INFORMATION HRSR 03-24-2003 DIFORMATION
��I-�_� I�=II= = IIII
• National Association of Housing and Redevelopment Officials
�T 630 Eye Street,Northwest,Washington,DC 20001-3736(202)289-3500
l� Toll Free 1 (877)866-2476
building communities together Fax(202)289-8181
February 6, 2003
Dear Colleague:
For nearly seventy years, the National Association of Housing and Redevelopment Officials
has worked to bring together community development professionals and housing agencies to
meet the needs of communities across the country. I am excited to invite you to attend a series
of special sessions in this tradition, designed especially for small communities in your area.
NAHRO recognizes that in the midst of one of the largest housing booms in history, there are
thousands of smaller communities across the country that continue to struggle to meet their
affordable housing and community development needs. While many cannot access funding
• directly through the U.S. Department of Housing and Urban Development, these needs must be
addressed if we are to strengthen the fabric of our nation.
Recognition of this challenge has prompted NAHRO to develop a new Small Cities Initiative,
which targets information and resources to smaller communities across the- country. As the
first step, we are utilizing our national network of regional and chapter conferences to engage
both housing and community development professionals in a discussion of how these needs
might be met.
To this end, we are inviting professionals from your area to special sessions at the NAHRO
North Central Regional Council conference in Chicago as well as the Minnesota Chapter
conference in Brainerd. The Regional Conference session will encompass the broader regional
community, serving as a strong starting point for the more state-focused session at the
Minnesota conference. The intent of these sessions is to provide participants with information
and the opportunity to expand their dialogue with other members of their community.
We encourage you to attend both sessions, but welcome your participation at either session.
There is no fee to attend these special sessions, although we encourage you to register for the-
conferences and participate in all they have to offer. Information on these sessions as well as
the conferences is enclosed.
•
Kurt Creager,President;Jim M.Inglis,Senior Vice President;Larry Cobb,Vice President-International;Larry A.Loyd,Vice President
Housing;Terrence James Madigan,SPHM,Vice President-Professional Development;Marilyn Phillips,SPHM,Vice President-Member
Services;Bill Pluta,Vice President-Community Revitalization&Development;Elizabeth B.Wilson,Vice President-Commissioners;Saul N.
Ramirez,Jr.,Executive Director
a. 111,4. c:.... ......... ti_
We hope that you are able to accept this invitation to participate in these very special sessions, •
and truly appreciate your dedication to meeting the needs in your community. Please review
the enclosed information and reply by the date indicated so that we may plan for your
attendance. We look forward to seeing you in the near future.
Sincerely,
51111444"Al.
Saul N. Ramirez, Jr.
Executive Director
Enclosures
.
•
• I , I II,417---- t'- ,- uo ems National Association of Housing and Redevelopment Officials
NA 0 630 Eye Street,Northwest, Washington, DC 20001-3736(202)289-3500
l rl Toll Free 1 (877)866-2476
building communities together Fax(202)289-8181
Thy; Sma!! Cit: s
Promoting Strong Partnerships
7.4N,
g g #
Housing & Community Development Professionals
Strengthening Communities Together
Kurt Creager,President;Jim M.Inglis,Senior Vice President;Larry Cobb, Vice President-International; Larry A.Loyd,Vice President
Housing;Terrence James Madigan,SPHM.Vice President-Professional Development: Marilyn Phillips,SPHM,Vice President-Member
Services:Bill Pinta,Vice President-Community Revitalization &Development: Elizabeth B.Wilson. Vice President-Commissioners:Saul N.
Ramirez,Jr.,Executive Director
e-mail: nahroC'nahro.org Web Site: www.nahro.org
NAHRO's Small Cities Initiative •
promotes partnerships at the local level between housing agencies and community
development professionals in order to maximize resources and meet the needs of
smaller, non-entitlement communities.
THE NEED
Since 1953, NAHRO has been the place where public housing and community development
officials come together, a unique forum in the housing and community development arena.
Fifty years ago, the needs of urban and rural America were quite different and suburbs were
more common in the minds of planners than the landscape of the country. Today, community
re/development is not just an issue for urban communities, but also one for small communities
nationwide.
As a result, partnerships between local housing agencies and community development agencies
are even more critical than they were in 1953. The continuing challenge of meeting local
needs, combined with the diversification of funding streams and devolution, today creates a
more complex reality. With more and more funds being controlled at the state level, small
communities must join together in order to have their own needs heard and addressed. With
few staff on hand, they are often challenged to find the solutions that have eluded larger
communities with more human and financial capital.
NAHRO RESPONDS
Recognizing the challenge of addressing the needs of smaller communities, NAHRO has
begun implementing a three-phase approach to be instituted over the next three years. This
approach is designed to enhance relationships among stakeholders at the local level; improve
general knowledge of funding streams outside the purview of a particular agency; and increase
opportunities for partnerships resulting in long-term benefits for the local community.
Phase One: Information Sharing
NAHRO will be providing Initiative presentations at thirteen Regional and Chapter conference
during 2003, bringing together local housing agencies and their community development
peers. These sessions will focus on the challenges facing non-entitlement communities, and
highlight practices that have been successful in gaining access to funding in that geographic
area. These special sessions will bring together participants and funders to discuss partnerships
and approaches to seeking funds. NAHRO is also working to identify peer mentors,
communities that have successfully addressed the challenges facing participants, to share their
stories and approaches in these sessions.
Participants will leave these sessions with both written and human resources to assist them in
thinking about the possibilities and immediate next steps. They will also be provided with
information about Phases 2 & 3 of the Initiative.
•
�- _- �- = 1111 a Il��
■� ����I== 11=J I�_
National Association of Housing and Redevelopment Officials
• N A 1-]►IIRC1 630 Eye Street, Northwest, Washington, DC 20001-3736(202)289-3500
t1 Toll Free 1 (877) 866-2476
building communities together Fax(202) 289-8181
The Small Cities Initiative: Promoting Strong Partnerships
`?: 4` # Draft Agenda
lif '.4ii'' *' ' OtaiLJ
Brainerd, Minnesota
NAHRO Minnesota Chapter Conference
May 23, 2003
9 a.m. — 11 :00 a.m.
9 a.m.: Welcome and Overview, Dionne Roberts, NAHRO
9:1,0 a.m. Community Needs, moderated session with participants
9:30 a.m. What We're Doing: Mapping the Present, moderated session
with participants
10:00 a.m. Partnering into the Future and Accessing Human and Financial
Capital, moderated session with peers and funders
10:50 a.m. Wrap Up and Next Steps, Dionne Roberts, NAHRO
11:00 a.m. Adjourn
�i =111-IIfi
National Association of Housing and Redevelopment Officials
NM-MO 630 Eye Street, Northwest, Washington. DC 2000 1-37 36(202) 289-3500 •
Toll Free I ()77)860-2476
building communities together Fax (202) 289-8181
SMALL CITIES INITIATIVE
Minnesota Chapter Conference
Information and RSVP Form
The Small Cities Initiative session
This special session will be held on Friday, May 23, 2003 from 9:00 am to 11:00 am
as part of the NAHRO Minnesota Chapter conference in Brainerd, Minnesota. The
room information will be provided on-site and will also be posted on the NAHRO
website (http://www.nahro.orq/programs/cd/smallcities.cfm) at least one week prior to
the session. Attendees for the special session must RSVP no later April 25, 2003.
The Minnesota Chapter Conference
The Minnesota Chapter conference will take place May 21-23, 2003 at Madden's
Resort in Brainerd, Minnesota. Registration and other information is available at
www.housingcenter.com/mnnahro.html •
SPECIAL SESSION RSVP FORM
Please fax this back to 202-289-4961, or email the same information to droberts @ nahro.orq
Conference: Minnesota Chapter
Name:
Agency:
Phone:
Fax:
E-mail:
Comments: •
Please RSVP no later than April 25, 2003
THANK YOU!
•
City of
Elk -�-�
River
MEMORANDUM
TO: Housing & Redevelopment Authority
CC: City Council
Planning Commission t/
FROM: Heidi Hall, Economic Development Assistant
DATE: March 24, 2003
SUBJECT: Elk River Housing Study Update
Attachment
• 2001-2005 Elk River Housing Plan Update
• Issue
The attached housing study that was originally completed in October of 2001 by the Central
MN Housing Partnership was recently updated based on 2000 Census information.
•
•
Cif ofJ River
2001 - zoos
•
7iousinj Phan
•
•
The 2001 — 2005 City of Elk River Housing Plan was developed by the
Central Minnesota Housing Partnership. The Housing Plan was
presented to the Elk River Housing & Redevelopment Authority on
October 22, 2001.
Demographic, Housing and Employment data found throughout the
• study was provided by Admark Resources.
In January 2003 the Central Minnesota Housing Partnership
reviewed and revised the Housing Plan with data
released from the 2000 U.S. Census.
This project was funded in part by the Initiative Foundation, a regional
• foundation and the Minnesota Housing Partnership.
•
March 17, 2003
Ms. Catherine Mehelich
City of Elk River
13065 Orono Parkway
Box 490
Elk River, MN 55330
Dear Cathy:
Since the Elk River Housing Plan was completed in 2001, new Census data was released that
contained a variety of housing information. Since this is vital information that was not available
at the time of your plan being completed, we have updated the Elk River Plan to reflect the
released data and we have also included residential lot information as provided by the City.
• If you have any additional questions please do not hesitate to contact me at (320) 259-0393.
