The URL can be used to link to this page

03-2451 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 ORi t��;'�vq� ��.,s: P14� �rnc� a r`1 A-��; � t�, aon� Presented By Re£erred To Committee: Date Resolution Approving the Housing Acfion Plan 2003 WHEREAS, the City Council adopted the Housing Plan, a chapter of the Saint Paul Comprehensive Plan, on March 24, 1999; and WHEREAS, the Housing Plan calls for the preparation of an annual housing acrion plan; and WHEREAS, staff of the Department of Planning and Economic Development (PED) has prepared a Housing Action Plan 2003 (HAP 2003); and WHEREAS, the HAP 2003 incorporates the second year of the Saint Paul Housing Production Plan 2002-2005 (Housing 5000); and WHEREAS, an expanded and refocused Housing 5000 Advisory Task Force, convened with the assistance of the Local Initiatives Support Corporation (LISC), has reviewed and provided comments on the draft HAP 2003; and WHEREAS, the purpose of the HAP 2003 is to outline the specific implementation actions that will be undertaken by PED, and the specific objectives to be met over the course of the year in furtherance of the broad strategies and pohcies in the Housing Plan and the production targets of Housing 5000. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Saint Paul, Minnesota, that the Housing Action Plan 2003 is approved. Adoption Certif�ed`by Council Secretary By: Approved by Ma�br:� Date "y - By: K:\hap\03\ccres03 wpd Council File # ��-a�Ks Resolution # Green Sheet # 101943 RESOLUTION CITY OF SAINT PAUL, MINNESOTA 015 � xequested by Department of: � -,Y. .. ' � _� i� � � -! :_..�1 � Form Approve By: Adopted by Council: Date �a-pp � / .DEPARTMENT/OFFICE/COUNCII.: DATE INITTATED D � — �� S PED 2�2��03 GREEN SHEET No.:101943 CONTACT PERSON & PHONE: ` IN17'IaT✓DATE INITIai✓DATE GaryPeltier, 6-6619 �% 1 D�rn��n. Dm .�� µ 1 7 �� a cmrcovrrcu. i�1iJST BE ON COUNCII, AGENDA BY (DATE) �SIGN ? CITY ATIORNEY(McCall�'�"`� "_ CI7Y CLERK NA �1MBER FtI`1ANCIAL SERV DIIt _FINANCIAL SERV/ACCTG FOR 3 MAYOR(ORASST.) _CIVII.SERVICECOMMISSION ROi717NG Tom Meyer ORDER TOTAL # OF SIGNATURE PAGES 1(CLIP ALL LOCATIONS FOR SIGNATURE) � ncrtoN �QUES�n: Sigring City Council resolution approving the Housing Action Plan 2003. RECOMMENDATIONS: Approve (A) or Reject �) PERSONAI. SERVICE CONTRACTS M[JST AIVSWER THE FOLLOWING QUESTIONS: ' PLANNING COMMISSION 1. Has this person/firm ever worked under a wntract for this department? CIB COMMII'I'EE Yes No CNIL SERVICE COMMISSION 2. Has this person/firm ever been a city employee? HI2A Boazd Yes No 3. Does this person/fiim possess a skill not normally possessed by any curnnt city employee? Yu No Esplain all yes answers on separate sheet aod attach to green sheet INII7ATING PROBLEM, ISSiJE, OPPORTUNII'P (Who, What, Whev, Where, Why): The Housing Plan, a chapter of the Saint Paul Comprehensive Plan, calis for the preparation of an annual housing action plan. ADVANTAGESIFAPPROVED: The Housing Action Plan 2003 outlines the implementation actions PED will undertake, and the specific objectives to be met over the course of the year in furtherance of the broad strategies and policies in the Housing Plan and the production targets of Housing 5000. DISADVANTAGESIFAPPROVED: None. DISADVANTAGES IF NOT APPROVED: City Council will not endorse the housing implementation acrions to be taken by PED during the year. TOTAL AMOUNT OF'I'RANSACTTON: NA COST/REVENUE BUDGETED: NA FONDING SOURCE: ACTIVITY NUMBER: FINANCL4L INFORMATION: (EXPLAIN) . G.lSharM�PED�PEL'[IER�DOCS\GREENSHEET.FRM wpd DEPARTMENT OF PLANIVING & ECONOMIC DEVELOPMENT Manha G. Fu1[er, Direcior CITY OF SAINT PAUL Randy C. Kelly, Mayor Apri116, 2003 To: Council President Bostrom Councilmember Benanav Councilmember Blakey Councilmembe: Coleman Fr: Re: Councilmember Harris Councilmember Lantry Councilmember Reiter Martha Fuller Housing Action Plan 2003 Changes Requested by City Councilmembers 03-�`�5 7=f TeZephone: 65I-266-6565 Facsimile: 651-228-3261 RF� APR 16 ?003 � � This memorandum transmits a revised Housing Action Plan 2003 (HAP 2003) incorporating changes requested by City Councilmembers. The approval of the HAP 2003 (draft attached dated 4/16/03), is item #25 on the City Council agenda for Apri116, 2003, Resolution #03-245. The following additions are included at the request of Councilmember Lantry: 1. In Section 3.2, Rehabilitation, item "f." is added (page 7). 2. In Section 4.2, Legislative Initiatives, item "f." is added (page 10). 3. In Section 4.5, Key Partners, item "o." is added (page 13). 4. In Attachment C, the last item under Potential Other 2003 Housing Funds is added. Please let me lrnow if you have questions about the above or other provisions in the HAP 2003. Attachment * Draft Housing Action Plan 2003 (dated 4/16/03) �hap\03\ccmem2.wpd 25 Wui Fourth Streei Saint Pau1, MN 55102 AA-ADA-EEO Employu � Kathy Lantry �Housing_Action Paln �Bullets � � � _ � � � � � � � page�l _ _ , 03 -ay5 ' Enclosed is draft language for incorporation into the 2003 Housing Action Plan reflecting HSP's anticipated PDI activity with the National Trust. � 3.2 Rehabilitation add: Work in partnership with private and non-profit partners to maximize loan activity supporting exterior maintenance and rehabilitation that improves housing conditions for low-moderate income residents and streetscape appearance of core neighborhoods. 4.2 Legislative Initiatives add: Support the adoption of an Historic Tax Credit incentive for investments into the rehabilitation of owner occupied properties 4.5 Key Partners add: Support residential and mixed-use development strategies and investments through the Preservation Development Initiative in partnership with the National Trust for Historic Preservation and Historic Saint Paul Attachment C- Other 2003 Housing Funds add: Historic Saint Paul/National Trust for Historic Preservation Saint Paul is a participant in the Preservation Development Initiative which will provide technical assistance and financial resources to support preservation-based community development activity in Saint Paul neighborhoods over the next three years. 03 -ay.s Draft 4/16/03 Housing Plan The Saint Paul Comprehensive Plan Housing Action Plan 2��3 Adopted by City Council, �hap\03�hap03.v5.wpd Housing Action Plan 2003—Draft 4/16/03 Table of Contents 1.0 Introduction 2.0 Housing Plan Policies Emphasized in 2003 2.1 Economic Integrafion 2.2 Strategy l: Take Care of What We Ha�e 23 Strategy 2: Meet New Muket Demand 2.4 Strategy 3: Ensure Availability of Affordable Housing 3.0 Priority Actions for 2003 3.1 New Housing Production (New Construcfion and 3.3 3.4 3.5 3.6 3.7 Extended Affordability Life (Preservation of I,ow Income Housing) Saint Paul-Ramsey County Low Income Housing and Homeless Services Plan Mortgage Lending Mortgage Foreclosure Frevention Obstacles to Implementation 4.0 Other Housing Related Activities 4.1 Issues to be Addressed during 2003 4.2 Legislative Initiatives 4.3 Zoning Initiatives 4.4 Neighborhood and Project Plauuing 4.5 Support Key Partners 4.6 Housing Activity Reporting 4.7 Other Actions 5.0 Process for Preparation and Review of the Housing Action Plan 2003 5.1 Background 5.2 Housing 5000 Advisory Task Force 5.3 Composition of the Task Force 5.4 Community Review of the Draft Housing Action Plan 2003 Attachments: A. 2003 Targets with attached PED Housing Activities B. 2003 Housing 5000 Projects C. Potential City/HRA and Other 2003 Housing Funds D. Housing 5000 Advisory Task Force Members E. Comments received from the Housing 5000 Advisory Task Force Report F. City Council Resolution c�� -a`�5 Housing Acrion Plan 200�Draft 4/16/03 t.o Introduction This Housing Action Plan 2003 (HAP 2003) incorporates the second year pian of the Saint Paul Housing Producrion Plan 2002-2005 (see Part II: Housine 5000 in the Housin� Resource Book 2003). The IIAP 2003 incorporates the significant New Housing Production of Housing 5000 as well as additional housing unplementation activities administered by the Department of Plamiiug and Economic Development (PED), in coordination with other City departments, and other public and private partners. The Housing Plan, a chapter of the Saint Paul Comprehensive Plan, was adopted by the City Council on Mazch 24, 1999. It calls for the preparation of an annual Housing Action Plan. Additionally, the Housing Action Plan incorporates the acfions 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 HAI' 20Q3 is an ixnplementation plan that details specific actions which will be taken during 2003 to implement the polices in the Housing Plan, Housing 5000, and the Homeless Plan. This IIAP 2003 also serves as Saint Paul's action plan required by the Metropolitan Livable Communities Act to document the City's intended actions to carry out its agreed upon housing goals. The purpose of the annual housing action plan is to outiine the specific actions that will be undertaken and the specific objectives that will be met over the course of the year in fiutherance 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 with City staff on the annual housing action plan. During 2002, the previous Housing Action Plan Task Force was expanded and refocused to primarily monitor the progress of Aousing 5000 and provide advice as requested on certain policy issues. This new Housing 5000 Advisory Task Force will help assure that the organizations and insritutions that aze vital to the City's success in implementing the Housing Plan and Housing 5000 are engaged in and supportive of the City's plans. The City of Saint PauPs role in the unplementation of housing-related activiries includes several departments and offices of the City including the Pubiic Housing Agency. However, this HAP 2003 is primarily the priority actions to be undertaken by PED. In accordance with the Housing Plan, Fair Housing issues are being addressed through the City's Department of Human Rights. The HAP 2003 is part of a lazger Housine Resource Book 2003 that compiles together important 2 Housing Acfion Plan 2003—Draft 4/16/03 Saint Paul housing information. The Housina Resource Book 2003 is arranged in the following order: Part I: Part II: Part III: Part IV: Part V: Part VI: Part VII: Housing Action Plan 2003 Housing 5000 Current Housing Demographics, Trends, Etc. Year 2002 Accomplishments Muiti-Year Accomplishments Common Language Other Important Documents This Housing Action Plan 2003 is arranged i the following order: Section 1.0 This Introduction Section 2.0 Housing Plan Policies Emphasized in 2003 Secrion 3.0 Priority Actions for 2003 Section 4.0 Other Housing Related Activities Section 5.0 Process for Prepazation and Review of the Housing Action Plan 2003 The strategies and policies outlined in the Housing Plan are included in this HAP 2003. Saint PauPs Housing Production Plan 2002-2005 (Housing 5000) In 2002, Mayor Kelly prepared and the City Council approved a 5,000 unit, four-yeaz, $1 billion, public/private housing plan for New Housing Production in Saint Paul. This plan is incorparated in this HAP 2003, and is more detailed in Part II: Housine 5000 in the Housine Resource Book 2003. This Part also includes the nutial City Council approving resolution with attachments for Housing 5000 and the use of $20 million of STAR funds. In 2002, the City/HI2A was involved in a wide variety of housing acrivities including New Housing Producrion, rehabilitation, mortgage lending for home purchasing and mortgage foreclosure prevention. During 2002, a total of 2,539 housing units were improved or othenvise benefitted from these City/HRA housing activities. 41% ofthese units are affordable to persons or families earning 50% or less of the area median income. Part N: 2002 Accomplishments in the Housing Resource Book 2003 includes a s�u�mary of housing accomplishments during 2002 including indicating incomes served. During 2003, the City expects to maintain or increase this level of overall housing activity. 2.0 Housing Plan Policies The Housing Plan outlines three distinct but highly inter-related strategies. In each of the three strategies, certain policies or actions are outlined. For each strategy the following is a list of the 03 -a�5 Housing Acrion Plan 2003—Draff 4/16(03 policies/actions that will be emphasized during the year and wili guide the unplementation of the Housing PZan. For all three strategies, however, the City supports economic integration within the City's housing developments and residential neighborhoods. 2.1 Economic Integration The City's policy is to support a mu� of low, moderate and higher income households and supports this mix of incomes in single family and multi-family housing developments in the city's neighborhoods. The City encourages the economic integration of mixed incomes and densities in housing developments in which there is public financing participation. 2.2 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. • Strategically focus efforts to stem deterioration and declining values. • Improve management and maintenance ofrental properly. • Priority will be given to projects that commit to the long-term affardability of housing units. 23 Strategy 2: Meet New Market 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 innovarive development through regulatory reforms. 2.4 Strategy 3: Ensure Availability of Affordable Housing • Challenge the region to provide a full range of housing choices to meet the housing needs at all income levels. • Identify and secure significant additional resources to preserve and conshuct affordable housing within the city and the region. • Preserve existing federally-assisted housing. • Provide 10 percent of the newly produced units to be affordable to households at 50% of the area median income, 10 percent of the new units affordable at 30% of area median income. • Follow the local replacement housing policy. • Support iniriatives that assist lower income households achieve home ownership. • Link human services with affordable housing where appropriate. Housing Action Plan 2003-Dratt 4/16/03 Tmplement the Saint Pau1-Ramsey County Five-Year Housing and Homeless Services Plan. Explore policy options used by other metropolitan areas. 3.o Priority Actions for 2003 The Saint Paul Housing Production Plan 2002-2005 (Housing 5000) calls for a significant increase in New Housing Production over and above the recommendations of the Housing Plan. The Housing Plan calls for an annual new housing production tazget of at least 450 units. Accarding to the Housing Plan this producrion level will meet the annual objective in the Housing Plan as well as offsetting anticipated demolition of housing units. This HA.P 2003 calls for New Housing Producrion sufficient to achieve the goals set forth in Housing 5000, which is years "New Housing Production" includes the new construction of housing units and extending the economic life of existing housing. "Extended Economic Life" New Housing Production are projects where funding totals at least $25,000 per unit for capital improvements, the housing is aY least 30 years old, and, due to deteriorated physical condition, is at the end of its economic life and could be subject to demolition. Housing production also includes activities which extend the affordability of existing publicly assisted affordable housing units. New construction, rehabilitation and the preservafion of existing publicly-assisted housing units are considered equally unportaut in the implementation of the housing action plan. The Housing Plan also calls for 20% of housing production to be affordabie to persons and famiIies earning 50% or less of the regional median income and that at least half of these units be affordable to persons or families eaming 30% or less of regional median income. Housing 5000 and this HAP 2003 retain these affordable housing goals. Key rental housing financing tools include the use of the federal Section 8 program that provides project-based rent assistance for low income households. Currently, the typical income of a Section 8 voucher holder has a household income of approxunately 20% of the area median income. In projects that have project-based Section 8 assistance and rents at the Section 8 Fair Market Rent levels, these units will be considered affordable to households at 30% of the azea median income. The specific Housing 5000 projects that are incorporated into this HAP 2003 are listed in Attachment B. All of these proj ects are in the "DevelopmenY' stage and aze potentially able to begin construction during 2003. These projects represent the potential New Housing Production of 1 959 housing units. The City and its Housing and Redevelopment Authority (HRA) will consider new opporiunities as they arise during the year, and some of the projects in Attachment B may not for various reasons proceed to construcfion. 