies in developing and financing a diversity of building and unit types, rental and ownership, throughout the city, for a broad range of incomes. d. Provide financing for the conversion of non-residential properties to housing. e. Provide interim and gap financing for new replacement (infill) single family houses and the rehabilitation of vacant houses. Identify ways to increase the volume of new single family house conshuction and the rehabilitation of vacant • 0 �o -a�� • houses, including implementing the Urban HomesteadlVacant Lot initiative. f. Subsidize the provision of low income units in new housing developments. g. Work closely with the Public Housing Agency, Habitat for Humanity, the Wilder Foundation and other key partners in developing housing and providing support services to low income households. h. Support legislative and other efforts to increase Saint Paul suburban low income housing developments. Attached is Exhibit 3.1 projecting new housing production in 2000 with City/HRA assistance. Attached is Exhibit 3.2, outlining a list of active housing development projects that have a good opportunity to be started during and after 2000. 3.2 Existing Housing Rehabilitation a. Support the rehabilitation of housing in Saint Paul. At least 590 units should be under construction or completed by the end of the year. b. Provide home improvement loans for a wide spectrum of incomes. Identify ways to increase the volume of home improvement loans. c. Provide rental rehabilitation financing. Explore alternatives for owner occupancy . and rehab of small rental properties. d. Provide financing assistance for hazardous materials removal including lead- based paint. e. Originate purchaselrefinance and rehabilitation loans for a broad range of incomes. £ Provide gap financing loans to enable home owners and buyers to purchase or refinance and rehabilitate homes, where the cost of rehab exceeds the increased market value of properties. g. Provide rehabilitation loans for child caze facilities including single family houses. h. In collaboration with private, non-profit and other public partners, explore means for substantial expansion of owner and rental rehabilitation. i. Identify and market appropriate programs and other initiatives in conjunction with the residential street paving program. Attached is Exhibit 3.1, projecting rehabilitation in 2000 with City/HRA assistance, based on potential City/HRA 2000 capital funds outlined in E�ibit 3.4. 3.21 Code enforcement a. Strengthen inter-department communication working toward a coordinated effort to deai with problem properties. Explore possibilities of forming smail information focus groups of City staff to deal with specific problem properties. � bb-��� � b. Work with federal and state officials to identify and remedy the causes of building abandonment and to reduce the amount of time a building in foreclosure remains vacant. c. Expand the "Crime Free Multi-Housing Program," including making it a condition for a rental properry owner obtaining financing assistance. d. Implement new computerized record keeping systems for the certificate of occupancy records in the Department of Fire and Safety Services, and make the records accessible to other City offices. e. Focus and intensify code enforcement resources on the most serious problem properties including considering a classification system related to the frequency of inspections for all rental properties (with three or more units). £ Explore resource opportunities to go along with code enforcement in order to encourage improvement of units and reduce evictions and demolition of units. 33 Preservation of Low Income Housing a. Continue to be an active member in the Interagency Stabilization Group (ISG), through active monitoring of existing low income housing developments, and participate in the preservation and stabilization of low income housing. b. Provide financing assistance for the stabilization and preservation of federally- assisted pro}ects, and projects in which the City(HRA has made previous � investments. c. Allocate federal Low Income Housing Tax Credits in accordance with separate City Council approved criteria and procedures d. Modernize and maintain the public housing stock in accordance with the Saint Paul Public Housing Agency (PHA) Five Yeaz Comprehensive Grant Program. e. Maximize the use of the PHA Section 8 tenant-based housing assistance. Attached is Exhibit 3.2, projecting the amount of affordable housing (known at this time) in potential housing development projects to be started during or after 2000. Attached is E�ibit 33, listing the current and potential preservation projects. Attached is Exhibit 3.4, projecting the incomes served related to the potential capital funds to be available in yeaz 2000. 3.4 Low Income Housing and Homeless Services Plan a. Support activities to prevent homelessness, provide shelter and housing, provide homeless services, and secure funding for priorities. b. Assist in the financing for the development of a transitional 13-unit shelter for homeless youth. c. Assist in the financing for the development of 12 units of transitional housing for � 0 00 -acot S families. d. With the County as lead, participate in establishing a funders council to improve the system by which funding decisions aze made. 35 Mortgage Lending a. Provide financing for at least 360 home buyers (including home owners for refinance/rehabilitation) with a wide range of incomes. h. Provide special assistance loans to low and moderate income households to enabte them to be home owners. c. Continue efforts to retain home owners in danger of foreclosure. d. Provide city-wide home buying counseling and finance, including support for the Home Ownership Center. e. Continue CiryLiving marketing efforts. Attached is Exhibit 3.1, pro}ecting City(HRA mortgage lending program activities for 2000. 3.6 Resources for 2000 a. Initiate discussions with private lenders, philanthropic organizations and other � entities in the financial community to provide interim and permanent financing for new and rehabilitated housing. b. Identify and secure additional resources to produce and preserve affordable housing. This is a significant prioriry and challenge in order to achieve the production projections outlined in this plan, especially the goal to have 10% of all newly produced units affordable to househoids at 30% of the azea median income. c. Along with the Public Housing Agency and the investment banking community, explore opportunities to use "essential function" bond financing for the production of gubticly-owned housing affordable to low income households. d. In addition to funds directly administered by City/HRA outlined in Eachibit 3.4, apply for other resources including the following: Federal McKinney Supportive Housing Programs (to subsidize the acquisition, rehabilitation, and operations or human service costs for projects for families and individuals who are homeless or aze in a transitional housing program). Metropolitan Council Livable Communities Demonstration Account. MHFA Super RFPs (including funds for ownership and rental projects/programs), incorporating funds from MHFA, Met Council, the Family Housing Fund, and PHA (project-based Section 8 assistance). MHFA's Economic Development and Housing Challenge program (to support economic development or job creation by meeting locally � 7 pb - a-Co � � identified housing needs). Innovative and Inclusionary Housing Program (to support projects with a variety of prices and designs, incorporate innovative building techniques, and where communities waive local restrictions to reduce costs). Hollman Settlement Decree resources (public housing and/or Section 8 assistance) if made available in Saint Paul. Attached is Exhibit 3.4, outlining the potential City/HRA 2000 capital housing funds. 3.7 Obstacles to Implementation Following are significant examples of potential obstacles to implementing the priority actions listed above. The City/HRA and all the housing partners/stakehoiders must work together to remove these barriers: a. Inadequate housing subsidy resources. b. Inadequate resources for redevelopment costs; e.g., site assembly including residential/business relocation and soil remediation. c. The need to identify and the complexiry to incorporate multiple funding sources in housing development financing. d. Need for zoning and related changes for specific projects. � e. Neighborhood and other support; e.g., land use, density, design and affordability issues. £ Challenging site topography. g. Developer selection/predevelopment processes. h. Recent new federal lead-based paint abatement requirements. � D�� 3�� � Housing Action Plan 2000 4.0 Other Housing Related Activities 4.1 Housing Roundtable a. Continue to facilitate meetings of the Roundtable, including a wide-range of public and private representatives, to act as a sounding board for ideas, questions and proposals, providing a valuable, real world perspective about urban housing issues. b. Provide meaningfixl input and comment in the development of the annual housing action plan and to make recommendations on specific implementation strategies. c. Help identify and secure potential additional resources that may be available to support the successful implementation of the annual housing action plan. d. Specific issues the Roundtable may address aze outlined in Section 4.4 below. 4.2 Housing Resource Center a. Continue to develop the Housing Resource Center among City departments and offices involved in housing, working towards establishing a one-stop, publicly identifiable entity to coordinate all housing related housing activities. � b. Consider using the City's web page as an effective means to distribute information. 43 Business Connection a. Work collaboratively with the business sector and other stakeholders to identify measures to increase employer involvement in housing. b. Identify and initiate an appropriate employer-assisted housing initiative(s). c. Explore empioyer-assisted housing as an option for developing housing affordable to low income households. d. Submit an application to MHFA for Economic Development and Housing Challenge Grant program. 4.4 Issues to be Addressed during 2000 A number of housing related issues will be addressed during 2000. These issues may be topics for the Housing Roundtable to discuss, and may be appropriate for the Mayor and City Council/HRA to estabiish policy direction. These issues include the following (Iisted in potential priority order): a. Pilot program to reduce costs and speed approvals for housing construction. (This is a current City/LIEP initiative.) � 00-3-� � * b. Identification of additional housing resources. c. Participation in the Section 8 program be a condition for a rental housing developer/owner obtaining City/HRt1 financing assistance, and consideration of other "smart growth" incentives/financing conditions. d. The level of subsidies. e. Housing developmenUconstruction costs (cost reduction). f. Insufficient number of contractors. g. Method(s) to select projects and awazd of City resources; e.g., RFP process, participation in MHFA 5uper RFPs, etc. h. Construction quality and design standazds. i. Education of the community/neighborhoods and residents about increased housing density, rental housing, affordable housing, etc. � 4.5 Legislative Initiatives a. Improve acquisition of tax forfeited properties. b. Support continuation of funding for state programs like the State Chailenge Grant, and Innovative and Inclusionary Housing funding. c. Urge the legislature to support initiatives which encourage the production of low income housing outside the core cities. d. Support changes in tax increment, tax-exempt bond, tax credit and other financing methods that will enhance the City's ability to meet its housing goals. e. Consider and support the legislative agenda of NAHRO, MALHFA and other housing related entities. 4.6 Zoning Studies, Neighborhood Flanning and Reseazch (These items are listed in potential priority order): a. As authorized by State law, consider taking steps to allow rezonings to be done by a non-petition process. b. Consider appropriate zoning code changes to implement urban village improvements. c. Continue appropriate neighborhood and project planning for each potential development site outlined in Exhibit 3.2. d. Continue and initiate new appropriate neighborhood and project planning for new development opportunities; following are potential examples: • Franklin/IJniversity • Pennsylvania/Rice • West 7`'' Street (neaz River Centre complex) East 7�' Street Concord Mainstreet • 10 i� - � Phalen Corridor Initiative development strategy sites e. Initiate appropriate 40-acre land use and zoning studies for potential development areas; following aze potential examples: a. Shepazd/Davern (overlay zoning) b. Koch/Mobil site c. Franklin/CJniversity d. Como/Dale f. Take necessary steps for city-wide zoning code to comply with the Land Use Plan. g. Consider zoning provision changes to allow accessory housing. h. Explore policies, programs and initiatives of other metropolitan areas to identify any new approaches to housing production, rehabilitation, financing, and affordable housing. 4.7 Support Key Partners a. Support the LISC sponsored National Community Development Initiative (NCDI) and participating CDCs that includes the objective to develop or improve 2000 housing units by the end of yeaz 2000 (2000 X 2000 initiative). b. Support the Public Housing Agency (PHA) in the operation of public housing, � Section 8, and homeownership programs, and possible housing development activity. c. Work with the Minneapolis Community Development Agency (MCDA) in the delivery of joint mortgage revenue bond loan programs. d. Support the Home Ownership Center in providing a continuum of home buyer and owner services, including the Mortgage Foreclosure Prevention Program. e. Support the work of the Family Housing Fund and other low income housing advocates in providing funds to support development activities and services for low income families. £ Work with the Minnesota Fannie Mae Partnership Office, the Minnesota Mortgages Bankers Association, and other parties in the private lending industry in providing a wide range of financing alternatives for ownership and rental housing activities. g. Work with key public funders in providing resources and other services for a vaziety of housing activities, including the Minnesota Housing Finance Agency (MHFA) and the federal Department of Housing and Urban Development (HUD). h. Support the activities of the Wilder Foundation in the ownership and development of "serviced enriched" housing for families, frail elderly and single adults i. Support the development activities of Habitat for Humanity. C� 4.8 Housing Activity Reporting il r� -a-(� � • a. Produce a regular report about PED housing activities (including subgrantees) including: type activity, units, City/HRA funds, total development costs, and incomes served. b. Produce an end-of-the-yeaz report includin�: PED activity, activity by other public agencies, subsidized housing (gain/loss), affordable housing generally, and housin� units in the city (gain/loss). 4.9 Other Actions Sponsor jointly with Minneapolis the Saint Paul/Minneapolis Home Tour. � � 12 r. , , , � Housing Action Program 2000 5.0 Process for Preparation and Review of Housing Action Plan 5.1 Background/Context The implementation chapter (7.0) of the Housing Plan calls for the creation of an annual housing action plan. The purpose of the annual housing action plan is to outline the specific actions that will be undertaken and the specific objectives that will be met over the course of the yeaz in fiirtherance of the broader strategies and polices outlined in the Housing Plan. The Housing Plan calls for the creation of a task force, to be convened with the assistance of LISC, that will include balanced representation and will work closely with City staff on the development of the annual housing action plan. LISC's involvement in this process was intended to help assure that many of the organizations and institutions that would be vital to the City's success in implementing the Housing Plan would be engaged in and supportive of the City's plans. 