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HRSR INFORMATION 02-02-2004 • City of Elk -�-� River MEMORANDUM TO: Housing & Redevelopment Authority FROM: Heidi Steinmetz, Assistant Director of Economic Development DATE: February 2, 2004 SUBJECT: Location Change for March HRA Meeting The March 1, 2004 Regular HRA meeting will be held at Lions Park Center rather than the Elk River High School Little Theater. The theater is unavailable. • • 2.3 N WEDNESDAY, JANUARY 23. 2004 LOCAL NEWS • r NEW BRIGHTON City ty ; to f seua111P Eminent domain cited in development But Chenoweth said city res- vere said. idents never really reaped the The city has stated that the • BY ALLEN POWELL II The city will also rent the benefits from removing the Northwest Quadrant redevelop- Pioneer Press old store to Beisswenger's free homes.Under what is known as ment will create more than 300 for a year while the new store is tax increment financing, the new housing units and$240 mil- In a move that has drawn being built. increase in property taxes for lion in tax base after a$40 mil- residents' ire in the past, New Locke said the generous years goes not to schools and lion to $50 million city invest- Brighton has begun eminent- terms were necessary because city budgets, but to help repay ment.Locke also said several of domain proceedings on a resi- the city initiated the relocation. the city's investment. the properties near the dential property to make it easi- "We're trying to hedge our "I think it is totally uncon- Nordquists' home were blight- er to redevelop. bets, I guess," Locke said. "If scionable," said Chenoweth. "I ed. The city is trying to buy the we don't manage to get a pur- think eminent domain certain- In addition, while other eld- property — a 50-year-old, 816- chase worked out, we can use ly has its place ... I think there erly couples may have resented square-foot home on Old High- eminent domain." needs to be some issues the forced departure from their way 8 near Highway 96 as . The two-bedroom home — addressed in how they're using homes, the Nordquists are fine part of a plan to move longtime which sits on a 30,000-square- it." with the move. city landmark Beisswenger's foot lot — is owned by Robert The city is within its rights Their home has an estimat- Hardware. Nordquist, 75, and his wife, to use eminent domain to ed market value at about Beisswenger's is moving Audrey, 72, who have lived acquire the Nordquists' home, $149,300, according to the coun- t because the city wants to buy there since 1953. Locke said.By selling the prop- ty assessor's office, but they Wits site for residential proper- Some city residents question erty to Beisswenger's Hard- could receive anywhere from ties under the city's Northwest whether the city should use ware, the city is ultimately $190,000 to$210,000 because the Quadrant redevelopment plan, eminent domain to acquire pri- serving a public purpose by city has to give them enough said Kevin Locke,New Brighton vate property and for a private allowing redevelopment to pro- money to purchase a property community development direc- entity. Eminent domain allows teed on Beisswenger's old site, comparable to their own. Cur- tor. the city to acquire land for he said. rently, the couple is asking for . Locke said that while the whatever it costs the owner to Charlie LeFevere, a Min- more money than the city is city is still trying to buy the relocate to a similar property. neapolis lawyer with the willing to pay,Locke said. home without using eminent Joe Chenoweth, owner of Kennedy and Graven law firm, "They give us the money " '- domain, it needed to begin the Chenoweth Flowers and Green- said that within the last 25 (and) I don't care what they do - " process now so it could deliver houses in New Brighton, said years cities have increasingly with the property," Robert the parcel - along with three the city used the same method used eminent domain to Nordquist said. others near it — to Beiss- to acquire the homes surround- acquire property for redevelop- wenger's by