03 -�ys Housing Acrion Plan 2003—Draft 4/16/03 The City/HRA will continually identify necessary resources to achieve the objectives of this HAP 2003 and Housing 5000. Additional resources aze especially needed to meet the 20% affordability goal for rental and ownership New Housing Production. The production of ownership units affordable to households at the 30% of azea median income level and below is extremely difficult and requires high public subsidies. In addifion, home ownership is frequently too costly for families at this income. Therefore, the production of housing affordable to families at 30% of the azea median income is expected to be primarily rentai units. Attachment A sets Targets for New Housing Production and other housing production/activities in 2003. Attachment B outlines housing projects that are Housing 5000 yeaz 2003 "DevelopmenY' projects that are potentially able to start construction during 2003. All housing projects in Housing 5000 are listed in the Housing 5000 Proj ects Scorecard, which is in Part II: Housin� of the Housing Resource Book 2003 . A current Scorecard can be found on the Housing 5000 web page at: www.housina5000.com 3.1 New Housing Production (New Construction and Extended Economic Life) This HAP 2003 supports New Housing Production at a level that will achieve the 5,000 unit producrion of Housing 5000 during the period 2002-2005. This HAP 2003 supports New Housing Producrion of at least 2�500 units for 2002-2003. The term "New Housing Production" includes New Construction and Extended Economic Life. "Extended Economic Life" New Housing Production are projects where funding totals at least $25,000 per unit for capital improvements, the housing is at least 30 yeazs old, and, due to deteriorated physical condition, is at the end of its economic life and could be subject to demolition. In order to fulfill the New Housing Production Targets of this HAP 2003, the City/HItA will: a. Wark with the private for-profit and nonprofit sectars and other public agencies to develop and finance a variety of building and unit types, rental and ownership, throughout the city, for a broad range of incomes and family types including singles, couples, families and seniors. The City/HRA supports economic integration in residenriai neighborhoods and housing developments. b. Provide interim and permanent gap financing for new construction and substantial rehabilitation of projects that are at the end of their economic life and would otherwise be subject to demolition, including creation of new replacement (in-fill) single family houses and rehabilitation of vacant houses. c. Subsidize the provision of low income units in new housing developments. d. Coardinate efforts with the Public Housing Agency, Habitat for Humanity, the Wilder Foundation and other key partners to develop and provide supportive � Housing Action Plan 2003-Draft 4/16/03 housing, including human services to low income households. e. Support legislative and related efforts to increase low income housing developments in Saint Paul suburbs. Attachment A sets Targets for New Housing Production for 2003. Attachment B outlines the Housing 5000 New Housing Production ("DevelopmenY' projects) that aze potenrially able to start conshuction during 2003. 3.2 Rehabilitation In addition to the New Housing Production activity that extends the economic life of certain projects through substantial rehabilitation, the City/HRA will undertake activities to rehabilitate preservation of exisring low income housing outlined below. (Tlus rehabilitation activity does not include general private residential improvement activity reflected in construction permits issued by LIEP.) In order to fulfill the rehabilitation Tazgets of ttris Ht1P 2003, the City/HItA will: a. Provide home improvement loans for borrowers with a wide range of household incomes. b. Provide rental rehabilitation financing. c. Originate purchase/refinancing and rehabilitation loans for bonowers with a wide range of incomes. d. Provide gap financing loans to enable home buyers/owners to purchase/refinance and rehabilitate homes, where the combined cost ofpurchase/refinancing and rehabIlitation exceeds the market value of properties. e. Provide rehabilitation loans for child caze facilities, inciucling single family houses. f. Work in partnership with private and nonprofit partners to masimize loan activity supporting exterior maintenance and rehabilitation that unproves housing conditions for low and moderate income residents and streetscape appearance of core neighborhoods. Attachment A sets Targets for City/I3RA rehabilitarion program activifies for 2003. 33 Extended Affordability Life (Preservation of Low Income Housing) To preserve existing, publicly-assisted, affordable housing units in Saint Paul, the City/HI2A will: a. Continue to be an active member in the Interagency Stabilization Group (ISG); actively monitor existing low income housing developments; and participate in 03 -a'� Housing Acrion Plan 200�Draft 4/16/03 preservation and stabilization of e�sting, publicly-assisted low income housing. b. Provide financing assistance for the stabilizarion and preservation of federally- assisted projects, and projects in which the City/HRA has previously invested, including the federal I.ow Income Housing Ta�c Credit Prograxn. c. Allocate federal Low Income Housing TaY Credits in accordance with City Council-approved criteria and procedures for new developments and/or preservation projects. 3.4 Saint Paul Ramsey County Low Income Housing and Homeless Services Plan (Homeless Plan) To meet the goals of the Low Income Housing and Homeless Services Plan, the City/HRA will: a. Continue to be an active participant in the Ramsey County/Saint Paul Funders Council: unprove the process by which funding decisions aze made for supportive housing and other special needs housing projects. b. Participate in the newly established Ramsey County/City of Saint Paul Homeless Advisory Board: communicate issues affecting housing and homelessness to the County and City, recommend policy changes and oversee progress in the five-year Homeless Plan. c. Admimster the federal Emergency Shelter Grant program, including increasing the use of these funds for capital expenditures. d. Develop necessary other specific activifies with respect to Saint Paul's involvement in the issue of homelessness, including securitig funding for priorities and creating the Saint Paul Emergency Housing Fund in accordance with City Council resolution #02-986. 3.5 Mortgage Lending To provide mortgage lending services to Saint Paul residents, the City/HRA will: a. Provide financing for at least 100 home buyers/owners with a wide range of incomes including home buyers/owners for purchase/refinancing and rehabilitation. b. Provide special assistance loans to low and moderate income households to enable them to be home owners. c. Work to increase the participation of minority home buyers in City/HRA sponsored mortgage loan programs. d. Support citywide home buying counseling and affordable home purchase fmancing, including support far the Home Ownership Center and small rental property owner training and counseling. e. Continue CityLiving mortgage loan program mazketing efforts. Housing Action Plan 2003-Draft 4/16/03 Attachment A sets Targets for City/FII2A mortgage lending program activities for 2003. 3.6 Mortgage Foreclosure Prevention To assist homeowners in danger of mortgage foreclosure, the City/fiRA administers the Mortgage Foreclosure Prevention Program, and during 2003 at least 400 households will be served by the program. The City/HRA will: a. Work with Ramsey County: provide mortgage foreciosure prevention efforts in Ramsey County. b. Provide mortgage foreclosure prevention counseling to home owners who are in danger of losing their homes. • sist om�in resumiug responsibility for their financial obligations. Attachxnent A sets Targets for mortgage foreciosure prevention program activities for 2003. 3.7 Obstacles to Impiementation The following aze examples of significant potenfial obstacles to unplementing the priority acrions listed above. The City/fIRA and housing partners/stakeholders must work together to address and remove these barriers: a. Inadequate housing subsidy resources. b. Inadequate resources for funding redevelopment costs; e.g., site assembly, including residentiaUbusiness relocation and soiUenvironmental remediation. a Identifying and coordinating multiple complex funding sources in housing development financing. d. Zoning and related changes required for specific projects. e. Neighborhood and other opposirion; e.g., land use, density, design and affordability issues. f. Challenging site topography. g. Standazdizing developer selection/predevelopment processes. h. Satisfying federal lead-based paint abatement requirements. i. Ensuring adequate mazket and developer capacity; e.g., there must be adequate mazket conditions to secure private developer interesUinveshnent and ensure housing mazket absorption, and developer capacity must be sh�ong. 4.o Other Housing Related Activities 4.1 Issues to be Addressed during 2003 6-� -a�s Housing Acrion Plan 2003—Draft 4/16/03 From time to time, certain housing-related issues need to be addressed by PED. These issues may be topics for the Housing 5000 Advisory Task Force to discuss, and may be appropriate for the Mayor and City CounciUHRA to establish policy or implementation direction. Issues for 2003 may include the following: a. Identificarion of additional housing financing resources; e.g., housing subsidies to fund the gap between cost and value, and redevelopment and extraordinary site development costs including site assembly and site remediation. b. Exploration of the feasibility of using the land trust model throughout the city. c. Analyze the construction cost issues related to supporting a policy regazding Universal Design; these design features enhance homes and create living spaces that work well for people of all ages and physical abilities. d. Development of a policy supporting and defining the criteria for broader distribution of affordable housing (as defined in the Housing Plan) across city neighborhoods. e. Exploration of financing mechanisms to promote the development of market-rate ownership housing units and provide better definition of market-rate housing development costs. 4.2 Legislative Initiatives The following legislative initiatives are recommended: a. Support continuation of funding for State redevelopment and housing funding initiatives including funding for 1VIHFA , DTED and the Metropolitan Council. b. Support initiatives which encourage the production of low income housing throughout the metro region. c. Support changes in tas increment, tas-exempt bond, low income housing tax credit and other financing methods that will enhance the City's ability to meet its housing goals. d. Support the legislative agenda of the Minnesota chapters of NAHRO, NALHFA and other housing-related entities. e. Support extending the "This Old House" program which excludes property tases on the value of rehabilitation nnprovements on older homes. f. Support the adoption of an Historic Taac Credit incentive for inveshnents in the rehabilitarion of owner-occupied properties. 43 Zoning Initiatives The following zoning initiarives are recommended: a. Adopt and implement proposed Zoning Code amendments that create the TN (Traditional Neighborhood/IJrban Village) zoning districts. These TN districts 10 Housing Action Plan 2003—Draft 4/16/03 allow a broader range of land uses than do existing zoning dishicts, provide more opportunities for higher-density housing development, establish design standards to help ensure that development is high quality, protects the character of e�sting neighborhoods, and provides for development of carriage house and secondary buildings. b. Continue to support and implement changes in the Minuesota Municipal Land Planning Act, enacted by the 2001 State Legislature. These changes delete a consent petition requirement for rezoning (except where the proposed rezoning is from residential to commercial or indushial) that had applied to Saint Paul, Minneapolis and Duluth. This revision gves Saint Paul the same local authority enjoyed by other Minnesota cities to decide the best zoning for the property based of the Planuing Commission a Continue to bring the Zoning Code into conformance with the Comprehensive Plan. 4.4 Neighborhood and Project Planning The following neighborhood and project planniug initiatives are recommended: a. Initiate appropriate 40-acre and oUter zoning studies, and neighborhood planning for development opportunities. Potential year 2003 examples include: Riverview Busway Corridor University/Dale Development Strategy East Maryland Avenue Corridor District 1 Plan Update District 6 Plan Update Merriam Pazk Plan Update District 16 Plan Update Sun Ray/Suburban Small Area Plan b. Initiate impiementarion planning for identified housing development opportunities. Year 2003 examples include: North Quadrant West Side Flats Koch/Mobil Gateway Village West Phalen Comdor; e.g., Ames Lake and Phalen West Area District Del Sol 11 �3-ay. Housing Action PIan 2003—Draft 4/16/03 White Bear Avenue/Hillcrest Shopping area Echo Housing White Bear and Maryland University/Midway; e.g., Snelling Bus Batn area University/Raymond, 7ohnson Brothers' Property Great Northern Corridor University/L,exington c. Continue appropriate neighborhood and project planning for each project outlined in Attaclunent B and projects identified for Housing 5000. 4.5 Support Key Partners PED will work closely with key partners including other City departments in the implementation of housing activities. Following pariners are specifically mentioned: a. Secure commitments from our housing production partners to establish the $20 million low-interest revolving loan fund envisioned in Housing 5000. b. Support increased minority participation in housing and community development professions and activities. c. Support LISC activities in community development activities and the production of housing by CDCs and other partners. d. Support the Public Housing Agency (PHA) in the operation of its pubiic housing, Section 8, and home ownership programs, and possible housing development activity. e. Work with the Minneapolis Community Development Agency (MCDA) in the delivery of joint mortgage revenue bond loan programs. f. Support the Home Ownership Center in providing a continuum of home buyer and owner services, including the Mortgage Foreclosure Prevention Program. g. 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. h. Participate in the Saint PauURamsey County Low Income Housing and Homeless Services Funders Council to oversee the implementation of the Homeless Plan. i. Work with the Minnesota Fannie Mae Partnership Office, the Mortgage Associarion of Miunesota, and other parties in the private lending industry in providing a wide range of financing alternatives for ownership and rental housing activities. j. Work with key public, nonprofit and other private funders in providing resources and other services for a variety of housing activities, including the Minnesota Housing Finance Agency (IvIHFA), the state Department of Trade and Economic Development, the Metropolitan Council and the federal Department of Housing and Urban Development (HUD). k. Support the activities of the Wilder Foundation and other organizafions in the 12 Housing Action Plan 2003—Draft 4/16/03 ownership and development of supportive housing for families, fraii elderly and single adults. 1. Support the development activities of Habitat for Humanity and the Rondo Community Land Trust. m. Support organizations providing landlord and tenant traiuing. n. Support district councils, coxnxnunity development corporations and other neighborhood organizations in providing better education and outreach, project review, and support for housing developments especially for affordable housing proj ects. o. Support residential and mixed-use development strategies and investments through the Preservation Development Initiative in partnership with the Narional Trust for Historic Preservation and Historic Saint Paul. 4.6' Housing Activity Reporting One of the key principles in Housing 5000 is to make a wide variety of project information available to all interested organizations and individuals on a regulaz basis. PED has developed various new and expanded tools for providing information for this purpose. At a minim�, �e following reporting activities will continue during the year: a. Regular reporting on sources and uses of funds and affordability levels, as well as other data, for all the housing projects that aze part of Housing 5000: (Housing 5000 Projects Scorecazd) b. Detailed end of the year reporting covering all PED housing activiries, current general housing and related demographics, and other material. c. City web page as an affective tool to distribute information. 4.7 Other Actions These other actions will occur during the year: a. Sponsor the annual Home Tour. b. Enhance existing data sources of vacant land/development opporiunifies throughout the city; develop criteria for site selection of underutilized lands including indushial and commercial properties for housing development. c. Explore policies, programs and initiatives of other metropolitan azeas to identify any new approaches to housing production, rehabilitarion, financing, and affordable housing. 5.o Process for Preparation and Review of the Housing Action Plan 2003 13 03 -a-`�-s Housing Ac&on Plan 2003—Draft 4/16/03 5.1 Background The impiementarion chapter (7.0) of the Housing Plan calls for the crearion of an annual housing action plan. The purpose of the annual housing aciion plan is to outline the specific actions that will be undertaken and the specific objectives that will be met over the course of the year in fiutherance of the broader strategies and polices outlined in the Housing Plan. The Housing PZan calls for the crearion of a task force, to be convened with the assistance of LISC, that will include balanced representation. 5.2 Housing 5000 Advisory Task Force A Housing Action Plan Task Force was established in 1999 and provided comment and input from a variety of perspectives to the City during the drafting of past years' housing action plans. During 2002, the Mayor and City Council announced the Saint Paul Housing Production Plan 2002-2005 (Housing 5000). Housing 5000 presented an opporiunity to refocus and reinvigorate the work of the Task Force azound the successful impiementation of Housing 5000. The charge of the Housing 5000 Advisory Task Force is as follows: a. To track progress on the accomplisYunent of the goals of Housing 5000; b. To play an advisory role to the City on policy and fmancing issues related to the implementation of Housing 5000; and a To provide comment and feedback to the City on its anntxal housing implementation plans. The Task Force reviewed and commented on the draft FIAP 2003 prepared by PED staf£ A snmmary of comments receiv°,d from the Task Force is included in Attachment E. 5.3 Composition of the Task Force The Housing 5000 Advisory Task Force has more than 30 members and includes representatives of the following groups: Business Community Community Residents Developers (for-profit and nonprofit) Lenders Funders/Intermediaries Housing Advocacy Groups Other Stakeholders ( Building Trades, Realtors) 14 Aousing Action Pian 2003—Draft 4/16/03 The intent is to include a balanced cross-secrion of perspectives and institutional partners needed to effectively carry out the charge of the Task Force. A list of Housing 5000 Advisory Task Force members is included in Attachment D. 5.5 Community Review of the Draft Housing Action Plan 2003 Simultaneous with the review of the draft Housing Action Plan 2003 by the Task Force, PED made the draft plan available for review and comment to a wide distribufion list. This distribution list included District Plannuig Councils, neighborhood-based community development corporations, public agencies, housing funders, housing advocates and other potentially interested parties. Other than comments received from fIousing 5000 Advisory Task s; �vere recez . 