5.2 Preparation of Housing Action Plan 2000 LISC staff and City staff discussed how to best structure and carry-out the process � described in the Housing Plan. There was agreement that the process should be designed to achieve the following: Balanced and focused input from a broad representation of important stakeholders in housing. Meaningfut engagement of individuals and institutions that aze critical to the successful implementation of the plan. Timely completion of the plan and the efficient and effective use of City staff time and the time of those that participate in the process. In order to meet the intent of the Housing Plan and to achieve the outcomes listed above, LISC recommended that a task force be created. To take advantage of the Housing Roundtable fonun that existed, LISC co-convened the task force with the Housing Roundtable. 5.3 Chazge of Task Force The work of the task force focused mostly on reviewing and commenting on the plans and budget decisions that were already in place. The setting of broader housing policy was not the purview of this group. The chazge of the task force was twofold: � • To provide meaningful input and comment in the development of the housing 13 �s . . . � action plan and to make recommendations to the City on specific implementation strategies. To help identify and secure potential additional resources that may be available to support the successful implementation of the annual housing action plan. 5.4 Composition of the Task Force The task force has abaut 15 members and includes representatives of the following groups: LISC Housing Roundtable Private Lender(s) Investment Banker Fannie Mae MHFA PHA Family Housing Fund Private Developer(s) CDC(s) � Housing Advocacy Organization(s) District Council(s) The intention is to involve a balanced cross-section of stakeholders while keeping the size ofthe group manageable. 5.4 Preparation of Housing Action Plans in the Future The intent is to have the task force involved on an annual basis in the development of the housing action plan. In future yeazs, the task force wiil convene earlier and will follow a timeline intended to produce the housing action plan in time for it to inform the development of the City's budget for housing. The Housing Roundtable and the task force brings people and institutions together that can help the City achieve its housing goals, and supports and strengthens genuine partnerships between the City and key stakeholders that aze needed to get results. ►..J 14 �a,-+' � � � O O O N C O w u � .� •--� � M L �a � � W � y u � � .� '_ � x 0 0 O N C R a � 0 u Q OL a ._ 0 x � o t� c [� M o iD t� M e V' v> o N o e o N �n �n 7 o N M� f^ ° '/� � e M� W — _ M Q V' C'1 N •-• •-• � � M n N E 0 u e � w M oo c� �� v v oo �� r' o e o� � c� �� o+ e� ' e N � N M o o t'� O� N o o V' V' O [� e o M e R W N M��li N M� � t � ^ V V�i � M� v e � � 3 � � � N C U V U U u L W e V V O 00 o e f� (V O� o o h o y� •--• �D o a en o c p o '- N W � e e lV [� O� o e o e ^ i N M1 e e V1 e e e � �,�„ N ^ M y� � N M ^ O M N M ,e � E E � E E � � U R M u V u u _ y 9 .•" a+ C L� �n Q O �p O O M e0 ^ e O O O �� v. O � � V1 � l� vl � N 00 = OO e U U 0� N _ E � o � � e = � o z ^� � = � � � � � � C � N N Y c0 R �.�t �.�J. V U � 6 n. � c�C z m C N M V' ^ O O '- � O 00 ^^, v� e7 R [� � N � v� O� sT O M N �O O p G N R t� t� N VI M N � f7 l� F� — ^ � r � ° R O � o J vi N C L R ti O � bll .� ' � � y ° � z � F � � O � � � .°� � c z �a > �- o U � E" ` ia C c��c .� F" � V = ° F ° r c ':- W Q � °'�' O " ° o _ .� a bb � � � Q U � v c U C7 ��, a 6. � :° p o :v ti � c `� C � �'' � 3 00 �� 3 �� w�� o ! � 0 'O P z R a. � C � y G `L� �n y G T. � �°, [..`a O „� = � 0 .' ,, R R S � Q r.n ..] .] ' 0" y Q� � d � Q O � b0 L � t�.0 Q Q � ;� a� � F �� � F � i•R � '� r F F G Z�n O � � 'C,' S ce F �, g� a � � O O • • � � 0 z O vi � N CJ CJ L � � � � L �' � r .-.�+ � N h T c � o L � � � � L � � L � � C] U W � a " � w a � � � � � � pp r � � U O � O � LL .. N �a�J � . � O �e a� o � � � .�' � O U � t�<. C. � U 'a.' 'L3 w ., 'a O � O � c1 ,� . v 4-i � � .. � � a � � G N N �.--."' x .�, ,; b � ����� �y��o ,. � � � - ; U .� .0 cd ^ � � ❑ U 3 � X '. G N �� �U 0 N 'O > �> a o �a s R � � � U � � � O � y m � U in N � U .- r �. � rn ... � N p 'O p' � U � � • � �� V � � C �+ O C � � y „ y y .� � c L � ....� � iy N '_' A. N � � 'O � � bA � y ¢ � � � °' c a'�i 3 c �=�zo� -- N M 7 �/1 � .� 7 b-0 C 'a c �: N � 1. O � � O � � N .S O U N � � 0 � 9 � 8 � 0 � � _ V� i . i �� , . , I' 1 L. I � � � C.7 � �O 3..t �I �.+ �i � N � M Q � � XA Lzl o!� C .� � 0 A � � O O O N C F a c � � L" '» 7 O w � on cs a 0 U e E G 0 U 7 Q u (. 0 0 N •= C � � R y E .'7 � C G . A L Y 00 . a 7 L � a O c � i 4*] u _c,q >;'; � ;,:sc N � �';;°'�: O O � O O O : O O O O O O O O � � � 0 � � e°�Cv l� � � � � � � � . ti (V � �n � f7 � � �E?'ci � N M � N `s`w? � N O O . N � %�c� � r � � O N �/b O O O in M M N M � r. y � �p X Y c�s � 'vi vi v t i C � 'O � � �a v�i V�i � � o „�+„ \ in w N CO o � � � C' (V C � (��\ � � � O � " 4 �' � O `f � � 0 " .f . ca ' G' 'V .• i-. O O o O \ � � � ^ .�-. M U O U a a. � � a ?,;,'>:. o y . � '.:?�: N � V O N � o .� .0 � .L ._: `v` ^ O N � ~ ~ O � � O � 4 � � t � :� o :° �.�? °- p 3 � o a� � a� ;:C:"2 C � C p U G� V 'O v� n!;'a ,°'. v .°'. a y o 0 0 , , a� o� a � r, � '";�:; �� c;� c c c. z° c c°• ;.W. � y O� E o� O ,O o � o O C : : . �, Z �'��'�' . ."f< y q U��U C� ^ U V � '�' j� CJ � `.:'t�:�. � 'B � � ��„ � o � ..�. � � w � � � C >:�'3�IT.: O � C � ��.. C ° C w C � � � G � ?;:�+, :; O r. 7 N I:�Li:. N R^ � O� U U QJ �U � � .� O V O U � fs ', � 0 3 r, 'w 3°3 3'� 3 0 °� 3 3 y i�i'?�<:S w� o a� � \ �a �� z� Z° a: .� z z� '.:,."'�i.':; � 7.� z V�u z v� i�;;, <:::'.+��:;� .ii9:.> `:a�tE `:GJ:i>L. o ;w.� 'Et�:.Y.?.:' CO °::�:� � rx:� �'o '��"?';. '� :' �:.s :�. q .: `� � � >P'rs�_ � � E rn o : �>: . . �.���.%� O � � � � x �i ::.�:�"` ' Y � �i c3 � :.::M?'o_: ��if � � �j c F 'O � .. N G', ;a:'k7',' w m c' " o ^ a� � �, p ::,<:az;; � o� i o a w � ' `�� ° F " ' r� A a �� � � c�a � o ,.,��„ ¢ p �'��:''' C. v. N 'D �n C .� N cJ R7 y � � �- R � � c � i R o � � � v G � � ' N tQ `' T ° U ; _..� s;i � � av � o � .�` � o�' � �� � a� a�� �<�>< a¢¢ z¢�n aq� c��N aF ��cic=, z¢ �v�v^ :.wr.:_ ����:. :..:�:. ?::�%�}2':: .> :5.�.`:i �"�::'Qt,; N cn � v� V' 1� o0 s�a , . � � • � �+ U � .� L a C � � � Y O � � � t d WA GA ti . .3 � Q W n�r 0 0 0 N O � CL C O � V Q � L�' y 7 O x N ai bA �4 a y 0 U � U � c 0 U i A R F L O � •= C V] n- R w O � F .'� G O ,a u A bn m C � � � � �. U a O � a`aA � � � � � � � o o � � � O O � � O O O � O O O O O O O O O O O O 4'� h O O O' O N O N N ^ O v� O � G; [� M 01 V r �n O in �^ N O in O in in in f� .• N � N N N [� N V OJ � � 0 O o � � ~ N v�i � � 0. aNi � . o ' � ° o ' � � �o �e > 'o � o �, a O � � ^ O � � � p � T 0. � � O O o ,Y � O � �O �'o" O p� ¢ C 0. � O ^ i o V � �.G O � 9 U O O � V v w m 'D .p R y� i. �\° N � N O C c � c � � ti o � � � c ^ ;; o :: ^ a� a'� o ❑ o � Vl U y O V� � o U3 0 0 0 y 3 c o 3 0� �� V pp V� U ., f. �... V H 7� � f.�i � o ^ o "u \° � o � O N'^ O � U r�i� � O ti O � O O O vt y h C C C� ' �n U� U U C�' O (�j c �U � N�p y o y� y( j W c M y G y o �,X Z° 2:. Z�. ` c�i:. z ° Zc U� � N L O � C � '� � L �. �C � c C a 'b � C C'D o C'9 � C . p P. �O y E C G' O C a y � i ` O C O C y O G C O U i .j � 'p �l y 3 .fl �,. � y � � a�i ' � a � .Y �' R '�O C C� � � a? LQ p� .Ti A� '�O �� C N U o � x �'.� o �� �� ..,�� ��� o�� ��� � Y CA � ❑� N 0 N O N y 'O d y W a> y y� � `� c o°" > `°� � >c" c 3a' � ��' � ,��r� OU� �a� a�,ciiu: a.U� �vi 3 v�v� � COv� � E-�Caw O N M 'cF �n V' � �fl,a� � � � � � u � .� 0 x, a C � N � y O � � ... > '. y xA W tn c .� O O A r � ^ �I 0 0 0 N C R a _ 0 U � CiD � .� O H M N nU c6 P-� w 0 U U L c 0 U � Q R E" L O rn •G C � � R y O G F o-�. c 0 a . U �I Y 00 C � � i � a O . � � c��.ia � Q � � � � � � O O O O O O O O � h O O O O M � N O V' N N N � O � O Y O � O l� m V' 7 N � N � � � � � 0 o N o F � o � x i x � v ' F � R 3 7 N� C � o � � R � N 'D G. y �� O \ � i .�. � o °� 3 c o �� a a ' � �, o � a� a� � � �- :c � °�' `�' '�' � z y v �y a�i o s: �r s". �o �� �x o� u � � c° C K o � Y o�o �. h w ti� o E 3� ��; '8 E 0 0 0� N Qc o 0 0� o o a y� .� N . o t° ,."C� `° ° , 3 v' , o �' �� ° ° ,° � `�' \° '-�' � . . t0 ` `�' � " w � � � � ,-, � O o s � v . N . c .�.� �O ° °° 0 o na /�� �i � G U O D U^ �^ ��° m � ° y y� y � y y Y �Z� �Z oa � 00 2G z ca Z° z Z A. b � � o R M X' O � X ,� y c�a 0�0 N O � � � � � y � � � � i- = A �J � �C " � O 'm O � O � O v� ^� .p pp � N ^� a 4J R N F N ��.��+ c�d a��.. O�� c�C O i.� ^r V] p � '� Q W [� �p � � p '� U � .`.� � i, a y F � ¢ �� z '� �.a v� a�i a"'�i � a W � ` � o� a�i m` � 3 o F m � o rn R n. U� d v� civS �v��"� �� F 3�� c7 �� �¢t� zzcb� ^ � � O .-� N M 7 N N N N N r� - � �1.�+ c� a� ._, 0 s. a � � N � � M O ... ...i ..O � � X A W tA C .� .'3 � A � R� O O O N C R a c 0 � V � CO C . O O '. C� � � � � a � � 0 � > � a � 0 F � � N .� � � � CT i. F � C O c . U Q v � � G 7 v v c i� „] O CJ u C`.WCa O O O m O m O in .� v .-. v r a� w 0 � � � O T � �� w � .D R > � °�' ° � °' � a�i o 7 7 N � 7 �' �rn '� � R � � C N x x � o x � � H � � � 8 � ° o 0 o a¢ o 0 0 `� � � . �„ l� .. V 7 U U = v� .3 � N .� U N y y � �^ �> m W � O � i � '� ❑ 0 3 '�, 0 0 � � � � o � � � 3 � � c�' �; 0 � c o c � H � U P. V F. > > U � m � � '�O � F CO w ` ��„ � 4; 'O �O C C L'. �" '� c O � '� . Ti . O , �y � a� .�.. � a`i 0.l N � N � y � t�tl 7 V y � O �� tn N � R t�C p R yU dv� � ;� � ❑E"' wU coU'D �U 3¢ zaiw" 3 � c�� ti¢ �¢c� c�E �A \D l� 00 G1 O N N N N N N M M e't ao�a�� � � G � .� O L � � G � N � � M O ;� � .� � WA CD C .� � 0 x A a 0 0 0 N G R a � 0 y u Q CD C ._ 0 W �� � � � � � 0 � a U > U �- � O E"� L O v� G 'C � � R y O G F � G a . a v co a � � 'O L a`�i C u a o ^ Q v .� P� G � M N V' � 'V N � N .. N M� w � o � F o � � O O U � y c. a a�i � N y � N O y y U � � � � z ,� O O y �� o 0 0 0 o a 3� � � � � � �� c "-' T� rn m v� �n m ' w � � N O O O O O �� i U U U U U y y ..�+ � C �w z z z z z ?.� � C��J U � y � � s . � � � R y � � � y � x U N V �. c� �� °' 3 � a'� t° a p�n a�i p = p �id °? ca c�i � C O G�� '`"�� � �� y Q� � V] r � w 7� a> a> C� � d '� �, . rn . o c. � a, � w � o �� wE-� W �vi0 Uvi �vi d �n c7 7 N 'V 1� 00 G1 t'1 M t+1 M M M M 0 v U 6 00 .a� � � Housing Action Plan 2000 E�ibit 33 Current or Potential Preservation Projects Following aze existing low income housing projects that aze being reviewed by the Interagency Stabilization Group (ISG) and(or the City/HRA is actively involved in refinancing and stabilization/preservation activities: Liberty Plaza Lonnie Adkins Court Community Plaza Cornerstone Skyline Towers Hampden Square Units 163 77 40 12 506 86 Following are other existing low income projects that aze on the ISG Watch List that are potential 2000 preservation projects: St. Alban's Park � Vista Village Wiider Square Cooperative Shamrock Court Rockwood Place 74 47 135 147 167 � i� ' " . Housing Action Plan 2000 Exhibit 3.4 Potential City/HRA 2000 Capital Funds Below is a summary of anticipated/estimated capital funds to be available durin� 2000 applicable to housing projects and programs. Based on past experience, though these funds aze expected to be available and committed to projects/pro�ams during 2000, it is not expected all the funds will be closed during the year. CDBG (Community Development Block Grant Program) Following is a sulnmary of CDBG programs in the proposed 2000 budget PED Proerams Home Purchase and Rehab Fund Home Ownership Opportunities Fund Housin� Real Estate Development Fund Suberantee Housine Proerams East Side Revolving Loan Fund (DBNHSBSNDC) � Home Improvement Plus (NENDC) Frogtown CDC Facelift Home Rehab Frogto��n CDC New Constnxction Project 2000 Loan Fund (H-MARC) 2. �.. 1,000,000 1,000,000 1,000,000 350,000 150,000 300,000 50,000 150,000 The siimmary does not indude the allocated program/project fi�nd balances from prior years that are available/uncommitted through 1999. HOME (Federal Home Investment Partnership Program) $2,321,000 is the estimated annual federal award amount. (This is based on the 1999 award of S2,321,000.) The above amot�nt does not include allocated program/project fund balances from prior years thaZ are available/uncommitted through 1999. STAR (Sales Tax Revitalization Program) During the 2000 RFP competitive cycles, it is anticipated the following funds will be available: Small grants Large grants/loans 400,000 6,100,000 %� � / i � The above does not include all prior cycle unexpended fund balances, including the STAR Bank Prograrn, and the loan pool available year round.. HRA (Housin� and Redevelopment Authority) Follo�ving is a smnmary of funds available for housing projects/programs in the proposed 2000 budget: Home Purchase and Rehab Hame Ownership I?evelopment Housin� Real Estate Development Housin� UDAG Neighborhood Development RLF Rental Rehab-HiID � � r.a 7 100,000 1,OOO,Q00 1,000,000 300,000 500,000 350,000 MRB/MCC (Mortgage Revenue Bonds/Mortgage Credit Certificates) Each year the City/HRA has the authority to issue up to approxnnately � 16 million of taac-exempt bonds for mortgage revenue bond loan/mortgage credit certificate programs, rental housing or other eligibie uses. $16,000,000 is the estimated allocation for 2000. (The 1999 allocation was $16,048,000.) The above does not include the current balances in existingfzrst-time and middle income mortgage loan programs, the mortgage credit certifzcate program, and any carry- forward uz�thority from prior years. LIHTC (Low Income Housing Tax Credits) Each year the City/HRA has the authority to allocate up to approximately $380,000 of low income housing tax credits, which generates private equity investments in eligible rental housing developments. The estimated allocation is $380,000 for 2000 which can generate an estimated $2.8 million of private equity investment. (The 1999 allocation was 5386,364.) TIF (Tax Increment Financing) In the New Housing and Blighted Lands Tax Increment Financing district, the budget was amended to include the following significant funds for the listed housing projects: Railroad Island 1,039,534 North Quadrant 5,196,015 � Etna/Birmingham 915,101 Johnson Liquor Store site 635,000 2 � �e-�� 8. �ESG1(Emer�gency Shelter Grants) Each yeaz the City receives an annual federal awazd_ $350,000 is the estimated awazd amount for 2000. Following is a summary of the above: Summary—Potential City/HRA Housing Capital Funds-Year 2000 Esrimated Incomes Served' Resources Budeet <30% <50% <80% CDBG 4,000,000 500,000 1,325,000 2,175,000 HOME 2,321,000 1,161,000 1,161,000 0 STAR' 3,250,000 812,000 812,000 812,000 HRA 3,250,000 0 0 1,625,000 Subtotal' 12,821,000 2,473,000 3,298,000 4,612,000 LIHTC 2,800,000 1,400,000 1,400,000 0 TIF 7,785,650 600,000 600,000 600,000 ESG 350,000 350,000 0 0 � � Subtotal 23,756.650 4.823.000 5.298.000 5,212,000 Subtotal <80% 15,333,000 (65%) Expected levera�e 54,640,000^ Estimated TDC 78,396,650 MRB/MCC 1b,00q000 0 1,600,000 4,000,000 Total 39.756.000 4.823.000 5.298.000 13212.000 Total <80% 20,933,000 (53°l0) Expected leverage 54,640,000° Estimated TDC 94,396,000 �The amounts projected to be expended serving certain levels of income are estimates based on past experience with each source of income. Z The amount of STAR funds is based on an estimated 50% of the total STAR funds being awazded to housing projects/programs. 3 The above resoutces aze those funds in which the City(HRA has discrerion on how to use the funds. The other resources below are for specifically defined purposes. � ° Expected levera�e is based on actual 1998 figures. Total development cost (TDC) is the sum of City funds and expected leveraQe. 3 ii _ , � . Housing Action Plan 2000 Appendix A Implementation Principles The City of Saint Paul and the Department of Planniug and Econoimic Development facilitate providing Quality Housing across the income spectrum and life-cycle throughout Saint Paul and the metro azea. Qualiry Housing in which PED is involved is sustainable, supplements the private sector, and satisfies unmet needs. A. Quality Housing includes being affordable to the household, which represents a spectrum of house values and apartment rents so as to serve individuals and families at all income levels; 2. in sound condition by complying with or exceeding building, housing and health code standards; and 3. a suitable housing unit for the household, which requires a variety of building and unit types so as to serve the vazied mazket demands and needs of households at different stages of the life-cycle (e.g., detached and attached units and differing � unit size and number of bedrooms). B. Additionally, QuaIity Housing is in an attractive neighborhood setting, which includes confidence in the basics of the living environment such as safety, quality schools, public and private services that meet expectations, property taxes that are not out of line with other communities, open space and recreational opportunities, etc; and 2. linking new development to broader community objectives. C. Furthermore, Quality Housing includes necessary support services for the residents to attain economic and personal stability including home owner and tenant training and counseling, and has convenient access to public transportation and employment, etc.; and 2. requires responsible, financially strong, local, hands-on owners and managers of rental housing. � 1 Y �1 � � � The following operating principles guide the implementation of housing activities in Saint Paul. i. Role ofPrivate Sector Housina development and finance acrivities in Saint Paul should be done by the private sector. Individual properry owners are encouraged to undertake maintenance and repair of their houses and, where possible, acquire and rehabilitate houses that require substantiai improvement. Owners and properry managers of rental housing shouid practice sound properiy and asset management including cost containment measures for development and operating costs, and ensure responsible tenant behavior. Lending for housing maintenance, home improvement, and development should be done by private lenders. Private lenders should be encouraged to create special lending activities and be fu11y enga�ed in community investrnent and revitalization. 