April 15. ing his business in 1996 and ment projects as well as the .. Although Beisswenger's had make room for several large parks, schools and streets it Allen Powell 17 covers New x.. to purchase the four parcels at warehouses. was originally used to create. Brighton,Shoreview, Vadnais market value — about $970,000 His mainly elderly neighbors "Those larger public pur- Heights, White Bear Lake, —Locke said the city will ulti- —he lives in the same building poses of creating jobs, creating Mounds View,North Oaks, Gem mately pay the company,which as his shop — were forced to a larger tax base, cleaning up Lake and Arden Hills.He can be has been in New Brighton since move because the city wanted the environment ... are not reached at apowell@ 1919, about $1.3 million for its the warehouses to increase its damaged by the fact that it is pioneerpress.com old store and for relocation. tax base. going to a private entity,"LeFe- or 651-228-2120. e t 0 Alex Wikstrom • Economic Development Coordinator 763-241-2744 Sherburne County e mo JAN 1 2 22,4 To: City Economic Developers From: Alex Wikstrom CC: [Click here and type name] Date: January 9,2004 Re: Minnesota City Participation Program, HOME Program Please find attached information regarding the above listed programs. Please pursue the program dollars in a manner that best meet your City's needs. The MCPP program dollars are allocated to the County and all its cities on a first come first served basis. In addition to the dollars initially allocated,the County has used more dollars from the pool that comes from jurisdictions that don't use all funds allocated to them. If you have any questions, please let me know.TX.Alex 1 ' ill • Alex Wikstrom Economic Development Coordinator Sherburne County e mo To: Sheri Harris, Housing Development Coordinator From: Alex Wikstrom CC: [Click here and type name] Date: January 9,2004 Re: HOME Program—Sherburne County Please find attached County Board Resolution # 010 Minnesota Housing 604-HRA-6 designating g Partnership as the administrative body for the HOME Program. Central Thank you for the excellent work your organization did on behalf of Sherburne County in • 2003. 1 look forward to working with you in 2004.Alex • 1 Home Rental Rehabilitation Program Page 1 of 2 • Home Rental 1 1 1 1 1 Program 1 1 1 1 1 Program Information The Goal of the HOME rental Rehabilitation Program (HRRP) is to provide long-term benefits to lower income tenants who occupy affordable housing rental units and to owners of these properties. Funding provided through the HRRP is granted for the rehabilitation of existing rental properties. These funds will be provided through a loan with a 0% deferred interest rate for five years. This loan will be completely forgiven after five years if the terms of the program have been compiled with for the required five year period. • Program Guidelines Property must be located in Aitkin, Carlton, Cass,Chisago, Crow Wing,Isanti,Kanabec, Mille Lacs, Pine, Stearns, Todd, Wadena, or Wright County. Eligible applicants must be private individuals, corporations, partnerships, non-profit organizations, or Community Housing Development Organizations. Eligible uses include costs related to rehabilitation of existing rental housing properties; new construction and refinancing is not allowed. Properties must consist of at least 51% residential space. A minimum of$3,000 or ae maximum of $14,000 per unit is available and cannot exceed 75°/0 of the total cost of the project. These numbers represent the total per unit cost for the project,which will be paid with up to 75% from HRRP funds and at least 25% from an owner's match. Property must meet minimum building standards upon completion of rehabilitation and must continue to meet these codes throughout the five year compliance period. Properties must also be brought up to State Energy Efficiency Standards. . . �' +s 6 k:ate. .i; r r g, , �, . t ��, '"` * a ,� ate `-1' sr, » ` �� "�mwa x ,. *.