15 o�-a� Housing Acfion Plan 2003—Draft 4/16/03 Attachment A Saint Paul's Housing Production Plan 2002-2005 (Housing 5000) 2003 Targets AttachecY are the Targets for 2003, the second yeaz of Housing 5000. The Tazgets for the entire four-year period of Housing 5000 aze in Part II: Aousin� 5000, in the Housin¢ Resource Book 2003. �� Housing Action Plan 2003—Araft 4/16/03 Attachment A Saint Paul's Housing Production Plan Z002-2005 2003 Targets New Housing Production New Construction Economic Life `�°�'r��',� � Total Other �� ?$ a,�., 2004- 2002- Housing §� c� 1w�+r zooz { � . zoos zoos r�oaa�hon 1,173 � 2,343 4,689 Extended Affordability Life (Freservarion) Home Improvement Mortgage Loans (PurcLzse/ - rehab) Total Rehabilitation Mortgage I.o anc (S�aight purchase) Mortgage Foreclosure �.� ._ Prevenrion 2002 0 300 23 323 127 �� Total 2004- 2002- 2005 2005 200 400 600 � 1,200 :Cf�4� 846 � 1,679 254 I 471 :11 .11 Total 1,250 2,500 5,000 Total 850 1,900 3,750 New Other Housing Housing Production Production See footnotes on next page. [The above are preliminary targets for 2003 and are subject to change prior to fnal approval of this HAP 2003.J 6� . a`iS Housing Action Plan 200�Draft 4/16/03 Attachment A, 2003 Targets Footnotes l. Additional honsing constraction/rehabilitation activity During the year, the City's Office of License, Inspecrions and Environmental Protecrion (LIEP) issues Construction Pemuts for the above work and any other residential private activity. A summary of this acfivity is reported in Part IV: Yeaz 2002 Accomnlishments in the Housin¢ Resource Book 2003. The Saint Paul Public Housing Agency (PHA) has undertaken mulfi-year major modemization and other improvements to their public housing units. A summary of this acfivity is also reported in Part N: Year 2002 Accomnlishments, in the Housint Resource Book 2003. 2. Affordable housing in New Housing Production The City/HI2A is committed to 20% of New Housing Producrion to be affordable to households with incomes at 50% or less of the area median income with at least half of the units (10%) affordable to households at 30% of the area median income. Some acfiviries also provide affordable housing at the 60% and 80% of azea median income levels. Counting New Housing Production: New Housing Producrion includes units of New Construction and Extended Economic Life. Extended Economic Life New Housing Production is the substanrial rehabilitarion of housing units where funding totaling at least $25,000 per unit is used to make capital improvements to housing units that aze at least 30 years old and, due to deteriorated physical condition, the units are at the end of tlieir economic life. For pro}ects in which the CitylHRA provides fnancial assistance, New Housing Production is counted when the total sources of funds are available to complete the project and the fmancing has closed. Where there is no City/HRA fmancial assistance, New Housing Production is counted when a building pernut is issued by tha City's Deparhnent of LIEP. 4. Estended Affordability Life (Preservation of Existing Low Income Housing) Extended Affordability Life is the preservation of existing low income housing units where capital funding is used to extend the income and rent restricfions on housing units where current incomehent restrictions aze scheduled to expire or may terminate for other reasons. The saving of federally-assisted and other existing publicly-assisted housing projects are oftenrimes called "Preservation" projects. 5. PED Housing Activities Attached is descriptive narrative of all PED (City's Department of Plauning and Economic Development) housing acfivities including a volume of housing acrivifies during the past few yeazs. Housing Acrion Plan 2003—Draft 4/16/03 PED Housing Activities A. Housing New Production: New Construcdon and Extended Economic Life The City/EIRA provides a variety of fmancing resources to assist in the production of new rental and ownership housing within the city. PED works with the private for-profit 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 and household types including single persons, families and seniors. ew ousmg r�o�ion incr es new cons ruc 'on an su s an'a re a�ijita�i6n the economic life of existing housing that is more than 30 yeazs old and, due to its deteriorated physical condition, is at the end of its economic life). Typical examples of New Housing Producfion financing: The City/FII2A provides permanent and interim financing for a variety of housing developments. GAP financing is also provided when the cost of a project exceeds its value. The City treats vacant houses in the city, including demolition and rehabilitation. This work includes the abatement of hazazdous materials found in houses, such as lead-based paint, asbestos and other materials. The comprehensive effort includes the participation of for-profit, nonprofit and public agencies and organizations, including the St. Paul chapter oF LISC, Habitat for Humanity, and the Fanuly Housing Fund. The replacement single family new construcfion prograxn addresses buildable lots where demolition may have occurred and other in-fill lots that are auailable for development. Rental rehabilitation financing provides fixnds to qualified owners of rentai properties to rehabilitate their structures. This &nancing is designed to provide public and private funds as an incentive for investor/owners to upgrade rental housing, including energy and handicapped 'unprovements. This work includes the abatement of hazazdous materials found in apartments, such as lead-based paint, asbestos and other materials. Rental bousing financing oftentimes incorporates the Saint Paul Police Department F.O.R.C.E. UniYs The Mimiesota Crune Free Mulri-Housing Progra.m, which is designed to help tenants, owners and managers keep drugs and illegal activity off rental properly. Following is a summary of New Housing Froduction for the period, 1999-2002: New Housing Production: New Construction and Extended Economic Life e� -ay.s Housing Action Plan 200�Draft 4/16/03 Total Development Cost 1999-2002 2,794 units $498,239,000 B. Housing Production: Extended Affordability Life (Preservation) The City/HRA provides financing assistance for the stabilization and preservarion of privately- owned, existing, publicly-assisted affordable housing. This may orinay not include the substanrial rehabilitation of the existing units. The preservation of units is typically in lazge apartment complexes. The financing extends the term of the affordability life of the incomelrent restricted units. PED works with existing or new nonprofit or for-profit owners. Financing oftentimes is in the form of deferred payment loans. Following is a sununary of housing production )which extends the affordability life of existing affordable housing) for the period, 1999-2002: Housing Production: Extended Affordability Life (Preservation) Total Development Cost 1999-2002 1,319 units $33,416,000 (yrs Ol/02) C. Home Improvement Lending The City administers a variety of home improvement programs to fixnd loans far existing home owners to rehabilitate and improve their houses. This work includes the abatement of hazardous materials found in houses, such as lead-based paint, asbestos and other materials. As part of this nnprovement activity, Rehab Advisors inspect properties and work with home owners in dete�ining the scope of the improvements to be undertaken. Funds can also be provided to correct deficiencies for single family and daycare facility properties to provide chiid caze services. Following is a suminary of home improvement lending for the period 1999-2002: Home Improvement Lending Total Loans 1999-2002 1,444 units $21,845,000 A Home Purchase Mortgage Lending Mortgage programs aze auailable to provide assistance for first-time and other home buyers purchasing homes in Saint Paul. Mortgage programs have been jointly provided over the years Housing Action Plan 2003-Draft 4716/03 with the Minneapolis Community Development Agency (NICDA) and aze jointly mazketed as the CityLiving program. Mortgage loans are funded through the use of federal and state authority to issue Mortgage Revenue Bonds. Mortgage loans are originated by private lenders participating in the program and by PED's Home Loan Fund, which is a FHA/Fannie Mae approved mortgage lender. A special emphasis by the Home Loan Fund is origination of purchase or refinance and rehabilitation loans. Additionally, through funds provided by the Fanuly Housing Fund and 1VIHFA, special assistance monies aze available in the form of gap financing, equity participation, and entry cost assistance. In addition to 30-yeaz below-mazket interest rate mortgage loans, mortgage credit certificates may from time-to-tune be made available to assist first-tune home buyers using private mortgage nancing o receive e era�ncame c o , year the buyer lives in the house. As part of the comprehensive mortgage loan effort, PED administers a Mortgage Foreclosure Prevenfion Program, and the City supports the Home Ownership Center that provides home ownership counseling and training. Foilowing is a summary of home purchase mortgage lending for the period 1999-2002: Home Purchase Mortgage Lending Total Loans 1999-2002 8571oans $97,230,000 Following is a sununary of home purchase mortgage lending for the period 1999-2002: Mortgage Foreclosure Prevention Program 1999-2002 924 cases Total Loans 54 emergency loans $233,400 2/11/03 b3 -a� Housing Acrion Plan 2003—Draft 4/16/03 Attachment B Saint Paul's Honsing Production Plan 2002-2005 (FIousing 5000) 2003 Housing 5000 Projects Attached is a list of housing projecYS for 2003, the second year of E-Iousing 5000. These projects are "DevelopmenY' projects in the attached Housing 5000 Projects Scorecazd and aze potentially able to start conshuction during 2003. All the Housing 5000 projects are in the Housing 5000 Projects Scorecazd attached and in Part II: Aousin�5000, in the Housine Resource Book 2003. A current copy of the Scorecud, updated monthly, is on the Housing 5000 web page at: www.housine5000.com i � 0 N N N � a � 0 � � � O L G. � � . � O _ t� � 1.�1� �F� _ .� V� � L � V � L � V � � � t� + W ■� 0 L � 0 � � � � � ■� � � O � M N M� � i � Q n� � � o � U � O O ¢ � �U C," �� O :Y O O O � � � � � •"� O ..+"'. L v� .."", d � � W �3 -a �l.s � 0 � Q 0 a K a Sp n"o - 6 � v R � y Eg O a� N �p � €': 0 a` a � E_' O � � O m C O 2 ��u a �E mae6 E Q �E 2 q�6 o�� Q E 2 ZQ7 ` � $ 6 E o r`n o ' `o _ _ > g a ¢ a �$ E E E E�- E� q �+ � � 1 U U U m .� -°�� m 2 _ a s � V � g _ _ � q m E i5 L � s Ti - L � L a i c e e� b 2 2 2 m 2 - � 2 2 8 � 2 2 _ _ '2 = 'm n `8_°`c 8�r8�e_8_ 5`c8�`^�_ 88 � £ 3E� ci; az@zS' iobz. iz y = 8 i m ..�E.. _a@ _ _ t x z E v paso�� xx � � � $ w z� i € z �' $ $ - - �..� � y w , � � 2 2 2 2 � % i n � a m 2 S 2 2 a a 0 6 a 0 N 6 z m _ y 0 E � _ a m a o � c z o 0 � � 0 � R a3-ays a L n 0 e� P a � E� ¢� m� �m ¢(d � � =a m�m E iO �' _ E ° = s 9 �-� 2 L E C c g 2 2_ o�� m s_ 2 n_ N_ N E G � S`_3tl<"°�A E�, a `m - N .. �°� �^ ? a�$ a ° g a b �` � v;' e - ° 3z � o ° 2 =` � � g �° 1D � NQ - �w N_ n�1 �uawtlo�anap T' a V W � 1 ;�� a �� a m n 0 E O a 0 c 0 ` R wM 0 3 -ay5 a C w a T a a n Y n � a a a 4 R U m O u N 0 0 0 n ag �m Q (� `o �$ ZO� € � s s E m X wtlo�anapwd Imidaauo� S Ib 0 6 � 6 1 a � 8 ° o a 0 C a U L O N ° o n � a� dC t$ 0 8� �_m x3 �L T V � x'� U � �U 3 0 m� �2 �v to aE dE �V r A � Q m Er Krv¢ wtloianapad m - o o' 3 � = � 3� N m� 6m y — c0 U 3 y = o(J ' O C � C N U O m e3= � � _ VoUj= __ md Ua A >o rc¢r��= s <g e &e m m� e� � � a� _a�s a O G a 9 6 a` P m y O E B O a v a a a a `m U d O V N O 0 0 n a �E � � �m �° o�� EN n = O g�E a c � �m `s �° m�m �� o �enitlaauo�wd o� -a�S m a a� �B `oU Fi 9a �z x; = � � ` �m m aco Q xy� � u ° ° = O = �7 O �= m` N � �F �U � J oU � 'Q p a E V ° E N U a� N � >? 0 N 0 A ¢ c 0 � � O a `m c t 0 a letydaouo�ad �g E� �� sh `¢� �� m ¢� a �: g�� w 6 T a a m i Pasol� ]0� raldnOlRllwe-J alfiul5 03 _a�s a 0 w a T a D a i � 0 � � 0 a 5 � a�cl 0 0 E� �YI $ I I�' Im m a m m O � U m O N 0 ° o n m ° � � °�d E' ¢� F � o °e v m mX�' .. ��E �� i � aa C Em � �% z I ( ��f �S Wso�3W.9eH � $ � w n a 9 � 0 a` m a Q 0 0 E � � a c 0 c m 0 i a � Q 0 m tt C O F ❑ T � N LL b � L N 4 fl N U N 0 N ,� ��o ° �3 a `� a ti F� Ei �o s� 3 � �m U � 3 E2 i& V J �p O V V c x aE dE np rc'� � � $ & e m� m e ;¢ �� R � ° o � 'o , mx e e� � N � ��-a�s a O W 6 T a 9 6 ti ¢ C O E 0 a c g � O 0 a a 0 w 6 T II 9 a` �� o� �lanaa o� -a�.s a 0 w a T a 9 d a` 4 A fJ N O U N N U N O a` 0 0 0 w � c N 3 O S M O O \ M O v 0 a � N S � � O U O � C O 'y U 'j N m � a m � � R C� L � V � Y V G1 . L a 0 O � � � C . 7 O 2 d � \ � y Q a _ � h _ 0 w C � � 0 w .� � � C . 0 7 0 � L 'y C O w C C � N (� � U > O � n c E a U � � � � X n m N c � � � � N � N � m �' '� �II � � � � � o Y � N C O � U � T O L C � � � R �- w � V � N � • � o � a o � N � � C Q� O a�i �o � � N Q' a c � w � t O N U N Q � a m N � m a c N N E O � oi � m � m � � .� � n O � R C ' � U X � N Y N � m � U � J i� � � � � � U � O � N U � c �, N � c 0 0 U i j� W � G v y O T L S Q W O C T H 3 7 O S L i � N � N N N � � L y .� � � � � U L � m � � U � 0 � m 0 � N � � � 0 N N � � Q N rn c �U C N C LL C N N U C X F a � N � c w � 0 U N y m � � U LL F Q K U � C .� Y C C 0 � m II C N n � v N � c O a N C 0 � m N r O E m 0 N m � U c � � � 0 E � LL � F j � 3 w � � O U � x � � '_ N � � U R — O p_ N � a > N � � O � N � N d � C � Y o � � O � s� 7 � N m O C � 0 � � � � � R � @ a m � � 0 � � � � � "N' C O 'C N � a o �do o E � � � o o m a �✓ Q O O � U D " t c O (0 y � N � O � N N " � N 'O O m m ° m � a, � � m � i a m 'p � `� w o � m o a w � o O � _ � a� 3 � w O � .� � ,� � a'3m3 U w N � w 9 O 7 O O 'Q a �� C R O j (6 � � � � � � t O � � O �` �iA N U � p � L a� S �a F w � O j�j O � (6 a � 3 m {6 O �'� 'O � �= A 0 �3 � � N L • w � m 3 V O � O T N � � "�6 � C � o � � v m `o � � � w o w. p c V Q t � � � N � Q L N N � O L � m � N 'O � m � .� 3 0 N .? m � `m � � � U x F" � C . � 0 S N U c J � � O � U a F- tL � m a� 'a C � �N � � d � � U � N y O O a` \° yj o O 'a O C � :°. � � � U 'x = E J N N a O � � N � O L O N Q N � O N w �C � O v N . N d m � a c w C � E Q 0 N > N ❑ c m .Q � � m C � � U = C W � N �6 N � � � m R C � �N � � � u U 0 N 'o 0 a� � N p � E R 3 C � R �X � � � � � � = m V d Y .G � 7 � N Q !!� O � � R � � � W a c � m L w d � N C O 6 N L N m R C � m s m i R O y N '- N d C i O 7 � O � N d V � 9 _ C R R � L N o � n � a a R � tf) N � N a � a�+ R R Cf O � 0 O .0 � �" CI N T 3 N � C G � w C q m 0 � C i d 'C.' ..� Q O � � m ° K � ma..x m '_' c a � i � E o R � U m � � N L 'C O O C7 a+ y t6 "' � S a mU N N C � G1 £ 'C � � y y w c � � 14 0 y � Q V � R' ?> O a y = o Q � � R a a Q w R m C N y m Q t � � � U � c '� i � Q � � � y O C .. � � V C. C y � d . Lon,m o s w '6 ++ X C1 = N'O � W ia O c� N H 3 w d N C C R C7 L 3 ++ a d {�p R O� V L m a O � � O w C a � y C V � O� O � � 3 T N � C � L N �L •� � � �!6 O � O N ' N �..��o m R T� w � 1- U Q R.� N � W a � � L R Q i a 0 3 _ays Housing Action Plan 200�Draft 4/16/03 Attachment C Saint PauPs Housing Production Pian, 2002-2005 (Housing 5000) Potential City/HRA and Other 2003 Housing Funds Potential City/FIRA 2003 Housing �tnds Below is a smlunary of anficipated/estimated housing funds to be available during 2003 applicable to housing projects and programs. Based on past experience, though these funds are expected to be auailable and coxnxnitted to projects/programs during 2003, it is not expected all the funds will be closed and disbursed during the year. CDBG (Communiry Development Block Grant Program) Following is a suminary of CDBG programs in the 2003 budget: PED Programs Home Purchase and Rehab Fund Home Ownership Opportunities Fund Housing Real Estate Development Fund Neighborhood Revitalizafion Acquisition Fund (May not be all housing related.) 1,000,000 1,000,000 1,200,000 500,000 SubQrantee Housine ProPxams East Side Revolving L,oan Fund (DBNHS/ESNDC) 400,000 Home Improvement Plus (NENDC) 150,000 Frogtown CDC Facelift Home Rehab 200,000 Frogtown CDC New Construction 150 000 Total 4,600,000 The summary does not include the allocated program/project fund balances from prior years that are available/uncommitted through 2002. HOME (Federal Home Investment Partnership Program) $2,400,000 is the estunated year 2003 federal award amount. The above amount does not include allocated program/project fund balances from prior years that are available/uncommitted through 2002. (ESG� (Emergency Shelter Grants) Each year the City receives an annual federal award. $350,000 is the estnnated award amount for 2003. Housing Action Plan 2003-Draft 4/16/03 STAR (5ales Tas Revitalization) Frogram An annual amount of the greater of 60% or $5,000,000 of the STAR funds has been approved by the City Council for a total $20,000,000 for the 4-year Saint Paul Housing Production Plan 2002- 2005 (Housing 5000). During the 2003, it is anticipated that sixty percent (60%j ar$5,000,000 will be awazded for housing development projects. The above does not include a11 prior cycle unexpended fund balances, including the STAR Bank Program, ¢nd any funds available year round. HRA (Housing and Redevelopment Authority) Following is a summary of�unds avai a1 ble for ousmg pro�ects programs m e�0 u get: Home Purchase and Rehab 1OQ000 Mi�ced-Income Housing 5000 2,000,000 Rental Rehabilitation-HUD 200.000 Total 2,300,000 Revenue Bonds Each yeaz the City/HRt1 has the authority to issue tas-exempt bonds for mortgage revenue bond loan/mortgage credit certificate programs, rental housing or other eligible uses. Also, each year there may be opportunities to refund past mortgage loan programs and recycle bonding authority in order to provide additional mortgage loan proceeds in addition to the annual bond authority allocated to single family mortgage loan programs. $25,157,000 is the estimated annual allocation for 2003. 