2. Role of Public Sector Where there are special or unmet needs that are not adequately served by the private sector, the City should facilitate activities to meet these needs. Sound lending through a public program can effectively meet unmet needs or provide important incentives not adequately addressed by the private sector. � The City's housing development funds should be used to fund the "gap" between total development costs and the amount that can be reasonably provided by the private sector when the project will yield substantial public benefit. City funds should be provided in the least amount with the best terms so as to ma�cimize leverage of other resources. PED/HRA funds are administered in conformance with established HRA and department approved credit procedures. Ownership Interest Housing infrastructure is best maintained when the occupants, including renters, have a vested interest in the property. This can be achieved through direct ownership, or shared ownership through condominium associations and equity cooperatives. Altemative forms of ownership, including leasehold cooperatives and other altemative forms of rental "ownership," will continually be explored for those households for whom traditional ownership is not possible. 4. Strategic Investments Limited housing resources must be targeted strategically to effectively address housing conditions or reverse negative trends. Limited public resources should be tazgeted in the most fragile neighborhoods and to households whose needs are not met by � the private housing mazket. Targeting may also be necessary to achieve adopted Ciry 2 Ia . - � objectives. Tazgeted programs should be considered as an implementation measure of a City approved plan or initiative. Funds available to lower income households including emergency funds for immediate mechanical or structural house repairs and mortgage loans should always be available city-w 5. Neighborhoods as Urban Villages Improvements and new developments should contribute to a high quality, visually inviting, pedestrian-friendly enviornment. The unique chazacter of neighborh000ds should be maintained and enhanced. The "traditional neighborhood design" or the "new urbanism" movements represent recognition of the value of neighborhoods in contrast to typical suburban development. 6. Integrated & Holistic Development Activities A comprehensi�•e housing strategy must be more than the "bricks & mortar" of housing development. Housing activities must be integrated with community development and include support systems and services for residents to achieve personal and economic self-sufficiency. The City supports human services, such as home ownership • counseling and training, mortgage foreclosure prevention, and planning for homeless, and potentially homeless, persons and families, that increase the abilities of households to acquire or rent and maintain Quality Housing. Holistic development is attained only when housin� activities are planned as part of lazger neighborhood improvement initiatives. 7. Collaboration Planning and implementation of all housing activities (including new development, rehabilitation and financing) should be done in collaboration and partnership with appropriate stakeholders including neighborhood residents and other housing agencies. 8. Delivery of Public Resources Public resources for housing improvement and new development must be delivered in a balanced manner to serve the needs of the city and each neighborhood. There aze generally three neighborhood conditions in Saint Paul: (1) sound neighborhoods that have strong private in� estment pattems that require little public intervention; (2) transitional neighborhoods �rith some disinvestment that require public immediate attention to ensure they grow into sound neighborhoods; and (3) fragile neighborhoods that have experienced prolon�ed disin� estment and require substantial attention and public assistance. The City � and each neighborhood should have a continuum of improvement approaches that combine is --� � private and public resources. Delivery decisions (e.g., a request for proposals or a first-come-first-served process) are decided on a resource-by-resource or program-by-program basis. 9. Quality and Mazket Driven Housing City/HRA resources should be used to maintain or develop housing units that are high quality and meet long-term market demands. Development decisions should give careful consideration to the type of unit, site and neighborhood setting. In treatment of existin� units, esterior site plans and interior unit layouts should be improved to better serve current mazket demands and the structure rehabilitated to a high standazd of quality when possible. 10. Building Code Enforcement & Compliance Responding to acute housing complaints while addressing chronic problem properties is critical in maintaining the residential quality of Saint Paul. Compliance with established building and housing codes must be enforced. I 1. Historic and Architecturally Significant Buildings . Historic and architecturally significant buildings are a unique asset of our housing stock and should be preserved whenever possible. The quality, materials and design of older buildings meet the needs of one portion of the mazket that cannot by supplied in suburban communities. 12. Balance Between Increasing Tax Base and Meeting Other Needs Housing and neighborhood improvement activities should balance the objectives of increasing the tas base, and meeting needs of Saint Panl residents that do not directly contribute to aa increased property value. However, increasing the taY base should be a primary public benefit from the investment of pubiic resources in neighborhood and housino improvement. 13. Regional Distribution The City supports improved regional distribution of housing, opportunities for lower income househoids. The City will continue to be an active partner with other funders in addressing affordable housing needs in the region, and continue to be active in initiatives with suburban housing officials. The City should look for opportunities to provide low income housing in less integrated neighborhoods of Saint Paul as weil. i uRas!��r � 14. Affordable Low Income Housing Activities Central Saint Papl neighborhoods will require public assistance in order to improve the quality of affordable housing and thereby, the quality of the neighborhood. The current location of services, public transportation, and ethnic/social relationships will maintain a high level of demand for low income affordable housing in central Saint Paui neighborhoods. Current economic factors make it di�cult for the private sector to provide quality affordable housing causing a lazge amount of low income affordable housing to be met through substandard housing. PED will continue to participate in the Interagency Stabilization Group (ISG) to monitor and determine appropriate actions for the preservation and stabilization of existing, quality, subsidized rental housing. Building, unit and neighborhood density will be reduced whenever appropriate. Decent, suitable, reasonable affordable housing is a proven ingredient in the m'vc of supports that can enable households to becoming self-sufficient--the most important route to less poverty. The income to housing cost gap is substantial for a large segment of Saint Paul's population and continues to grow. The City/HRA should promote economic self-sufficiency by seazching for opportunities to bridge this gap. A broad based approach is key to identifying strategies that can lead to acceptable solutions that ease the burden of concentration of facilities and services for homeless • persons and families. A broad based planning approach should continue including Ramsey County, homeless persons, human service providers, and City and suburban officials. The planning process should be regional in scope, and be comprehensive and encourage new ideas in providing services to the homeless. The City/HRA must take appropriate steps to preserve previous HRA investments in affordable housing in accordance with approved credit process guidelines. The bono«�er/owner must demonstrate a satisfactory record of past experience and continuing long term capacity to provide sound properiy management functions. All parties to a deal must contribute a"fair share" in the financial package that provides adequate levera�e for CityIHRA funds. � 15. Real Estate Acquisition and Development The HRA should consider the acquisition of real estate when it is necessary to meet identified rede� objectives. The City/HRA should facilitate placing appropriate publicly-owned land, including tax-forfeited pazcels, back on the property taY rolls as quickl} as reasonably possible. The City wiil consider facilitatin� the development of new houses on all buildable parcels, including step-up and higher priced housing on multiple lots, Splinter pazcels should be used to increase the size of individual ad}acent lots only when the divided lot is unbuildable according to zoning requirements. L J �, , _ , � In addition to the housing implementation principles outlined above, ten principles for city development have been established. The following principles, originally developed as part of the Saint Paul on the Mississippi Development Framework, have been established as guiding principles for general development in Saint Paul. Evoke a sense of place. With each change, Saint Paul will work for a strengthened sense of place that reflects the city's natural beauty and exceptional heritage. 2. Restore and establish the unique urban ecology. Reconnection of our urban fabric to the Mississippi River that drew the azea's original inhabitants will promote a balance between urban and natural systems throughout Saint Paul. 3. Invest in the public realm. The public realm sets the stage for development and provides the network of connections. We will maintain and enhance this investment, designing improvements to promote safety and quality with an emphasis on improving the pedestrian environment. 4. Broaden the mix of land uses. We will take advantage of the diversity of activity that is recognized as a special advantage of an older city. Residence, work and cultural opportunities in close proximity can reduce travel costs and enrich community life. � 5. Improve connectivity. Improvement of urban life in Saint Paul will occur by facilitating movement, access and connection among activities and places. 6. Ensure that buildings support broader city goals. Saint Paul will consider each addition to the community fabric as an opportunity to enhance its broader location. 7. Build on existing strengthens. We will make every effort at city and neighborhood levels to recosnize and enhance the treasures we have in our economic, cultural, architectural and natural heritages. 8. Preserve and enhance heritage resources. Saint Paul will continue to preserve and enhance its rich legacy of historic resources. 9. Provide a balanced network for movement. Provisions wiil be made for movement by caz, public transportation, bicycle and on foot in a balanced manner throughout 5aint Paul. 10. Foster pubiic safety. We will keep pubic safety at the forefront in design and management of the public realm and apply safety criterial in the evaluation of any proposed private redevelopment. L_J � ���� Local Initiatives Support Corporation MEMORANDUM • �J To: Honorabie Mayor Norm Coleman Council President Dan Bostrom Councilmember Jay Benanav Councilmember Jerry Biakey Councilmember Chris Coleman Councilmember Pat Harris Councilmember Kathy Lantry Councilmember Jim Reiter cc: Brian Sweeney, PED Director �8 -a.�� From: Michaei Olsen and Paul Williams: Co-Chairs of the Housing Action Plan Task Force Date: January 12, 2000 Re: Summary Task Force Report We are pleased to transmit to you the summary report from the housing action plan task force. The report provides some background information on the creation and the role of the task force and summarizes the main themes that surfaced during the deliberations of the task force. We appreciate the opportunity to be a part of the task force. The membership of the task force represents many sectors and brings a variety of important perspectives to the table. We commend you for incorporating the task force process into the development of the annual housing action pian. This process, albeit on an extremely tast track this year, provided a unique oppostunity for constructive discussion and comment on the actio� plan by many of partners that are critical to the successful implementation of the broader policies and strategies outlined in the City's Housing Pfan. If you have any questions about the task fiorce or the content of ihis report, piease feei free to contact either of us. __����� � � � Michael Olsen Paul Williams Twin Cities L�SC � Hamline Park Plaza, 570 Asbury Street, Suite 207, SL Paul, MN 55104 TeL (651) 649-1709 • Fax: (651) 649-i i 12 •a -� � HOUSING ACTION PLAN TASK FORCE SUMMARY REPORT - January 2000 - Background 7he implementation chapter (7.0) of the St. Paul Flousing Plan calis for the creation of an annual housing action plan. The purpose of the annual housing action pian is to outline the specific actions that will be undertaken and the objectives that wifl be met over the course of the year in furtherance of the broader strategies and polices outlined in the Housing Plan. The Housing Pian also calis for the creation of a task force, to be convened with the assistance of the Local Initiatives Support Corporation (LISC), that includes balanced representation and works closely with City staff on the development of the annua! housing action p(an. This year, the Housing Action Plan Task Force was co-convened by LISC and the St. Paul Housing Roundtable, an existing network of private sector and community-based groups that meets regularly to explore city housing issues. � LISC and the Housing Roundtabte, in consultation with City staff, designed a review and comment process for the task force intended to: • Provide balanced and focused input from a broad representation of important stakeholders in housing; • Encourage meaningful engagement of individuals and institutions that are critical to the successful implementation of the plan; • Assure the timely compietion of the plan and the efficient and effective use of City staff time and the time of those that participate in the process. The task force was comprised of a broad cross section of representatives from the public, private, nonprofit sectors. A lisi of the members is attached to this report. Paut Williams, LISC Program Director, and Michael Olsen, Co- Chair of the Housing Roundtable and a Realtor with Coldweli Banker Burnet, served as the co-chairs of the task force. The task force met twice, on November 22, 1999 and on December 9, 1999. Charge of Task Force The task force was charged in the Housing Plan with working in close � collaboration with the City on the development of the City's annual housing action plan. This year, since the process started later then anticipated, the 1 6 Z� � �� • work of the task force was focused mostly on reviewing and commenting on the pfans and budget decisions that were already in place. In future years, the task force wiil convene eariier and follow a timeline intended to produce the housing action plan in line with the City's budget process. The focus of the task force was on imptementation and the development of specific workplans. The setting of broader housing policy was not the purview of this group. The charge of the task force was twofold: • To provide