�_ . httn://www emhr�r ffU Aor.4n1D,-.1....L.:1:4 a:___n______ , • Home Rental Rehabilitation Program Page 2 of 2 S Buyer Selection Criteria The following criteria will be used to determine eligibility of projects and evaluates projects for completeness: Cl Buildings with expiring Section 8 Contracts o Permanently affordable housing unit o Community housing need o Number of units in development a Number of bedrooms per unit (2 or more) • Cash flow analysis & financial strength of the project o Existing condition of property • �'ffn //ur Ir IT nm'1,,. , +It ...-.....r ,...�..1r _7__t Via•... �. Jan 05 04 11 : 33a Centr MN Housing Ptnsp 320 259-9590 p. 5 • HOME RENTAL REHABILITATION FUNDED PROJECTS Stearns County 4Fd; - C6 „'s,�, St. Joseph 1998 12 $54,395 Brooten 2000 $139 709 $37,532 00,59 Belgrade 2002 24 $100,590 18 $217,500 $210,000 Richmond 2003 16 $220,013 $193,611 TOTAL 70 $631,617 $541,733 Sherburne County Elk River 2001 30 $560,000 Elk River 2003 40 $420,000 TOTAL 70 $548,000 $448,000 $1,108,000 $868,000 Todd County Staples 1998 16 $70,791 Long Prairie 1999 17 $2 $53,, Clarissa 1999 ,649+479 $238,00 0 00 TOTAL 8 $70,802 $39,836 41 $2,791,072 $330,929 Wadena County Sebeka 2001 12 TOTAL $242,677 $126,000 12 $242,677 $126,000 Wright County Monticello 1996 48 $132,214 Rockford 1997 $97,546 I 24 $128,760 $92,546 Monticello 1997 26 $355,760 $ Maple Lake 1999 $254,180 30 $163,045 $118,614 St. Michael 1999 42 $402,131 Waverly 2000 16 $282,000 Cokato $347,692 $182,000 2002 48 $2,482,966 $285,000 TOTAL 234 $4,012,568 $1,318,490 GRAND TOTALS: 794 $13,112,282 $5,976,758 I • SHERBURNE COUNTY • REQUEST FOR BOARD ACTION Requested Board Date: Originating Department: Flexibility: YES ❑ NO Admin: Economic Development Agenda Item: Presenter HRA: Consideration to approve the request for Alex Wikstrom proposals for the 2004 Minnesota City Participation Program (MCPP). Estimated Time: ❑ Consent Agenda in 5 Min. ❑ 15 Min. ❑30 Min. ❑45 Min. ❑ 1 Hour Board Action Requested: ❑ Information/Review ❑ Motion to approve... ❑Motion to deny... ❑ Other (Please word the motion below as you would like it to appear in the minutes.) Motion to approve the request for proposal for the 2004 Minnesota City Participation Program(MCPP) on behalf of all the cities in Sherburne County as recommended by City Economic Development Staff and SCEDA. Background: (Attach additional pages if needed) $1,278,501 was used by cities in Sherburne County through this program. The program allows banks to access proceeds bonds issued by the MHFA to rovide below low market interest rate home mortgage loans for low and moderate income first time home buyers (1-4 person income$60,250). House price limits are $228,059 for new construction and $204,183 for existing houses. The program also provides up to $3,000 in downpayment assistance and up to $60 in monthly mortgage payment assistance(cumulative amount$1,440). The County will pay a fee that is estimated to be about $300. Supporting Documents: © Attached ❑ None Department Head Signature/Date: (Administrator's Department will complete information below) VERIFICATION OF AGENDA ITEM Assigned Board Date/Time: Amount of Time allotted: Administrator's Department Signature/Date: BOARD ACTION Approved as Requested ❑Denied ❑ Tabled ❑ Other sate of Action: /4/J 4/ Comments: ///0,/to Attachment 1 KEY ADVANTAGES OF THE MINNESOTA CITY PARTICIPATION PROGRAM Bond Advantages of MCPP Participation • MHFA has historically obtained the lowest available bond interest rate in Minnesota, which allows cities to pass the lowest interest rate on to their eligible residents. • MHFA absorbs all program underwriting costs and risks of bond issuance. Costs to participating cities are limited to a Department of Finance processing fee (charged to both MCPP participants and self issuers)of$20 for each$100,000 in allotment. • MHFA reacts to a falling interest rate market by lowering program interest rates. The volume of its mortgage revenue bond activity and/or remarketing provisions in its bond resolution provides the Agency this flexibility. The interest rate is typically one-half to three quarters percent