17xe above does not include the current balances in existing fzrst-time homebuyer and middle income mortgage Zoan progf-ams, the mortgage credit certificate program, and any carry- forward authority from prior years. LIf3TC (Low Income Housing Tas Credits) Each year the CitylHl2A has the authority to allocate federal low income housing ta�c credits, which generates private equity investments in eligible rental housing developments. The estimated allocation is $695,000 for 2003 which can generate an estimated $5,038,750 of private equity investment. Additionally, with the use of housing revenue bonds, housing ta2c credits aze available outside of the annual allocation menrioned above. It is estimated that $5,000,000 of addirional private equity investment will be available through the allocation of ta�c credits in conjunction with the issuance of tax-exempt rental housing revenue bonds. Summary--Potenfial City/HRA Housing Funds-Year 2003 O� -��#.S Housing Actio¢ Plan 2003—Draft 4/16/03 Resources CDBG HOME ESG STAR HRA Subtotal Revenue Bonds LIHTC Total Est Bud�et 4,600,000 2,400,000 350,000 5,00,000* 2,300,000 14,650,000 25,157,000 10,039,000 49,846,000 An annual amount of the greater of 60% or $5,000,000 of the STAR funds has been approved by the City Council foi a total $20,000,000 foz the 4-yeaz Saint Paul Housing Pioduction Plan 2�Q2-2005 (Housing 5000). Potential Other 2003 Housing Funds In addition to the funds that are directly administered by PED/HRA, there are other resources that aze made auailable for housing projects and programs. As part of Housing 5000, fund raising efforts are underway to capture new and increased funding for housing projects and programs from traditional and non-tradirional housing partners for the unplementafion of Housing 5000. A suimnary of current fund raising efforts are summarized in Part II: Housing 5000 in the Housin¢ Resource Book 2003. A summary of all the funding partners in the nnplementation of 2002 housing activities are in Part N: Year 2002 Accomplishments. Following is a list of other resources that can be potentially made available during the yeaz. Federal McI�imiey Supportive Housin¢ Progx�s This is a federal program administered by FIUD which subsidizes the acquisirion, rehabilitation, and operational or human service costs for projects for fasnilies and individuals who are homeless or are in a transitional housing program. Projects compete for funding with other proj ects on a national basis. Federal Section 108 and EDI Housing Action Plan 2003—Draft 4/16/03 The City has the ability to apply to HUD for Section 1081oan and Economic Development Initiative grant funds. Future allocarions of CDBG funds aze at risk as repayments of the Section 1081oan funds. Federal Home Loan Bank Boazd The F'HLBB has an Affordable Housing program which make funds available to affordable housing projects. MHFA Suner RFPs for rororoosals far a comprehensive array oi state housmg iunduig resources ior ownerslup and rentai nousmg projects and programs, including low income housing tai: credits. These RFPs incorporate funds (available to Saint Paul) from NIf�A, the Met Council and the Family Housing Fund. l�IFA Home Improvement Programs The Ciry annually receives funds from MHFA for pay-back and deferred payment home improvement loans. DTED and Met Council Pollution Clean-Up Pzogr s The State Department of Trade and Economic DevelopmenYs Contaminated Site Clean-UP and the Metropolitan Council's Ta�c Base Revitalization funds are complunentary pollution clean-up programs, funded twice a year. Metropolitan Council Livable Communities Demonstration Account This program is for higher density, transit-friendly projects. Planuing and development projects compete for funding on an annual, metropolitan basis. Ramsev Countv The Boazd of Ramsey County Comxnissioners has established a Housing Endowment Fund to assist in the production of affordable housing. FIRA 501�)(3) Revenue (Conduitl Bonds HRA has the authority to issue taY-exempt revenue bonds for eligible non-profit acfiviries, wluch bond authority is not subject to the volume limit of the City's annual allocation of zevenue bond authority for mortgage loan programs and rental housing. Tas Abatement State legislation enables cities to abata properly taxes for eligible redevelopment purposes. o� _ay.s Housing Action Plan 200�Draft 4/16/03 New Tax Increment Financing Districts Ta�t increments generated by new and existing ta7c increment districts can be used to help pay for land, construction and infrastructure costs. TIF elib bility varies from project-to-project, depending on foxmer land uses, housing type and income levels. (Major new tax legislation was enacted in 2001 that has a significant impact on the use of tax increment financing.) PHA Section 8 Proiect-Based Assistance The Saint Paul PHA from time to-time makes federal Section 8 tenant-based voucher assistance available as project-based assistance. Applications aze made directly to PHA and are part of IvIHFA's Super RFPs. Also, Minneapolis Hollman project-based units aze also potentially available by application through Saint Paul PHA. Faxnilv Housin¢ Fund The Family Housing Fund provides financing assistance for a variety of ownership and rental housing serving low income households. Funds are primarily provided as part of NIHFA's Super RFPs. Fannie Mae In addition to Fannie Mae participating in the City's mortgage revenue bond programs, it has established the American Communities Fund which invests in debt and equity in neighborhood revitalization. Inveshnents can include a Line of Credit for cifies to fund multiple housing projects and other special iniriatives. LISC LISC provides a variety of resources to assist the capacity building of nonprofit developers and to pay for pre-development expenses for nonprofit sponsored housing. Additionally, LISC provides a working capital loan pool for the development of multi-family affordable rental housing. Greater Twin Cities United Wav United Way provides special initiative funds to assist building the capacity of organizations to produce additional units of affardable housing. Recent capital campaigns include affordable housing as a priority giving initiative. Historic Saint PauUNational Trust for Historic Preservation Saint Pau1 is a participant in the Preservation Development Initiative wluch wili provide technical assistance and financial resources to support preservation-based community development activity in Saint Paui neighborhoods over the next three years. . Attachment D Housing 5000 Advisory Task Force Members Michael Olsen, Co-Chair Coldwell Banker Burnet Dick Anfang St. Paul Building Tzades 7inu Boo Minnesota Union Builders Martha Fuller City of Saint Paul (PED) Paul Williams, Co-Chair I.ocal Initiatives Support Corporation (LISC) Tanya Bell Wellington Management 7im Erchul Dayton's B1uffNeighborhood Housing Services Tom Fulton Family Housing Fund u .. - �. � _ ::3�= .:0..: .�7:e :ti � � ��..:,;�.- - Jon Gutzxnann ° Saint Paul Public Housing Agency (PHA) Dennis Guptil Gupril Contracting, Inc. Bob Odman Minnesota Housing Finance Agency (MI1FA) Don Maietta Coldwell Banker Matt Mejia Tyronia Newman Paul Rebholz Wells Fazgo Vic Rosenthal Jewish Community Action Jaye Rykunyk Hotel & Restaurant Employees International Union George Sherman George Sherman & Associates Missy Thompson Fannie Mae MN Partnership Office Terry Troy Real Estate Equities Judy Karon Ramsey County Terry McNellis U S Bancorp Piper Jaffray Paul Mikelson Lyngblomsten Health Caze Arthur Pry Metropolitan InterFaitfi Cuuncil on Affordable Housing (MICAH� Da�id Reiling University National Bank Caty Royce Community Stabilization Project (CSP) Stephen Seidel Twin Cities Habitat for Humanity Richard Swanson St. Anthony Park $ank 7ames Trice Family Services, Inc. Lee Pao Xiong The Urban Coalition _ , • Housing Action Plan 2003—Draft 4l16/03 Attachment E Comments Received from the Housing 5000 Advisory Task Force Report Following is a summary of comments received from the Housing 5000 Advisory Task Force. OJ -2�S.S ■ There is a lack of larger affordable family units in the City. This is particulazly an issue for some cultural communifies in St. Paul that need housing for lazger (often extended) families. Further discussion is needed, drawing upon the expertise of developers, regarding the economics of producing larger affordable units and what reasonably can be done to encourage more of that type of development. The participation of minority contractors attd vendors is an important issue. The Housing Action Plan should state goals in this azea that can be used to hold the City accountable. The City and PED recently started the Minority Business Development and Retention initiative and tkis HAP 20Q3 states in Section 3.5 Mortgage Lending that PED will work to increase the participation of minority home buyers in City/HRA sponsored mortgage loan progi^ams. ■ Fair housing issues are important and need to be addressed in a proactive way by the City. This HAP 2003 in the Introduction states that this action plan is primarily the priority actions to be undertaken by PED, and in accordance with the Housing Plan, Fair Housing issues are being addressed through the City's Department of Human Rights. ■ The Plan should be consistent throughout about how the affordability goal is stated. It should be clear that the target of 20% affordable at 50% of AMI is a minimum threshold and that it be viewed as a floor not a ceiling. The approved Housing PZan, a chapter of the Saint Paul Comprehensive Plan, calls for 20% of housing production to be affordable to persons and families earning 50% oY less of the regional median income and that at least half of these units to be affordable to persons or families earning 30% or less of the regional median income. Housing 5000 and this HAP 2003 retain these affordable housing goals. During the past three years, more than 20% of the city s new housing production is affordable to households at or below 50% of the area median income. ■ The new language on the bottom of page 4 is confusing and problematia ln the draft FIAP 2003 it reads as follows: "Developments in neighborhoods with little affordable housing and strong markets should be required to provide a minimum of 20% of theu units to lower Housiug Action Plan 2003—Draft 4/16/03 income households while those developments in weaker mazkets should be asked to provide a smaller share." The HAP 2003 should frame the issue of economic integration as one of m�imiTng housing and locafional choice for all residents. Language like that included in the second half of that sentence can often lead to discrimination by excluding people from a particular azea. It was suggested that the language be revised or deleted altogether. The specific language highlighted above is exactly as it is stated in the approved Housing Plan, a chapter of the Saint Paul Comprehensive Plan. IJuring 2003, the Housing 5000 Advisovy Task Force will work with PED staff in addressing the issue included in Section 4.1 (d) regarding the development of a policy supporting and defining the criteria for broader distribution of affordable housing (as defined in the Housing Plan) across city neighborhoods. The Task Force in their initial discussions suggested the issue be framed in the context of locational choice, the City mccrimize location¢Z choice for all residents, _—_including lower income residents, and discoura e d i s crimination. It is important to understand and acknowledge that not all residents of affordable housing need human services. Therefore, the language in Section 2.4 that states "link human services with affordabie housing" should be qualified by adding at the end, "where appropriate." This language has been added. r There should be more support stated in the plan for neighborhood based community development and the work of community development corporafions as a key strategy for continuing to strengthen housing mazkets, providing affordable housing, and ixnproving the city's neighborhoods. In Section 3.0, Priority Actions for 2003, 3.1 a. states the City/FIRA wi11 work with the private for profit and nonprofzt sectors and other pubZic agencies to develop and fznance housing. AdditionaZly, in Section 4.5, Support Key Partners, 4.5 c. states PED will wosk cZosely with key partners and support LISC activities in community development activities and the production of housing by CDCs and other parrners. ■ Greater clarity is needed on the local replacement housing policy. It was snggested that this be added as a future agenda item for fiirther discussion by the Task Force. ■ Inciusionary housing legislation that tries to move suburbs to adopt policies sunilar to Saint Paul's 20% affordable housing policy should be supported in State legislafive iniriatives. Additionally, budget cuts to MFIFA will have a direct impact on the City's housing efforts. ■ The issue of predatory lending legislation should be raised at the state and locai levels. ■ Land trusts should be discussed as an idea and the City should partner with land trust �oups. Section 4.1 b. states that e;cplorarion of the feasibility of using the land trust model throughout the city will be an issue to be addressed during the year. Also in Section 4.5 Key . ,�. � Housina Acrion Plan 2003—Draft 4/16/03 o�-a�s Partners, Rondo Land Community Land Trust is added to Section 4.5 I. which states the support of the development activities of Habitat for Humanity and Rondo Land Trust. ■ The City should consider as part of its community review of the HAP 2003, conducting public hearings so the Task Force and the PED staffhear from the communiry. Housing Action Plan 2003—Draft 4/16/03 Attaehment F City Council Resolution Attached is the resolution approved by the City Council adopting the HAP 2003. DEPARTMENT OF PLANNING & ECONOMIC DEVELOPMENT Manha G. Fuller, Dirutor LJ �� CITY OF SAINT PAUL Randy C. Kelly, Mayor zs wesa Fou,ui sneea SainzPaul, MN55102 Telephone: 657-266-6565 FacsimiTe: 651-228-3261 Apri14, 2003 To: Council President Bosirom Councilmember Benanav Councilmember Blakey Councilmember Coleman Councilmember Harris Councilmember Lantry Councilmember Reiter Fr: Martha Fuller Re: Housing Action Plan 2003 Responses to Questions Raised by City Council This memorandum responds to the questions raised by members of the City Council regarding the approvai of the Housing Action Plan 2003 (draft attached), which is item #25 on the City Council agenda for Apri19, 2003, Resolution #03-245. 1. YVhy was the Koch Mobil project not included among the 2003 projects? Though the Koch Mohil project is not identified as a"DevelopmenY' proj ect on the Housing 5000 Projects Scorecard and in Attachment B of the draft Housing Action Plan 2003, it is listed on the current Scorecard as a"Pre-DevelopmenP' project. The Koch Mobil project is not categorized as a Development project on the Scarecazd because the project's full development financing is not expected to close this year. (A complete, current copy of the Scorecard is attached.) � The Koch Mobii project is listed in Section 4.4 Neighborhood and Project Planning, as an example of implementation planning for an identified development opportunity. The Koch Mobil project is certainly a high priority project for PED and the City/I3RA. Recall it is one of the sites idenrified in the 2003 Land Assembly Plan recently provided and reviewed with the I-TRA Board and the Neighborhood STAR Board. 2. Provide an explanation as to why there appears to be a departure fi^om the 20%guideline in the plan. The Housing Action Plan 2003 strongly affirms the 20% affordable housing guideIines as stated in the following sections of the Housing Action Plan 2003: o � -a-`-�-s Section 2.41ists the policy/actions that will be emphasized during the year regarding the strategy in the Housing Plan on ensuring availability of affordable housing. One of the policy/actions is to "provide 10 percent of the newly produced units to be affordable to households at 50% of the azea median income, and 10% of the new units affordable at 30% of the area median income." Section 3A (fourth pazagraph) states "The Aousing Plan also calls for 20% of housing production to be affordable to persons and families eaming 50% or less of the regional median income and that at least half of these units be affordable to persons or fanulies eaming 30% or less of regional median income. Housing 5000 and this HAP 2003 retain these affordable housin�goals•" [emphasis added] Additionally in Secfion 3 A(sixth pazagraph) it reads " The production of ownership units affordable to households at the 30% of azea median income level and below is extremely difficult and requires high public subsidies. In addition, home ownership is frequently too costly for families at tkus income. Therefore, the production of housing affordable to families at 30% of the azea median income is expected to be primarily rental units." 