meaningful input and comment in the development of the housing action plan and to make recommendations to the City on specific implementation strategies. • To help identify and secure potential additional resources that may be available to support the successful implementation of the annual. housing action plan. Framing the Discussion Staff from the Department of Planning and Economic Development completed an initial draft of the annual housing action plan. The action plan • was organized around the three major strategies articulated in the City's Housing Plan: ■ Take care of the existing housing stock we have in the city; • Meet new and emerging market demand for housing in St. Paul; and • Ensure the availability of affordable housing for those who need it. The task force acknowledged and was supportive of the City pursuing these three distinct but interrelated strategies in 2000. Given the age, relative affordability, and character of the City's housing stock, the task force agreed that the City needs to continue to invest in the preservation and improvement of the existing stock of housing. The task force also recognized that there is a need and some very reai opportunities for the City to meet new and emerging market demand for housing. An aggressive production agenda is needed in order for St. Paul to keep pace with the region's projected growth. {t is also clear that there is currently a renaissance in city living, both in neighborhoods as weli as in the downtown area. The market is poised to support moderate and upper income housing in ma�y neighborhoods, particufarly the downtown area. Finally, the task � force accepted, as a minimum threshold, the City's stated commitment to have 20% ofi all new housing units serve residents at or below 50% of the 2 �♦ _ � . area median income (10% at or below 30% of inedian and 10% between 3Q°lo and 50% of inedian�. Task Force Conclusions It is important to acknowledge that the deliberations of the task force, while very productive and insightful, were not exhaustive. Given the late start in the review process this year, the task force did not have the time to explore every aspect of the plan +n detaii. Rather the two meetings of the task force were structured to ensure that the task force members understood the basic components of the plan and had a chance to provide comment and feedback on those aspects of the plan that were ofi greatest interest to them. The first meeting provided an opQortunity to share initial reactions and comments to a draft of the action plan as prepared and presented by City staff. Following that meeting, City staff made revisions to the draft action plan and circulated it for review by the task force. At the second task force meeting, members reacted to the changes and provided additionai comments and feedback. Not suprisingly, given the magnitude of the need for affordable housing in St. Paul, much of the discussion at both meetings centered around the City's plans and strategies for preserving and deve{oping housing that is affordable to lower income households. � The task force process was not structured to reach consensus among members on a set of recommendations or conctus+ons. Individual members asked questions, shared comments, and made suggestions. Over the course of the two task force meetings, five main themes emerged from the deliberations of the task force. These themes are summarized briefly below. (1) The action plan is an implementation plan and, as such, it should be more specific about the particular actions or steps that will be taken, the timeline for completion, and the desired, measurabie outcomes to be achieved. Greater specificity leads to greater accountability on the part of the City and its partners. It also helps identify where and how other additional resources can be most useful. The specific information presented on projects and production figures (Exhibits 3.1 and 3.2) is quite usefu! and, with periodic updates (including information on the status of funding commitments), can be used to track progress on achieving the City's production goals. The need for greater specificity is most evident in a number of the descriptions of the priority actions for 2000. For example, the statement "encourage owner occupancy of 1-4 unit rental properties" [Section 3.2(i)] is not particularly heipful in defining the actions or implementation steps the � City is planning to take in 2000. Further discussion is needed to determine a level of specificity for the action plan that is realistic for 3 i� . . � City staff to produce, is useful for guiding the City's actions, and promotes accountability for progress and performance. (2) The projections presented in the action plan shoutd meet, at a minimum the affordable housing goal established in the Housing Plan. The action plan set a goal of 750 units of new production in 2000, with 16% of the units affordable to households earning between 31 °lo and 50% of area median and 7% affordable to households with income at or below 30% of the area median. There was concern that the goal stated in the Housing Plan of 10% of new production being affordable to households befow 30°!0 of area median income was not being met by the proposed action plan. (3) The action plan should factor in demoiition activities when establishing production targets. Concerns were expressed about the impact of demolition on the city's supply of affordable housing. It is important to understand the magnitude of demolition activity and explicitly factor in the loss of units, particularly affordable units, when establishing pians for new production. Without factoring in the loss of affordable units, the City could experience a net loss of affordable housing over time. Further information and analysis is needed in order to better � understand and address this issue. (4) The action pian identifies a Iack of adequate subsidy resources as an obstacle to achieving the affordable housing goals established in the Plan. It would be beneficial for the action plan to project the size of the resource gap, perhaps on an annual basis given the projects known to be in the production pipeline or on a two or three year rolling basis. With this information as a starting point, the City and its partners can more effectively work together to identify and secure the resources that are required to meet the City's affordable housing goats. (5) For a variety of reasons, the production of housing that is affordable to lower income households is very difficult to accomplish. The action plan acknowledges this difficulty and articulates a commitment on the part of the City to support the production of units affordable to lower income residents. Given the chalienges involved, it is important for the action plan to more clearly outline a proactive approach, including the specific actions that wiii be taken to encourage the development and preservation of affordable housing. Many members of the task force shared ideas about actions or strategies that could be pursued in � addition to what was already cited in the plan. A number of these suggestions have been incorporated into the draft of the action plan. � U� v �� • The ideas that were shared by individual task force members are outlined below. ■ Tie City assistance for new production or rehabilitation or rentai housing to a requirement that owners participate in the Section 8 program. ■ Develop a proactive strategy to use project-based Section 8 assistance and Holiman units (if that resource becomes available in St. Paul) to help reach those households at or below 30% of the area median income. • Create a pool of resources ta;geted ±o supporti�g development at 50% and 30% of area median income. Perhaps link with the MHFA Super RFP. Actively solicit proposais from developers for afforda6le housing. ■ Create a weighting system that favors providing City support to developments with affordable units. • Establish thresholds tied to the size of project. For example, if a • project has over a certain number of units, create a requirement that it meet the 20% affordability threshold (at a minimum). ■ Move to a project by project review of affordability. Use the leverage provided by the provision of public funds to assure that the 20% requirement is met on individual projects and small area plans. • Create incentives for owner occupancy of smaller rental properties (duplex, trip{ex, four-pVex properties} that condition provision of City assistance to acceptance of Section 8. • Play a more active technical assistance role by informing developers of the affordable housing goai and identifying the resources required to develop affordable units. • Determine ways to "package" developments so that a for-profit does the market rate component and a non-profit does the affordable component. ■ Explore ways in which the HRA and others could partner with the • PHA to deve�op affordable housing, perhaps using the HRA's bonding authority. 5 6d ��-�-� • • Explore empioyer assisted housing as an option for creating affordabie units. Tie-in to the work that St. Paul United Way and MHFA are doing on this. Next Steps Overall, the task force felt that this was a productive process. The members appreciated the opportunity to engage in constructive discussion on the housing pfan with persons representing a broad cross section of perspectives. It was recognized that the task force membership includes many of the key partners that need to be eng2ged ir� order for the City to successfulfy implement the broader visions and pfans articu{ated in the Housing Plan. Several next steps for the task force were agreed upon. First, the task force wiil meet on a quarterly basis. City staff will prepare a summary progress report, including the status of individual development projects, for review by the task force. Second, the task force will be convened early enough next year to be in a better position to help shape the housing action pian before budget decisions are made. Third, the task force wi11 examine whether it needs to broaden its membership to include other , important perspectives. Finally, the task force invites the City to continue to use this group as a resource when working on implementation strategies related to housing. u � bb ��� �� � Housing Action Plan Task Force Michael Olsen, Co-Chair Realtor Coldwell Banker Bumet Paul Williams, Co-Chair Program Director Twin Cities LISC Carmen Berg Executive Director Summit-University Pianning Council Jim Erchul Executive Director • Dayton's Bluff NHS Colleen Fraley Deputy DirecYor Fannie Mae, MN Partnership Office Tom Fulton President Fami{y Housing F�nd John Mathern Mendota Homes Terry McNellis Managing Director US Sancorp Piper Jaffray Gary Peltier Special Housing Advisor St. Paul Dept. PED Kirby Pittman Poficy Anafyst MHFA Vic Rosenthal Jewish Gommunity Action Caty Royce Executive Director Community Stabilization Project Stephen Seidel Executive Director Twin Cities Habitat for Humanity Barb Sporlein Deputy Director St. Paul Public Housing Agency Mary Ann Sudeith Vice President Firstar Bank � ��� V���� Presented By Green Sheet # �� 5�.00 l RESOLUTION OF SAINT pAUL, MINNESOTA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Referred To a� Council File # �� � c�.�G Resolution # Committee: Date Resolution Approving the Housing Action Plan 2000 WHEREAS, the City Council adopted a Housing Plan, a chapter of the Saint Paul Comprehensive Plan, on March 24, 1999; and WHEREAS, the Housing Plan states the City should develop an annual housing action plan; and WHEREAS, a task £orce was co-convened by the Local Initiatives Support Corporation and the Housing Roundtable to review and comment on a draft action plan prepared by staff of the department of Planning and Economic Development and WF3EREAS, the Housing and Redevelopment Authority Board of Commissioners reviewed and endarsed the Housing Action Plan 2000 and recommend to the City Council the adoption of the Housin� Action Plan. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Ciry of Saint Paul, Minnesota, that the Housing Action Plan 2000 is approved. Requested by Department of: Planninq & Economi Development By: �— Jl'� ` � [ � Adoption Certified by Council Secretary gy: � a- � �- - � Approved by Mayor: Date /.{/[� `� L^o"�� By: Form Approved by City orney By: Approved by Mayor for Submission to Council g : l%�� G:�Shared�PELTIER�hap\OOccresavpd Adopted by Council: Date ��._� a•�- ��G7�p DEPARTMENT/OFFICE/COUNCII,: DATE INITIATED GREEN SHEET NO.:IOZOOl O PED March 10, 2000 CONTACI' PERSON & PHONE: TE ii`7iTTnIeDA'1'E Gary Peltier, 6-6619 � 1 D�e�z�rn�Nr Dm. a ciTYCOUrrcu. r MUST BE ON COUNCII, AGENDA BY (DATE) �ICTN ? CITY ATTORNEY _ CITY CLERK FINANCIAL SERV DIR FINANCIAL SERV/ACCTG � �� g pg BER 3 MAYOR (ORASST.)��"U�_ CIVII, SERViCE COMIvIISSION ROUTING ORDER TOTAL # OF SIGNATURE PAGES 1_(CLIP ALL LOCATiONS FOR SIGNAT[7RE) ACT[ON REQUESTED: RECObIIvIENDATIONS: Approve (A) or Rejea (R) PERSONAL SERVICE CON1'RACTS MUST ANSWER THE FOLLOWING QUESTIONS: PLANNII IG COMMISSION 1. Has this peisonlfirm evec wotked under a contract for this depsmnem? CIB WMA�IITTEE Yes No CIVIL SERVICE COMMISSION 2. Hu [his person/film ever been a ciTy employee? � X HRA Yes No 3. Does this person/firn� possess a slull not nomialty possessed by any cuaent city employee? Yes No Explaiu alI yes answers ou separate sheet and attach to green sheet INITIATING PROBLEM, ISSUE, OPPORTONTTY (Who, What, Wheu, Where, Why): Resolution approves the City's annual housing action plan, outlining the goals, priorities, etc., for the implementation of housing activities during year 2000. ADVANTAGESIFAPPROVED: � Sets housing goals and priorities for PED, other departments related to housing activities, and the community to achieve goals in the Ctiy Council adopted Housing Plan, a chapter of the City's Comprehensive Plan. DISADVANTAGES IF APPROVED : None. DISADVANTAGES IF NOT APPROVED. Commuinity will be uncertain what the housing goals and priorities are for yeaz 2000. TOTAL AMOUNT OF TRANSACTION: $ NA COST/REVENTJE BUDGETED: NA I� fJNDING SOURCE: NA ACTIVITY NUMBER: NA �y�gp g* �� � ���� FINANCIAL DVFORMATION: (EXPLAIN) Na `�_��� �. � 2�QQ K:VShared�PELT[ERW ap\OOgmsht f Oa-�b • Draft 1/14/00 �� � �� � Housing Plan The Saint Paul Comprehensive Plan Housing Action Plan 2000 � • City of Saint Paul Department of Planning and Economic Development ao -�`� � � n � Housing Action Plan 2000 Table of Contents 1.0 Introduction 2.0 HousinQ Plan Policies Emphasized in 2000 3.0 Prioritv Actions for 2000 3.1 3.2 ,� 5.0 �, �.