Sincerely,
Lisa Graphenteen
Community Development Manager
•
• TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY
Introduction 1
Study Area 1
Demographic Trends 1
Housing Trends 3
Housing Demand 4
Housing Strategies 6
DEMOGRAPHIC REVIEW
Population 8
Households 9
Population by Age 10
Household Income 13
Employment 17
HOUSING MARKET ANALYSIS
Introduction 22
Building Permits 22
Units by Year Built 24
• Units in Structure 25
Year Householder Moved Into Unit 25
Multi-Family Housing 26
Gross Rent 28
Single Family Housing and Vacant Lots 29
Value of Owner-Occupied Units 33
HOUSING DEMAND
Introduction 34
Strategies for Housing Development 35
Funding Resources for Housing Activities 38
410
. LIST OF TABLES
Table Number and Title Page
1 Population and Household Data, Elk River Study Area, 1980 to 2005 9
2 Population by Age, City of Elk River, 1990 to 2000 11
3 Population by Age, Sherburne County, 1990 to 2000 12
4 Household Income, City of Elk River, 1990 to 2000 13
5 Household Income, Elk River Study Area, 1990 to 2005 14
6 Household Income by Age, Elk River Study Area, 2000 16
7 Major Employers, City of Elk River, 2001 17
8 Covered Employment by Industry, Sherburne County, 1990 to 1999 19
9 Employment and Unemployment, Sherburne County, 1990 to 2000 21
10 Building Permits, City of Elk River, 1990 to 2001 23
11 Age of Housing, City of Elk River and Sherburne County, 2000 24
12 Units in Structure, City of Elk River, 2000 25
13 Year Householder Moved Into Unit, City of Elk River, 2000 25
14 Rental Analysis, City of Elk River, 2001 27
15 Gross Rent, City of Elk River, 2000 28
16 Platted Residential Lot Inventory, City of Elk River, 1990 to Present 31
17 Value of Owner-Occupied Units, City of Elk River, 2000 33
18 Housing Demand, City of Elk River, 2001 to 2005 34
•
•
City of Elk River Housing Plan Updated January 2003
• Executive Summary
Introduction
The Central Minnesota Housing Partnership in collaboration with the City of Elk River has
developed the Elk River Housing Plan to identify local housing conditions and to plan for future
housing needs. The Housing Plan includes an analysis of local demographic, employment, and
housing trends in Elk River. Based on the analysis demand estimates were developed through
2005.
Study Area
A primary study area was selected for the community which includes the City of Elk River and
portions of Dayton and Otsego. Most housing demand for Elk River will come from persons that
live or are employed in the study area. While this area serves as a primary study area it should
be noted that the community draws from a much larger area that includes a large portion of
Sherburne County,Northern Wright County, and Northwest Anoka and Hennepin Counties. A
map of the study area is located on Page 2.
Demographic Trends
• Elk River is a thriving community located in the southeast corner of Sherburne County.
The community is located off U.S. Highway 10 and 169 and is only 35 miles from
• downtown Minneapolis. The community is also within 40 miles of St. Cloud. These
factors have and will continue to make this area prime for new development.
• During the past ten years the City and surrounding area has undergone substantial
population and household growth. During the past ten years the City has added 5,304
persons and 1,932 households for a 47.6% and 51.8% increase, respectively. According
to the 2000 Census the City has a total of 5,782 housing units.
• The largest population growth has occurred in the 25 to 44 and the 5 to 17 age categories
for both Elk River and Sherburne County. This signifies strong growth in the area from
families with children. The median age of Elk River in 2000 was 32 and in Sherburne
County was 31.4.
• According to the 2000 Census the median household income in Elk River is $58,114.
The 2000 median household income was projected at $53,583 for the Study Area. The
largest household segment are those ages 35 to 44 which have a median household
income of$60,549.
• In addition to being ideally located between two major employment centers, the City also
offers a multitude of employment opportunities. Nearly all major employers classify the
local economic climate as good with many existing employers experiencing job growth
over the past few years. The largest growth over the past ten years has occurred in the
410 Trade Sector in Sherburne County.
1
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City of Elk River Housing Plan Updated January 2003
•
Housing Trends
• A high demand for housing and low vacancy rates for the area have caused housing
prices to rise substantially over the past ten years in Elk River and the surrounding area.
• The City has a very tight rental housing market with a low vacancy rate of 1.7%
according to the 2000 Census. A current rental analysis found an even lower rate of
0.5%. The average cost of a two-bedroom apartment is $670. A household would need
to earn approximately $12.90 per hour to afford the average two-bedroom apartment.
The 1999 average industrial wage in Elk River was $11.54 per hour, which could only
afford a rent of$600 per month. According to the 2000 Census, the median rent in Elk
River is $592.
• The homeowner vacancy rate is also low at 1.4%. Housing values have increased
substantially in Elk River. According to the 2000 Census, the median home value was
$144,800. Sale prices in the area have been higher and in 2000 the median sales price
was $160,000 with an average sales price of$.174,820. To afford the median sales price
of$160,000, a household would need to earn over$50,000 annually.
• Households age 25 to 34 are typically first time homebuyers looking to purchase entry-
level homes. The median household income for this age segment is $49,319 which could
• afford to purchase a home priced at approximately $156,000.
• A comparison of the average wages paid by industries in Sherburne County found that
most are not sufficient to afford the median cost of a home in Elk River and some sectors
would not be able to afford the average cost of a two-bedroom apartment. The lowest
wages are found in the Trade and Services sector.
• The JOBS NOW Coalition found that the living costs in Region 7W (Benton, Sherburne,
Stearns, and Wright County) are 14% lower than the metro area,but the average wages
were 31% lower than the metro area. The study also found that the hourly wage required
to meet basic needs was $13.84 for a two-parent household (1 earner) with two children.
The average hourly wage for Region 7W listed in the report, which is based on 1999
wage data from the Minnesota Department of Economic Security is $12.65.
•
3
City of Elk River Housing Plan Updated January 2003
• Housing Demand
The following are the recommended number of units for the community through 2005 to meet
area housing needs:
Housing Demand
City of Elk River
2000-2005
Single Family Housing Rehabilitation 30 to 50 units
Rental Housing Rehabilitation 20 to 30 units
Low-Income General Occupancy Apartments 24 to 36 units
, Affordable General Occupancy Townhomes 48 to 72 units
Market Rate General Occupancy Apartments 64 to 96 units
Market Rate General Occupancy Townhomes 50 to 70 units
Market Rate Elderly Apartments 30 to 50 units
Elderly Patio Homes/Cottages 10 to 20 units
Affordable Single Family Housing 200 to 300 units
Market Rate Single Family Housing 500 to 600 units
• *Terms outlined in the demand section are defined in latter sections of the plan.
Rehabilitation
As housing units begin to age, they will start to show signs of deterioration. Housing
rehabilitation, which is the repair or replacement of essential components of homes, is essential
to maintaining a community's housing stock over a long period of time. Major housing
rehabilitation activities look to improve problems in a home that may cause a health and safety
issue or improve the energy efficiency of a home. Often times these are repairs that have
substantial costs which require some outside assistance through loans,.low interest loans or
deferred grants.
Multi-Family Housing
Elk River will have a demand for a variety of multi-family housing products over the next five
years. Over the past ten years two general occupancy and one senior apartment have been
developed in Elk River. Much of the multi-family housing development has been concentrated
in for-sale townhomes. The following are the identified needs which are not listed in a priority
order.
The community needs a low-income general occupancy apartment in which rents are based on
30% of a households income. A project of this nature would primarily serve households with
incomes at 30% or less of the area median income based on family size. For a family of four this
would be an annual salary of$22,410 or$10.75 per hour. There is very little funding available
for a project of this nature; therefore it is not included in the final recommendations as the
• probability of it being developed is unlikely.
4
Ci of Elk River Housing Plan U•dated Janua 2003
•
The City also has the need for affordable rental options primarily focused on a townhome-style
development. While all housing options should be affordable to a household by not exceeding
30% of that household's income, affordable in this context refers to units that typically serve
those earning less than 60% of the area median income. For a family of four these units would
serve households earning less than $44,820 per year. Hourly this would equate to a single earner
household at approximately $21.50 per hour.
Market rate units do not carry any income restrictions and a project targeted towards general
occupancy would not carry any age restrictions. While these units are primarily targeted to serve
those earning over 60% of the area median income, households earning less than this can also
occupy the units.
The community will also have continued housing needs from its elderly population. Most
subsidized programs define elderly as those age 62 and over. For a market rate unit the scope
should be broadened to include those age 55 and over. In addition to apartments, patio
homes/cottages are another form of living to accommodate seniors. Designs for patio homes
vary but many have features such as one-level living, associations to maintain landscaping and
snow removal, and are developed on smaller lots.
Single Family Housing
The development of single-family housing will be the largest housing need in Elk River through
• 2005. Costs illustrated for single-family housing include the total development cost of both the
land and the home. Based on the existing market the largest demand for homes will be those
priced over$150,000. These homes will also be the easiest to achieve based on local costs for
new construction. The community has a demand for homes priced under$150,000. These will
be harder to achieve based on the existing market. Townhomes are one form of development
that can assist in meeting much of this demand as they tend to utilize less land for development.
Other incentives and methods, which are described later, can also be utilized to achieve this
housing.
The key aspect found in these recommendations is that the City of Elk River is going to need a
diversity of housing types to meet future demand. The demand for homes priced over$150,000
will be the easiest need to meet. Many of the other housing demands will require varying levels
of participation by the community. A balanced housing stock is a critical component for a
community and the following strategies outline varying degrees of changes or initiatives that can
be undertaken.
•
5
City of Elk River Housing Plan Updated January 2003
• Housing Strategies
The following strategies outline potential methods in which a community can ensure a balanced
housing stock for its residents. A community should work to maintain a balanced housing stock
to house employees along a continuum of incomes from day care workers to teachers to business
owners. With housing communities can assume three levels of responsibility. The first is at the
policy level in which communities can make changes to local policies and plans to support a
balanced development of housing. The second is at an intermediate level where communities
can provide letters of support, and financial or technical assistance. The final level would be an
advanced level where a community may not only finance a project but assume an ownership role
as well. The following outlines activities along all three levels where a community could
become involved.
Rehabilitation
• Define a target area of Elk River by analyzing age of housing, valuation of housing and
the condition of housing to establish a rehabilitation target area.
• Have information available for residents on programs that are available for housing
rehabilitation including but not limited to Rural Development, Tri-Cap, and MHFA.
• Sponsor an application to the Small Cities Development Program to receive funds for
owner-occupied and rental rehabilitation that can be used by property owners to make
• essential improvements.