3. The Council voted for implementation of the St. Paul Emergency Housing Fund as one of its goals; this should be incorporated in Action Steps 3.4 page 9. Section 3.4 (d) has been revised to read "Develop necessary other specific activities with respect to Saint Paul's involvement in the issue of homelessness, including securing funding for priorities and creating the Saint Pau1 Emer ency Housine Fund in accordance with Citv Council xesolution #02-986. [new language underlined] The following is additional information in response to Councilmember Hatris' interest about homelessness: PED is working with Ramsey County and other members of the Funders Council to implement the City and County approved five-year Saint Paul-Ramsey County Low Income Housing and Homeless Services Plan. This plan sets out production goals for emergency shelter beds, transitional housing and permanent supportive housing. The current copy of the projects being monitored by the Funders Council is attached. Section 3.4 c. reads "Achninister the federal Emergency Shelter Grant program, including increasine the use of these funds for capital exnenditures." [emphasis added] In accordance with City Council resolution #02-986, regarding developing new or additional emergency shelter space and beds and transitional housing, PED has initiated a Request for Qualificafions (RF� for the expansion of shelter beds withiu the city. The RFQ was sent to more than 200 agencies. To further encourage participafion, PED is additionally notifying housing agencies that have a realistic capacity to implement the CounciPs intent. � 0 3 - �-`� There is currently approxunately $300,000 available from City/f�IIZA sources and $200,000 from the Family Housing Fund for the production of emergency shelter beds and transitional housing. At such time as the 2003 Emergency Shelter Grant (ESG) funds are availabie from HtJD, City Council will consider the appropriate budget amendment accepting the federal funds including setting aside $50,000 for new capital production expenditures. There aze currently appro�mately $250,000 of CDBG budgeted funds for homeless,lzansitional and supportive housing new developments. The Family Housing Fund has confirmed that they have set-aside $200,000 for this nuriative. The FHF funds will be piaced directly into a new development and the funds will not be incorporated into a City/FI12A budget. Except for the FHF funds, the anticipated 2003 ESG funds and the already budgeted CDBG fixnds aze available for the Saint Paul Emergency Housing Fund. Please let me know if you have questions about the above responses or any other provisions in the draft Housing Action Plan 2003 (attached). Attachxnents * Housing 5000 Projects Scorecard * Ramsey County Pipeline Tracking Report * Draft Housing Action Plan 2003 (dated 4/3/03) �hap\03�ccmem.wpd AA-ADA-EEO Employer o� -�-`�S � 0 N � N O N � �. � O � � � O L a � .� � � 0 _ �n � a c ._ � � L � V � L � V � � � � � .� t � i � O O O � �i � .� � � 0 _ M O N M �v = � a Q s� o� � � 0 � ; o ° � � �, ... ^ �� ^ �° �� . � � �� o �� 0 0 � 0 ° o y p L�o a� �nq am� a C�_ G pVe . CW$ ��[ N iNi � 2 =pe - �o` ma°• �q q ° mc' �4C N a�� C� o � u ¢ �s c�t o @ � m e � ;t4 h0 dCQ 9 . =; 9 �wa e e V ¢ � � a�a H _ c� - e n € ° Q�a aa� a � �=: m eo` a=' a u z�� ti - I � � � 2 _ @ � 3 q _ _ _ ' j ? _ ' �O N - 2 3�3 3'= ; ZmZO ZUO2cKcZ N � E � m c � o � m� N n � : � � � _`o _° m U• ' _ - U �a=c ��'=aE v x33r oviU � � w� _ m m � ]N � L E ' � t Y `N �_ W ��=� �-�� I ca5l(J O o m m ' �, a @.- a Pxop - I � - @ � _ � `o - - Fi ' c � ? - 2 2 � �M?�%_� m b a ?e za' i<' z e ' T. a m a � m m m � 2 2 2 2 �ry L � ' N 2 g 2 2 N 2 E a � < ° • = w � m � � � i z 3 m u _ � 6 a : n n` m W C N O E m 0 C G l 0 � y y a m a° 6 � -�-`3� N a 0 w n a a c m `m n u a` ° o � 0 a 'm � E ¢ me `¢ �1 me E� `6 (� ¢ o� z�� a W a T a 9 d a a` S °_ '� Im = It �-° I � - in� _ - � - _ m ` 2 P c ' - Fi m '-° `o a 2 N � y E 2 o a` E'm�� _'m�E�m L`_'mmmUc '�'Is�m��'�°-I°@ zez,',z€¢ozrc zz zz z � m a c � o m 5 = � = m ` 0 2 �E m � m m c'�° c o ` o. �° V J 3 � U € a z N E � � c L E c c� � � m � U� Q U � `m a � �',n> .` �� c ° °c o�'S�°c€ m� .,`� � Sam g J m� E m2 (JNO �WOUuS 1�- �yN�(�= J p(J(q�QJJO � � Nm zAm om o f �L e `� m o _ a dc _ 2 ,a° o E 'o o �am ¢' y m m �o m3�� m�5 t9 0- c Z• wm -> � m " z �n � � ° 2� _ c c ` x ' �� ° m m c> yon � Z �mmv��y T N m o - mAma' in'r wc�m ' A 3�mm.. ? o � ` 019FN$r l0 N(7 0 0 m'nc E A>''�' m� my - : a m o m ` z° _ Q � �- = o° U __� o i �` c�c .. Fac�m.o�c� > �U� a ryawtlo�anap d � -a� a C w n T L E d A 6 d a` � 0 s a 0 n � a� <� a° a da E ¢Ca � � < `dE' � z•a� 4 �. ` ��_� Le O� Q a c� Z ZOJ _ > I _ p b — � W 3 a _ o o O c 2 = ? 2 2 � °� 3 o a� z 3 m 3 r 2 m z v x d a (P.luo'J) y '� luawdo�anad ° S � 7uawdo�anadwd a a a 9 d 6 6 @ C y c `m E y 0 a c m e 0 c m O N N a p� a 0 n N Q h �N��W�hg� �/I '�� N d S — tl � _ � 3 .-. 3 N aV t i y T m O U 00 3y = o U N�- � y o u � `^UO � v_�UZ�Uia� o E"= a � u. v � m - Uo(Jj—UF�O ' °'— ma'Sa�4aqa � — �� ti U U U U o eo C W a T s a n m n` puawtlo�anap-ald � 0 ° o a K as' ¢� a x x a m� r� a� a� x C9 a �o m°a a��t o�aa -�8 �mm �s�� '`mb Y)�n d�Ps >Y>`5 a `m ��o' ¢mi..°� - � = E 2 2 2 ,n c V �o � $m i 3 33a ° c 2 ; Z Z � R L 3 � 3 (> � m m m mmm °�'=a �c_m� ?E.'� �erytlaouo� 2 x � ? O � F 0 c � �efqdaauo�-aid c a d a n` m O G 0 E N 0 a w 0 � m � h a R o � -a-`� m � . m 4 ,m F w _� r o m a � a L a v � a \ d a` �enidaouop-a�d � a m� Q� TE - v 2° o�� N �m _nn � Q(dl Q� z �3 o Y 3 3 3 _ 3 N _ _ o� � � m g d E=£ o mu` m�Oa pcn m K AUqU ¢ m`m Q C m `m � (q � o m E ° z c� c c`9 c z o� c�i z o a m' ° u�` Q i K a j y m m N N S � c Q m a aF� o � < a' - - _ ° s. °a' o E —`�� °c m � a — — ci ci 3 0 ° ` O q�n — NE � oic 3 Q � e � 0 4 m ro r n � N E w w m � m m m � m E � As` 3y � y � a w p u c a � a' a' � _ _ = s ° , � S m � s-. A A E _ _ o S _ � W a T s a m v. m n` Paso10 D4� xaldn0/Rliwei al6mg b� -aus 0 w a T a a n a a' � 0 � 0 a � ¢� m� a� m u c i¢ E� ° Q �E 2 N V — _ oa o " Q�E N Q � m m a � P= a � z 0 d m ¢ m c `m o s V m U G O V N 0 0 H k � T d° h2 E N U a Pa�q iQA!9¢H a d° T m= E a a a i c u a` m m ¢ N G 0 m E m U 0 a c a c g c m � m m m m m 'n � - o - a � � o ° o p C m � m Q 250 C — V �� N Z m oC alV 2d V � r39 oU m ° c3 �o �� r � � U� U N NI7 � � �� O CZ N q p p U C O � D j N N � yU � O C � ' Ip U LL w m - C s N .6 p e E R a E V d L - O eV tq � � - � �w Cl d a` � m � m� m o� v 0 � pasoq iq!QQH m I� �I= � � O O eo eo e• p o aea� � a _ � 0 N o � -a�u � W a a ° a a u n` a Q N C N E N � m 0 € m 0 m N 0 0 a m a mq a� Yc om° n2m Q� p61 m� �ma cUq a �i0 ��q � Q� wm �Wa R aeC 2 Q� x J 40m �� m� �yY � 3cR � QR m m� �� 6 `o � �+ z F �i U. �anap W T II 4 0 a m 6 n 0 � P 0 a � v V d 0 (l N v d � a O � rn c . � O a' e �U =• S U `� 0 ?U a'a �- `o� m � 0 U E� i � 0 U � m'm °U 3 � �� i� m2 S c7 aEo ° Eg �V� op �w � U � � n 0 � a O N a � m o� �-`� $ e O w a T s 9 d R 6 a` m m m O E U � N O � o m h m R a � 0 a N O v 0 a � h � � � � tl i � V � � tl d �O L a 0 O � a1 C . 3 O 2 C1 R V y a � � O � � � � � Y .� � � C 3 0 � 0 C O .� U O m C O �y ti '� N a R m � � � i N L - y C O 4i � C N � N m U > �, O Q C E a U � m n O_ N N C O U (6 �a y � � ��' m +�-� � � 3 � C O y �> N = O � V � O L '- R ( 'a n � � O Q L X .��' W N V � m � o a a `o � d X� Q � � O m� d � a d K v c m w m L O U W Q � a � m t w a c � N � O O N � N m m m � .� N d O � N G � (� U X � a� � N � N � U � � � N' N � � � � U � `o a N �. U � C � N � C o a U � L � R m c � v� O �' R 9 � X � W p c � � 3 0 2 t � N � N N N Q � N s � ._ .� � N � U � 0 N N O � � � � w 0 y N � 0 w t N U N w O � C N � 2 � H � W � O S � m 0 U m � � � c V i G � x « U � C �U C N c Ll C m N U C x H T a a N a C .._- w O 0 m � � � � U ti. F � i. U � � . Y � c O C � � C N a m � � � C O � W C N O N N � O � N L 0 m m m U c � � y O � � LL � � � m 3 ..N.. C � O U � X w � '_ oi � C U m. o Q a� � m N o � � vi C � N � C L � O � � Y 6 � 0 T O a � a � � � VI @ � � o ° o 'a � � � R O �p am°� O O � N N Iv � w C �� `o 3 �OO � a� o o � M � � 0 O � 9 at O O p a U o � � � O (6 y � N � � � N N � N U1 'o O � � � O � � 0I � � N � .N. '6 N � '� `o � p � (�p O m Q .. � o 9 p o 0= LD � 0 3 �, O .N. m � C N O 3 � � U � � vi ai . � Q � � O p "O a�� L '� R O 3 "� � O � N � L o � c o wm'�m U -Q cc o � L � = a F w c o � � � � ? 0 3 m R O � � � � � � �3�N3 w O O � N m t � � w n N 3 V o` R o � R � � � fq O '6 .0 II R N "i7 � O � ` 0 Q. � � m � a O L N W 3 O L 0 N � N " 0 `m w . � O � d .� Q N N N w 'a m U X H � C . 3 O 2 N U C J � R p N U v � N � LL � �a C � �N � •� � N � U � N� o � a o � ryj o O v o R ? y � U 'x = E J N � � � L N N � O L 0 � Q N � O N � .� 3 O � N a � N N N a c w C a� � d O > N 0 C N � � � m C � � U S � N N V � � m � � C � �N = N � � � U Q N 'o 0 a� � � o L � R � R X y � o � � m 2 ca Y U d � 3 N rq C O ' R C i W c L w � � N C O C N � N d .� a `m V ro m {0 C d � a O > d a � a c R Q � N � N d � O O � N La .� -c _ c R R � L m a� R p, R � � m � N a w a R R 01 G d p � .. � ,+ � � O 3 m c c c S �r � R m 0 � C i Q � � � O 16 R � Q �� O' R a.�+ � � d a x a�i " c m « £ o�� U m �"- �s 'O � O m .+ � R r " R .0 � �U N � y C T � + y 7 C C L R � O = p R O N G � � y � Q U > O �p � m 0 Q- o Q c.'�:? R � � C � N O �'. O C 0 C � n c V m V Q O � Q �+ �.' � ' '� £ C y 7 a+ R Q 0 o a � o w a r x u N � R W R = R y N 7 � d Q 0 R � � + N R o c U � m 'a ++ m � a''o«co L � « O � C °' rn �3 �. ayi m R O � .p •� y m s L � � c ❑F V Q t�6w d m C R L a a�.+ U N � 7 N O N R L m .y d O Q w � w W 0 W a 4 � L R Q m a 03 -ayS } L O � N GC v� � Y � � ^ W i e W � �i � � 7 O V � N � � Q �L � � � a 0 0 ; � N M � 0 a m K � � Y U N F- @ 4 ' �a a, A \ � 0 � � 3 O y � 3 s � � o = 3 0 � N � C O � � ° a a N —> _ � > � « £ E U d � v . � } � L � � _ �"i ¢ � ti � m d ¢ Q n Q � � � � � �L S a v� a S� m � J p 2 � u- a v h m '� < � � � � � LL � w 2 n V 2� LL ¢ v � H J � �� °i 3 0 a a N n `o � R � y = � c N a'o° E � m N E N O ti U C U � � 03� °' m c L „ a � v C•�1 `+ m V N � £ � . � W = _, _ -m �u- ea- - .. , ._ _ _ , _ y . _._ � . °._ � ... �....._ .:.,.�c< _- --_ -��s m..- �--_ _-` r, - __ -___ °_=____-__ °-- -� . ,_ _ ° ._- � _ a d ° � } ° �^ � ' ° � z °' = 3 � _ o N t o � � o z m v +- � � °> w `m v v a� z E `m a a � W d°' " a w�n � 3� � v + - i � 3 � � 'w c 3 a� d� o°� v � e i a � > � ? N� d� O L d p W C t N = N d N 'J Ll N� N 0�� d � N�� L 1� OI $ N V� O N C ti V Z V tp 7 E � j N] c rn c + Y � � L a a ti �` t t 3 S ¢ � ° N � > i z � °-' � s � ` � � E O � � C � �a a d c u� �> > a w W •L a 2 V . F�j j �� 5�n ?! N d d � . � O _ N > C 0 a c � � O G O .� O Q O U a m `m a d a` r 0 a N � m s U F o� -a�s } L O � N � C1 � ., Y U t3 L � N � ._ � � � f- � 7 O � � N � � C �C � � � � a � 0 N N � r 0 Q � � m � Y U W f- .s' � � - a-4.5 Draft 4/3/03 Housing Plan The Saint Paul Comprehensive Plan Housing Action Plan 2�03 Adopted by City Council, V�ap\03�hap03.v4.wpd t� Housing Aclion Plan 2003—Draft 4/3/03 Table of Contents 1.0 Introduction Z.0 Housing Plan Policies Emphasized in 2003 21 Economic Integration 2.2 Strategy l: Take Caze of What We Have 23 Strategy 2: Meet New Market Demand 2.4 Strategy 3: Ensure Availability of Affordable Housing 3.0 Priority Actions for 2003 3.2 Rehabilitation 3.3 Extended Affordability Life (Preservafion of :,ow Income Housing) 3.4 Saint Pau1-Rar✓�sey County Low I.�come Housing and Homeless Services Plan 3.5 Mortgage Lending .i.6 Mortgage Foreclosure Erevention 3.7 Obstacles to Implementation 4.0 Other Housictg Related Activities 41 Issues to be Addressed during 2003 4.2 Legislarive Initiatives 43 Zoning Initiatives 4.4 Neighborhood and Project Planning 4.5 Suppozt Key Partners 4.6 Housing Activiry Reporting 4.7 Other Actions 5.0 Process for Preparafion and Review of the Housing Action Plan 2003 5.1 Background 5.2 Aousing 5000 Advisory Task Force 53 Composition of the Task Force 5.4 Community Review of the Draft Housing Acfion Plan 2003 Attachments A. 2003 Targets with attached PED Housing Acfivities B. 2003 Housing 5000 Projects � C. Potential City/fIItA and Other 2003 Housing Funds D. Housing 5000 Advisory Task Force Members E. Comments received from the Housing 5000 Advisory Task Force Report F. City Council Resolution 03 -a.�5 Housing Acrion Plan 2003—Draft 4/3/03 1.o Introduction This Housing Action Plan 2003 (AAP 2003) incorporates the second yeaz plan of the Saint Paul Housing Production Plan 2002-Z005 (see Part II: Housing 5000 in the Housin� Resource Book 2003). The HAP 2003 incorparates the significant New Housing Production of Housing 5000 as well as additional housing unplementation activities administered by the Department of Plamung and Economic Development (PED), in coordination with other City departments, and other public and private partners. The Housing PZan, a chapter of the Saint Pau1 Comprehensive Plan, was adopted by the City Council on March 24, 1999. It calls for the preparation of an annual Housing Action Plan. Additionally, the Housing Action Plan incorporates the acrions 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 HAP 2003 is an implementation plan that details specific actions which will be taken during 2003 to implement the polices in the Housing Plan, Housing 5000, and the Homeless Plan. T1us HAP 2003 also serves as Saint Paul's action plan required by the Metropolitan Livable Communities Act to document the Ciry's intended actions to cariy out its agreed upon housing goals. The putpose of the annual housing action plan is to outline the specific actions that wi11 be undertaken and the specific objectives that will be met over the course of the year in furtherance of the broader strategies and polices outlined in the Housing Plan. The Housing Plan calls far the creation of a task force, to be convened with the assistance of LISC, that will include balanced representation and will work with City staff on the annual housing action plan. During 2002, the previous Housing Ac6on Plan Task Force was expanded and refocused to primarily monitor the progress of Housing 5000 and provide advice as requested on certain policy issues. This new Housing 5000 Advisory Task Force will heip assure that the organizations and institutions that are vital to the City's success in implementing the Housing Plan and Housing 5000 are engaged in and supportive of the City's plans. The City of Saint Paul's role in the implementation of housing-related activities includes several departments and offices of the City including the Public Housing Agency. However, this FIAP 2003 is primarily the priority actions to be undertaken by PED. In accordance with the Housing Plan, Fair Housing issues are being addressed throu� the City's Department of Human Rights. The HAP 2003 is part of a larger Housin¢ Resource Book 2003 that compiles together important 2 Housing Action Plan 2003—braft 4/3/03 Saint Paul housing information. The Housing Resource Book 2003 is arranged in the following order: Part I: Part II: Part III: Part IV: Part V: Part VI: Part VII: Housing Action Plan 2003 Housing 5000 CY�rrent Housing DemograpYacs, Trends, Etc. Year 2002 Accomplishments Muiti-Year Accomplishments Common Language Other Important Documents This $ousin� Action Plan 2003 is arran�ed in the following9rder• Section 1.0 Secrion 2.0 Section 3.0 Section 4.0 Section 5.0 This Introducrion Housing Plan Policies Emphasized in 2003 Priority Acrions for 2003 Ott!er Housing Related Activities Process for Prepazation and Review of the Housing Action Plan 2003 The strategies and policies outlined in the Housing Plan are included in this HAP 2003. Saint Paul's Housing Production Plan 2002-2005 (Housing 5000) In 2002, Mayor Kelly prepared and the City Council approved a 5,000 unit, four-year, $1 billion, public/private housing ptan for New Housing Production in Saint Pau1. This plan is incorporated in this HAP 2003, and is more detailed in Part II: Housing 5000 in the Housin�Resource Book 2003. This Part also includes the initial City Council approving resolution with attachments for Housing 5000 and the use of $20 million of STAR funds. In 2002, the City/IIRA was involved in a wide variety of housing activities including New Housing Production, rehabilitation, mortgage lending for home purchasing and mortgage foreclosure prevenrion. During 2002, a total of 2,539 housing units were unproved or otherwise benefitted from these City/HRA housing activities. 41% ofthese units are affordable to persons or families earning 50% or less of the area median income. P art IV: 2002 Accomro in the HousinQ Resource Book 2003 includes a swnmary of housing accomplishments during 2002 including indicating incomes served. During 2003, the City expects to maintain or increase this level of overall housing activity. 2.0 Housing Plan Policies The Housing PZan outlines three distinct but highly inter-related s�ategies. In each of the three strategies, certain policies or actions aze outlined. For each strategy the following is a list of the o� -a�s Housing Action Plan 200�Draft 4/3/03 policies/actions that will be emphasized during the year and will guide the implementation of the Housing PZan. For all three strategies, however, the City supports economic integration within the City's housing developments and residential neighborhoods. 2.1 Economic Integrafion The City's policy is to support a mix of low, moderate and higher income households and supports this mix of incomes in single family and multi-family housing developments in the city's neighborhoods. The City encourages the economic integration of mixed incomes and densities in housing developments in which there is public financing participation. 2.2 Strategy 1: Take Care of What We Have • Continue and expand efforts to enhance the city's traditional neighborhood design. • Preserve historically and azchitecturally significant buildings and neighborhoods. • Strategically focus efforts to stem deteriorarion and declining values. • Improve management and maintenance of rental property. • Priority will be given to proj ects that commit to the long-term affordability of housing units. 2.3 Strategy 2: Meet New Market Demand • Encourage the production of housing. • Promote good design solutions. • Encourage the producrion of rental housing. • Encourage a diversity of building and unit types. • Encourage innovative development through regulatory reforms. 