below market. • MHFA gathers data and updates income and house price limits annually. Loan Advantages of MCPP Participation • Commitment of city staff time is primarily limited to completing the application, administration of an city added targeting or enhancements, and monitoring fund usage. any • MHFA's Homeownership Assistance Fund (HAF) is available to targeted borrowers with MCPP mortgage funds. HAF provides downpayment/closing cost assistance of up to$3,000 and monthly payment assistance of up to $60 (cumulative amount $1,440). HAF cannot be used with self- issued city bond programs. • House price and income limits are the highest allowed under Minnesota statue. • MHFA provides marketing support for each city, including brochures, posters, ad layouts, and local and statewide press releases. • MHFA absorbs all lender compensation costs. • MHFA compensates participating lenders at a level at least equal to lender compensation under the Minnesota Mortgage Program. • The Program requires no discount points. • MHFA provides information about the Program on its website. • MHFA provides updates to participants through E-News. • 11/03 • 2003 MCPP Usage Report 12/17/2003 Allocation Committed Allocation Name Amount Amount F Percentage of Funds Availabe #of Loans Usage Albert Lea, City of $314,013.00 $338,380.00 -$24,367.00 5 107.76% Alexandria, City of $158,118.00 $496,425.00 -$338,307.00 5 0 Anoka County $5,168,643.00 $4,641,050.00 313.96/° Barnesville, City of $527,593.00 29 89.79% $100,000.00 $123,750.00 -$23,750.00 2 0 Becker County $518,607.00 123.75/° Blue Earth County $494,000.00 $24,607.00 6 95.26% Blue Earth County $687,771.00 $536,790.00 $150,981.00 8 78.05% $962,199.00 $981,221.00 -$19,022.00 11 101.98% Breckenridge, City of $100,000.00 $116,125.00 -$16,125.00 2 116.13% Chippewa County $222,993.00 $364,650.00 -$141,657.00 7 0 $411 Chicago County $736,812.00 163.88% Clearwater County $411,745.00 $325,067.00 5 55.88% Y $143,908.00 $53,000.00 $90,908.00 1 Crow Wing County $962,370.00 36.83% Dilworth, City of $993,590.00 -$31,220.00 11 103.24% $100,000.00 $130,770.00 -$30,770.00 2 ° Dodge County $310,969.00 130.77% $428,126.00 -$117,157.00 4 137.67% Duluth, City of $1,472,683.00 $1,548,984.00 -$76,301.00 16 105.18% Fillmore County $250,000.00 $269,621.00 G n City of $100,000.00 -$19,621.00 4 107.85% Grr ant t County County $150,570.00 -$50,570.00 2 150.57% $100,000.00 $0.00 -$50,570.00 0 0.00% 116.43% Hennepin County (Suburban) $4,204,233.00 $4,895,022.00 -$690,789.00 33 Hitterdal, City of $100,000.00 Houston County $0.00 $100,000.00 0 0.00 Y $300,000.00 $329,140.00 -$29,140.00 4 109.71% $406 0 Hubbard County $315,637.00 Kandiyohi County $406,305.00 -$90,668.00 5 128 73% $706,649.00 $1,206,619.00 -$499,970.00 15 170.75% Lake of the Woods County $100,000.00 $160,500.00 -$60,500.00 3 ° Mahnomen, City of $100,000.00 160.50/o McLeod County $0.00 $100,000.00 0 0.00% $602,650.00 $552,296.00 $50,354.00 6 91.64% Moorhead, City of $553,609.00 $701,440.00 Morrison County $174,580.00 -$147,831.00 9 126.70% Mower County $135,300.00 $39,280.00 2 77.50% $662,002.00 $887,148.00 77.01 /o NW MN Mu lit-County HRA -$225,146.00 14 134.01% tY $1,507,036.00 $1,670,857.00 -$163,821.00 30 0 -$18 North Mankato, City of $206,116.00 $224,263.00 110.80/o Olmsted County $2,173 719.00 -$18,147.00 2 108.80% Otter Tail County $2,424,001.00 -$250,282.00 21 111.51% $984,308.00 $1,290,834.00 -$306,526.00 19 131.14% Owatonna, City of $389,524.00 $345,620.00 $43,904.00 Ramsey County(Suburban) $3,853 668.00 4 88.73% Rice County $1,983,494.00 $1,870,174.00 14 51 47% $985,762.00 $775,700.00 $210,062.00 7 78.69% SE MN Multi-County HRA $571,713.00 $688,038.00 -$116,325.00 Sauk Centre, City of $100,000.00 $175,140.00 -$75,140.00 7 120.35% Sherburne County $1,165,784.00 175.14% Springfield, City of $100,000.00 $1'278'501.00 -$112,717.00 8 109.67% St. James,City of $39,772.00 $60,228.00 1 39.77% City $100,000.00 $244,700.00 -$144,700.00 4 ° St. Peter, City of $166,873.00 $297,700.00 244.70% Stevens County $171,661.00 -$130,827.00 3 