� 3.4 3.5 3.6 3.7 New Housing Production Existing Housing Rehabilitation 3.21 Code Bnforcement Preservation of Low Income Housing Low Income Housing and Homeless Services Plan Mortgage lending Resowces for 2000 Obstacles to Implementation Other Housin¢ Related Activities 4.1 4.2 43 4.4 4.5 4.6 4.7 4.8 4.9 Housing Roundtable Housing Resource Center Business Connection Issues to be Addressed during 2000 Legislative Initiatives Zoning Studies, Neighborhood Planning and Reseazch Support Key Partners Housing Activity Reporting Other Actions Process for Preoazation and Review of Housine Action Plan Exhibits E�ibit 3.1, Housing Activities Projections 2000 Exhibit 3.2, PED Housing Development Projects E�ibit 3.3, Cunent or Potential Preservation Projects Exhibit 3.4, Potential City/HRA 2000 Capital Funds Appendices A. Implementation Principles B. 1999 Accomplishments C. Task Force Participants �. _ _ , . Housing Action Plan 2000 1.0 Introduction The Housing Action Plan Z000 (HAP) presents housing implementation activities proposed by the Department of Planning and Economic Development (PED), in coordination with other City departrnents, and other public and private partners. The Housing Plan, adopted by the City Council on Mazch 24, 1999, calls for the prepazation of an annual Housing Action Plan. Additionally, the Housing Action Plan incorporates actions from the Saint Paul-Ramsey County Five-Year Low Income Housing and Homeless Services Report and Plan (Homeless Plan) adopted by City Council in April, 1999. The Housing Action Plan is an implementation plan on what actions will be taken during 2000 to implement the polices in the Housing Plan and the recommendations in the Homeless Plan. The City of Saint Paul's role in the implementation of housing related activities includes several department and offices of the City, including the Public Housing Agency. However, this Housing Action Plan is primarily the priority actions undertaken by PED, with brief inention of the work of the City's building and code enforcement offices. Other related activities include the Housing Information Office. � The HAP 2000 will also serve as Saint Paul's action plan required by the Metropolitan Livable Communities Act. In that capacity, it will be submitted to the Metropolitan Council to document the City's intended actions to carry out its agreed upon housing goals. The HAP 2000 is arranged in the following order: Section 2.0 Hozrsing Plan Policies Emphasized in 2000 Section 3.0 Priority Actions for 2000 Section 4.0 Other Housing Related Activities The three strategies outlined in the Housing Plan aze used to organize the HAP 2000. These strategies aze: Take care of what we have Meet new market demand Ensure availability of affordable housing The procedure used to prepaze this annual plan is outlined in Section 5.0. The section includes a recommended action to consider during 2000 what, if any, changes should be made to the procedure for the prepazation of the HAP for 2001. An appendix includes implementation principles. These principles will guide the � as _ - . implementation of housing activities. They incorporate the ten principles for city development, originally developed as part of the Saint Paul on the Mississippi Development Framework Another appendix provides a summary of housing accomplishments during 1994 including indicating incomes served. It is expected that the Housing Action Plan 2000 will be approved by Mayor Norm Coleman and the Saint Paul Ciry Councii. � � 2 �b ° � � � Housing Action Plan 2000 2.0 Housing Plan Policies Emphasized in 2000 The Housing Plan outlines three distinct—but highly inter-related--strategies. In each of the three strategies, certain policies or actions aze outlined. Below as part of each strategy is a list of the policies/actions that will be emphasized in 2000. The policies that will be emphasized in 2000 are briefly stated below each strategy, and aze stated completely in the Housing Plan 2.1 Strategy 1: Take Care of What We Have • Continue and expand efforts to enhance the city's traditional neighborhood design. • Preserve historically and architecturally significant buildings and neighborhoods. • Step up code enforcement. • Strategically focus efforts to stem deterioration and declining values. • Improve management and maintenance of rental properry. • Priority will be given to projects that commit to the long-term affordability of housing units. 2.2 Strategy 2: Meet New Mazket Demand � • Encourage the production of housing. • Promote good design solutions. • Encourage the production of rental housing. • Encourage a diversity of building and unit types. • Encourage innovative development through regulatory reforms. • Assess and meet the demand of seniors. 23 5trategy 3: Ensure Availability of Affordable Housing • Challenge the region to provide a full range of housing choices to meet the needs at all income levels. • Identify and secure significant additional resources to preserve and construct affordabie housing within the city and the region. • Preserve existing federally assisted housing. • Provide 10 percent of the newly constructed units to be affordabie to households at 50% of the area median, 10 percent of the new units affordable at 30% of azea median. • Follow the local replacement housing policy. • Support initiatives that assist lower income households achieve home ownership. • Implement the Saint Paul-Ramsey County Five-Year Housing and Homeless Services Plan. � • Explore policy options used by other metropolitan azeas. I�b - 2-� � • Housing Action Plan 2000 3.0 Priority Actions for 2000 The City and PED facilitate providing Quality Housing as defined in Appendix A. The implementation of priority actions will be guided by certain implementation principles, also outlined in Appendix A. Though the foAowing outlines specific implementation activities, the City/HRA will always consider new opporiunities as they arise during the year. Additionally, City/HRA will continue Yo create flexible funds that can better and more timely react to neighborhood and development opportunities. The priority actions outlined below, especially the projections for new housing production, is an aggressive list of housing actions. The CirylHRA embraces, encourages and welcomes housing production for all income levels. The City/HRA encourages an annual production objective of at least 4�0 new units. This production level will meet the annual objective in the Housing Plan as well as offsetting anticipated demolition of housing units. The City/HRA commits to the production of units affordable to households at 30% and 50% of area median income. It is cleazly recognized that, to attain the projected level of production of new housing units, additional public and other subsidy resources must be secured, especially to attain the 20% goal � of new production for low income households. In addition to the potential lack of adequate resources to achieve the projections, other obstacles are outlined in Section 3.7. Regazding the projection for new housing production during 2000, E�ibit 3.2 includes active housing development projects that can potentially start construction during or after 2000. Every effort will be made to start construction on these projects. However, based on experience on how long it takes major projects to begin, the new housing production projection indicated below for 2000 is 750 units. 3.1 New Housing Production a. Support the production of ownership and rental housing in Saint Paul. At least 750 units should be under construction or completed by the end of the yeaz. b. Implement the pilot program to reduce costs and speed approvals for housing construchon. c. Work with the private and nonprofit sectors and other public agencies in developing and financing a diversity of building and unit types, rental and ownership, throughout the city, for a broad range of incomes. d. Provide financing for the conversion of non-residential properties to housing. e. Provide interim and gap financing for new replacement (infill) single family houses and the rehabilitation of vacant houses. Identify ways to increase the volume of new single family house conshuction and the rehabilitation of vacant • 0 �o -a�� • houses, including implementing the Urban HomesteadlVacant Lot initiative. f. Subsidize the provision of low income units in new housing developments. g. Work closely with the Public Housing Agency, Habitat for Humanity, the Wilder Foundation and other key partners in developing housing and providing support services to low income households. h. Support legislative and other efforts to increase Saint Paul suburban low income housing developments. Attached is Exhibit 3.1 projecting new housing production in 2000 with City/HRA assistance. Attached is Exhibit 3.2, outlining a list of active housing development projects that have a good opportunity to be started during and after 2000. 3.2 Existing Housing Rehabilitation a. Support the rehabilitation of housing in Saint Paul. At least 590 units should be under construction or completed by the end of the year. b. Provide home improvement loans for a wide spectrum of incomes. Identify ways to increase the volume of home improvement loans. c. Provide rental rehabilitation financing. Explore alternatives for owner occupancy . and rehab of small rental properties. d. Provide financing assistance for hazardous materials removal including lead- based paint. e. Originate purchaselrefinance and rehabilitation loans for a broad range of incomes. £ Provide gap financing loans to enable home owners and buyers to purchase or refinance and rehabilitate homes, where the cost of rehab exceeds the increased market value of properties. g. Provide rehabilitation loans for child caze facilities including single family houses. h. In collaboration with private, non-profit and other public partners, explore means for substantial expansion of owner and rental rehabilitation. i. Identify and market appropriate programs and other initiatives in conjunction with the residential street paving program. Attached is Exhibit 3.1, projecting rehabilitation in 2000 with City/HRA assistance, based on potential City/HRA 2000 capital funds outlined in E�ibit 3.4. 3.21 Code enforcement a. Strengthen inter-department communication working toward a coordinated effort to deai with problem properties. Explore possibilities of forming smail information focus groups of City staff to deal with specific problem properties. � bb-��� � b. Work with federal and state officials to identify and remedy the causes of building abandonment and to reduce the amount of time a building in foreclosure remains vacant. c. Expand the "Crime Free Multi-Housing Program," including making it a condition for a rental properry owner obtaining financing assistance. d. Implement new computerized record keeping systems for the certificate of occupancy records in the Department of Fire and Safety Services, and make the records accessible to other City offices. e. Focus and intensify code enforcement resources on the most serious problem properties including considering a classification system related to the frequency of inspections for all rental properties (with three or more units). £ Explore resource opportunities to go along with code enforcement in order to encourage improvement of units and reduce evictions and demolition of units. 33 Preservation of Low Income Housing a. Continue to be an active member in the Interagency Stabilization Group (ISG), through active monitoring of existing low income housing developments, and participate in the preservation and stabilization of low income housing. b. Provide financing assistance for the stabilization and preservation of federally- assisted pro}ects, and projects in which the City(HRA has made previous � investments. c. Allocate federal Low Income Housing Tax Credits in accordance with separate City Council approved criteria and procedures d. Modernize and maintain the public housing stock in accordance with the Saint Paul Public Housing Agency (PHA) Five Yeaz Comprehensive Grant Program. e. Maximize the use of the PHA Section 8 tenant-based housing assistance. Attached is Exhibit 3.2, projecting the amount of affordable housing (known at this time) in potential housing development projects to be started during or after 2000. Attached is E�ibit 33, listing the current and potential preservation projects. Attached is Exhibit 3.4, projecting the incomes served related to the potential capital funds to be available in yeaz 2000. 3.4 Low Income Housing and Homeless Services Plan a. Support activities to prevent homelessness, provide shelter and housing, provide homeless services, and secure funding for priorities. b. Assist in the financing for the development of a transitional 13-unit shelter for homeless youth. c. Assist in the financing for the development of 12 units of transitional housing for � 0 00 -acot S families. d. With the County as lead, participate in establishing a funders council to improve the system by which funding decisions aze made. 35 Mortgage Lending a. Provide financing for at least 360 home buyers (including home owners for refinance/rehabilitation) with a wide range of incomes. h. Provide special assistance loans to low and moderate income households to enabte them to be home owners. c. Continue efforts to retain home owners in danger of foreclosure. d. Provide city-wide home buying counseling and finance, including support for the Home Ownership Center. e. Continue CiryLiving marketing efforts. Attached is Exhibit 3.1, pro}ecting City(HRA mortgage lending program activities for 2000. 3.6 Resources for 2000 a. Initiate discussions with private lenders, philanthropic organizations and other � entities in the financial community to provide interim and permanent financing for new and rehabilitated housing. b. Identify and secure additional resources to produce and preserve affordable housing. This is a significant prioriry and challenge in order to achieve the production projections outlined in this plan, especially the goal to have 10% of all newly produced units affordable to househoids at 30% of the azea median income. c. Along with the Public Housing Agency and the investment banking community, explore opportunities to use "essential function" bond financing for the production of gubticly-owned housing affordable to low income households. d. In addition to funds directly administered by City/HRA outlined in Eachibit 3.4, apply for other resources including the following: Federal McKinney Supportive Housing Programs (to subsidize the acquisition, rehabilitation, and operations or human service costs for projects for families and individuals who are homeless or aze in a transitional housing program). Metropolitan Council Livable Communities Demonstration Account. MHFA Super RFPs (including funds for ownership and rental projects/programs), incorporating funds from MHFA, Met Council, the Family Housing Fund, and PHA (project-based Section 8 assistance). MHFA's Economic Development and Housing Challenge program (to support economic development or job creation by meeting locally � 7 pb - a-Co � � identified housing needs). Innovative and Inclusionary Housing Program (to support projects with a variety of prices and designs, incorporate innovative building techniques, and where communities waive local restrictions to reduce costs). Hollman Settlement Decree resources (public housing and/or Section 8 assistance) if made available in Saint Paul. Attached is Exhibit 3.4, outlining the potential City/HRA 2000 capital housing funds. 3.7 Obstacles to Implementation Following are significant examples of potential obstacles to implementing the priority actions listed above. The City/HRA and all the housing partners/stakehoiders must work together to remove these barriers: a. Inadequate housing subsidy resources. b. Inadequate resources for redevelopment costs; e.g., site assembly including residential/business relocation and soil remediation. c. The need to identify and the complexiry to incorporate multiple funding sources in housing development financing. d. Need for zoning and related changes for specific projects. � e. Neighborhood and other support; e.g., land use, density, design and affordability issues. £ Challenging site topography. g. Developer selection/predevelopment processes. h. Recent new federal lead-based paint abatement requirements. � D�� 3�� � Housing Action Plan 2000 4.0 Other Housing Related Activities 4.1 Housing Roundtable a. Continue to facilitate meetings of the Roundtable, including a wide-range of public and private representatives, to act as a sounding board for ideas, questions and proposals, providing a valuable, real world perspective about urban housing issues. b. Provide meaningfixl input and comment in the development of the annual housing action plan and to make recommendations on specific implementation strategies. c. Help identify and secure potential additional resources that may be available to support the successful implementation of the annual housing action plan. d. Specific issues the Roundtable may address aze outlined in Section 4.4 below. 4.2 Housing Resource Center a. Continue to develop the Housing Resource Center among City departments and offices involved in housing, working towards establishing a one-stop, publicly identifiable entity to coordinate all housing related housing activities. � b. Consider using the City's web page as an effective means to distribute information. 43 Business Connection a. Work collaboratively with the business sector and other stakeholders to identify measures to increase employer involvement in housing. b. Identify and initiate an appropriate employer-assisted housing initiative(s). c. Explore empioyer-assisted housing as an option for developing housing affordable to low income households. d. Submit an application to MHFA for Economic Development and Housing Challenge Grant program. 