Multi-Family Housing
• Identify land/parcels within the community that can be utilized for the development of
multi-family housing.
• Provide financial/resource assistance to projects that will develop affordable rental units.
• Examine sites/areas that can be redeveloped to provide additional housing.
Single-Family Housing
• Develop an inclusionary housing ordinance that sets a standard for affordable housing
development in new subdivisions.
• Provide incentive such as reduced lot sizes, street widths, or fees for developers who
incorporate affordable housing into developments.
• Work with area employers to establish a homeownership savings program.
Other
• Sign resolutions of support for projects that are seeking funding from an outside agency
to develop affordable housing within the Community.
• Make policy changes through the City Comprehensive Plan and Zoning Ordinance that
support housing demand.
• Conduct an employee survey to gauge information from employees working in Elk River.
This tool can be used to gather a variety of information on housing, commuting patterns,
• spending patterns, etc.
6
City of Elk River Housing Plan Updated January 2003
• It is important to note that the recommendations found within this study are based on housing
conditions and research conducted at the time of the study and does not take into account any
external changes that would potentially change the outcome of the study. This would include
such items as industry layoffs, governmental restrictions, zoning, etc.
•
•
7
City If Elk River Housin, Plan Undated Januar 2003
• Demographic Review
Population
Elk River is located in the second fastest growing County in the State of Minnesota according to
the 2000 Census. The City has experienced extensive population growth over the past twenty
years. During the 1980's, the City increased its population by 4,358 persons for a 64.2%
increase. This growth trend continued in the 1990s when the City increased its population from
11,143 to 16,447, an increase of 47.6%.
It is anticipated that the City will continue to have strong growth over the next five years due to
its proximity to major highways and the Twin Cities Metropolitan Area. In addition, the City
also provides numerous commercial and industrial employment opportunities. Between 2000
and 2005 it is projected that the City will grow by 15.8%, an increase of 2,597 persons.
The entire study area, which includes the City of Elk River and portions of Dayton and Otsego,
has also experienced strong population growth. Between 1990 and 2000 the study area increased
by 7,273 persons, an increase of 46.5%. For the next five years this area will increase by just
over 15%, with the addition of 3,501 persons.
Population by race data produced for the 2000 Census illustrate increases in minority populations
in the community. Each race segment has increased over the past ten years. Minorities
comprised an increasing percentage of the total population with the White.alone segment
• declining from 98.6% in 1990 to 96.4% in 2000 resulting in a more diversfied community.
Population Growth
Elk River Study Area
1980-2005
30,000
e, a
25,000 _ ,s
20,000
15,000 '—+—Elk l iver
�. a„ fix` Stud°yAreaY 7:10,000
5,000 Oat ,
0
1980 1990 2000 2005
•
8
Ci of Elk River Housin• Plan U e dated Janua 2003
• Households
Household growth in the City and surrounding area has been even stronger than the population
growth. The largest percentage increase occurred during the 1980s when households increased
by 77% in the City. This was an increase of 1,624 households. The entire study area increased
by 1,805 households for a 54.3% increase.
Strong growth continued through the 1990s with the City increasing by 1,932 households, a
51.8% increase. The entire study area increased by 2,608 households for a 50.9% increase.
According to the 2000 Census, the City has a total of 5,664 households and the entire study area
has a total of 7,736 households.
Over the next five years it is anticipated that the City will increase by 982 households, for an
increase of 17.3%. The remainder of the study area will increase by 16.5% and add 1,280 new
households.
Table 1
Elk River Study Area
Population and Household Data
1980-2005
1980 1990 2000 2005 1980-1990 1990-2000 2000-2005
# % # % #
• Population
Elk River 6,785 11,143 16,447 19,044 4,358 64.2% 5,304 47.6% 2,597 15.8%
Study Area 10,926 15,637 22,910 26,411 4,711 43.1% 7,273 46.5% 3,501 15.3%
Households
Elk River 2,108 3,732 5,664 6,646 1,624 77.0% 1,932 51.8% 982 17.3%
Study Area 3,323 5,128 7,736 9,016 1,805 . 54.3% 2,608 50.9% 1,280 16.5%
Source: 1980-2000 Census
Claritas, Inc.
CMHP
9
City of Elk River Hou in. Plan U i dated Januar 2003
• Household Growth
Elk River Study Area
1980-2005
10,000 `'' .14
9,000
M
8,000
7,000
6,000
5,000 - EIk River`
4,000
-- --Study Area
3,000
i
2,000
1,000
1980 1990 2000 2005
Population by Age
Table 2 illustrates population by age for the City of Elk River between 1990 and 2000. Currently
the largest age group in the City are those ages 25 to 44 which comprise 33.9% of the population.
This age segment increased by 1,613 persons between 1990 and 2000, an increase of 40.7%.
The second largest age group are youth age 5 to 17 which comprise 22.9% of the population.
This segment increased by 1,189 persons, a 46% increase. These two age segments also
represent the largest numerical increases between 1990 and 2000.
The largest percentage increase during the past ten years was found in the 55 to 64 age group
which increased by 87.7%, or 490 persons. The second largest percentage increase was
individuals age 45 to 54 which increased by 80.8%, or 877 persons. All age segments in the City
increased by at least 25% during the past ten years. The median age for the City of Elk River is
32.0 years according to the 2000 Census.
Age Distribution
City of Elk River
9. 1- too
6,000
5,000 ° 3,0
4,000
3,000 0'
',990`
2,000 ` U 2000
r
1,000 r
Under 5 to 17 18 to 25 to 45 to 55 to 65 to 75 to 85+
• 5 24 44 54 64 74 84
10
City of Elk River Housing Plan Updated January 2003
• Table 2
City of Elk River
Population by Age
1990-2000
1990 2000 Change
# % # % #
Under 5 1,032 9.3% 1,375 8.4% 343 33.2%
5 to 17 2,582 23.2% 3,771 22.9% 1,189 46.0%
18 to 24 1,109 10.0% 1,395 8.5% 286 25.8%
25 to 44 3,965 35.6% 5,578 33.9% 1,613 40.7%
45 to 54 1,086 9.7% 1,963 11.9% 877 80.8%
55 to 64 559 5.0% 1,049 6.4% 490 87.7%
65 to 74 404 3.6% 663 4.0% 259 64.1%
75 to 84 275 2.5% 454 2.8% 179 65.1%
85+ 131 1.2% 199 1.2% 68 51.9%
Total 11,143 100.0% 16,447 100.0% 5,304 47.6%
Source: 1990 and 2000 Census
Table 3 illustrates population by age for the Sherburne County between 1990 and 2000. In 2000,
• the largest age group were those ages 25 to 44 which comprise 33.9% of the population. This
age segment increased by 7,426 persons between 1990 and 2000, a 51.5% increase. The second
largest age group are youth age 5 to 17 which comprise 22.5% of the population. This segment
increased by 4,834 persons for a 50% increase.
The largest percentage increase during the past ten years was found in the 45 to 54 age group
which increased by 94%, or 3,733 persons. The second largest percentage increase were
individuals age 85 and over which increased by 80.7%, or 309 persons. All age segments in the
County have increased by at least 26%during the past ten years. According to the Census the
median age in Sherburne County is 31.4.
•
11
Updated January 2003
City of Elk River Housing Plan
• Age Distribution
Sherburne County
1990-2000
25,000
20,000-''
r ,
1990
15,000
U 2000
10,000-
)
,� ,, „..a ��
5,000-!
0 Under5 5to17 18 to2425to4445 to 5455 to 6465 to 7475 to 84 85+
Table 3
Sherburne County
• Population by Age
1990-2000
1990 2000 Change
# % # % # %
Under 5 3,648 8.7% 5,410 8.4% 1,762 48.3%
5 to 17 9,670 23.1% 14,504 22.5% 4,834 50.0%
18 to 24 4,928 11.7% 6,210 9.6% 1,282 26.0%
25 to 44 14,409 34.4% 21,835 33.9% 7,426 51.5%
45 to 54 3,971 9.5% 7,704 12.0% 3,733 94.0%
55 to 64 2,341 5.6% 4,170 6.5% 1,829 78.1%
65 to 74 1,652 3.9% 2,344 3.6% 692 41.9%
75 to 84 943 2.2% 1,548 2.4% 605 64.2%
85+ 383 0.9%a 692 1.1%0 309 80.7%
Total 41,945 100.0% 64,417 100.0% 22,472 53.6%
Source: 1990 and 2000 Census
•
12
City of Elk River Housing Plan Updated January 2003
• Household Income
According to the 2000 Census, the City of Elk River has a median household income of$58,114
compared to Sherburne County at $57,014. The median household income for Sherburne
County has grown at a slightly higher pace than the City resulting in comparable incomes for
2000. In 1990, the median household income was $37,549 for Elk River and $35,585 for
Sherburne County.
Table 4 illustrates the breakdown of household incomes for the City of Elk River between 1990
and 2000. In 1990, the largest number of households (40.6%) earned between $25,000 and
$49,999 per year. In 2000, the $50,000 to $74,999 income segment became the largest segment
with 25.8% of the households. The largest increases between 1990 and 2000 occurred in the
$75,000 to $99,999 income segment which increased from 7.6% of households in 1990 to 19.5%
of households in 2000. Increases were also experienced in the $50,000 to $74,999 and $100,000
and over income segments.
Table 4
City of Elk River
Household Income
1990-2000
1990 2000
Household Income Number Percent Number Percent
• Less than $10,000 338 9.1% 214 3.8%
$10,000 to $14,999 127 3.4% 327 5.8%
$15,000 to $24,999 462 12.4% 501 8.8%
$25,000 to $49,999 1,511 40.6% 1,338 23.6%
$50,000 to $74,999 869 23.4% 1,461 25.8%
$75,000 to $99,999 281 7.6% 1,108 19.5%
$100,000 or more 130 3.5% 724 12.8%
Total 3,718 100.0% . 5,673 100.0%
Median Income . $37,549 $58,114
Source: 1990 and 2000 Census
Table 5 illustrates changes in household income between 1990 and 2005 for the entire study area.