178.40% Swift County $240,400.00 -$68,739.00 4 140.04% $203,243.00 $214,300.00 -$11,057.00 3 105.44% Washington County $3,522,932.00 $3,095,999.00 $426,933.00 20 0 Wells,City of $100,000.00 $46,500.00 87.88/° Winona, City of $53 500.00 1 46.50% $463,393.00 $61,100.00 $402,293.00 1 13.19% Wright County $1,615,822.00 $2,202,498.00 • -$586,676.00 15 136.31% Total $38,610,000.00 $38,651,984.00 ) ($41,984.00 377 100.11% • The Minnesota City Participation Program(MCPP) PROGRAM GUIDELINES Through the MCPP, MHFA sells mortgage revenue bonds on behalf of cities to meet locally identified housing needs. The proceeds of these bonds provide below-market interest rate home mortgage loans for low- and moderate-income first-time homebuyers. The MCPP provides cities throughout the state with a unique opportunity to easily access housing resources to meet the needs of their citizens. (Note: City means any statutory or home rule charter city, county housing and redevelopment authority, or any public body which: a) is the housing and redevelopment authority, port authority, or an economic development authority of a city; and b)is authorized by a statutory or home rule charter city.) I. FUNDS • Statute limits the single-family portion of the housing pool to an initial 31%. • Per statute, MHFA uses a population-based formula to determine each city's maximum allocation. The maximum allocation a city receives is determined by its population compared to the total population of all applicants. • Cities apply for a specific dollar amount (minimum of $100,000) or request the "maximum allowable"under the population formula. If the individual allocation as determined by the per capita formula falls below a level that the city cites as "minimum," MHFA contacts the city to verify • whether the city would like to cancel its application. • If funds remain in the housing pool on July 15th,MHFA may request those funds on behalf of cities that received an initial allocation in the 2004 program year. Statute directs MHFA to provide those funds to cities in a pool on a first come,first served basis. II. USAGE TEST • A city must use at least 50%of its 2004 allocation by the program expiration date. If the city uses less than 50%, its program year 2005 allocation is limited to the amount successfully used in 2004. However, cities receiving the minimum allocation of$100,000 must use 50% of their initial 2004 allocation to participate in 2005. If a city receiving the minimum allocation fails to use 50% of their initial 2004 allocation and does not participate in 2005, the city may receive a 2006 allocation based on the population formula. • The usage test also applies to self-issuers. Submission of this application requires these cities to submit loan origination data to MHFA to confirm compliance with this statutory requirement. III. PROGRAM TERM • The 2004 MCPP program term will run for eight months. Cities retain the exclusive use of their individual allotments for a six-month period. Following the expiration of the six- month period, MHFA collapses all remaining individual allotments into a single, statewide pool available to all participating cities for the remaining program term. 4111 11/03 • IV. PROGRAM REQUIREMENTS • MCPP mortgages must meet the requirements of standard mortgage insuring and guaranteeing entities, mortgage industry accepted underwriting standards, and state and federal law governing mortgages provided through the issuance of mortgage revenue bonds. • Borrower household income limits may not exceed 80% of area median income tiered by household size. Currently, these household (HH) limits are as follows(Note: HUD typically revises these limits between January and April): 1 -4 5 6 7 8 person HH person HH person HH person HH person HH 11-County Twin Cities Metropolitan Area $60,250 $65,100 $69,900 $74,750 $79,550 Olmsted County $56,500 $61,000 $65,550 $70,050 $74,600 I All other counties $52,100 $56,300 $60,450 $64,650 $68,800 • The current statutory house price limits are: If the mortgaged property is located in: New