4.4 Issues to be Addressed during 2000 A number of housing related issues will be addressed during 2000. These issues may be topics for the Housing Roundtable to discuss, and may be appropriate for the Mayor and City Council/HRA to estabiish policy direction. These issues include the following (Iisted in potential priority order): a. Pilot program to reduce costs and speed approvals for housing construction. (This is a current City/LIEP initiative.) � 00-3-� � * b. Identification of additional housing resources. c. Participation in the Section 8 program be a condition for a rental housing developer/owner obtaining City/HRt1 financing assistance, and consideration of other "smart growth" incentives/financing conditions. d. The level of subsidies. e. Housing developmenUconstruction costs (cost reduction). f. Insufficient number of contractors. g. Method(s) to select projects and awazd of City resources; e.g., RFP process, participation in MHFA 5uper RFPs, etc. h. Construction quality and design standazds. i. Education of the community/neighborhoods and residents about increased housing density, rental housing, affordable housing, etc. � 4.5 Legislative Initiatives a. Improve acquisition of tax forfeited properties. b. Support continuation of funding for state programs like the State Chailenge Grant, and Innovative and Inclusionary Housing funding. c. Urge the legislature to support initiatives which encourage the production of low income housing outside the core cities. d. Support changes in tax increment, tax-exempt bond, tax credit and other financing methods that will enhance the City's ability to meet its housing goals. e. Consider and support the legislative agenda of NAHRO, MALHFA and other housing related entities. 4.6 Zoning Studies, Neighborhood Flanning and Reseazch (These items are listed in potential priority order): a. As authorized by State law, consider taking steps to allow rezonings to be done by a non-petition process. b. Consider appropriate zoning code changes to implement urban village improvements. c. Continue appropriate neighborhood and project planning for each potential development site outlined in Exhibit 3.2. d. Continue and initiate new appropriate neighborhood and project planning for new development opportunities; following are potential examples: • Franklin/IJniversity • Pennsylvania/Rice • West 7`'' Street (neaz River Centre complex) East 7�' Street Concord Mainstreet • 10 i� - � Phalen Corridor Initiative development strategy sites e. Initiate appropriate 40-acre land use and zoning studies for potential development areas; following aze potential examples: a. Shepazd/Davern (overlay zoning) b. Koch/Mobil site c. Franklin/CJniversity d. Como/Dale f. Take necessary steps for city-wide zoning code to comply with the Land Use Plan. g. Consider zoning provision changes to allow accessory housing. h. Explore policies, programs and initiatives of other metropolitan areas to identify any new approaches to housing production, rehabilitation, financing, and affordable housing. 4.7 Support Key Partners a. Support the LISC sponsored National Community Development Initiative (NCDI) and participating CDCs that includes the objective to develop or improve 2000 housing units by the end of yeaz 2000 (2000 X 2000 initiative). b. Support the Public Housing Agency (PHA) in the operation of public housing, � Section 8, and homeownership programs, and possible housing development activity. c. Work with the Minneapolis Community Development Agency (MCDA) in the delivery of joint mortgage revenue bond loan programs. d. Support the Home Ownership Center in providing a continuum of home buyer and owner services, including the Mortgage Foreclosure Prevention Program. e. Support the work of the Family Housing Fund and other low income housing advocates in providing funds to support development activities and services for low income families. £ Work with the Minnesota Fannie Mae Partnership Office, the Minnesota Mortgages Bankers Association, and other parties in the private lending industry in providing a wide range of financing alternatives for ownership and rental housing activities. g. Work with key public funders in providing resources and other services for a vaziety of housing activities, including the Minnesota Housing Finance Agency (MHFA) and the federal Department of Housing and Urban Development (HUD). h. Support the activities of the Wilder Foundation in the ownership and development of "serviced enriched" housing for families, frail elderly and single adults i. Support the development activities of Habitat for Humanity. C� 4.8 Housing Activity Reporting il r� -a-(� � • a. Produce a regular report about PED housing activities (including subgrantees) including: type activity, units, City/HRA funds, total development costs, and incomes served. b. Produce an end-of-the-yeaz report includin�: PED activity, activity by other public agencies, subsidized housing (gain/loss), affordable housing generally, and housin� units in the city (gain/loss). 4.9 Other Actions Sponsor jointly with Minneapolis the Saint Paul/Minneapolis Home Tour. � � 12 r. , , , � Housing Action Program 2000 5.0 Process for Preparation and Review of Housing Action Plan 5.1 Background/Context The implementation chapter (7.0) of the Housing Plan calls for the creation of an annual housing action plan. The purpose of the annual housing action plan is to outline the specific actions that will be undertaken and the specific objectives that will be met over the course of the yeaz in fiirtherance of the broader strategies and polices outlined in the Housing Plan. The Housing Plan calls for the creation of a task force, to be convened with the assistance of LISC, that will include balanced representation and will work closely with City staff on the development of the annual housing action plan. LISC's involvement in this process was intended to help assure that many of the organizations and institutions that would be vital to the City's success in implementing the Housing Plan would be engaged in and supportive of the City's plans. 5.2 Preparation of Housing Action Plan 2000 LISC staff and City staff discussed how to best structure and carry-out the process � described in the Housing Plan. There was agreement that the process should be designed to achieve the following: Balanced and focused input from a broad representation of important stakeholders in housing. Meaningfut engagement of individuals and institutions that aze critical to the successful implementation of the plan. Timely completion of the plan and the efficient and effective use of City staff time and the time of those that participate in the process. In order to meet the intent of the Housing Plan and to achieve the outcomes listed above, LISC recommended that a task force be created. To take advantage of the Housing Roundtable fonun that existed, LISC co-convened the task force with the Housing Roundtable. 5.3 Chazge of Task Force The work of the task force focused mostly on reviewing and commenting on the plans and budget decisions that were already in place. The setting of broader housing policy was not the purview of this group. The chazge of the task force was twofold: � • To provide meaningful input and comment in the development of the housing 13 �s . . . � action plan and to make recommendations to the City on specific implementation strategies. To help identify and secure potential additional resources that may be available to support the successful implementation of the annual housing action plan. 5.4 Composition of the Task Force The task force has abaut 15 members and includes representatives of the following groups: LISC Housing Roundtable Private Lender(s) Investment Banker Fannie Mae MHFA PHA Family Housing Fund Private Developer(s) CDC(s) � Housing Advocacy Organization(s) District Council(s) The intention is to involve a balanced cross-section of stakeholders while keeping the size ofthe group manageable. 5.4 Preparation of Housing Action Plans in the Future The intent is to have the task force involved on an annual basis in the development of the housing action plan. In future yeazs, the task force wiil convene earlier and will follow a timeline intended to produce the housing action plan in time for it to inform the development of the City's budget for housing. The Housing Roundtable and the task force brings people and institutions together that can help the City achieve its housing goals, and supports and strengthens genuine partnerships between the City and key stakeholders that aze needed to get results. ►..J 14 �a,-+' � � � O O O N C O w u � .� •--� � M L �a � � W � y u � � .� '_ � x 0 0 O N C R a � 0 u Q OL a ._ 0 x � o t� c [� M o iD t� M e V' v> o N o e o N �n �n 7 o N M� f^ ° '/� � e M� W — _ M Q V' C'1 N •-• •-• � � M n N E 0 u e � w M oo c� �� v v oo �� r' o e o� � c� �� o+ e� ' e N � N M o o t'� O� N o o V' V' O [� e o M e R W N M��li N M� � t � ^ V V�i � M� v e � � 3 � � � N C U V U U u L W e V V O 00 o e f� (V O� o o h o y� •--• �D o a en o c p o '- N W � e e lV [� O� o e o e ^ i N M1 e e V1 e e e � �,�„ N ^ M y� � N M ^ O M N M ,e � E E � E E � � U R M u V u u _ y 9 .•" a+ C L� �n Q O �p O O M e0 ^ e O O O �� v. O � � V1 � l� vl � N 00 = OO e U U 0� N _ E � o � � e = � o z ^� � = � � � � � � C � N N Y c0 R �.�t �.�J. V U � 6 n. � c�C z m C N M V' ^ O O '- � O 00 ^^, v� e7 R [� � N � v� O� sT O M N �O O p G N R t� t� N VI M N � f7 l� F� — ^ � r � ° R O � o J vi N C L R ti O � bll .� ' � � y ° � z � F � � O � � � .°� � c z �a > �- o U � E" ` ia C c��c .� F" � V = ° F ° r c ':- W Q � °'�' O " ° o _ .� a bb � � � Q U � v c U C7 ��, a 6. � :° p o :v ti � c `� C � �'' � 3 00 �� 3 �� w�� o ! � 0 'O P z R a. � C � y G `L� �n y G T. � �°, [..`a O „� = � 0 .' ,, R R S � Q r.n ..] .] ' 0" y Q� � d � Q O � b0 L � t�.0 Q Q � ;� a� � F �� � F � i•R � '� r F F G Z�n O � � 'C,' S ce F �, g� a � � O O • • � � 0 z O vi � N CJ CJ L � � � � L �' � r .-.�+ � N h T c � o L � � � � L � � L � � C] U W � a " � w a � � � � � � pp r � � U O � O � LL .. N �a�J � . � O �e a� o � � � .�' � O U � t�<. C. � U 'a.' 'L3 w ., 'a O � O � c1 ,� . v 4-i � � .. � � a � � G N N �.--."' x .�, ,; b � ����� �y��o ,. � � � - ; U .� .0 cd ^ � � ❑ U 3 � X '. G N �� �U 0 N 'O > �> a o �a s R � � � U � � � O � y m � U in N � U .- r �. � rn ... � N p 'O p' � U � � • � �� V � � C �+ O C � � y „ y y .� � c L � ....� � iy N '_' A. N � � 'O � � bA � y ¢ � � � °' c a'�i 3 c �=�zo� -- N M 7 �/1 � .� 7 b-0 C 'a c �: N � 1. O � � O � � N .S O U N � � 0 � 9 � 8 � 0 � � _ V� i . i �� , . , I' 1 L. I � � � C.7 � �O 3..t �I �.+ �i � N � M Q � � XA Lzl o!� C .� � 0 A � � O O O N C F a c � � L" '» 7 O w � on cs a 0 U e E G 0 U 7 Q u (. 0 0 N •= C � � R y E .'7 � C G . A L Y 00 . a 7 L � a O c � i 4*] u _c,q >;'; � ;,:sc N � �';;°'�: O O � O O O : O O O O O O O O � � � 0 � � e°�Cv l� � � � � � � � . ti (V � �n � f7 � � �E?'ci � N M � N `s`w? � N O O . N � %�c� � r � � O N �/b O O O in M M N M � r. y � �p X Y c�s � 'vi vi v t i C � 'O � � �a v�i V�i � � o „�+„ \ in w N CO o � � � C' (V C � (��\ � � � O � " 4 �' � O `f � � 0 " .f . ca ' G' 'V .• i-. O O o O \ � � � ^ .�-. M U O U a a. � � a ?,;,'>:. o y . � '.:?�: N � V O N � o .� .0 � .L ._: `v` ^ O N � ~ ~ O � � O � 4 � � t � :� o :° �.�? °- p 3 � o a� � a� ;:C:"2 C � C p U G� V 'O v� n!;'a ,°'. v .°'. a y o 0 0 , , a� o� a � r, � '";�:; �� c;� c c c. z° c c°• ;.W. � y O� E o� O ,O o � o O C : : . �, Z �'��'�' . ."f< y q U��U C� ^ U V � '�' j� CJ � `.:'t�:�. � 'B � � ��„ � o � ..�. � � w � � � C >:�'3�IT.: O � C � ��.. C ° C w C � � � G � ?;:�+, :; O r. 7 N I:�Li:. N R^ � O� U U QJ �U � � .� O V O U � fs ', � 0 3 r, 'w 3°3 3'� 3 0 °� 3 3 y i�i'?�<:S w� o a� � \ �a �� z� Z° a: .� z z� '.:,."'�i.':; � 7.� z V�u z v� i�;;, <:::'.+��:;� .ii9:.> `:a�tE `:GJ:i>L. o ;w.� 'Et�:.Y.?.:' CO °::�:� � rx:� �'o '��"?';. '� :' �:.s :�. q .: `� � � >P'rs�_ � � E rn o : �>: . . �.���.%� O � � � � x �i ::.�:�"` ' Y � �i c3 � :.::M?'o_: ��if � � �j c F 'O � .. N G', ;a:'k7',' w m c' " o ^ a� � �, p ::,<:az;; � o� i o a w � ' `�� ° F " ' r� A a �� � � c�a � o ,.,��„ ¢ p �'��:''' C. v. N 'D �n C .� N cJ R7 y � � �- R � � c � i R o � � � v G � � ' N tQ `' T ° U ; _..� s;i � � av � o � .�` � o�' � �� � a� a�� �<�>< a¢¢ z¢�n aq� c��N aF ��cic=, z¢ �v�v^ :.wr.:_ ����:. :..:�:. ?::�%�}2':: .> :5.�.`:i �"�::'Qt,; N cn � v� V' 1� o0 s�a , . � � • � �+ U � .� L a C � � � Y O � � � t d WA GA ti . .3 � Q W n�r 0 0 0 N O � CL C O � V Q � L�' y 7 O x N ai bA �4 a y 0 U � U � c 0 U i A R F L O � •= C V] n- R w O � F .'� G O ,a u A bn m C � � � � �. U a O � a`aA � � � � � � � o o � � � O O � � O O O � O O O O O O O O O O O O 4'� h O O O' O N O N N ^ O v� O � G; [� M 01 V r �n O in �^ N O in O in in in f� .• N � N N N [� N V OJ � � 0 O o � � ~ N v�i � � 0. aNi � . o ' � ° o ' � � �o �e > 'o � o �, a O � � ^ O � � � p � T 0. � � O O o ,Y � O � �O �'o" O p� ¢ C 0. � O ^ i o V � �.G O � 9 U O O � V v w m 'D .p R y� i. �\° N � N O C c � c � � ti o � � � c ^ ;; o :: ^ a� a'� o ❑ o � Vl U y O V� � o U3 0 0 0 y 3 c o 3 0� �� V pp V� U ., f. �... V H 7� � f.�i � o ^ o "u \° � o � O N'^ O � U r�i� � O ti O � O O O vt y h C C C� ' �n U� U U C�' O (�j c �U � N�p y o y� y( j W c M y G y o �,X Z° 2:. Z�. ` c�i:. z ° Zc U� � N L O � C � '� � L �. �C � c C a 'b � C C'D o C'9 � C . p P. �O y E C G' O C a y � i ` O C O C y O G C O U i .j � 'p �l y 3 .fl �,. � y � � a�i ' � a � .Y �' R '�O C C� � � a? LQ p� .Ti A� '�O �� C N U o � x �'.� o �� �� ..,�� ��� o�� ��� � Y CA � ❑� N 0 N O N y 'O d y W a> y y� � `� c o°" > `°� � >c" c 3a' � ��' � ,��r� OU� �a� a�,ciiu: a.U� �vi 3 v�v� � COv� � E-�Caw O N M 'cF �n V' � �fl,a� � � � � � u � .� 0 x, a C � N � y O � � ... > '. y xA W tn c .� O O A r � ^ �I 0 0 0 N C R a _ 0 U � CiD � .� O H M N nU c6 P-� w 0 U U L c 0 U � Q R E" L O rn •G C � � R y O G F o-�. c 0 a . U �I Y 00 C � � i � a O . � � c��.ia � Q � � � � � � O O O O O O O O � h O O O O M � N O V' N N N � O � O Y O � O l� m V' 7 N � N � � � � � 0 o N o F � o � x i x � v ' F � R 3 7 N� C � o � � R � N 'D G. y �� O \ � i .�. � o °� 3 c o �� a a ' � �, o � a� a� � � �- :c � °�' `�' '�' � z y v �y a�i o s: �r s". �o �� �x o� u � � c° C K o � Y o�o �. h w ti� o E 3� ��; '8 E 0 0 0� N Qc o 0 0� o o a y� .� N . o t° ,."C� `° ° , 3 v' , o �' �� ° ° ,° � `�' \° '-�' � . . t0 ` `�' � " w � � � � ,-, � O o s � v . N . c .�.� �O ° °° 0 o na /�� �i � G U O D U^ �^ ��° m � ° y y� y � y y Y �Z� �Z oa � 00 2G z ca Z° z Z A. b � � o R M X' O � X ,� y c�a 0�0 N O � � � � � y � � � � i- = A �J � �C " � O 'm O � O � O v� ^� .p pp � N ^� a 4J R N F N ��.��+ c�d a��.. O�� c�C O i.� ^r V] p � '� Q W [� �p � � p '� U � .`.� � i, a y F � ¢ �� z '� �.a v� a�i a"'�i � a W � ` � o� a�i m` � 3 o F m � o rn R n. U� d v� civS �v��"� �� F 3�� c7 �� �¢t� zzcb� ^ � � O .-� N M 7 N N N N N r� - � �1.�+ c� a� ._, 0 s. a � � N � � M O ... ...i ..O � � X A W tA C .� .'3 � A � R� O O O N C R a c 0 � V � CO C . O O '. C� � � � � a � � 0 � > � a � 0 F � � N .� � � � CT i. F � C O c . U Q v � � G 7 v v c i� „] O CJ u C`.WCa O O O m O m O in .� v .-. v r a� w 0 � � � O T � �� w � .D R > � °�' ° � °' � a�i o 7 7 N � 7 �' �rn '� � R � � C N x x � o x � � H � � � 8 � ° o 0 o a¢ o 0 0 `� � � . �„ l� .. V 7 U U = v� .3 � N .� U N y y � �^ �> m W � O � i � '� ❑ 0 3 '�, 0 0 � � � � o � � � 3 � � c�' �; 0 � c o c � H � U P. V F. > > U � m � � '�O � F CO w ` ��„ � 4; 'O �O C C L'. �" '� c O � '� . Ti . O , �y � a� .�.. � a`i 0.l N � N � y � t�tl 7 V y � O �� tn N � R t�C p R yU dv� � ;� � ❑E"' wU coU'D �U 3¢ zaiw" 3 � c�� ti¢ �¢c� c�E �A \D l� 00 G1 O N N N N N N M M e't ao�a�� � � G � .� O L � � G � N � � M O ;� � .� � WA CD C .� � 0 x A a 0 0 0 N G R a � 0 y u Q CD C ._ 0 W �� � � � � � 0 � a U > U �- � O E"� L O v� G 'C � � R y O G F � G a . a v co a � � 'O L a`�i C u a o ^ Q v .� P� G � M N V' � 'V N � N .. N M� w � o � F o � � O O U � y c. a a�i � N y � N O y y U � � � � z ,� O O y �� o 0 0 0 o a 3� � � � � � �� c "-' T� rn m v� �n m ' w � � N O O O O O �� i U U U U U y y ..�+ � C �w z z z z z ?.� � C��J U � y � � s . � � � R y � � � y � x U N V �. c� �� °' 3 � a'� t° a p�n a�i p = p �id °? ca c�i � C O G�� '`"�� � �� y Q� � V] r � w 7� a> a> C� � d '� �, . rn . o c. � a, � w � o �� wE-� W �vi0 Uvi �vi d �n c7 7 N 'V 1� 00 G1 t'1 M t+1 M M M M 0 v U 6 00 .a� � � Housing Action Plan 2000 E�ibit 33 Current or Potential Preservation Projects Following aze existing low income housing projects that aze being reviewed by the Interagency Stabilization Group (ISG) and(or the City/HRA is actively involved in refinancing and stabilization/preservation activities: Liberty Plaza Lonnie Adkins Court Community Plaza Cornerstone Skyline Towers Hampden Square Units 163 77 40 12 506 86 Following are other existing low income projects that aze on the ISG Watch List that are potential 2000 preservation projects: St. Alban's Park � Vista Village Wiider Square Cooperative Shamrock Court Rockwood Place 74 47 135 147 167 � i� ' " . Housing Action Plan 2000 Exhibit 3.4 Potential City/HRA 2000 Capital Funds Below is a summary of anticipated/estimated capital funds to be available durin� 2000 applicable to housing projects and programs. Based on past experience, though these funds aze expected to be available and committed to projects/pro�ams during 2000, it is not expected all the funds will be closed during the year. CDBG (Community Development Block Grant Program) Following is a sulnmary of CDBG programs in the proposed 2000 budget PED Proerams Home Purchase and Rehab Fund Home Ownership Opportunities Fund Housin� Real Estate Development Fund Suberantee Housine Proerams East Side Revolving Loan Fund (DBNHSBSNDC) � Home Improvement Plus (NENDC) Frogtown CDC Facelift Home Rehab Frogto��n CDC New Constnxction Project 2000 Loan Fund (H-MARC) 2. �.. 