2.4 Strategy 3: Ensure Availability of Affordable Housing • Challenge the region to provide a full range of housing choices to meet the housing needs at all income levels. • Identify and secure significant additional resources to preserve and conshuct affordable housing within the city and the region. • Preserve existing federally-assisted housing. • Provide 10 percent of the newly produced iuuts to be affordable to households at 50% of the azea median income, 10 percent of the new units affordable at 30% of area median income. Developments in neighborhoods with little affordable housing and strong housing markets should be encouraged to provide a miniinuxn of 20% of their units to lower income households while those developments in weaker mazkets should be asked to provide a smaller share. [This is the specifzc 0 Housing Action Plan 2003—Draft 4/3/03 1¢nguage in Lhe Housing PIan.J • Follow the local replacement housing policy. • Support initiatives that assist lower income households achieve home ownership. • Link human services with affordable housing where appropriate. • Implement the Saint P¢ul-Ramsey County Five-Year Housing and Horrceless Services Plan. • Explare policy options used by other metr�opolitan azeas. 3.0 Priority Actions for 2003 The Saint Paul Housing Production Plan 2002-2005 (Housing 5000) calls for a significant 1 ne tlouszng t'lan calls Tor an annual new housuig production target of at least 450 units. According to the Housing Plan this production level will meet the annual objecrive in the Houszng Plan as well as offsetting anticipated demo?ition of housing units. This HAP 2003 calls for New Housing Production sufficient to achieve the goals set forth in Housing 5000, which is at a level of 2�560 units for years 2002-2003. "New Housing Production" inciudes the new construcrion of housing units and extending the economic life of existing housing. `Bxtended Economic Life" New Housing Production aze projects where funding totals at least $25,000 per unit for capital unprovements, the housing is at least 30 yeazs old, and, due to deteriorated physical condition, is at the end of its economic life and could be subject to demolition. Housing production also includes activities which extend the affordability of e�cisting publicly assisted affordable housing units. New construcrion, rehabilitation and the preservation of existing publiciy-assisted housing units are considered equally unportant in the implementation of the housing acrion plan. The Housing PZan also calls for 20% of housing production to be affordable to persons and families ea.rning 50% or less of the regional median income and that at least half of these units be afiordable to persons or families eaming 30% or less of regional median income. Hoizsing 5000 and this HAP 2003 retain these affordable housing goals. Key rental housing financing tools include the use of the federal Section 8 program that provides project-based rent assistance for low income households. Currently, the typical income of a Section 8 voucher hoider has a household income of approximately 20% of the azea median income. In proj ects that have project-based Section 8 assistance and rents at the Section 8 Fair Mazket Rent levels, these units will be considered affordable to households at 30% of the area median income. The specific Housing 5000 projects that aze incorporated into tlus HAP 2003 aze listed in Attachment B. All of these projects are in the "DevelopmenY' stage and are potentially able to begin construction during 2003. These projects represent the potential New Housing Production of 1 959 housing units. The City and its Housing and Redevelopment Authority (HRA) will o�-a� Housing Acrion Plan 2003—Draft 4/3/03 consider new opportunities as they arise during the yeaz, and some o€the projects in Attachment B may not for various reasons proceed to construction. The City/HRA will continually identify necessary resources to achieve the objectives of this HAP 2003 and Housing 5000. Additional resources aze especially needed to meet the 20% affordability goal for rental and ownership New Housing Froduction. The production of ownership units affordable to households at the 30% of area median income level and below is extremely difficult and requires high public subsidies. In addition, home ownership is frequently too costly for faxnilies at this income. Therefore, the production of housing affordable to families at 30% of the area median income is expected to be primarily rental units. Attachment A sets Targets for New Housing Production and other housing production/activities in 2003. Attachment B outlines housing projects that are Housing 5000 year 2003 "DevelopmenY' prcjects that are potentially able to start construction during 2Q03. All housing projects in Housing 5000 are listed in the Housing 5000 Projects ScorPcazd, wriich is in Part II: Hous� 5000 of the Housing Resource Book 2003 . A current Scorecard can be found on the Honsing 5000 web page at: www.housin¢SOOO.com 3.1 New Housing Production (New Construction and Extended Economic Life) This HAP 2003 supports New Housing Production at a level that will achieve the 5,000 unit production of Housing 5000 during the period 2002-2005. This HAP 2003 supports New Housing Production of at least 2�500 units for 2002-2003. The term "New Housing Producrion" includes New Construction and Extended Economic Life. "Extended Economic Life" New Housing Producrion aze projects where funding totals at least $25,000 per unit for capital improvements, the housing is at least 30 years old, and, due to deteriorated physical condition, is at the end of its economic life and could be subj ect to demolition. In order to fixlfill the New Housing Production Targets of this HAP 2003, the City/I3RA will: a. Work with the private for-profit and nonprofit sectors and other public agencies to develop and finance a vaziety of building and unit types, rental and ownerslup, throughout the city, for a broad range of incomes and family types including singles, couples, families and seniors. The City/HRA supports economic integration in residential neighborhoods and housing developments. b. Provide interim and permanent gap financing for new conshuction and substantial rehabilitation of projects that are at the end of their economic life and would otherwise be subj ect to demolition, including creation of new replacement (in-fill) single family houses and rehabilitafion of vacant houses. 0 Housing Action Plan 2003—Draft 4/3/03 c. Subsidize the provision of low income units in new housing developments. d. Coordinate efforts with the Public Housing Agency, Habitat for Humanity, the Wilder Foundation and other key partners to develop and provide supportive housing, including human services to low income households. e. Support legislative and related efforts to increase low income housing developments in Saint Paul suburbs. Attachment A sets Targets for New Housing Production for 2003. Attachment B outlines the Housing 5000 New Housing Production ("DevelopmenY' projects) that aze potenrially able to start construction during 2003. -�.� ..�. In addition to the New Housing Producrion acrivity that extends the economic life of certain proj ects through substantial rehabilitation, t�'�e Cit�/HRA will undertake activities to rehabilitate at least 510 ownership and rental housing units of the city's existing housing stock including the preserva*ion of existing low income housing outlined below. (This r�habilitation activity does not include general private residential improvement activity reflected in construction pernuts issued by LIEP.) In order to fulfill the rehabilitation Tazgets of this HAP 2003, the City/HIZA will: a. Provide home improvement loans for borrowers with a wide range of household incomes. b. Provide rental rehabilitation financing. c. Originate purchase/refinancing and rehabilitation loans for borrowers with a wide range of incomes. d. Provide gap financing loans to enable home buyers/owners to purchase/refinance and rehabilitate homes, where the combined cost of purchase/refinancing and rehabilitation exceeds the market value of properties. e. Provide rehabilitation loans for child care facilities, including single family houses. Attachment A sets Targets for City/HRA rehabilitation program activities for 2003. 3.3 Egtended Affordability Life (Preservation of Low Income Housing) To preserve existing publicly-assisted, affordable housing units in Saint Paul, the City/HIZA will: a. Continue to be an active member in the Interagency Stabilization Group (ISG); actively monitor existing low income housing developments; and participate in preservation aud stabilization of existing, publicly-assisted low income housing. 7 0 3 -�'�-S Housing Action Plan 2003—Draft 4/3/03 b. Provide financing assistance for the stabilization and preservation of federally- assisted proj ects, and proj ects in which the Cily/HRA has previously invested, including the federai L,ow Income Housing Tas Credit Program. c. Allocate federal Low Income Housing TaY Credits in accordance with City Council-approved criteria and procedures for new developments and/or preservation projects. 3.4 Saint Paul-Ramsey County Low Ineome Housixg and Homeless Services Plan (fiomeless Plan) To meet the goals of the Low Income Aousing and Homeless Services Plan, the City1HRA will: a. Continue to be an active participant in the Ramsey County/Saint Paul Funders Council: improve the process by which funding decisions are made for supportive housing and otherspecial needs housing projects. b. Participate in the newly established Rainsey County/City of Saint Paul Homeless Advisory Board: cornmunicate issues affecting housing and homelessness to the County and City, recommend policy changes and oversee progress in the five-year Homeless Plan. c. Administer the federal Emergency Shelter Grant program, including increasing the use of these funds for capital expenditures. d. Develop necessary other specific acfivities w.ith respect to Saint Paul's involvement in the issue of homelessness, including securing funding for priorities and creating the Saint Paul Emergency Housing Fund in accordance with City Council resolution #02-986. 3.5 Mortgage Lending To provide mortgage lending services to Saint Paul residents, the City/HRA will: a. Provide financing for at least 100 home buyers/owners with a wide range of incomes including home buyers/owners for purchase/refinancing and rehabilitation. b. Provide special assistance loans to low and moderate income households to enable them to be home owners. c. Work to increase the participation of minority home buyers in City/HRA sponsored mortgage loan programs. d. Support citywide home buying counseling and affardable home purchase financing, including support far the Home Ownership Center and small rentai property owner trainiug and counseling. e. Continue CityLiving mortgage loan program marketing efforts. Attachment A sets Targets for City/HRA mortgage lending program acrivi6es for 2003. Housing Action Plan 200�Draft 4/3/03 3.6 Mortgage Foreclosure Prevention To assist homeowners in danger of mortgage foreclosure, the City/FIRA administers the Mortgage Foreclosure Prevention Program, and during 2003 at least 400 households will be served by the program. The City/f�RA will: a. Work with Ramsey County: provide mortgage foreclosure prevention efforts in Ramsey County. b. Provide mortgage foreclosure prevention counseling to home owners who aze in danger of losing their homes. c. Provide financial assistance to correct defaults and assist home owners in - - � - Attachment A sets Tazgets for mortgage foreclosure prevention program activities for 2003. 3.7 Obstacies to Implementation The following are exampies of significant potentiai obstacles to implementing the priority acfions listed above. The City/IIRA and housing pariners/stakeholders must work together to address and remove these barriers: a. Inadequate housing subsidy resources. b. Inadequate resources for funding redevelopment costs; e.g., site assembly, including residentiallbusiness relocation and soiUenvironmental remediation. a Identifying and coordinating multiple complex funding sources in housing deveIopment financing. d. Zoning and related changes required for specific projects. e. Neighborhood and other opposition; e.g., land use, density, design and affordability issues. f. Challenging site topography. g. Standazdizing developer selection/predevelopment processes. h. Satisfying federal lead-based paint abatement requirements. i. Ensuring adequate market and developer capacity; e.g., there must be adequate mazket conditions to secure private developer interesUinvestment and ensure housing mazket absorption, and developer capacity must be strong. 4.0 Other Housing Related Activities 4.1 Issues to be Addressed during 2003 From time to time, certain housing-related issues need to be addressed by PED. These issues 0 d 3 -a� Housing Action Plan 2003—Draft 4/3/03 may be topics for the Housing 5000 Advisory Task Force to discuss, and may be appropriate for the Mayor and City Council/FIRA to establish policy or implementation direction. Issues for 2003 may include the following: a Identification of additional housing financing resources; e.g., housing subsidies to fund the gap between cost and value, and redevelopment and extraordinary site development costs including site assembly and site remediation. b. Exploration of the feasibility of using the land trust model throughout the city. c. Analyze the construction cost issues related to supporting a policy regarding Universal Design; these design features enhance homes and create living spaces that wark well for people of all ages and physical abilities. d. Development of a policy supporting and defuung the criteria for broader distribution of affordable housing (as defined in the Housing Plan) across city neighborhoods. e. Explaration of financing mechanisms to promote the deaelopment of masket-rate ownership housing units and provide better definition of market-rate housing development costs. 4.2 Legislative Initiatives The following legislative initiatives are recommended: a. Support continuation of funding far State redevelopment and housing funding initiatives including funding for NII3FA , DTED and the Metropolitan Council. b. Support initiatives which encourage the production of low income housing throughout the metro region. c. Support changes in taac increment, tax-exempt bond, low income housing taac credit and other financing methods that will enhance the City's ability to meet its housing goals. d. Support the legisiative agenda of the Minnesota chapters of NAE-IRO, NALHFA and other housing-related entities. e. Support extending the "This Old House" program which excludes property taxes on the value of rehabilitation improvements on older homes. 43 Zoning Initiatives The following zoning initiatives are recommended: a. Adopt and 'vnplement proposed Zoning Code amendments that create the TN (Tradifional Neighborhood/CTrban Village) zoning districts. These TN districts allow a broader range of land uses than do existing zoning districts, provide more opportunities for higher-density housing development, establish design standards to help ensure that development is high quality, protects the character of existing 10 Housing Action Plan 2003—Draft 4/3/03 neighborhoods, and provides for development of carriage house and secondary buildings. b. Continue to support and implement changes in the 1Vlivuesota Municipai Land Plauuing Act, enacted by the 2001 State I,egislature. These changes delete a consent petition requirement for rezoning (except where the proposed rezoning is from residential to commercial or industrial) that had applied to Saint Paul, Minneapolis and Duluth. This revision gives Saint Paul the same local authority enjoyed by other Minuesota cities to decide the best zoning for the properry based on the Comprehensive Plan, citywide and neighborhood policies, and the advice of the Planning Commission a Continue to bring the Zoning Code into conformance with the Comprehensive Plan. 4.4 Neighborhood and Project Planning The following neighborhood and proj ect planuiug initiatives aze recommended: a. Initiate appropriate 40-acre and other zoning stu@ies, and neighborhood planning for development opporiwuties. Potential year 2003 examples include: Riverview Busway Corridor University/Dale Development Strategy East Maryland Avenue Corridor District 1 Plan Update District 6 Plan Update Memam Park Plan Update District 16 Plan Update Sun Ray/Suburban Small Area Plan b. Initiate unplementation plamiing for identified housing development opportunities. Yeaz 2003 examples include: North Quadrant West Side Flats Kocl�/Mobil Gateway Viltage West Phalen Corridor; e.g., Ames Lake and Phalen West Area District Del Sol White Bear Avenue/Hillcrest Shopping azea Echo Housing White Bear and Maryland University/Midway; e.g., Snelling Bus Barn area 11 � � -3�i�S Housing Action Plan 2003—Draft 4/3/03 University/Raymond, Johnson Brothers' Rroperty Great Northern Corridor University/Lexington c. Continue appropriate neighborhood and project pluuiing for each project outlined in Attachment B and projects identified for Housing 5000. 4.5 Support Key Partners PED will work closely with key partners including other City departments in the unplementation of housing acYivities. Following partners are specifically mentioned: a. Secure commitments from our housing production partners to establish the $20 mil?ion low-interest revolving loan fund envisioned in Housing 5000. b. Support increased minority participation in housing and commnnity development professions and activities. c. Support LISC activitres in community development activities and the productiori of housing by CDCs and other partners. d. Support the Public Housing Agency (PHA) in the operation of its public housing, Section 8, and home ownership programs, and possible housing development activity. e. Work with the Minneapolis Community Development Agency (MCDA) in the delivery of joint mortgage revenue bond loan programs. f. Support the Home Ownership Center in providing a continuum of home buyer and owner services, including the Mortgage Foreclosure Prevention Program. g. 