Construction Existing 11-County Twin Cities Metropolitan Area (Anoka,Carver,Chisago,Dakota,Hennepin,Isanti, $228,059 $204,183 Ramsey,Scott,Sherburne,Washington and Wright) • Aitkin County $131,070 $115,095 Becker County $131,070 $109,671 Beltrami County $131,070 $90,156 Benton County $135,900 $154,499 Blue Earth County $131,070 $111,136 Brown County $131,070 $85,787 Carlton County $131,070 $98,200 Cass County $131,070 $140,634 Clay County $131,070 $121,232 Cook County $131,070 $146,828 Crow Wing County $131,070 $132,816 Dodge County $131,070 $116,981 Douglas County $131,070 $130,367 Fillmore County $131,070 $81,391 Goodhue County $131,070 $129,053 Houston County $131,070 $121,819 Hubbard County $131,070 $120,608 Itasca County $131,070 $99,452 • Kanabec County $131,070 $101,952 11/03 • If the mortgaged property is located in: New Construction Existing Kandiyohi County $131,070 $96,472 Lake County -$131,070 $83,577 ' LeSueur County - $131,070 $121,186 Lyon County i.__._^ $131,070 $91,646 Mahnomen County I $131,070 $115,239 McLeod County $131,070 $114,427 Meeker County $131,070 $98,961 Mille Lacs County $131,070 $116,808 Morrison County $131,070 $90,341 Mower County $131,070 $81,572 Nicollet County $131,070 $125,245 Olmsted County $176,050 $162,689 Ottertail County _ T $131,070�� $89,173 Pine County $131,070 $104,009 • Polk County i $131,070 $82,569 Pope County $131,070 $89,280 Rice County T $131,070 $141,743 Sibley County $131,070 $80,033 St. Louis County $131,070 $135,357 Stearns County $135,900 $154,499 Steele County $131,070 i $112,789 Wabasha County $131,070 $107,683 Waseca County $131,070 $90,132 - ----------- --------....----- Winona County $131,070 $104,111 Balance of State I $131,070 $77,540 • MCPP funds may only be used to finance properties located within the jurisdictional limits of the participating city or county. V. HAF • MHFA offers participating MCPP cities access to MHFA's Homeownership Assistance Fund (HAF), an interest-free, deferred payment second mortgage loan. HAF provides targeted first-time homebuyers with downpayment/closing cost assistance of up to $3,000 and monthly payment assistance of up to$60(cumulative amount$1,440). • 11/03 VI. PROGRAM ADMINISTRATION • Participating lenders originate home mortgage loans, which MHFA buys in accordance with the MHFA Mortgage Program Procedural Manual. • If a city commits additional resources or subsidies in conjunction with MCPP, a layer of guidelines may be added as required by the source of the subsidy. INDIVIDUAL CITIES ARE RESPONSIBLE FOR THE DEFINITION AND ENFORCEMENT OF THESE ADDED GUIDELINES. • The Minnesota Department of Finance charges a processing fee of$20 for each$100,000 allotment provided and a 1% refundable deposit. For cities participating in MCPP, this is due with the executed MCPP contract returned by each city before the bonds are sold. DO NOT SEND A CHECK BACK WITH YOUR COMPLETED RFP; WE WILL NOTIFY YOU WHEN TO FORWARD YOUR FEE. • MHFA provides marketing support in the form of brochures, press releases and a shared marketing cost program. VII. APPLICATION PROCESS 1. Following the application deadline, MHFA reviews all submitted applications. 2. MHFA applies the per capita allocation formula, as specified in statute, to determine the allocation plan. • 3. MHFA completes a mailing notifying cities of allotment amounts, and provides a formal request for fees. (DO NOT SEND A CHECK BACK WITH YOUR COMPLETED RFP). For those cities participating in MCPP, the mailing also includes two (2) contracts, which must be signed and returned. 4. Cities participating in MCPP must execute and return the contract along with the processing fee (see Part VI. Program Administration) and a 1% application deposit. MHFA fully refunds the 1% application deposit approximately one month after the closing of the bond sale. 5. Please note that upon notification of allotment, self-issuing cities must send all fees directly to the Department of Finance at the following address: Peter Sausen Minnesota Department of Finance Cash and Debt Management Division 400 Centennial Building 658 Cedar Street St. Paul, MN 55155 • 11/03 6A St.Cloud Times L1 1 From Page 1A iii ,. .... ., , .....,. ,,,,.. .. .