Information found in Table 5 was provided by Claritas, Inc. and is based on projected numbers
not including the 2000 Census data. In 1990, the median household income for the study area
was $37,997. During this period over 25% of households earned between$35,000 and $49,999
per year. An additional 22.7% of households earned between $50,000 and $74,999 per year.
In 2000, the median household income increased substantially to $53,583. Incomes between
$50,000 and $74,999 now comprise the largest income segment at 27.6%. Considerable
increases were also seen in the $75,000 to $99,999 and the $100,000 or more income groups.
These income segments increased by 9.8% and 9.3%, respectively.
•
13
City of Elk River Housing,Plan Updated January 2003
• By 2005 the median household income is projected to increase to $60,451. Increases during this
period will mainly occur in the upper income brackets with the largest percentage increase found
in those households earning $100,000 or more. This segment will increase by 829 households
for a 7.5% increase.
Table 5
Elk River Study Area
Household Income Data
1990-2005
1990 2000 2005
Number Percent Number Percent Number Percent
Less than $10,000 385 7.5% 365 4.7% 375 4.2%
$10,000 to $14,999 207 4.0% 320 4.1% 350 3.9%
$15,000 to $24,999 662 12.9% 617 8.0% 584 6.5%
$25,000 to $34,999 942 18.4% 648 8.4% 816 9.1%
$35,000 to $49,999 1,292 25.2% 1,449 18.7% 1,295 14.4%
$50,000 to $74,999 1,164 22.7% 2,138 27.6% 2,296 25.5%
$75,000 to $99,999 328 6.4% 1,254 16.2% 1,526 16.9%
• $100,000 or more 148 2.9% 945 12.2% 1,774 19.7%
Total 5,128 100.0% 7,736 100.0% 9,016 100.0%
Median Income $37,997 $53,583 $60,451
Source: Claritas, Inc.
•
14
City of Elk River Housing Plan Updated January 2003
•
Household Income
Elk River Study Area
1990-2005
$100,000 or more
$75,000 to $99,999
$50,000 to $74,999
$35,000 to 2005
$25,000 to $34,999 ®2000'
„ 1990:
$15,000 to $24,999 '
$10,000 to $14,999
Less than $10,000
• 0 500 1,000 1,500 2,000 2,500
Table 6 illustrates household income by age for 2000 which is also developed by Claritas, Inc.
and represents projected household income. Households age 35 to 44 comprise the largest
segment with 2,027 households and have a median income of$60,549. The highest median
income is found in the 45 to 54 age segment with a median income of$66,739. Households
between the ages of 45 and 64 tend to not only have the highest median incomes,but also have
the most equity in their existing homes.
Households between the ages of 25 and 34 are usually in the market for rental housing or are
looking to purchase entry-level homes. The median income for this age segment is $49,319.
With this income a household could afford monthly rent in the amount of$1,230 including rent,
utilities and a garage. A household with this income could afford an approximate mortgage of
$148,200 or a purchase price of$156,000 assuming a 30 year fixed rate mortgage at 7.0%with a
5.0% downpayment.
The lowest median incomes are found in households over the age of 75. Households over the
age of 85 have the lowest median household income at $13,333 per year. Incomes drop
dramatically after households reach 65 years of age. Incomes drop from $66,010 for households
age 60 to 64 to $27,272 for households age 65 to 69.
15
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Ci of Elk River Housing Plan U I dated Janua 2003
• Employment
Employment is a critical component to the housing market. The nine largest employers are
shown in Table 7. Each employer was interviewed to assess local economic conditions including
number of employees, wages, historic and future growth, and the need for additional housing.
During the past two years six of the employers have grown in size and the remaining three have
stayed the same. All but one employer indicated that the local economic climate is good. A
variety of employers stated that they anticipate their businesses to grow over the next two years.
The largest employer in the City of Elk River is the school district with 1,250 employees. The
second largest employer is Sherburne County with approximately 470 employees. Most
employers would not disclose average wage data to provide a general overview of approximate
wages paid by area employers. A 1999 Business Retention and Expansion Survey found the Elk
River average industrial wage to be $11.54 per hour. The Minnesota Department of Economic
Security also produces wage survey information and found that the average hourly wage for the
Manufacturing sector in Sherburne County was $18.35 per hour for the second quarter of 2000.
Employers were also asked to comment on the local housing market based on their experience
with employees. All nine employers indicated that more moderate-income housing is needed in
the community. Just under 80% of the employers indicated that the addition of more moderate
income housing would be of benefit to their business. Moderate-income housing is typically
defined as housing for households earning 80% or less of the area median income. For
Sherburne County this would be $60,320 based on the HUD 2001 median household income of
$75,400. This would equate to rental housing that is generally priced under$1,500 per month
•
including rent, utilities and garages. For homeownership this would be a maximum purchase
price of$190,800.
Table 7
City of Elk River
Major Employers
2001
Employer Product or Service Employees
Elk River ISD #728 Elementary and Secondary Education 1250
Sherburne County Government Offices 470
Guardian Angels Int-nnediate Care Facilities 325
Great River Energy Electric Services 320
Tescom Corp Industrial Valves 275
Cub Foods Grocery Store 210
Target General Merchandise 175
Alitool Manufacturing Metal Stampings 160
Menards Lumber and Other Building Materials 160
Source: Community Profiles, DTED
• Employer Interviews
17
i of Elk Riv•r ousin' Plan U.dat•d Januar 2003
• According to a 2001 Labor Force Assessment which was completed for Sherburne County,
residents of the County commute a wide variety of distances to work each day. Commuting
patterns indicate that residents are commuting to various locations primarily following a pattern
along Interstate 94. The patterns are not heavily concentrated in one County or City.
Approximately 35% of those surveyed traveled 0 to 10 miles to work one-way. For those that
commute 46 or more minutes each way, they indicated they would take a median decrease of
$2.40 per hour to have a 0 to 15 minute commute. On the other hand those that commute 0 to 15
minutes per day would need to earn a median increase of$7.00 per hour to drive 46 or more
minutes with 47% indicating they were unwilling. The study also found that the largest share of
workers had an annual pre-tax salary of$20,000 to $40,000.
The National Low Income Housing Coalition developed a report on the hourly wage that is
needed to afford rental housing based on the fair market rent. In Sherburne County the following
wages are needed to afford fair market rents:
Fair Market Rent (FMR) Income Needed Wage Needed
One-Bedroom $674 $26,960/year $12.96/hour
Two-Bedroom $862 $34,480/year $16.58/hour
Three-Bedroom $1,166 $46,640/year $22.42/hour
The following graph depicts some of the gaps between wages paid in certain businesses and the
• cost of housing. According to the Central Minnesota Employment Outlook to 2006 developed by
the Minnesota Department of Economic Security, the fastest growing job in Central Minnesota
will be the Home Health Aide which has an average hourly wage of$8.08. The wage is
considerably lower than the average cost of a two-bedroom apartment in Elk River. The same is
true of the Elk River average industrial wage which is at $11.54. This wage is only half of what
is need to afford a$150,000 home. In Region 7W, which includes Benton, Sherburne, Stearns,
and Wright County, the average hourly wage is $12.65. Only the Sherburne County average
manufacturing wage of$18.35 is high enough to afford the average rent, but is still not sufficient
to purchase a$150,000 home.
Cost of Housing 0 5150 0001 ome.-
Average 2 BlaR Apt.
•Average Wages
$
4:1 ./M K.
r ':.;w '..
$15.00
$10.00 �.
$5.00 v
$0.00
Home Health Aide Elk River Industrial Region 7W Sherburne Co.
Ili Manufacturing ..i....
,)INIM 18
Ci of Elk River Housin' Plan U•dated Januar 2003
• Table 8 shows covered employment by industry for Sherburne County. This table represents the
number of jobs in Sherburne County, regardless of where the individual resides. Some
categories such as some agricultural workers, railroad workers, student workers, and elected
officials are not included in the data. All industries have increased in size between 1990 and
1999. The only sector to experience some loss in the latter half of the 1990s was the
Transportation and Public Utilities sector which declined by 18 jobs.
The sector with the largest increase between 1990 and 1999 was the Trade sector which added
2,380 positions for a 93.7% increase. The Trade sector includes wholesale and retail trade and
would include such businesses as general merchandise stores, building materials, food stores,
automotive dealers and service stations, apparel and accessory stores, furniture and home
furnishing stores, and eating and drinking places.
The second largest increase was found in the Services sector which increased by 1,516 jobs for a
91.2% increase. The Services sector includes a wide range of businesses with some of the
largest being business services, health services, legal services, social services(excluding
government), and numerous other services.
The largest percentage increase was found in the Construction sector. Between 1990 and 1999 it
increased by 138.5%by adding 763 jobs. The second largest percentage increase was found in
the Finance, Insurance and Real Estate sector which increased by 121.1%with the addition of
310 new jobs.
•
The City of Elk River completed an analysis of local industrial firms and found that the largest
employment by industry was in the industrial machinery sector at 28%. Fabricated metal and
electronic equipment were also large employers at 22% each.
Table 8
Sherburne County
Covered Employment by Industry
1990 1995 1999 1990-1999 1995-1999
Construction 551 820 1,314 763 138.5% 494 60.2%
Manufacturing 1,442 2,452 2,848 1,406 97.5% 396 16.2%
Transportation and Public Utilities 1,296 1,579 1,561 265 20.4% -18 -1.1%
Trade 2,539 3,708 4,919 2,380 93.7% 1,211 32.7%
Finance, Insurance and Real Estate 256 383 566 310 121.1% 183 47.8%
Services 1,663 2,476 3,179_ 1,516 91.2% 703 28.4%
Government 1,892 2,631 3,096_ 1,204 63.6% 465 17.7%
Total 9,639 14,049 17,483 7,844 81.4% 3,434 24.4%
• Source: Minnesota Department of Economic Security
19
City of Elk River Housing Plan Updated January 2003
• Covered employment data is not only available for the number of jobs by sector, but also the
average weekly wages for those sectors. The following graph includes three major components:
the average annual wage by sector, the average cost of a two-bedroom apartment in Elk River,
and the cost of a$150,000 home. This chart illustrates the gap that can be found in some sectors
between the wages that are earned and what households can afford for both rental and
homeownership.