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. h. Participate in the Saint PauURamsey County Low Income Housing and Homeless Services Funders Council to oversee the implementation of the Homeless Plan. i. Wark with the Minnesota Fannie Mae Partnership Office, the Mortgage Association of Minnesota, and other parties in the private lending industry in providing a wide range of financing alternatives for ownership and rental housing activities. j. Work with key public, nonprofit and other private funders in providing resources and other services far a variety of housing acrivities, including the Mimiesota Housing Finance Agency (lYIfIFA), the state Department of Trade and Economic Development, the Metropolitan Council and the federal Deparlment of Housing and Urban Development (HCTD), k. Support the activities of the Wilder Foundation and other organizations in the ownership and development of supportive housing for families, frail elderly and single adults. 1. Support the development activities of Habitat far Humanity and the Rondo 12 Housing Acrion Plan 2003-Draft 4/3/03 Couununity Land Tnxst. m. Support organizarions providing landlord and tenant training. n. Support district councils, coxnmunity development corporations and other neighborhood organizations in providing better education and outreach, project review, and support for housing develogments especially for affordable kousing projects. 4.6 Housing Activity Reporting One of the key principles in Housing 5000 is to make a wide variety of proj ect information available to al� interested organizations and individuals on a regular basis. PED has developed �arious new and exnanded tools for - oviding informarion for hi n�mocP At a minimum, the following reporting activities will continue during the yeaz: a. Regulaz reporting on sources and uses of fixnds and affordability levels, as well as other data, for alI the housing projects that are part of Housing 5000. (Housing 5000 Projects Scorecard) b. Detailed end of the year reporting covering all PED housing activities, current general housing and related demographics, and other material. a City web page as an effective tool to distribute information. 4.7 Other Actions These other actions will occur during the year: a. Sponsor the annual Home Tour. b. Enhance existing data sources of vacant land/development opporhmifies throughout the city; develop criteria for site selection of undemrilized lands including industrial and commercial properties for housing development. c. Explare policies, programs and initiatives of other metropolitan areas to identify any new approaches to housing producfion, rehabilitation, finaucing, and affordable housing. 5.0 Process for Preparation and Review of the Housing Action Plan 2003 5.1 Background T`he 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 13 s� - a� Housing Acrion Plan 2003—Draft 4/3/03 fiutherance of the broader strategies and polices outlined in the Housing PZan. The Housing Plan calls for the creation of a task force, to be convened with the assistance of LISC, that will include balanced representation. 5.2 Housing 5000 Advisory Task Force A Housing Action Plan Task Force was established in 1999 and provided comment and input from a variety of perspecrives to the City during the drafting of past years' housing action plans. During 2002, the Mayor and City Council announced the Saint Paul Housing Production Plan 2002-2005 (Housing 5000). Housing 5000 presented an opportunity to refocus and reinvigorate the work of the Task Force azound the successful implementation of Housing 5000. The charge of the Housing 5000 Advisory Task Force is as follows: a. To track progress on the accomplishment of the goals of Housing 5000; b. To play an advisory role to the City on policy and financing issues related to the implementation of Housing 5000; and a To provide comxnent and feedback to the City on its annual housing implementation plans. The Task Force reviewed and commented on the draft HAP 2003 prepared by PED staff. A summary of comments received from the Task Force is included in Attachment E. 53 Composition of the Task Force The Housing 5000 Advisory Task Force has more than 30 members and includes representatives of the following groups: Business Comxnunity Community Residents Developers (for-profit and nonprofit) Lenders Funders/Interxnediaries Housing Advocacy Groups Other Stakeholders ( Building Trades, Realtors) The intent is to include a balanced cross-section of perspectives and institutional partners needed to effectively carry out the charge of the Task Farce. A list of Housing 5000 Advisory Task Force members is included in Attachment D. 5.5 Community Review of the Draft Housing Action Plan 2003 14 Housing Action Plan 2003—Draft 4/3/03 Sunultaneous with the review of the draft Housing Action Plan 2003 by the Task Force, PED made the draft plan available for review and comment to a wide distribution list. Ttus dislribution list included District Planving Councils, neighborhood-based community development corporations, public agencies, housing funders, housing advocates and other potentially interested parties. Other than comments received from Hnusing 5000 Advisory Task Force members, no other comments were received by PED staff. 15 o� -�-`lS Housing Action Plan 200�Draft 4/3/03 Attachment A Saint Paul's Housing Production Plan 2002-2005 (Housing 5000) 2003 Targets Attached are the Targets for 2003, the second yeaz of Housing 5000. The Targets for the entire four-year period of Housing 5000 are in Part II: Housine 5000. in the Housin� Resource Book 2003. 16 Housing Action Plan 2003—Draft 4/3/03 Attachment A Saint PauPs Housing Producfion Plan 2002-2005 2003 Targets New Housing Production New Cons4uction ;�,�g ��} Total Other '��'��= 2004- 2002- Housing 2002 ,,�� 2005 2005 Production 1,173 2,343 4,689 Extended Affordability Life 2002 0 Totai 2004 2002- 2005 2005 200 400 Economic Life Home I 300 Imptovement Mortgage 23 Loans (Purchase/ rehab) Total 323 Rehabilitation Mortgage 12� Loans (Straight purchase) Mortgage Foreclosiue 400 Prevention 600 � 1,200 '�� 846 � 1,679 254 I 471 :�� .�� I Total I 1,250 ' 2,500 I 5,000 ( Total 850 1,900 I 3,750 Nxs: L'iher Housing Housing Production Production See footnotes on ne� page. [The above are preliminary targets for 2003 and are subject to change prior to fznal approval of this xaP zoo3.� o� -a� Housing Acrion Plan 2003—Draft 4/3/03 Attachment A, 2003 Targets Fooinotes 1. Additional housing constrnction/rehabilitation activity During the year, the City's Office of License, Inspecfions and Environmental Protection (LIEP) issues Construction Pemuts for the above work and any other residenfial private activity. A summary of this activity is reported in Part IV: Yeaz 2002 Accomrolishments in the Housint Resource Book 2003. The Saint Paul Public Housing Agency (PHA) has undertaken mulri-year major modernization and other improvements to their public housing units. A summary of this activity is also reported in Part IV: Year 2002 AccomQlishments, in the Housing Resource Book 2003. Affordable housing in New Housing Production The CityhII2A is comxnitted to 20% of New Housing Producfion to be affordable to i�ouseholds with incomes at 50% or less of the area median income with at least half of tne units (10%1 affordable to households at 30% of the area median income. Some activiries also provide affordable housing at the 60% and 80% of area median income levels. 3. Counting New Housing Production: New Housing Production includes units of New Construcrion and Extended Economic Life. Extended Economic Life New Housing Production is the substaatial rehabilitafion of housing units where funding totaling at least $25,000 per unit is used to make capital improvements to housing units that aze at least 30 years old and, due to deteriorated physical condifion, the units are at the end of their economic life. For projects in which the City/HRA provides financial assistance, New Housing Production is counted when the total sources of funds are available to complete the project and the financing has closed. Where there is no City/HRA financial assistance, New Housing Production is counted when a building permit is issued by the City's Deparhnent of LIEP. 4. Extended Affordability Life (Preservation of E�sting Low Income Housing) Extended Affordability Life is the preseroation of e�sfing low income housing units where capital funding is used to extend the income and rent restricfions on housing units where cutrent income/rent restrictions aze scheduled to expire or may ternunate for other reasons. The saving of federally-assisted and other existing publicly-assisted housing projects are oftentimes called "Preservarion" projects. 5. PED Honsing Activifles Attached is descriprive narrarive of all PED (City's Deparhnent of Planning and Economic Development) housing activities including a volume of housing activities during the past few years. Housing Acrion Plan 200�Draft 4/3/03 PED Housing Activities A. Housing New Production: New Constraction and Extended Economic Life The City/HRA provides a variety of financing resources to assist in the producfion of new rental and ownership housing within the city. PED works with the private for-profit 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 and household types including single persons, families and seniors. New Housing Production includes new construction and substantial rehabilitation (which extends the economic Iife of existing housing that is more than 30 years old and, due to its deteriorated physical condition, is at the end of its e:,onomic life;. Typical exaznples of New �ousing Production financing: The City/I-IRA provides permanent and interim financing for a variety of housing developments. GAP financing is also provided when the cost of a project exceeds its value. The City treats vacant houses in the city, including demolirion and rehabilitation. This work includes the abatement of hazazdous materials found in houses, such as lead-based paint, asbestos and other materiais. The comprehensive effort includes the participation of for-profit, nonprofit and public agencies and organizations, including the St. Paul chapter of LISC, Habitat for Humanity, and the Family Housing Fund. The replacement single family new conshuction prograsn addresses buildable lots where demolition may have occurred and other in-fili lots that aze available for development. Rental rehabilitation financing provides fixnds to qualified owners of rental properties to rehabilitate their structures. This financing is designed to provide public and private funds as an incenrive for investor/owners to upgrade rental housing, including energy and handicapped improvements. This work includes the abatement of hazardous materials found in apartments, such as lead-based paint, asbestos and other materials. Rental housing financing oftentimes incorporates the Saint Paul Police Department F.O.R.C.E. UniYs The Miruiesota Crime Free Mu1ri-Housing Program, which is designed to help tenants, owners and managers keep drugs and illegal acrivity off rental property. Following is a snwmary of New Hoasing Production for the period, 1999-2002: New Housing Production: New Construction and Extended Economic Life 03 -a�.s Housing Acfion Plan 2003—Draft 4/3/03 1999-2002 Total Development Cost 2,794 units $498,239,000 B. Housing Production: Egtended Affordability Life (Preservation) The City/FIRA provides financing assistance for the stabilization and preservation of privately- owned, existing, publicly-assisted affordable housing. This may or may not include the substantial rehabilitation of the existing units. The preservation of units is typically in large apartment complexes. The financing extends the term of the affordability life of the incomehent restricted units. PED works with existing or new nonprofit ar for-profit owners. Financing oftentimes is in the form of defer•ed payment loans. Following is a smninary of housing production )which extends the affordabiiity tife of existing affordable housing) for the period, 1999-2002: Housing Production: Extended Affordabiliiy Life (Preservation) C� Total Development Cost 1999-2002 1,319 units $33,416,000 (yrs O1/02) Home Improvement Lending The City administers a variety of home improvement programs to fund loans for existing home owners to rehabilitate and improve their houses. This work includes the abatement of hazardous materials found in houses, such as lead-based paint, asbestos and other materials. As part of this improvement activity, Rehab Advisors inspect properties and work with home owners in determining the scope of the improvements to be undertaken. Funds can also be provided to correct deficiencies for single family and daycaze facility properties to provide child caze services. Following is a summary of home improvement lending for the period 1999-2002: Aome Improvement Lending 1499-2002 D. Home Purchase Mortgage Lending Total Loans 1,444 units $21,845,000 Mortgage programs are available to provide assistance for first-time and other home buyers purchasing homes in Saint Paul. 1VIortgage programs have been jointly provided over the years Housing Ackon Plan 2003—Draft 4/3/03 with the Minneapolis Community Development Agency (MCDA) and are jointly mazketed as the CityLiving program. Mortgage loans are funded tluough the use of federal and state authority to issue Mortgage Revenue-Bonds. Mortgage loans are originated by private lenders participating in the program and by PED's Home L,oan Fund, wtuch is a FI3A/Fannie Mae approved mortgage lender. A special emphasis by the Home Loan Fund is origination of purchase or refinance and rehabilitation loans. Addirionally, through funds provided by the Family Housing Fund and MfIFA, special assistance monies aze available in the form of gap financing, equity participation, aud enhy cost assistance. In addition to 30-year below-market interest rate mortgage loans, mortgage credit certificates financing to receive federal income tas credits of up to 20% of the mortgage interest year the buyer lives in the house. As part of the comprehensive mortgage loan effort, PED admiuisters a Mortgage Foreclosure Prevention Program, and the.City supports the Home Ownership Center that provides home ownership counseling and traiuing. Following is a sumuiary of home purchase mortgage lending for the period 1999-2002: Home Purchase Mortgage Lending Total Loans 1999-2002 8571oans $97,230,000 Foilowing is a suunuary of home purchase mortgage lending for the period 1999-2002: Mortgage Foreclosure Prevention Program 1999-2002 924 cases Total Loans 54 emergency loans $233,400 2/11/03 o� -a�4S � 0 N N N � � � � O � � � O G. C . � O � � 0 .� a � � .� � � L � � � L � � V♦ � � � W s�� 0 L � 0 � �■^ Y + � .� � � O _ � O N O� � ce i � � � �� o � � � d °� � °� o o� �� w� •� N � .� � � � � � p �:� U ��E . ' i €og - x x ��a *d 4 �-� £ma a �E E � - a c 5 m 'c �° � si� V � eSi > 0T°6 � _ �° ��` E a �E $ a z _:z saE ` zo' =_'sS : E ��: L E E� - � - 6 �i � c ' �E I O Z¢ _ '6 `m u `o N .�. 0 0 a` ° o w c w ' o x 3 9 � � m� �� 3� 3_ m@ =p £ °_ � 9 ` " `3 EeH °�a a s Q s 3 m� r x o a" o z° $ z rc z z e rc� o's Z y g_ E �� E I m m a a o. n` w n 0 E � a m` � m y a ww�aa�anaa �'� -�-�-�.5 O W 6 a a o. $ � � � � m� �� « 'a� W 6 T a E a a U 0 O N 0 N °elg m n C O � E � O a � � m 0 N Y �� m 0 � � a O � 3 m 0 c e m 9 a n v 9 m 0 �evelopment S 0 c N 3 � N O O O � O N f1 W W n O z m Cf p1 � 2 9 a m c < 9 c cf o 6m �� om e m �n m �+ ; ° em �e °a o� a°m 8� D �'o �m Z Q�D � o vo c 3 0 d n � c > � m :t° . a °30 aa °�-ge �as aM' �hm aan :m F^ �om "oT oa �Gm ma c> m3: mm- � � -a�s � 0 � a T L D d W Q d a` ;uawdo�anap a M O O O � O a m � > � � � � tl L � V . �' .y V d O a 0 � Lp � C .� 7 O 2 d � C� N � a R _ ��i�.+ � � � d 0 « � rn c . 0 7 � O .� 0 d C 0 y a d U � � r m w y - O � C C w N y E U N O � n5 E � �� _ � ' X � � Q N C t6 O � m N N � � d N •- a�. v � � � U � S o o � U = R ( c � � N Q. i � W y f.l � d � O � � a a m m� C � 0 0 d ' m � � � � C N . N t O U N Q N N t v N w '� . U , m Z d N N m .� m Q O � c ' O V m N N N R �. 3 � N � ' N Q � N . ..�. U N O � =h 3 � . U � C ` p N C o�- V o . R R � e � N T � s _ � W 0 m N C � N � 7 O S L w N E N � � � c 3 � Y o_ N N N N rn N v � c 0 C N 0 a R � R v Y R � � L R � C .� L m L N .� `o N � � � 3 S N N 0 � LL N C9 N V w 0 m � � ° m t U d � O v C m K _ Q � 1JJ � O 2 C'J m 0 U m N a V C V L 0 � S � U m c .� c N C LL C m m U c m F D a m v c w w U N N � v � U LL F � 2 .?+' V a � � C � N .� O C m v N a d a � C R m C m 0 N N '� O � m 0 m m m C � U O � � R � � d H w a o N j � d 3 0 3 r � � oi � c �' m 3 0 N U n Q m > H) 'p� N O � m . � N � rn � ° `m o � O Y >, � � a o 7 � m n w C � � O V O p C s w N � O :a � '� " � O � N lv N w c m �C N N � � w o E o �- L O � O -�O C o O O O a M m . N � � � m � O U Q- II � C � � L � m m o `a � � � �U � N E o � � � Q � N O Q � � N � � O � o a � t - O 3 ,� � 3 w (n � 'c m E � � � { U . � C � O � . N � � � '�6 O E O ' C .e. � � y � U � � o N � C � F + L - � N� �O � '� O N O = s � a � � R O � � O c o 3 m tn m c' m ��. �- � IC � N :a ° m � !0 L 'a O � Q L O N m N V O � N � O O N � R a � R U 3 O Q o - � N .� d N � a � U N N rn c .� O S N � C 0 J R � "6 ti t i c rn � C � �N � - N •� N N � U � m O � a`w � O �o L p R � � � = o y � F � 2 � � E m V O N � L O N � m v � m c � 0 � N .� N N ' C w c � a O > d � c R 9 � � O1 c . 3 � = O m = N� � � rn � �N � = y � � N N + . `o a`o y� o �� L O m � � c � •�.r � N �x � � S m w V N � m 7 � W Q � O C > O m �� i w � e = R L d r��. N s � � '�� d Q p i O y O > m N m � � V d a e R c. o `m s e m = R �- R � y C R = O � 3 7 af C O "' �'� N R t D d � O � � � � O 3 ry T 'G Y - C = t0 m O � R i .Q � _ � D � m 1 �., 2 � V y V � � C C N .✓ R Q m o N 3 � � = w H m 'C � O 0 r�+ N"R �+' �3 S 'a °� U y N R O t m G >. m w' _ C C 4 � w G ' � � O N C "'sa m' Q m S �i � ., nY:?a m � N N m O � C m y a+ '�" O C 0 L � � � V � m o � � £ � r�.. � ' `� £ t C N 3 +' m � a£ � � O 0. v O w r�• 'G � . X v y. N� R W ty m C {C �II y ' V � � m � O R N � V « i � p c�i O m R y o c U � m R as L � � � � i ` � aL+ O 0 � tR m £ � m i L: .