1,000,000 1,000,000 1,000,000 350,000 150,000 300,000 50,000 150,000 The siimmary does not indude the allocated program/project fi�nd balances from prior years that are available/uncommitted through 1999. HOME (Federal Home Investment Partnership Program) $2,321,000 is the estimated annual federal award amount. (This is based on the 1999 award of S2,321,000.) The above amot�nt does not include allocated program/project fund balances from prior years thaZ are available/uncommitted through 1999. STAR (Sales Tax Revitalization Program) During the 2000 RFP competitive cycles, it is anticipated the following funds will be available: Small grants Large grants/loans 400,000 6,100,000 %� � / i � The above does not include all prior cycle unexpended fund balances, including the STAR Bank Prograrn, and the loan pool available year round.. HRA (Housin� and Redevelopment Authority) Follo�ving is a smnmary of funds available for housing projects/programs in the proposed 2000 budget: Home Purchase and Rehab Hame Ownership I?evelopment Housin� Real Estate Development Housin� UDAG Neighborhood Development RLF Rental Rehab-HiID � � r.a 7 100,000 1,OOO,Q00 1,000,000 300,000 500,000 350,000 MRB/MCC (Mortgage Revenue Bonds/Mortgage Credit Certificates) Each year the City/HRA has the authority to issue up to approxnnately � 16 million of taac-exempt bonds for mortgage revenue bond loan/mortgage credit certificate programs, rental housing or other eligibie uses. $16,000,000 is the estimated allocation for 2000. (The 1999 allocation was $16,048,000.) The above does not include the current balances in existingfzrst-time and middle income mortgage loan programs, the mortgage credit certifzcate program, and any carry- forward uz�thority from prior years. LIHTC (Low Income Housing Tax Credits) Each year the City/HRA has the authority to allocate up to approximately $380,000 of low income housing tax credits, which generates private equity investments in eligible rental housing developments. The estimated allocation is $380,000 for 2000 which can generate an estimated $2.8 million of private equity investment. (The 1999 allocation was 5386,364.) TIF (Tax Increment Financing) In the New Housing and Blighted Lands Tax Increment Financing district, the budget was amended to include the following significant funds for the listed housing projects: Railroad Island 1,039,534 North Quadrant 5,196,015 � Etna/Birmingham 915,101 Johnson Liquor Store site 635,000 2 � �e-�� 8. �ESG1(Emer�gency Shelter Grants) Each yeaz the City receives an annual federal awazd_ $350,000 is the estimated awazd amount for 2000. Following is a summary of the above: Summary—Potential City/HRA Housing Capital Funds-Year 2000 Esrimated Incomes Served' Resources Budeet <30% <50% <80% CDBG 4,000,000 500,000 1,325,000 2,175,000 HOME 2,321,000 1,161,000 1,161,000 0 STAR' 3,250,000 812,000 812,000 812,000 HRA 3,250,000 0 0 1,625,000 Subtotal' 12,821,000 2,473,000 3,298,000 4,612,000 LIHTC 2,800,000 1,400,000 1,400,000 0 TIF 7,785,650 600,000 600,000 600,000 ESG 350,000 350,000 0 0 � � Subtotal 23,756.650 4.823.000 5.298.000 5,212,000 Subtotal <80% 15,333,000 (65%) Expected levera�e 54,640,000^ Estimated TDC 78,396,650 MRB/MCC 1b,00q000 0 1,600,000 4,000,000 Total 39.756.000 4.823.000 5.298.000 13212.000 Total <80% 20,933,000 (53°l0) Expected leverage 54,640,000° Estimated TDC 94,396,000 �The amounts projected to be expended serving certain levels of income are estimates based on past experience with each source of income. Z The amount of STAR funds is based on an estimated 50% of the total STAR funds being awazded to housing projects/programs. 3 The above resoutces aze those funds in which the City(HRA has discrerion on how to use the funds. The other resources below are for specifically defined purposes. � ° Expected levera�e is based on actual 1998 figures. Total development cost (TDC) is the sum of City funds and expected leveraQe. 3 ii _ , � . Housing Action Plan 2000 Appendix A Implementation Principles The City of Saint Paul and the Department of Planniug and Econoimic Development facilitate providing Quality Housing across the income spectrum and life-cycle throughout Saint Paul and the metro azea. Qualiry Housing in which PED is involved is sustainable, supplements the private sector, and satisfies unmet needs. A. Quality Housing includes being affordable to the household, which represents a spectrum of house values and apartment rents so as to serve individuals and families at all income levels; 2. in sound condition by complying with or exceeding building, housing and health code standards; and 3. a suitable housing unit for the household, which requires a variety of building and unit types so as to serve the vazied mazket demands and needs of households at different stages of the life-cycle (e.g., detached and attached units and differing � unit size and number of bedrooms). B. Additionally, QuaIity Housing is in an attractive neighborhood setting, which includes confidence in the basics of the living environment such as safety, quality schools, public and private services that meet expectations, property taxes that are not out of line with other communities, open space and recreational opportunities, etc; and 2. linking new development to broader community objectives. C. Furthermore, Quality Housing includes necessary support services for the residents to attain economic and personal stability including home owner and tenant training and counseling, and has convenient access to public transportation and employment, etc.; and 2. requires responsible, financially strong, local, hands-on owners and managers of rental housing. � 1 Y �1 � � � The following operating principles guide the implementation of housing activities in Saint Paul. i. Role ofPrivate Sector Housina development and finance acrivities in Saint Paul should be done by the private sector. Individual properry owners are encouraged to undertake maintenance and repair of their houses and, where possible, acquire and rehabilitate houses that require substantiai improvement. Owners and properry managers of rental housing shouid practice sound properiy and asset management including cost containment measures for development and operating costs, and ensure responsible tenant behavior. Lending for housing maintenance, home improvement, and development should be done by private lenders. Private lenders should be encouraged to create special lending activities and be fu11y enga�ed in community investrnent and revitalization. 2. Role of Public Sector Where there are special or unmet needs that are not adequately served by the private sector, the City should facilitate activities to meet these needs. Sound lending through a public program can effectively meet unmet needs or provide important incentives not adequately addressed by the private sector. � The City's housing development funds should be used to fund the "gap" between total development costs and the amount that can be reasonably provided by the private sector when the project will yield substantial public benefit. City funds should be provided in the least amount with the best terms so as to ma�cimize leverage of other resources. PED/HRA funds are administered in conformance with established HRA and department approved credit procedures. Ownership Interest Housing infrastructure is best maintained when the occupants, including renters, have a vested interest in the property. This can be achieved through direct ownership, or shared ownership through condominium associations and equity cooperatives. Altemative forms of ownership, including leasehold cooperatives and other altemative forms of rental "ownership," will continually be explored for those households for whom traditional ownership is not possible. 4. Strategic Investments Limited housing resources must be targeted strategically to effectively address housing conditions or reverse negative trends. Limited public resources should be tazgeted in the most fragile neighborhoods and to households whose needs are not met by � the private housing mazket. Targeting may also be necessary to achieve adopted Ciry 2 Ia . - � objectives. Tazgeted programs should be considered as an implementation measure of a City approved plan or initiative. Funds available to lower income households including emergency funds for immediate mechanical or structural house repairs and mortgage loans should always be available city-w 5. Neighborhoods as Urban Villages Improvements and new developments should contribute to a high quality, visually inviting, pedestrian-friendly enviornment. The unique chazacter of neighborh000ds should be maintained and enhanced. The "traditional neighborhood design" or the "new urbanism" movements represent recognition of the value of neighborhoods in contrast to typical suburban development. 6. Integrated & Holistic Development Activities A comprehensi�•e housing strategy must be more than the "bricks & mortar" of housing development. Housing activities must be integrated with community development and include support systems and services for residents to achieve personal and economic self-sufficiency. The City supports human services, such as home ownership • counseling and training, mortgage foreclosure prevention, and planning for homeless, and potentially homeless, persons and families, that increase the abilities of households to acquire or rent and maintain Quality Housing. Holistic development is attained only when housin� activities are planned as part of lazger neighborhood improvement initiatives. 7. Collaboration Planning and implementation of all housing activities (including new development, rehabilitation and financing) should be done in collaboration and partnership with appropriate stakeholders including neighborhood residents and other housing agencies. 8. Delivery of Public Resources Public resources for housing improvement and new development must be delivered in a balanced manner to serve the needs of the city and each neighborhood. There aze generally three neighborhood conditions in Saint Paul: (1) sound neighborhoods that have strong private in� estment pattems that require little public intervention; (2) transitional neighborhoods �rith some disinvestment that require public immediate attention to ensure they grow into sound neighborhoods; and (3) fragile neighborhoods that have experienced prolon�ed disin� estment and require substantial attention and public assistance. The City � and each neighborhood should have a continuum of improvement approaches that combine is --� � private and public resources. Delivery decisions (e.g., a request for proposals or a first-come-first-served process) are decided on a resource-by-resource or program-by-program basis. 9. Quality and Mazket Driven Housing City/HRA resources should be used to maintain or develop housing units that are high quality and meet long-term market demands. Development decisions should give careful consideration to the type of unit, site and neighborhood setting. In treatment of existin� units, esterior site plans and interior unit layouts should be improved to better serve current mazket demands and the structure rehabilitated to a high standazd of quality when possible. 10. Building Code Enforcement & Compliance Responding to acute housing complaints while addressing chronic problem properties is critical in maintaining the residential quality of Saint Paul. Compliance with established building and housing codes must be enforced. I 1. Historic and Architecturally Significant Buildings . Historic and architecturally significant buildings are a unique asset of our housing stock and should be preserved whenever possible. The quality, materials and design of older buildings meet the needs of one portion of the mazket that cannot by supplied in suburban communities. 12. Balance Between Increasing Tax Base and Meeting Other Needs Housing and neighborhood improvement activities should balance the objectives of increasing the tas base, and meeting needs of Saint Panl residents that do not directly contribute to aa increased property value. However, increasing the taY base should be a primary public benefit from the investment of pubiic resources in neighborhood and housino improvement. 13. Regional Distribution The City supports improved regional distribution of housing, opportunities for lower income househoids. The City will continue to be an active partner with other funders in addressing affordable housing needs in the region, and continue to be active in initiatives with suburban housing officials. The City should look for opportunities to provide low income housing in less integrated neighborhoods of Saint Paul as weil. i uRas!��r � 14. Affordable Low Income Housing Activities Central Saint Papl neighborhoods will require public assistance in order to improve the quality of affordable housing and thereby, the quality of the neighborhood. The current location of services, public transportation, and ethnic/social relationships will maintain a high level of demand for low income affordable housing in central Saint Paui neighborhoods. Current economic factors make it di�cult for the private sector to provide quality affordable housing causing a lazge amount of low income affordable housing to be met through substandard housing. PED will continue to participate in the Interagency Stabilization Group (ISG) to monitor and determine appropriate actions for the preservation and stabilization of existing, quality, subsidized rental housing. Building, unit and neighborhood density will be reduced whenever appropriate. Decent, suitable, reasonable affordable housing is a proven ingredient in the m'vc of supports that can enable households to becoming self-sufficient--the most important route to less poverty. The income to housing cost gap is substantial for a large segment of Saint Paul's population and continues to grow. The City/HRA should promote economic self-sufficiency by seazching for opportunities to bridge this gap. A broad based approach is key to identifying strategies that can lead to acceptable solutions that ease the burden of concentration of facilities and services for homeless • persons and families. A broad based planning approach should continue including Ramsey County, homeless persons, human service providers, and City and suburban officials. The planning process should be regional in scope, and be comprehensive and encourage new ideas in providing services to the homeless. The City/HRA must take appropriate steps to preserve previous HRA investments in affordable housing in accordance with approved credit process guidelines. The bono«�er/owner must demonstrate a satisfactory record of past experience and continuing long term capacity to provide sound properiy management functions. All parties to a deal must contribute a"fair share" in the financial package that provides adequate levera�e for CityIHRA funds. � 15. Real Estate Acquisition and Development The HRA should consider the acquisition of real estate when it is necessary to meet identified rede� objectives. The City/HRA should facilitate placing appropriate publicly-owned land, including tax-forfeited pazcels, back on the property taY rolls as quickl} as reasonably possible. The City wiil consider facilitatin� the development of new houses on all buildable parcels, including step-up and higher priced housing on multiple lots, Splinter pazcels should be used to increase the size of individual ad}acent lots only when the divided lot is unbuildable according to zoning requirements. L J �, , _ , � In addition to the housing implementation principles outlined above, ten principles for city development have been established. The following principles, originally developed as part of the Saint Paul on the Mississippi Development Framework, have been established as guiding principles for general development in Saint Paul. Evoke a sense of place. With each change, Saint Paul will work for a strengthened sense of place that reflects the city's natural beauty and exceptional heritage. 2. Restore and establish the unique urban ecology. Reconnection of our urban fabric to the Mississippi River that drew the azea's original inhabitants will promote a balance between urban and natural systems throughout Saint Paul. 3. Invest in the public realm. The public realm sets the stage for development and provides the network of connections. We will maintain and enhance this investment, designing improvements to promote safety and quality with an emphasis on improving the pedestrian environment. 