The largest housing gap is found in the Trade and Services Sector. On average, if a single-earner
household were working in either of these sectors they would have a difficult time affording the
average two-bedroom apartment. Homeownership for people employed in these sectors is nearly
impossible unless they have a dual income household. The Finance, Insurance and Real Estate
(FIRE) sector also had a small gap between wages and the average rents.
Most sectors do not have an average wage sufficient to purchase a$150,000 home. The only
sector with an average wage high enough to afford a $150,000 home are those in the
Transportation and Public Utilities (TPU) sector.
Average Annual Wages 0$15QQa ame
Sherburne County ®Average 2BDR Apt.
1999 `'
• IR erage Wages
,
$50,000.00 ;> .3 ,s, `
$45,000 00
$40,000 00
,... ,in • III
$35,000 00
0 'M • • l'
$30,000.00 „
$25,000 00
$20,000 00
0
$15,000.00
0
$10,000.00
1 E El IN III 111
0 I,
d
$5,000 00 . r
K
t
Services Trade FIRE Government Construction Manufacturing TPU All Industries
•
20
City of Elk River Housing Plan Updated January 2003
• Table 9 illustrates employment and unemployment data for residents of Sherburne County,
regardless of where they work. The labor force in the County has been increasing since 1990.
The largest increase in the labor force occurred between 1993 and 1994 with an increase of 1,818
persons. Between 1999 and 2000 another substantial increase was experienced with a labor
force increase of 1,592 persons. Unemployment rates in the County reached their lowest level in
1998 with a 2.5% unemployment rate. The highest rate was found in 1991 at 6.0%. Since 1997
the unemployment rate has stayed below 4.0%. For the most part, the unemployment rate in the
County has remained consistent with the statewide rate. With the exception of 1990, Sherburne
County has had a lower rate than the national average.
Table 9
Sherburne County
Employment and Unemployment Data
1990-2000
MN U.S.
Labor Number Number Unemployment Unemployment Unemployment
Year Force Employed Unemployed Rate Rate Rate
1990 22,462 21,187 1,275 5.7% 4.9% 5.6%
1991 23,210 21,815 1,395 6.0% 5.1% 6.8%
• 1992 23,891 22,499 1,392 5.8% 5.2% 7.5%
1993 25,402 23,907 1,495 5.9% 5.1% 6.8%
1994 27,220 26,130 1,090 4.0% 4.0% 6.1%
1995 28,543 27,427 1,116 3.9% 3.7% 5.6%
1996 29,578 28,354 1,224 4.1% 4.0% 5.4%
1997 30,936 29,904 1,032 3.3% 3.3% 4.9%
1998 32,580 31,766 814 2.5% 2.5% 4.5%
1999 32,932 32,040 892 2.7% 2.8% 4.2%
2000 34,524 33,418 1,106 3.2% 3.3% 4.0%
Source: Minnesota Department of Economic Security
Employers in Elk River provide a diversity of employment opportunities in various sectors such
as government, education, medical, and numerous commercial and industrial businesses. The
City has made great strides in attracting businesses to their business parks and ensuring that
space is available for new industries. The City is also working on redevelopment efforts for
Downtown Elk River that will bring enhanced retail, office and housing space to the community.
•
21
City of Elk River Housing Plan Updated January 2003
• Market Analysis
Introduction
According to the 1990 Census the City of Elk River had 3,887 housing units. Data released from
the 2000 Census indicates that the City has added 1,895 housing units for a total of 5,782 units in
2000. According to the 1990 Census, approximately 74.5% of the housing stock was owner
occupied units and the remaining 25.5% were renter occupied. The 2000 Census indicates that
the percentage of owner-occupied units has increased to 78.3% and the percentage of renter-
occupied declined to 21.7%.
Building Permits
Another indicator of building trends in a community is the number of building permits issued
although these do not always translate into new units. Table 10 illustrates building permit data
for the City of Elk River between 1990 and May of 2001. During this period the City issued
permits for 2,422 new housing units. Approximately 74% of the permits were issued for single-
family homes. A total of 6% were issued for twin homes and the remaining 20% were issued for
multi-family units. The multi-family category includes both rental and for-sale multi-family
dwellings including townhomes.
As previously indicated during the past ten years the percentage of renter-occupied units in the
community has declined. This decline in the percentage of renter-occupied units correlates to the
lower level of permits issued for rental units in the community in respect to overall development.
• Development in the City peaked in 2000 with permits issued for a total of 284 new housing units.
P Yp P
Construction looks to remain strong in 2001 with permits issued for 110 new units through May
11, 2001. The largest number of multi-family units were permitted in 1990 with 131 units.
Single family permits were highest in 1996 with 208 units.
During the past ten years permits have been granted for the development of a variety of housing
types. The number of multi-family permits has been slightly lower than the percentage of multi-
family units that exist in the community, resulting in a decreasing proportion to the total housing
stock. It does not appear that development is slowing in Elk River when examining 2001
building permit data.
gP
•
22
City of Elk River Housing Plan Updated January 2003
• Table 10
City of Elk River
Building Permits
1990-2000
Single Family Units Twin Home Units Multi-Family Units Total
1990 125 8 131 264
1991 107 0 4 111
1992 107 8 23 138
1993 122 2 55 179
1994 157 18 0 175
1995 173 26 68 267
1996 208 26 0 234
1997 182 24 19 225
1998 201 0 _ 29 230
1999 177 0 28 205
2000 172 26 86 284
2001* 52 6 52 110
Total 1,783 144 495 2,422
• Source: City of Elk River
*2001 permits are through 5/11/01
•
23
Ci of Elk River Housin• Plan U•dated Januar 2003
• Units by Year Built
Table 11 illustrates the age of housing in Elk River and Sherburne County based on information
collected in the 2000 Census on the year the housing units in these areas were built. In the City
of Elk River the largest percentage of housing units have been developed the past ten years.
Between 1990 and March 2000, approximately 2,228 units were developed comprising over 38%
of the housing stock. The second largest amount of development occurred between 1980 and
1989 comprising 28.3% of the total housing stock. Similar trends in the age of housing are
found in Sherburne County.
Age of Housing
City of Elk River
6% 5% 2000
5%
'," ,, 17%
6% El 1999-March 2000
1995-1998
,'l'g" ❑1990-1994
❑1980-1989
16% •1970-1979
17% 01960-1969
■1940-1959
• ❑1939 or earlier
28%
Table 11
City of Elk River and Sherburne County
Age of Housing
City of Elk River Sherburne County
Year Built Number of Units Percentage of Units Number of Units Percentage of Units
1999-March 2000 282 4.9% _ 1,369 6.0%
1995-1998 960 16.6% 3,963 17.4%
1990-1994 986 17.1% 3,568 15.6%
1980-1989 1,639 28.3% 4,687 20.5%
1970-1979 913 15.8% 4,364 19.1%
1960-1969 369 6.4% 1,586 6.9%
1940-1959 299 5.2% 1,720 7.5%
1939 or earlier 334 5.8% 1,570 6.9%
Total 5,782 100.0% 22,827 100.0%
• Source: 1990 and 2000 Census
24
Ci of Elk River Housin Plan U.dated Janua 2003
• Units in Structure
Table 12 illustrates the number of units in structures in Elk River based on 2000 Census data.
The largest percentage of units (72.9%) are 1-unit, detached with another 7.5%represented by 1-
unit, attached structures. The next largest category are those structures containing 20 or more
units which comprise nearly 11% of the housing stock.
Table 12
City of Elk River
Units in Structure
Year Number Percent
1-unit, detached 4,216 72.9%
1-unit, attached 432 7.5%
2 units 46 0.8%
3 or 4 units 51 0.9%
5 to 9 units 80 1.4%
10 to 19 units 298 5.2%
20 or more units 628 10.9%
Mobile home 31 0.5%
Total 5,782 100.0%
Source: 2000 Census
•
Year Householder Moved Into Unit
Table 13 illustrates the year that the householder moved into their current unit at the time of the
2000 Census Survey. The City of Elk River has a large percentage of its households that have
recently moved into their current housing. Nearly 35%of households moved into their current
units between 1995 and 1998 with another 17.4% occupying their current housing between 1999
and March 2000. Only 12.1% of households have resided in their current housing for 21 or more
years, or prior to 1979 when the Census was conducted in 2000.
Table 13
City of Elk River
Year Householder Moved Into Unit
Year Number Percent
1999-March 2000 988 17.4%
1995-1998 1,946 34.4%
1990-1994 1,037 18.3%
1980-1989 1,005 17.7%
1970-1979 460 8.1%
1969 or earlier 228 4.0%
Total 5,664 100.0%
• Source: 2000 Census
25
City of Elk River Housing Plan Updated January 2003
Multi Family Housing
According to the 1990 Census the City had a total of 951 renter-occupied units which comprised
25.5% of the total housing stock. This number increased by 277 units to 1,228 renter occupied
housing units according to the 2000 Census. The overall proportion of renter-occupied housing
units has declined in the community over the past ten years. In 1990 renter-occupied units
comprised 25.5% of the housing stock which declined to 21.7% in 2000.
Multiple attempts were made to contact all rental projects with 12 or more units in the City.
Information is presented in Table 14 for those projects which participated in the survey. A total
of 447 general occupancy and 152 elderly units participated in the survey which accounts for
approximately 49% of the renter-occupied housing stock.
General occupancy units consist mainly of market rate and tax credit projects. One subsidized
unit participated in the survey where tenants would pay 30% of their incomes towards rent.
Rents listed for this project illustrate market rents. A total of 76 one-bedroom units were
surveyed which comprise 17% of the general occupancy units. Rents for these units ranged from
$335 to $650 per month. Over 65% of the general occupancy units surveyed were two-bedroom
units. Rents for these units range from $480 to $828 per month. Three-bedroom units surveyed
in the community ranged from $420 to $857 per month.