„... .. ,.....,,,_,_,„_-:„,-1,,,--,_'-i.._ - Housing . . . ... . _.,.. Meeting the goal was difficult because leaders spent a consider- able amount of time last year clarifying details,they said.By the time prices were set,housing ` developments already had been approved for most of the cities. In Waite Park's case,no housing developments were passed in 2003,rendering it impossible to produce any affordable homes. "The attitudes of city leader- ship play a large role in convey ing expectations,and some cities t= f' a-. « : got on it sooner than others;said d � Dan Finn,chairman of the af- b zk•' fordable-housing committee. '- "City councils seem to be paying r l x attention to the agreement,but N planning commissions seem to a n -' be more resistant to smaller lots, . s which you need to have to get of te t z fordable homes:' s4 , Finn said his comments were • y: ., based on conversations with de- < x 4 ,.,„� ' i ,.•,_ �4, ." velPop rress reports for 2003 y1 x v • � _ arent Progress until March,Finn said. r 4, ., si ifs Y� Cities are responsible for coin- ' t• ' 7, oif". pleting them and turning them £ � ` into Finn's group. 1 fa, Positive results � 5 � q ' g r City leaders in St.Cloud have•fill tr•- v_ ,; : a-•,f .' i¢ ,, �. " * done a good job of touting af- `. - fordable housing,going so far as ` �. t. to enact a law that provides in- centives for builders,Finn said. . ;.4‘,:f1•1'...1-!;:t.,---1 ' `° Under the Life Cycle Housing Times photos by Paul Middlestaedt,pmiddlestaedt @stcloudtimes.com ordinance passed last August, qualified developers in St.Cloud Croat-Kerfeld Homes to sell can build neighborhoods with a higher-than-normal density of 2 Sartell units in February single-family homes without pitching a special zoning plan. The incentives include fee Two Life sale Housing units expect a home home buyers can waivers and reductions for devel- will be for sale in Sartell in mid- expect a home similar to the opers who build affordable February.The sale price of the one pictured here,with the fol- homes and apartments. homes,in the Fox Run of Avalon lowing exceptions: Village development,will be • Antique brass or brass han- have been keeping track of $131,000. dies will be offered in the Life Cy- our developers commitments to Under the agreement Sartell cle Homes,not chrome handles. the goal,"St.Cloud planning di- leaders have with Croat-Kerfeld • The Life Cycle Homes will rector Matt Glaesman said. Homes,if the homes are not not have exterior shakes. "Since we passed the ordinance, sold to a qualified buyer before • The Life Cycle Homes will I'd say we're definitely meeting it." March 16,they will not be sold not have grid windows. About 300 affordable homes as a Life Cycle Housing unit.A For information,call Central will be in St.Cloud within the family can then expect to pay Minnesota Housing Partnership next eight years,according to sta $137,900. at 259-0393. tistics from the Central Min- e , nesota Housing Partnership.The L''"1- \ ` . �-e ,,� � agency is facilitating sales of the s -� -- homes.Thirty townhomes in the - _t'„ �� 1 city's Westwood development are � � � '.' already available at$126,000. t �- . iii . Sartell will have 19 affordable . r ' homes and 42 affordable rental units. f3,- Sartell leaders also played the ? 4 ° i X z incentive game,using tax-incre- ` ,,, ment financing and other meth- <�, - ods to encourage builders to ere- . ~�F ate lower-priced homes in what is �°° �t � � ' �* a��{ the fastest-growing city in the St. •- �- - Cloud area,city planner Anita . fi .- - -, Rasmussen said.Affordable hous- '' '' - in g also has been strongly em- )Cal Sunday,Jan. 18, 2004 Example of an affordable home floor plan Home-buyer classes Main floor level Central Minnesota Housing Partnership is offering a series Dining Living room Second Bedroom of"Home Stretch"classes to 9'5"x 10'6" 11'6"x 11'5" bedroom Family room anyone looking to buy a home. 9'10°x 9'4" The classes focus on first-time . home-buyer tips,although ,cr _ �p everyone is welcome.