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09-21 CC-HRA Work Session CITY COUNCIL MEETING MINUTES Richfield, Minnesota ConcurrentCity CouncilandHousing and Redevelopment Authority Work Session September 21, 2020 CALL TO ORDER The work session was called to order by HRA Chair Supple at 5:47 p.m. via Webex. Council Members Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann; Ben Present Whalen; and Edwina Garcia Council Members Absent: None HRA Members Mary Supple, Chair; Maria Regan Gonzalez; Sue Sandahl; Present: Erin Vrieze Daniels; and Pat Elliott HRA Members Absent: None Staff Present: Katie Rodriguez, City Manager; John Stark, HRA Executive Director/Community Development Director; Julie Urban, Housing Manager; and LaTonia DuBois, Administrative Assistant. Others Present: None Item #1 REVIEW THE INCLUSIONARY AFFORDABLE HOUSING POLICY Executive Director Stark provided a brief history and overview of the Inclusionary Affordable Housing Policy (Policy). Housing Manager Urban presented a Power Point that went over the current housing data, the current Policy, possible revisions, and ways to gain deeper affordability and gain community feedback. Chair Supple inquired about 30% Area Median Income (AMI) units and possible conflicts with Tax Increment Financing (TIF). Housing Manager Urban explained challenges with obtaining 30% AMI and the need to find ways to obtain flexibility with legislature. Council Member Whalen had a follow up question regarding TIF rules at the state level, if it would cause conflicts or if it would be unlikely to get developers to provide 30% units until TIF rules change at the state level. Housing Manager explained Council Member Whalen’s concern would be a likely outcome. Concurrent Council and HRA Work Session -2- September 21, 2020 Commissioner Vrieze Daniels inquired about applying the Policy to public land sales and how it would have applied to the Emerson Lane land sales. Housing Manager Urban explained the Emerson Lane land sales fell under the scattered site single family housing program and that program requires for 20% to be affordable over a period of 3 years; therefore, the Policy would not have applied to that development. Council Member Whalen inquired about smaller parcels and if exceptions and flexibility could apply to specific lots when being sold at subsidy. Housing Manger explained the impacts of the Policy being made into an Ordinance. Executive Director Stark pointed out the two new developments in the city that did not require subsidy, the Novo and Lunds and explained that Lunds owned the land. The Novo was really the only development that happened without subsidy and in the past developments happening without subsidy was a sign of good infrastructure. Council Member Trautmann spoke to Type A (Adaptable) and fully accessible units creating a greater capacity. Executive Director Stark mentioned another tool, other than TIF, that could offer more affordability would be to put a second mortgage on the property, generally with a 15-18 year term. Council Member Whalen spoke of current Policy terms, ability to vary current Policy and an open-ended statement in the Policy. Inquired about how St. Louis Park manages compliance with their affordable housing policy. Housing Manager Urban explained that St. Louis Park hired a consultant and some practicalities for the City of Richfield to manage compliance. Housing Manager Urban offered some concepts to gain community feedback and asked Council Members and Commissioners to offer further suggestions. Chair Supple spoke of posting information in public spaces. Council Member Trautmann mentioned community feedback he received regarding Accessory Dwelling Units (ADUs) and the interest in exploring detached ADU’s as a possibility. Council Member Whalen spoke of the possibility of VEAP providing assistance with distributing information. Housing Manager Urban spoke of other housing partners she will reach out to as well. Executive Director Stark expressed appreciation for any help available. Council Member Whalen mentioned the possibility of working with the housing team to do phone banking and/or door knocking. Chair Supple mentioned feedback regarding the Governor’s Moratorium and requirements of notice. Mayor Regan Gonzalez expressed appreciation for the outreach plan and mentioned plain language information could be shared with to community groups to gain feedback, and inquired about staff’s response for detached ADU’s. Concurrent Council and HRA Work Session -3-September 21, 2020 Housing Manager Urban explained steps being made to allow detached ADU’s. Executive Director Stark spoke of a possible pilot program. Council Member Whalen spoke of the importance to hear voices of renters. Council Member Trautmann supported Council Member Whalen’s views. Housing Manager Urban mentioned attached and detached ADU’s would both be considered for a pilot program. Chair Supple and Council Member Trautmann thanked staff for all their hard work. ADJOURNMENT The work session was adjourned by unanimous consent at 6:57 p.m. Date Approved: October 13, 2020 Maria Regan Gonzalez Mayor LaTonia DuBois Katie Rodriguez Administrative Assistant City Manager