A total of 138 one-bedroom and 14 two-bedroom elderly units were surveyed. Two of the three
elderly projects surveyed were subsidized with tenants paying 30% of their income for rent. The
• other project surveyed charges $609 for a one-bedroom unit and $756 for a two-bedroom unit.
Vacancies are extremely low among all types of rental housing in the City of Elk River. For
general occupancy units the overall vacancy rate is 0.7% with only 3 vacancies at the time of the
survey. Vacancies were nonexistent among elderly units with no units available among the 152
units surveyed. The overall vacancy rate for the units surveyed was 0.5%, which is extremely
low compared to a healthy market of 5%. A healthy market allows for housing availability and
consumer choice on various housing types and pricing levels. The 2000 Census had a slightly
higher vacancy rate for the community with a 1.7%rental vacancy rate, which is still very low.
•
26
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•
Ci of Elk River Housing Plan U'dated Janua 2003
Gross Rent
Information was also available from the 2000 Census on gross rent paid per month by renter
occupied housing units, which is illustrated in Table 15. According to the Census the median
gross rent paid was $592 per month. Nearly 70% of households in Elk River pay between $500
and $749 per month for rent. The second largest segment are those paying $300 to $499 per
month at 9.4%.
Table 15
City of Elk River
Gross Rent
Rent Number Percent
Less than$200 72 5.9%
$200 to $299 71 5.8%
$300 to $499 114 9.4%
$500 to $749 846 69.6%
$750 to $999 95 7.8%
$1,000 or more 17 1.4%
No cash rent 0 0.0%
Total 1,215 100.0%
• Source: 2000 Census
Information was also available from the Census on gross rent as a percentage of household
income in 1999. Housing is usually considered affordable if households pay no more than 30%
of their income towards housing. In the City of Elk River, approximately 37.2% of renter-
occupied households pay 30% or more of their income for rent. This is higher than Sherburne
County at 32.2% and the State of Minnesota at 35%.
Some programs define 35% as an affordable percentage of housing costs from income. For Elk
River 29.5% of tenants pay 35% or more of their income for rent compared to 25.8% in
Sherburne County and 27.1% in Minnesota.
28
City of Elk River Housing Plan Updated January 2003
• Single Family Housing and Vacant Lots
According to the 2000 Census, approximately 78.3% of the community's housing stock is
owner-occupied. The vacancy rate for homeowners is even lower than the rental vacancy rate at
1.4% according to the 2000 Census. Vacancy rates drop even more dramatically for the
remainder of the study area with the City of Otsego having a vacancy rate of 0.5%.
The Minnesota Department of Revenue produces data on the median sales price of existing
homes for each County in the State. The following are median home sales prices in the County
since 1984/1985:
1984/1985 $57,300
1989/1990 $67,500
1995/1996 $95,000
1998/1999 $118,900
1999/2000 $129,900
This includes data for existing homes only and does not include the sale of newly constructed
homes. Since 1989/1990 the median sales price has increased $62,400, or 92%. In 1999/2000,
Sherburne County had the ninth highest median sales price in the State of Minnesota.
Median sales prices in the City of Elk River tend to be higher than the overall County sales
prices. The following information was obtained from the City of Elk River on the number of
• home sales in the City between 1997 and 2000. Since 1997, the median sales price in the City of
Elk River has increased by 32%, which is an increase of over$30,000.
Year Homes Sold Average Selling Price Median Sale Price
1997 253 $129,263 $120,900
1998 346 $139,470 $127,800
1999 340 $153,004 $142,559
2000 306 $174,820 $160,000
Interviews with area Realtors found that the average listing time for individual homes was
approximately 60 days. Most existing homes in the community are ranging from $130,000 to
$500,000. Newly constructed housing in the community is typically ranging from $165,000 to
$600,000. Lots in the community are on average selling for$60,000 and above.
A snapshot of the Multiple Listing Service also found similar data on the sale of homes in Elk
River. Elk River had very few homes that were listed under$150,000 that would be considered
affordable. To afford most of the homes that are listed at $200,000 or more a household would
have to earn approximately $63,200 per year. All mortgage calculations found throughout the
study are based on a 30-year mortgage at 7% interest with a 5% downpayment. With interest
rates at 6%the income needed to afford this home would drop to approximately $57,000 and at
5% it would drop to approximately $51,000.
29
Ci of Elk River Housing Plan U I dated Januar 2003
• A total of 54 homes were listed with the following price ranges:
$100,000 and under 0 homes
$100,001 to $150,000 2 homes
$150,001 to $200,000 5 homes
$200,001 to $250,000 16 homes
$250,001 to $300,000 15 homes
$300,001 and over 16 homes
Between the 1990 and the 2000 Census, the City added 1,895 housing units. Units built during
this period comprise 33.1% of the total housing stock. The second largest production of housing
occurred between 1980 and 1989 when 1,757 new units were added comprising 30.7% of the
housing stock. The community has some older homes in the community, which were built prior
to 1950. These units comprise 7% of the housing stock with 395 units.
Vacant Lot Data
Table 16 is an inventory of platted residential lots in the City of Elk River from 1990 to the
present. The City updated this information January 14, 2003. In the City of Elk River there
were a total of 2,818 lots in the final plats, with 1,603 developed and 1,215 still available. The
largest number of available lots are located in Planned Unit Developments with 354 lots still
available. The next largest number of available lots are found in R3 Districts with 238 lots
available and Rla Districts with 219 lots available.
•
30
Table 16
City of Elk River
Platted Residential Lot Inventory
1990-Present
Year of Total Lots, Single Total
Zoning Preliminary Preliminary Townhome Family Year of Lots, Lots Lots
Plat Name District Plat Plat Lots Lots Final Plat Final Plat Developed Available
Ridgewood Hills Al Y 1996 11 4 7
Dunham Addition A l Y 1997 4 4 0
Rolling Hills Al Y 2000 29 10 19
Blackberry Hills Al Y 1999 4 1 3
Ridges of Rice Lake A 1 Y 2001 70 31 39
Al Total 0 118 50 68
Cherry Hill Bluffs PUD Y 1992 10 10 0
Hillside Estates PUD Y 1992 50 50 0
Hillside Estates 2nd PUD Y 1993 13 13 0
Hillside Estates 3rd PUD Y 1994 - 9 9 0
Hillside Estates 4th PUD Y 1995 14 14 0
Hillside Estates 5th PUD Y 1996 28 28 0
Hillside Estates 6th PUD Y 1997 27 27 0
Hillside Estates 7th PUD Y 1997 18 16 2
Cottages of Elk River PUD Y 1996 15 15 0
Meadowvale Townhomes PUD Y 1999 26 21 5
Orono Shores PUD Y 1998 20 20 0
Trott Brook Farms PUD 1999 600 Y 1999 106 106 0
Trott Brook Farms 2nd PUD Y 1999 28 28 0
Trott Brook Farms 3rd PUD Y 1999 44 43 1
Trott Brook Farms 4th PUD Y 1999 38 23 15
,rottBrookparms 5th PUD Y 2000 77_ 61 16
rott Brook Farms 6th PUD Y 2000 58 33 25
Trott Brook Farms 7th PUD Y 2001 36 19 17
Trott Brook Farms 8th PUD Y 2001 55 10 45
The Woods at Hillside PUD Y 2000 15 11 4
The Woods at Hillside 2nd PUD Y 2000 21 7 14
The Woods at Hillside 3rd PUD Y 2003 16 0 16
Twin Lake Townhomes PUD Y 2000 29 9 20
Twin Lake Townhomes 2nd PUD Y 2001 32 18 14
Twin Lake Townhomes 3rd PUD Y 2001 14 3 11
Mississippi Ridge PUD Y 2001 22 6 16
Marshes of Trott Brook PUD 2002 110 Y 2002 110 0 110
Marshes of Trott Brook PUD 2002 23 Y 2002 23 0 23
PUD Total 733 954 600 354
Lundberg Addition Rla Y 1997 3 3 0
North Meadows Rla Y 1993 8 8 0
Oakwood Forest Rla Y 1997 14 12 2
Oak Ridge 1st Rla Y 1997 2 0 2
Oak Run Rla Y 1997 3 2 1
Parkview Addition Rla Y 1997 1 0 1
Pheasant Run Rla Y 1996 14 10 4
•Preserve Estates Rla Y 1999 27 20 7
Weatherwood Rla Y 1996 21 4 17
Windsor Park Rla Y 1999 31 18 13
W`�indsor Park 2nd Rla Y 2001 6 1 5
indsor Woods Rla Y 1998 20 17 3
Whitetail Ridge Rla Y 2000 17 16 1
Whipple Hill Rla Y 2001 8 2 6
Meadowwoods Village Rla Y 2001 39 7 32
Windsor Park 3rd Rla 2002 93 Y 2002 93 3 90
Year of Total Lots, Single Total
Zoning Preliminary Preliminary Townhome Family Year of Lots, Lots Lots
Plat Name District Plat Plat Lots Lots Final Plat Final Plat Developed Available
Echo Hill Rla 2002 5 Y 2002 5 1 4
indsor Oak of Elk River RI a 2002 33 Y 2002 32 1 31
Rla Total 131 344 125 219
Island View 4th Rlb Y 1997 3 1 2
Island View 5th Rlb Y 1999 7 7 0
Riverplace Rlb Y 1998 59 59 0
Mississippi Oaks 3rd Rlb 2002 50 Y 2002 50 0 50
Rlb Total 50 119 67 52
Cherryhill Bluffs 2nd Rlc Y 1993 31 31 0
Cherryhill Bluffs 4th Rlc Y 1996 16 16 0
Cherrywood Hills Rlc Y 1997 46 45 1
Cherrywood Hills 2nd Rlc Y 1998 21 21 0
Country Crossing 2nd Rlc Y 1995 59 59 0
Country Crossing 3rd Rlc Y 1996 46 46 0
Country Crossing 4th Rlc Y 1997 24 24 0
Hidden Creek Rlc Y 1998 8 7 1
Hidden Creek 2nd Rlc Y 1999 4 4 0
Lafayette Woods Ric Y 1996 75 74 1
Lafayette Woods 2nd Rlc Y 1997 51 49 2
Lafayette Woods 3rd Ric Y 1998 37 36 1
Lafayette Woods 4th Ric Y 1999 38 34 4
Nordic Woods Ric Y 1996 41 40 1
Park Knoll Ric Y 1997 7 6 1
Fox Haven Rlc Y 2001 19 7 12
Windsor Oak Hill 1st Rlc Y 2000 40 30 10
&inside 8th Rlc 2001 94 Y 2001 5 0 5
Windsor Oak Hill 2nd Rlc Y 2002 46 7 39
Nordic Hills Rlc 2002 50 Y 2002 50 2 48
Ric Total 144 664 538 126
Heritage Landing Rld Y 1993 77 77 0
Heritage Landing 2nd Rld Y 1993 9 9 0
Mississippi Oaks Rld Y 1993 37 37 0
Mississippi Oaks 2nd Rld Y 1996 58 46 12
Rld Total 0 181 169 12
Kliever Lake Fields Rle 2001 98 Y 2001 59 6 53
Eagles Marsh Rle 2001 39 Y 2001 1 1 0
Park Pointe Rle 2002 97 Y _ 2002 97 12 85
Elk Meadows Rle 2002 5 Y 0
Rle Total 239 157 19 138
Auburn Commons R2b Y 1990 7 5 2
Bailey Beck R2b Y 1990 16 10 6
Bailey Beck R2b Y 1990 11 11 0
R2b Total 0 34 26 8
Trott Brook South,Prelim R3 2001 149 Y Y 0
Trott Brook Crossing,Prelim R3 2002 103 Y Y 0
Trott Brook South R3 Y 2002 130 8 122
Trott Brook South R3 Y 2002 19 1 18
Trott Brook South 2nd R3 Y 2002 54 0 54
Kliever Lake Fields East R3 2002 116 Y 2002 44 0 44
III R3 Total 368 247 9 238
Grand Total 1665 2818 1603 1215
Source: City of Elk River,Updated January 14,2003
Ci of Elk River Housing Plan U•dated Januar 2003
Value of Owner-Occupied Units
The 2000 Census also releases data on the self-reported value of owner-occupied housing units
in the City of Elk River, which is illustrated in Table 17. A total of 3,881 owner-occupied
housing units were included in the Census data with a median value of$144,800. The largest
percentage of owner-occupied units range in value from $100,000 to $149,999 at 43.4%. This is
followed by homes valued between $150,000 and $199,999 which comprise 30.4% of the units.
