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031714-WS Attachment CITY OF RICHFIELD, MINNESOTA Office of City Manager March 13, 2014 Council Memorandum No. 31 HRA Memorandum No. 14 The Honorable Mayor Housing and Redevelopment and Authority Commissioners Members of the City Council City of Richfield Subject: Senior Housing Demand Analysis (Worksession Agenda Item No. 1) Council Members: During the past several years, developers have continued to express an interest in building senior housing developments in Richfield. At the same time, however, there has been a degree of skepticism on the part of many policy makers in the community regarding the need and/or desire for additional senior housing in the community. Two studies have been conducted in recent years that alluded to senior housing needs. The Urban Land Institute Minnesota Regional Council of Mayor's "Opportunity City Program" analysis of Richfield (completed in 2009) made two statements related to senior housing, first, that "the City can anticipate a rapid increase in seniors over the next 5-10 years," and then asked the question, "to retain social fabric through senior retention, will there be new opportunities for downsizing to one level and higher density senior housing?" The 2012 "Rental Housing Inventory and Needs Analysis" (conducted by Stantec, Inc.) identified four major gaps in the rental housing market; one of which was "senior housing of all types." In an effort to provide more detailed information on whether or not there is a need for senior housing, staff asked Maxfield Research to conduct a Senior Housing Demand Assessment. Maxfield's assessment concludes that, considering only the needs of Richfield residents, there is currently an overabundance of both owner-occupied independent living units and congregate care units. There is unmet demand, however, for rental independent living units, assisted living units and memory care units (see attached Summary Table). With regards to memory care, there are currently no such units located in Richfield. While the Assessment concludes that there is a substantial unmet demand for affordable senior housing, it also cautions that developing affordable senior housing is extremely challenging due to high costs and limited funding sources. The Richfield Housing Visioning Task Force has received the Senior Housing Needs Assessment and has held one discussion on the findings, with a follow-up discussion scheduled for April. A combined Work Session of the City Council, Housing and Redevelopment Authority (HRA) and Planning Commission is scheduled for 6:00 p.m. on Monday March 17 to hear a presentation on the Assessment from Mary Bujold of Maxfield, Inc. and to discuss the Assessment. I Following the Task Force meeting and the Work Session, staff will recommend next steps on the Assessment based on the discussion occurring at those meetings. Res 0-- submitt-., , ,/f,„ , JP A��i!�!� IIiVVVr\rr\��� ev . De anager SLD:jcs Attachments Email: Department Directors Assistant City Manager Planning Commission Senior Housing Demand Assessment Summary Table Excess Demand RichfieldMarket Area Service Level2013201820132018 Mkt. Rate Adult/Few Services (Ownership)-34346466 Mkt. Rate Adult/Few Services (Rental)90113167168 Mkt. Rate Congregate-107-806971 Mkt. Rate Assisted Living193222224252 Mkt. Rate Memory Care132140167206 Subtotal - Market Rate Senior Housing274429691763 Low-Income Adult/Few Services40146not analyzed Moderate-Income Adult/Few Services4955not analyzed Affordable Assisted Living117131not analyzed Affordable Memory Care91102not analyzed Skilled Nursing Beds143151not analyzed Subtotal - Affordable Senior Housing440585 Grand Total9881443