4. Broaden the mix of land uses. We will take advantage of the diversity of activity that is recognized as a special advantage of an older city. Residence, work and cultural opportunities in close proximity can reduce travel costs and enrich community life. � 5. Improve connectivity. Improvement of urban life in Saint Paul will occur by facilitating movement, access and connection among activities and places. 6. Ensure that buildings support broader city goals. Saint Paul will consider each addition to the community fabric as an opportunity to enhance its broader location. 7. Build on existing strengthens. We will make every effort at city and neighborhood levels to recosnize and enhance the treasures we have in our economic, cultural, architectural and natural heritages. 8. Preserve and enhance heritage resources. Saint Paul will continue to preserve and enhance its rich legacy of historic resources. 9. Provide a balanced network for movement. Provisions wiil be made for movement by caz, public transportation, bicycle and on foot in a balanced manner throughout 5aint Paul. 10. Foster pubiic safety. We will keep pubic safety at the forefront in design and management of the public realm and apply safety criterial in the evaluation of any proposed private redevelopment. L_J � ���� Local Initiatives Support Corporation MEMORANDUM • �J To: Honorabie Mayor Norm Coleman Council President Dan Bostrom Councilmember Jay Benanav Councilmember Jerry Biakey Councilmember Chris Coleman Councilmember Pat Harris Councilmember Kathy Lantry Councilmember Jim Reiter cc: Brian Sweeney, PED Director �8 -a.�� From: Michaei Olsen and Paul Williams: Co-Chairs of the Housing Action Plan Task Force Date: January 12, 2000 Re: Summary Task Force Report We are pleased to transmit to you the summary report from the housing action plan task force. The report provides some background information on the creation and the role of the task force and summarizes the main themes that surfaced during the deliberations of the task force. We appreciate the opportunity to be a part of the task force. The membership of the task force represents many sectors and brings a variety of important perspectives to the table. We commend you for incorporating the task force process into the development of the annual housing action pian. This process, albeit on an extremely tast track this year, provided a unique oppostunity for constructive discussion and comment on the actio� plan by many of partners that are critical to the successful implementation of the broader policies and strategies outlined in the City's Housing Pfan. If you have any questions about the task fiorce or the content of ihis report, piease feei free to contact either of us. __����� � � � Michael Olsen Paul Williams Twin Cities L�SC � Hamline Park Plaza, 570 Asbury Street, Suite 207, SL Paul, MN 55104 TeL (651) 649-1709 • Fax: (651) 649-i i 12 •a -� � HOUSING ACTION PLAN TASK FORCE SUMMARY REPORT - January 2000 - Background 7he implementation chapter (7.0) of the St. Paul Flousing Plan calis for the creation of an annual housing action plan. The purpose of the annual housing action pian is to outline the specific actions that will be undertaken and the objectives that wifl be met over the course of the year in furtherance of the broader strategies and polices outlined in the Housing Plan. The Housing Pian also calis for the creation of a task force, to be convened with the assistance of the Local Initiatives Support Corporation (LISC), that includes balanced representation and works closely with City staff on the development of the annua! housing action p(an. This year, the Housing Action Plan Task Force was co-convened by LISC and the St. Paul Housing Roundtable, an existing network of private sector and community-based groups that meets regularly to explore city housing issues. � LISC and the Housing Roundtabte, in consultation with City staff, designed a review and comment process for the task force intended to: • Provide balanced and focused input from a broad representation of important stakeholders in housing; • Encourage meaningful engagement of individuals and institutions that are critical to the successful implementation of the plan; • Assure the timely compietion of the plan and the efficient and effective use of City staff time and the time of those that participate in the process. The task force was comprised of a broad cross section of representatives from the public, private, nonprofit sectors. A lisi of the members is attached to this report. Paut Williams, LISC Program Director, and Michael Olsen, Co- Chair of the Housing Roundtable and a Realtor with Coldweli Banker Burnet, served as the co-chairs of the task force. The task force met twice, on November 22, 1999 and on December 9, 1999. Charge of Task Force The task force was charged in the Housing Plan with working in close � collaboration with the City on the development of the City's annual housing action plan. This year, since the process started later then anticipated, the 1 6 Z� � �� • work of the task force was focused mostly on reviewing and commenting on the pfans and budget decisions that were already in place. In future years, the task force wiil convene eariier and follow a timeline intended to produce the housing action plan in line with the City's budget process. The focus of the task force was on imptementation and the development of specific workplans. The setting of broader housing policy was not the purview of this group. The charge of the task force was twofold: • To provide meaningful input and comment in the development of the housing action plan and to make recommendations to the City on specific implementation strategies. • To help identify and secure potential additional resources that may be available to support the successful implementation of the annual. housing action plan. Framing the Discussion Staff from the Department of Planning and Economic Development completed an initial draft of the annual housing action plan. The action plan • was organized around the three major strategies articulated in the City's Housing Plan: ■ Take care of the existing housing stock we have in the city; • Meet new and emerging market demand for housing in St. Paul; and • Ensure the availability of affordable housing for those who need it. The task force acknowledged and was supportive of the City pursuing these three distinct but interrelated strategies in 2000. Given the age, relative affordability, and character of the City's housing stock, the task force agreed that the City needs to continue to invest in the preservation and improvement of the existing stock of housing. The task force also recognized that there is a need and some very reai opportunities for the City to meet new and emerging market demand for housing. An aggressive production agenda is needed in order for St. Paul to keep pace with the region's projected growth. {t is also clear that there is currently a renaissance in city living, both in neighborhoods as weli as in the downtown area. The market is poised to support moderate and upper income housing in ma�y neighborhoods, particufarly the downtown area. Finally, the task � force accepted, as a minimum threshold, the City's stated commitment to have 20% ofi all new housing units serve residents at or below 50% of the 2 �♦ _ � . area median income (10% at or below 30% of inedian and 10% between 3Q°lo and 50% of inedian�. Task Force Conclusions It is important to acknowledge that the deliberations of the task force, while very productive and insightful, were not exhaustive. Given the late start in the review process this year, the task force did not have the time to explore every aspect of the plan +n detaii. Rather the two meetings of the task force were structured to ensure that the task force members understood the basic components of the plan and had a chance to provide comment and feedback on those aspects of the plan that were ofi greatest interest to them. The first meeting provided an opQortunity to share initial reactions and comments to a draft of the action plan as prepared and presented by City staff. Following that meeting, City staff made revisions to the draft action plan and circulated it for review by the task force. At the second task force meeting, members reacted to the changes and provided additionai comments and feedback. Not suprisingly, given the magnitude of the need for affordable housing in St. Paul, much of the discussion at both meetings centered around the City's plans and strategies for preserving and deve{oping housing that is affordable to lower income households. � The task force process was not structured to reach consensus among members on a set of recommendations or conctus+ons. Individual members asked questions, shared comments, and made suggestions. Over the course of the two task force meetings, five main themes emerged from the deliberations of the task force. These themes are summarized briefly below. (1) The action plan is an implementation plan and, as such, it should be more specific about the particular actions or steps that will be taken, the timeline for completion, and the desired, measurabie outcomes to be achieved. Greater specificity leads to greater accountability on the part of the City and its partners. It also helps identify where and how other additional resources can be most useful. The specific information presented on projects and production figures (Exhibits 3.1 and 3.2) is quite usefu! and, with periodic updates (including information on the status of funding commitments), can be used to track progress on achieving the City's production goals. The need for greater specificity is most evident in a number of the descriptions of the priority actions for 2000. For example, the statement "encourage owner occupancy of 1-4 unit rental properties" [Section 3.2(i)] is not particularly heipful in defining the actions or implementation steps the � City is planning to take in 2000. Further discussion is needed to determine a level of specificity for the action plan that is realistic for 3 i� . . � City staff to produce, is useful for guiding the City's actions, and promotes accountability for progress and performance. (2) The projections presented in the action plan shoutd meet, at a minimum the affordable housing goal established in the Housing Plan. The action plan set a goal of 750 units of new production in 2000, with 16% of the units affordable to households earning between 31 °lo and 50% of area median and 7% affordable to households with income at or below 30% of the area median. There was concern that the goal stated in the Housing Plan of 10% of new production being affordable to households befow 30°!0 of area median income was not being met by the proposed action plan. (3) The action plan should factor in demoiition activities when establishing production targets. Concerns were expressed about the impact of demolition on the city's supply of affordable housing. It is important to understand the magnitude of demolition activity and explicitly factor in the loss of units, particularly affordable units, when establishing pians for new production. Without factoring in the loss of affordable units, the City could experience a net loss of affordable housing over time. Further information and analysis is needed in order to better � understand and address this issue. (4) The action pian identifies a Iack of adequate subsidy resources as an obstacle to achieving the affordable housing goals established in the Plan. It would be beneficial for the action plan to project the size of the resource gap, perhaps on an annual basis given the projects known to be in the production pipeline or on a two or three year rolling basis. With this information as a starting point, the City and its partners can more effectively work together to identify and secure the resources that are required to meet the City's affordable housing goats. (5) For a variety of reasons, the production of housing that is affordable to lower income households is very difficult to accomplish. The action plan acknowledges this difficulty and articulates a commitment on the part of the City to support the production of units affordable to lower income residents. Given the chalienges involved, it is important for the action plan to more clearly outline a proactive approach, including the specific actions that wiii be taken to encourage the development and preservation of affordable housing. Many members of the task force shared ideas about actions or strategies that could be pursued in � addition to what was already cited in the plan. A number of these suggestions have been incorporated into the draft of the action plan. � U� v �� • The ideas that were shared by individual task force members are outlined below. ■ Tie City assistance for new production or rehabilitation or rentai housing to a requirement that owners participate in the Section 8 program. ■ Develop a proactive strategy to use project-based Section 8 assistance and Holiman units (if that resource becomes available in St. Paul) to help reach those households at or below 30% of the area median income. • Create a pool of resources ta;geted ±o supporti�g development at 50% and 30% of area median income. Perhaps link with the MHFA Super RFP. Actively solicit proposais from developers for afforda6le housing. ■ Create a weighting system that favors providing City support to developments with affordable units. • Establish thresholds tied to the size of project. For example, if a • project has over a certain number of units, create a requirement that it meet the 20% affordability threshold (at a minimum). ■ Move to a project by project review of affordability. Use the leverage provided by the provision of public funds to assure that the 20% requirement is met on individual projects and small area plans. • Create incentives for owner occupancy of smaller rental properties (duplex, trip{ex, four-pVex properties} that condition provision of City assistance to acceptance of Section 8. • Play a more active technical assistance role by informing developers of the affordable housing goai and identifying the resources required to develop affordable units. • Determine ways to "package" developments so that a for-profit does the market rate component and a non-profit does the affordable component. ■ Explore ways in which the HRA and others could partner with the • PHA to deve�op affordable housing, perhaps using the HRA's bonding authority. 5 6d ��-�-� • • Explore empioyer assisted housing as an option for creating affordabie units. Tie-in to the work that St. Paul United Way and MHFA are doing on this. Next Steps Overall, the task force felt that this was a productive process. The members appreciated the opportunity to engage in constructive discussion on the housing pfan with persons representing a broad cross section of perspectives. It was recognized that the task force membership includes many of the key partners that need to be eng2ged ir� order for the City to successfulfy implement the broader visions and pfans articu{ated in the Housing Plan. Several next steps for the task force were agreed upon. First, the task force wiil meet on a quarterly basis. City staff will prepare a summary progress report, including the status of individual development projects, for review by the task force. Second, the task force will be convened early enough next year to be in a better position to help shape the housing action pian before budget decisions are made. Third, the task force wi11 examine whether it needs to broaden its membership to include other , important perspectives. Finally, the task force invites the City to continue to use this group as a resource when working on implementation strategies related to housing. u � bb ��� �� � Housing Action Plan Task Force Michael Olsen, Co-Chair Realtor Coldwell Banker Bumet Paul Williams, Co-Chair Program Director Twin Cities LISC Carmen Berg Executive Director Summit-University Pianning Council Jim Erchul Executive Director • Dayton's Bluff NHS Colleen Fraley Deputy DirecYor Fannie Mae, MN Partnership Office Tom Fulton President Fami{y Housing F�nd John Mathern Mendota Homes Terry McNellis Managing Director US Sancorp Piper Jaffray Gary Peltier Special Housing Advisor St. Paul Dept. PED Kirby Pittman Poficy Anafyst MHFA Vic Rosenthal Jewish Gommunity Action Caty Royce Executive Director Community Stabilization Project Stephen Seidel Executive Director Twin Cities Habitat for Humanity Barb Sporlein Deputy Director St. Paul Public Housing Agency Mary Ann Sudeith Vice President Firstar Bank �