Very few homes were reported to be valued under$50,000 in the community.
Table 17
City of Elk River
Value of Owner-Occupied Units
Value Number Percent
Less than $50,000 9 0.2%
$50,000 to $99,999 475 12.2%
$100,000 to $149,999 1,683 43.4%
$150,000 to $199,999 1,181 30.4%
$200,000 to 299,999 482 12.4%
$300,000 and over 51 1.3%
Total 3,881 100.0%
• Source: 2000 Census
The Census also provides information on the mortgage status of these households and monthly
owner costs. Approximately 86.6%, or 3,360 of the 3,881 owner-occupied units have a
mortgage. For those with a mortgage, the median monthly owner costs are $1,159 compared to a
median monthly owner cost of$288 for those without a mortgage. According to the Census,
selected monthly owner costs are the sum of payments for mortgages, deeds of trust, contracts to
purchase, or similar debts on the property; real estate taxes; fire, hazard, and flood insurance on
the property; utilities; and fuels. It also includes, where appropriate, the monthly condominium
fees or mobile home costs.
•
33
City of Elk River Housing Plan Updated January 2003
Housing Demand
Introduction
The City of Elk River has experienced considerable population and household growth over the
past ten years and is expected to continue to experience strong growth in the future. The area is
ideally located in close commuting distance to both the Twin Cities Metropolitan Area and St.
Cloud. In addition, the City offers numerous employment opportunities with a strong
commercial and industrial base. Vacancy rates are extremely low in the community for both
single and multi-family units. According to the 2000 Census the community had a 1.4%
homeowner vacancy rate and a 1.7%rental vacancy rate.
Housing demand for the City is calculated by utilizing a variety of factors. The first indicator is
the expected household growth the community will be experiencing. A second factor is the pent-
up demand which calculates the units that are needed to meet past growth and to allow for
healthy vacancy rates. Finally, replacement needs are also factored into the housing demand.
This represents a need for new units to replace older, dilapidated units that are not suitable for
habitation and are more economical to demolish than repair. This can also represent units that
are functionally obsolete and not desirable by the market due to a lack of desirable features.
Table 18
City of Elk River
Housing Demand
• 2001-2005
Forecasted Housing Growth 982 units
Pent-up Demand 118 units
Estimated Replacement Needs 5 units
Total Housing Demand 1,105 units
30 to 50 units of single family housing rehabilitation
20 to 30 units of rental housing rehabilitation
48 to 72 units of affordable general occupancy townhomes
24 to 36 two-bedroom units priced at $600 to $750
24 to 36 three-bedroom units priced at $700 to $850
64 to 96 units of market rate general occupancy apartments
16 to 20 one-bedroom units priced at $600 to $750
26 to 40 two-bedroom units priced at $700 to $850
22 to 36 three-bedroom units priced at $800 to $950
•
34
City of Elk River Housing Plan Updated January 2003
• 50 to 70 units of market rate general occupancy townhomes
30 to 40 two-bedroom units priced at $750 to $900
20 to 30 three-bedroom units priced at $850 to $1,000
30 to 50 units of market rate elderly apartments
20 to 30 one-bedroom units priced at $600 to $700
10 to 20 two-bedroom units priced at $700 to $800
10 to 20 units of elderly patio homes/cottages
5 to 10 one-bedroom units priced at $650 to $750
5 to 10 two-bedroom units priced at $750 to $850
200 to 300 new affordable single-family units priced under$150,000
500 to 600 new market rate single-family units priced over$150,000
These demand estimates should also take into account recommendations that were found within
the Downtown Market Analysis developed by Maxfield Research, Inc. A downtown
redevelopment project could meet a substantial portion of the market rate apartments needs for
both general occupancy and senior populations.
• Strategies for Housing Development
Growth projections indicate that Elk River will continue to face increased growth through 2005
with a variety of housing options needed. The community has substantial needs in both the multi
and single family housing market.
Multi-Family Housing
A variety of multi-family needs exist that can be met by both private developments and also
through accessing programs available to provide more affordable housing. The community
currently offers rental units that were financed through Low Income Housing Tax Credits. These
are an excellent resource to develop a rental option that provides reasonably priced rents while
providing quality housing. Projects that look to leverage resources including local contribution
typically receive a higher priority.
Every employer indicated that more moderate-income housing is needed in the community. As
home prices continue to escalate in the community, employers may find even more difficulty
with employees finding reasonably priced housing in the community. This can hamper hiring
and potential expansion efforts for area employers. A vital commercial and industrial base is key
for a community to support the existing amenities and services that are provided. A
collaborative effort could be initiated with area employers to address any housing concerns and
develop housing initiatives. Employers can participate in the issue by supporting efforts in
various manners. In many areas employers have participated in numerous projects by providing
land contribution, cash contribution, low interest construction loan, infrastructure contribution, or
• the purchase of low income housing tax credits.
35
City of Elk River Housing Plan Updated January 2003
•
Employers can also participate in activities that address the need for single-family housing. One
resource employers can provide is to create a payroll saving match program to encourage
homeownership. Employers can match contributions that employees make to a saving plan that
will be used for downpayment and closing costs. Projects that include employer participation
can not only access different funding sources, but they also often receive a higher priority when
seeking additional financing options to develop a project.
While the community does have a need to develop a low-income rental project where rents are
based on 30% of income, there is limited funding to develop these projects. Therefore these
units were not included in the recommendation section as in reality the Rural Development 515
program has a very limited amount of funding to construct any new units.
Multi-family housing within the community will potentially be enhanced through the work of the
Downtown Redevelopment Plan. As part of this planning process a variety of housing options
are being considered including for-sale townhomes, market rate rental units, and senior rental
units. These efforts would not only provide additional housing opportunities for the community
but would also assist in downtown revitalization.
Senior multi-family housing is also a need within the community. Senior housing is vital to
creating life-cycle housing that allows a transition for seniors into lower maintenance housing
• and that also opens up more"starter homes" for new families.
Single Family Housing
The City of Elk River has a substantial need for the addition of new single-family homes.
Through 2005 it is estimated that a total of 700 to 900 new units of single family housing are
needed with the greatest demand for homes prices over $150,000. Much of the new construction
within the community is meeting this price range. It will be more difficult to meet the demand
for units priced under$150,000 where 200 to 300 new units are needed through 2005.
Demand for this housing could be met through a variety of options. The first would be to
incorporate various housing styles into new developments. A subdivision could include a
mixture of housing types that would potentially add townhomes or more modest single-family
homes to reduce the cost of the housing through increased density and reduced housing costs.
More modest single-family homes can be developed utilizing similar design styles, but offer less
finished living space with room for expansion. Twinhomes and townhomes are an option to
provide more units and to reduce the costs of the housing.
Another option would be to target programs that can provide financial and technical resources to
create a subdivision that offers more affordable starter homes. Many communities have worked
through the Building Better Neighborhoods Program of the Greater Minnesota Housing Fund to
create appealing subdivisions that offer new single-family homes and multi-family housing. In
addition to the Greater Minnesota Housing Fund resources can also be leveraged from the Small
Cities Development Program and other resources.
•
36
City of Elk River Housing Plan Updated January 2003
•
It should be noted that while the demand estimates seem overwhelming for a community,
permits for 2000 and a portion of 2001 have been issued which will meet a large share of this
demand. Permits have been issued for this period for 394 housing units.