� � � L O N p y L L 3 T = Q �1- t� Q R�.=..r�- Q W a s � i f6 C. L a o � �-�S Housing Ac6on Plan 2003—Draft 4/3/03 Attachment B Saint PauPs Housing Production Plan 2002-2005 (Housing 5000) 2003 Housing 5000 Projects Attached is a list of housing proj ects for 2003, the second year of Housing 5000. These projects aze "DevelopmenY' projects in the Housing 5000 Projects Scorecard and aze potentially able to start construction during 2003. The entire current list of a11 Housing 5000 projects is in the Housing 5000 Projects Scorecazd in Part II: Housin� SOGO, in the Housing Resource Book 2003. A current copy of the Scorecard, updated monthly, is on the Housing 5000 web page at: www.housin�5000.com Housiug Action Plan 2003—Draft 4/3/03 Attachment C Saint Paul's Housing Production Plan, 2002-2005 (Housing 5000) Potential City/HRA and Other 2003 Housing Funds Potential City/HRA 2003 Housing Funds Below is a suuimary of anticipated/estunated housing funds to be available during 2003 applicable to housing projects and programs. Based on past experience, though these fixnds are expected to be available and committed to projects/programs during 2003, it is not expected all the funds will be closed ancLdisbursed during the vear_ CDBG (Ccmmnnity Development Block Grant Program) Following is a summary of CDBG programs in the 2003 budget: PED Proezams Home Purchase and Rehab Fund Home Ownership Opportunities Fund Housing Real Estate Development Fund Neighborhood Revitalization Acquisifion Fund (May not be a11 housing related.) 1,000,000 1,000,000 1,200,000 500,000 Sub�rantee Housing Pro�rains East Side Revolving Loan Fund (DBNHS/ESNDC) 400,000 Home Improvement Plus (NENDC) 150,000 Frogtown CDC Facelift Home Rehab 200,000 Frogtown CDC New Conshuction 150 000 Total 4,600,000 The summary does nat include the allocated program/project fund balances fvom prior years that are available/uncommitted through 2002. HOME (Federal Home Investment Partnership Program) $2,400,000 is the estimated year 2003 federal awazd amount. The ¢bove amount does not include allocated program/project fund balances from prior years that are available/uncommitted through 2002. (ESG� (Emergency Shelter Grants) Each yeaz the City receives an annual federal awazd. $350,000 is the estixnated award amount for 2003. O 3 a-� Housing Action Plan 200�Draft 4/3/03 STAR (Sales Tax Revitalization) Program An annual amount of the greater of 60% or $5,000,000 of the STAR funds has been approved by the City Council for a total $20,000,000 for the 4-year Saint Paul Aousing Production Plan 2002- 2005 (F3ousing 5000). During the 2003, it is anticipated that siYty percent (60%) or $5,000,000 will be awazded for housing development projects. The above does not include a11 prior cycZe unexpended fund balances, including the STAR Bank Program, and any funds available year round. HRA (Housing and Redevelopment Authority) Following is a summary of funds available for housing projects/programs in the 2003 budget: Home Purchase and Rehab 100,000 Mixed-Income Housing 5000 2,000,000 Rental Rehabilitation—HUD 200.000 Total 2,300,000 Revenue Bonds Each year the City/IIRA has the authority to issue tax-exempt bonds for mortgage revenue bond loan/mortgage credit certificate programs, rental housing or other eligible uses. Alsq each year there may be opporhzniries to refund past mortgage loan programs and recycle bonding authority in order to provide additional mortgage loan proceeds in addition to the annual bond authority allocated to single family mortgage loan programs. $25,157,000 is the estimated annual allocation for 2003. The above does not include the current balances in existing first-time homebuyer and middle income mortgage loan pragrams, the mortgage credit certificate program, and any caryy- fonvard authority fi�om prior years. LIHTC (Low Income Housing Tas Credits) Each yeaz the Ciry/HRA has the authority to allocate federal low income housing tax credits, which generates private equity investments in eligible rental housing developments. The estimated allocation is $695,000 for 2003 which can generate an estimated $5,038,750 ofprivate equity investment. Additionally, with the use of housing revenue bonds, housing tas credits are available outside of the annual allocation menrioned above. It is estunated that $5,000,000 of additional private equity investment will be available through the allocarion of tax credits in conjunction with the issuance of taac-exempt rental housing revenue bonds. Summary—Potential City/HRA Housing Funds—Year 2003 Housing Acfion Plan 2003—Draft 4/3/03 Resources CDBG HOME ESG STAR f3RA Est BudQet 4,600,000 2,400,000 350,000 5,00,000* 2,300,0.00 � � . � . 1 /11 Revenue Bonds LIHTC 25,157,000 10,039,000 � otai 49,846,000 An annual amount of the greater of 60% or $5,000,000 of the STAR funds has been approved by the City Council for a total $20,000,000 for the 4-yeaz Saint Paul Housing Producrion Plan 2002-2005 (Housing 5000). Potential Other 2003 Housing Fuuds In addition to the funds that are directly aduiiuistered by PED/FIRA, there aze other resources that are made available for housing projects and programs. As part of Housing 5000, fund raising efforts are undenvay to capture new and increased funding for housing projects and programs from traditional and non-traditional housing partners for the implementation of Housing 5000. A summary of current fund raising efforts aze suinmarized in Part II: Housin¢ 5000 in the Housine Resource Book 2003. A summary of all the funding pariners in the implementation of 2002 housing activiries are in Part IV: Year 2002 Accomplishments. Following is a list of other resources that can be potentially made available during the yeaz. Federal McKinnev Su�portive Housin� Pro ams This is a federal program administered by HUD which subsidizes the acquisirion, rehabilitation, aad operational or human service costs for projects for families and individnals who are homeless or are in a transitional housing program. Proj ects compete for funding with other projects on a national basis. Federal Section 108 and EDI C � 03 -��15 Housing Action Plan 2003—Draft 4!3/03 The City has the ability to apply to H[.TD for Section 108 loan and Economic Development Initiative grant funds. Future allocations of CDBG funds are at risk as repayments of the Secrion 1081oan funds. . Federal Home Loan Bank Boazd T'he FHLBB has an Affordable Aousing prograsn which make funds available to affardable housing projects. MEIFA Super RFPs ivII-�,F'A corducts state-wide, competirive, twice-yeazly requests far proposals for a comprehensive array of state housing fixnding resources for ownership and rental housing projects and programs, including low income housing taac credits. These RFPs incoxporate fixnds (available to Saint Paul) from MHFA, the Met Council and the Family Housing Fund. 1VIFIFA Home Improvement Proerams The City annually receives funds from 1VIHFA for pay-back and deferred payment home improvement loans. DTED and Met Council Pollution Clean-Up Programs The State Deparhnent of Trade and Economic Development's Contaminated Site Clean-UP and the Metropolitan Council's Tax Base Revitalizafion funds are complimentary pollution clean-up programs, funded twice a year. Metronolitan Council Livable Communifies Demonstrafion Account This program is for higher density, transit-friendly projects. Planning and development proj ects compete for funding on an annual, metropolitan basis. Ramsev Countv The Board of Ramsey County Commissioners has established a Housing Endowment Fund to assist in the production of affordable housing. IIRA SOlOO2L) Revenue (Conduitl Bonds HRA has the authority to issue tas-exempt revenue bonds for eligible non-profit activities, which bond authority is not subject to the volume limit of the City's annual allocation of revenue bond authority far mortgage loan programs and rental housing. Tax Abatement State legislation enables cities to abate property taxes for eligible redevelopment purposes. Housing Action Plan 2003—Draft 4/3/03 New Taac Increment Financing Districts Tax increments generated by new and existing tas increment districts can be used to help pay for land, conshuction and infrastruchue costs. TIF eligibility varies from project-to-project, depending on former land uses, housing type and income levels. (Major new tax Zegistanon was enacted in 2001 that has a significane impact on the use of tax incrementfinancing.) PHA Section 8 Proiect-Based Assistance The Saint Paul PHA from time-to-time makes federal Section 8 tenant-based voucher assistance available as project-based assistance. Applicarions are made directly to PHA and are part of NIFIFA's Super RFPs. Also, Minneapolis Hollr�an project-based uaits aze also potentially ,,. Familv Housing Fund TYie Family Aousing Fund provides financing assistance for a variety of ownership and rental housing serving low income households. Funds aze primarily provided as part of 1VIHFA's Super RFPs. Fannie Mae In addition to Fannie Mae narticipating in the City's mortgage revenue bond programs, it has established the American Communities Fund which invests in debt and equity in neighborhood revitalization. Investments can include a Line of Credit for cities to fund multiple housing projects and other special initiatives. LISC LISC provides a variety of resoutces to assist the capaciry building of nonprofit developers and to pay for pre-development eapenses for nonprofit sponsored housing. Additionally, LISC provides a working capital loan pool for £ne deveiopment oi muiti-family affordable rentai nousing. Greater Twin Ciries United Wav United Way provides special initiative funds to assist building the capacity of organizations to produce additional units of affordable housing. Recent capital campaigns include affordable housing as a priority giving initiative. . . Attachment D Housing 5000 Advisory Task Force Meanbers �chael Olsen, Co-Chair Coldwell Banker Burnet Dick Anfang St. Paul Building Trades Jim Boo Minnesota Union Builders Martha Fuller City of Saint Paul (PED) Jun Gabler Gabler Housing Solutions Corp. Jon Gutzmann Saint Pael Public Housing Agency (PHA) Bob Odman Minnesota Housing Finance Agency (1VIFIFA) Don Maietta Coldwell Banker Matt Mejia Tyronia Newman Paul Rebholz Wells Fargo Vic Rosenthal Jewish Community Action Jaye Rykunyk Hotel & Restaurant Employees International Union George Sherman George Sherman & Associates Missy Thompson Fannie Mae MN Partnership Office Terry Troy Real Estate Equities O� , 3�5 Paul Williams, Co-Chair I,ocal Initiarives 5upport Coxporation (LISC) Tanya Bell Wellington Management Jim Erchul Dayton's B1uffNeighborhood Housing Services Tom Fulton Family Housing Fund David Glass Black Bear Crossing Dennis Guptil Guptil Contracting, Inc. Judy Karon Ramsey County Terry McNellis U S Bancoxp Piper Jaffray Paul Mikelson Lyngblomsten Health Care Arthur Pry Metropolitan Intedaith Council on Affordable Housing (NIICAH� David Reiling Universiry National Bank Caty Royce Community Stabilization Project (CSP) Stephen Seidel Twin Cities Habitat for Humanity Richazd Swanson St. Anthony Park Bank James Trice Faxnily Services, Inc. L,ee Pao Xiong The Urban Coalition Housing Acrion Plan 2003—DrafY 4!3/03 Attachment E Comments Received from the Housing 5000 Advisory Task Force Report Following is a suimnary of comments received from the Housing 5000 Advisory Task Force. ■ There is a lack of larger affordable family units in the City. This is particulazly an issue for some cultural communiries in St. Paul that need housing for larger (often extended) families. FurLher discussion is needed, drawing upon the e�sertise of developers, regarding the encourage mare of that type of development. • 'I'he participation of minority confractors 2nd vendors is an important issue. The Housing Action Plan should state goals in this azea that can be used to hold the City accountable. The City and PED recently started the Minority Business Development and Retention initiative and this HAP 2003 states in Section 3.5 Mortgage Lending that PED will work to increase the particzpation of minority home buyers in City/HIZA sponsored mortgage loan programs. ■ Fair housing issues are unportant and need to be addressed in a proactive way by the City. This I-IAP 2003 in the Introduction states that this action pl¢n is primarily the priority actions to be undertaken by PED, and in accordance with the Housing Plan, Fair Housing issues are being addressed through the City's Department ofHuman Rights. The Pian should be consistent throughout about how the affordability goal is stated. It should be clear that the target of 20% affordable at 50% of AMI is a min;mum threshold and that it be viewed as a floor not a ceilina. The approved Housing Plan, a chapter of the Saint Paul Comprehensive Plan, calls for 20% of housing production to be affordable to persons and families earning 50% or less of the regional median income and that at Zeast half of these units to be affordable to persons or families eaming 30% or Zess of the regional median income. Housing 5000 and this HAP 2003 retain these affordable housing goals. During the past three years, more than 20% of the city's new housing production is affordable to households at or below SO% of the area median income. ■ The new language on the bottom of page 4 is confusing and problematic. In the draft HAP 2003 it reads as follows: "Developments in neighborhoods with little affordable honsing and strong mazkets should be required to provide a minimum of 20% of their units to lower l "� S Housing Action Plan 2003—Draft 4/3/03 a' -a'-15 income households while those developments in weaker markets should be asked to provide a smaller share." The HAP 2003 should frame the issue of econoxnic integration as one of masimizing housing and locational choice for all residents. Language like that included in the second half of that sentence can often lead to discriminafion by excluding people from a particular azea. It was suggested that the language be revised or deleted altogether. The specifzc Zanguage highlighted above is exactly as it is stated in the approved Housing Plan, a chapter of the Saint Paul Comprehensive Plan. During 2003, the Housing 5000 Advisory Task Force wiZ1 work with PED staff in addressing the issue included in Section 4.1 (d) regarding the development of a policy supporting and defining the criteria for broader distribution of affordable housing (as defined in the Housing PZan) across city neighborhoods. The Task Force in their initial discussions suggested the issue be framed in the context of Zocational choice, the City maximize Zocational choice for all residents, inciuding lower income residents, and discourage discrimination. ■ It is unportant to understand and aclaiowledge that not all residents of affardable housing need human services. Therefore, the language in Section 2.4 that states "link human services with affordable housing" should be qualified by adding at the end, "where appropriate." This Zanguage has been added. ■ There should be more support stated in the plan for neighborhood based community development and the work of community development corporations as a key strategy for continuing to strengthen housing mazkets, providing affardable housing, and improving the city's neighborhoods. In Section 3.0, Priority Actions for 2003, 3.1 a. states the City/HRA will work with the private for profzt and nonprofit sectors and other public agencies to develop and fznance housing. Additionally, in Sectian 4.5, Support Key Partners, 4.5 c. states PED ivill woYk closely with key partners and support LISC activities in community development activities and the production of housing by CDCs and other partners. ■ Greater clarity is needed on the local replacement housing policy. It was suggested that this be added as a future agenda item for furtlier discussion by the Task Force. ■ Inclusionary housing legislation that tries to move suburbs to adopt policies similar to Saint Paul's 20% affordable housing policy should be supported in State legislative initiatives. Additionally, budget cuts to MHFA will have a direct impact on the City's housing efforts. ■ The issue of predatory lending legislafion should be raised at the state and local levels. ■ Land trusts should be discussed as an idea and the City should partner with land trust groups. Section 4.1 b. states that exploration of the feasibility of using the land trust model throughout the city will be an issue to be addressed during the year. Also in Section 4. S Key t , , Housing Action Plan 2003—Draft 4/3/03 Partners, Rondo Land Community Land Trust is added to Section 4.51. which states the support of the development activities ofHabitat for Humanity and Rondo Land Ti�ust. ■ The City should consider as part of its community review of the HAP 2003, conducting public hearings so the Task Force and the PED staff hear from the community. ♦� �, • � Housing Acflon Plan 200�Draft 4/3/03 Attachment F City Council Resolution Attached is the resolution approved by the City Council adopting the HAP 2003. �3 -ay5 Mary Erickson - City Council Request - Housing Action Plan Page 1 1' ^� . ..,_. - �>" _, b � '�'� From: Mary Erickson To: Peltier, Gary Date: 3/18l03 1:57PM Subject: City Council Request - Housing Action Plan At the March 12 City Council meeting, the following issues were raised regarding the Housing Action Plan 2003 and it was requested that a response be provided at the April 9 Council meeting: 1) Why was the Koch Mobil project not included among the 2003 projects? 2) Provide an explanation as to why there appears to be a departure from the 20% guideline in the plan. 3) The Council voted for implementation of the St. Paul Emergency Housing Fund as one of its goals; this should be incorporated in Action Steps 3.4 page 9. Thank you - Mary CC: Flaherty, Dennis; Fuller, Martha