Rehabilitation
Although a vast majority of the City's housing stock is fairly new, the community still has just
under 700 housing units that were developed prior to 1960. Some of these units are likely going
through gradual disrepair and a rehabilitation program would assist in maintaining these units.
Efforts to improve housing units in the community can be approached on an individual or larger
community scale. At an individual level homeowners could work with Tri-Cap to access the
MHFA Rehabilitation Loan Program which offers a 0% deferred or fix-up loan or the
Weatherization Assistance Program to qualified homeowners.
Another option would be to take a larger approach to rehabilitate a neighborhood or targeted area
of the community that consists of older housing stock. A program that offers a larger impact to a
community would be the Small Cities Development Program. This program can offer deferred
loans to qualified homeowners to make essential repairs to homes that help remove health and
safety issues and to improve energy efficiency. This program is also available for rental
rehabilitation activities. In addition to rehabilitation, funds can also be used for new housing
construction. A list of eligible activities is found in the resource section.
It should be noted that all the programs have some type of eligibility requirements and are not
available to all households. Funds are also limited and/or awarded on a competitive basis for
these programs.
While the City does have a vast need for multiple types of housing, it is important to note that
these recommendations are based on a conservative estimate of need through 2005.
Development of these units at one period would likely result in an over saturation of the housing
market. The housing market is continually changing and as such should be examined on a
regular basis when working to implementation components of the housing plan.
•
37
City of Elk River Housins Plan Updated January 2003
• Funding Resources for Housing Activities
Note: The following information lists the primary resources available for housing development and rehabilitation
activities and is not an all-inclusive list of resources that are available.
Minnesota Housing Finance Agency
To provide for a simplified and collaborative effort twice a year the MHFA issues a request for
proposals through their two housing divisions: the HOMES Division which includes programs
for home ownership, home improvement, and rehabilitation loans and the Multifamily Division.
The RFP is a method where project no longer apply for specific programs but request funding for
a specific housing development that meets a local housing need. These consolidated programs
include some of the following resources in addition to some resources listed under the Greater
Minnesota Housing Fund.
Housing Trust Fund
Three types of activities can be funded through the Housing Trust Fund including capital,
operating subsidy(both operating support and project based rental assistance), and tenant based
rental assistance. Funds are generally awarded in the form of a zero interest deferred loan for
construction, acquisition, preservation, and rehabilitation of low-income rental housing. Eligible
applicants include a non-profit, for-profit organization, limited dividend entity, cooperative
housing corporation, a local unit of government, an Indian Tribe, a Joint Powers Board
established by two or more cities, individual, or a private developer. Note: Rules for this
program are currently under review and are subject to change.
• Economic Development and Challenge Program
This program includes the consolidation of the following programs: ARIF, MUR.L, Employer
Matching Grants, and Community Rehabilitation Fund. The program provides grants or loans
for the purpose of construction, acquisition, rehabilitation, construction financing, permanent
financing, interest rate reduction,refinancing, and gap financing of housing that supports
economic development activities or job creation in an area.
Minnesota Families Affordable Rental Investment Program (MARIE)
Provides a first mortgage or subordinated loan for the new construction or acquisition and/or
rehabilitation, of permanent rental and permanent supportive housing with a minimum of four
units. Units assisted with MARIF funds must be occupied by family households who at the time
of initial occupancy are current or recent MFIP participants.
Innovative Housing Loan Program
Provides interim loan financing to housing developers to encourage the use of innovative
construction methods, materials, equipment, design, marketing or financing in the rehabilitation
or development of single or multi-family housing.
Low Income Housing Tax Credits
Low income housing tax credits provide reduced federal income tax liability for qualifying
property owners who agree to rent to low and moderate income tenants. The funds can be used
for all costs associated with a residential development.
38
City of Elk River Housing Plan Updated January 2003
• Historic Tax Credits
Any project utilizing historic tax credits must be a designated historic or a contributing member
of a designated historic district to be eligible. They can only be used in conjunction with the
rehabilitation or conversion of an existing structure.
Community Activity Set-Aside Program(CASA)
Provides lenders, local government and/or non-profit housing providers with set-asides of
MHFA mortgage revenue bond funds to provide low interest rate financing for homeownership
opportunities.
Other programs administered by MHFA that are not included in the RFP include:
HOME Program Rental Rehabilitation Grant Program
Provides grants by utilizing Federal HOME funds for the rehabilitation of existing rental
properties. Funding is coordinated through a local administrator which is the Central Minnesota
Housing Partnership.
Deferred Loan Program
This program assists low-income homeowners in financing home improvements with 0%
deferred loans. This program is available through local Community Action Agencies.
Great Minnesota Fix-Up Fund
This program provides low interest loans to assist homeowners in making housing improvements
that increase the livability and energy efficiency of existing housing.
Greater Minnesota Housing Fund
Multi-Family Development Assistance
Three types of assistance can be provided for affordable multi-family rental housing. They
include gap financing, interim financing and employer assisted housing. Gap financing provides
0 to 1% interest deferred loans with the term matching that of the project's first mortgage.
Interim construction financing is available at a 0% interest rate for developers during the
construction period. Finally, matching funds are available for multi-family projects that have a
significant commitment from local employers.
Single Family Assistance
The Greater Minnesota Housing Fund has three programs which fund activities related to single
family homeownership and include gap financing, homebuyer education financing, and entry
cost assistance. Gap financing is typically structured as a 0% interest, deferred second mortgage
loans that are due on resale. Gap financing can be structured through different programs
including the Building Better Neighborhoods Home Initiative, the New Home Construction
Program, and Employer Assisted Housing.
GMHF also provides funding for pre and post purchase homebuyer counseling. The Central
Minnesota Housing Partnership is the primary provider of homebuyer education in Central
Minnesota.
•
39
City of Elk River Housing Plan Updated January 2003
• Funding is also available to assist homebuyers with down payment and closing cost assistance.
Entry cost assistance can include local down payment assistance programs, employer assisted
housing, and partnering to participate in the MHFA Entry Cost Homeownership Opportunity
(ECHO) Program.
Department of Trade and Economic Development
Community Development Block Grant—Small Cities Development Program
Local Units of Government are the applicant with the Local Unit establishing terms, target areas
and uses. Eligible uses are acquisition and demolition, site improvement, rehabilitation,
assessment abatement, down payment/closing costs, construction costs, and administration costs.
Redevelopment Grant
This program provides grants to development authorities (cities, counties, port authorities,
HRAs, and EDAs)for land acquisition, demolition, infrastructure improvements,ponding,
environmental infrastructure and other eligible redevelopment costs. Grants pay up to 50% of
redevelopment costs for a qualifying site.
USDA Rural Development
Rural Housing Home Loan
Provides fixed-rate loans to low to moderate income families for new or existing single-family
• homes.
504 Program
Provides low-income homeowners with loans or grants to make necessary improvements.
Grants are only available for very low-income households, 62 years or older.
Rural Rental Housing Loans
Provides funds to build, purchase, and repair apartments along with rental assistance for low-
incomes residents.
Public Facilities Program
Grants and low interest loans for public facilities
Central Minnesota Housing Partnership
The Central Minnesota Housing Partnership offers a broad range of housing services. The
following are some samples of the programs and services they offer including:
Home Rental Rehabilitation- CMHP administers these funds which are used to assist owners of
affordable apartments make needed repairs on their buildings.
Affordable Mortgage Products—CMHP now originates loans to better serve rural communities
with affordable lending resources. CMHP works with local lenders to access more resources
• resulting in the most affordable payments possible.
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i of El Riv•r H I usin' Plan U.dated Januar 2013
Gap Financing—CMHP collaborates with the Greater Minnesota Housing Fund and local
lenders to provide individuals/families experiencing an affordability/value gap with interest free
financing.
Project Packaging and Technical Assistance—CMHP provides technical assistance to
communities and organizations developing housing projects including new development,
preservation, or rehabilitation. They also assist in assembling a financial package for the project
including grant writing.
Minnesota Housing Partnership
Predevelopment Loan Program
Provides loans up to $50,000 to cover a variety of expenses necessary to finance, design, or plan
a housing project for low to moderate income persons prior to acquiring, constructing or
rehabilitating a project. Some typical expenses may include architectural, engineering or other
professional fees; processing and financing expenses; and consultant or staff costs related to
project planning or funding proposals. All expenses covered through this loan program must be
reimbursable by permanent development funders.
Federal Home Loan Bank
The Federal Home Loan Bank of Des Moines provides low-cost short and long-term funding and
community lending to participating institutions. Funds are available for new construction gap
• funding, rehabilitation gap funding, homebuyer assistance, construction financing, and funding
for infrastructure.
Other Resources
Community Action Agencies
Local Community Action Agencies have funds available through their weatherization program
that can assist homeowners in making repairs that provide a more energy efficient home. Funds
are typically available for both repairs and energy assistance. Many agencies also administer
funds through MHFA's rehabilitation loan program.
Essential Function Bonds
Revenue Bonds that are issued by the City or an Authority of the City(EDA). The Bonds are
sold to investors and are backed by"good faith" guarantees of the City. The funds can be used
for any costs associated with the new construction or rehabilitation or conversion of residential
rental property.
Tax Increment Financing
State law enables cities, port authorities, housing and redevelopment authorities, and economic
development authorities to administer development, redevelopment, or rehabilitation activities
that are financed by the increase in property taxes generated by the activity. This tool can be
used to redevelop blighted areas, construct low and moderate income housing, along with many
other development activities.
•
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City of Elk River Housing Plan Updated January 2003
• Habitat for Humanity
Central Minnesota has numerous Habitat for Humanity chapters that could potentially assist with
housing projects. The Minnesota Affiliate list includes the following chapters:
Aitkin County Habitat for Humanity Lakes Area Habitat for Humanity, Brainerd
Carlton County Habitat for Humanity Habitat for Humanity of Morrison County
Wright County Habitat for Humanity Central Minnesota Habitat for Humanity, St. Cloud
East Central Minnesota Habitat for Humanity serving Pine, Isanti, Chisago, Kanabec and Mille
Lacs County
•
a
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