■ °� ■' ( First The series includes an op- x bedroom Utility Bath tional session on the Life Cycle x �■ 10'10"x10'6" room Housing Program,the first of Foyer_ — which will be Jan.27.Individu als or families interested in ap- plying for the Life Cycle Hous — ■'' ing Program should complete Double m"® the Home Stretch program. garage — Class schedules are: LO I • Jan.20,27(classes for this session have already start- , ed but are still open to people Source:Croat Kerfeld Homes who want to attend). Times graphic by Mark Marshall,mmarshall @stcloudtimes • Feb.4,11,18,25. • March 1,8,15,22. • April 7,14,21,28. • May 12,19,26 and June 2. We have been keeping track of our de- • June 7,14,21,28. velopers'commitments to the goal. People interested in attending should call 529-6500. Since we passed the(affordable hous- Questions about the Life inordinance,I'd say we're definitely Cycle Housing Program should g� y l y be directed to the Central meeting it. Minnesota Housing Partnership at 259-0393. Matt Glaesman St cw d planning director Michael Collins,land manager for Croat Land Company."Land phasized at planning commission Sauk Rapids will do a better prices have skyrocketed, and and City Council meetings. job of creating affordable hous- when city councils have a strict "We have to live up to what we ing now that some of the details adherence to their requirements, agreed to do unless something have been set,Schultz said. without giving you money to changes and we no longer need "I think Sartell has proven it make up for it,it's very difficult." o this,"Rasmussen said."It can be done,"Schultz said."It's all Croat-Kerfeld Homes is build- ainly hasn't been an easy a matter of how many incentives ing Sartell's first new affordable 9ro1 c ess....There's been a lot of the city is willing to kick in." homes.City leaders have helped negotiation and reasoning with St.Joseph Mayor Larry Hosch encourage building by reducing developers?' said more communication is water-access charges and right- needed among St.Joseph city of-way requirements,he said. City barriers leaders to put the agreement into Just because the affordable- Much of 2003 was spent flesh- full effect.Like Sauk Rapids,St. housing pact isn't easy to follow ing out details of the agreement, Joseph only approved a limited doesn't mean it's not necessary, including setting an affordable- number of housing develop- Collins said. ' house price at$131,000 and de- ments in early 'We really believe in the agree- velo■mg other standards for af- 2003, before ment,"he said.'We think 15 per- fordable homes,Rasmussen said. the standards That's part of the reason most of were set. cent isn't enough, and there's the cities had difficulty meeting "We would more that can be put out there:' the guidelines. like to meet the 0 Other programs Sauk Rapids approved three threshold, and i, Cities that have struggled to•housing developments after the the city is�com- agreement was struck,but ques- mitted,"Hosch Lanz Hosch meet the affordable-housing tions about the program pre- said. "I think City leaders need goals have taken other measures vented leaders from making Life one of the to communicate to improve the situation,leaders Cycle homes,city leaders said. things we need to do is figure out say.That can be just as crucial to The three developments will in- how to enable developers and housing advocates as actually elude about 330 homes. homeowners to access this:' breaking ground and building a But a lack of Life Cycle Hous- new home. ing units doesn't mean affordable Obstacles 'Ail of the programs in place to homes aren't available. While the incentives offered by provide affordable housing are "In 2002,we also produced a Sartell and St.Cloud have helped very important,"Finn said. number of lots that would easily produce affordable homes,pro- Waite Park received a come in under the$131,000 price viding them is not necessarily $250,000 grant from the Min- point,"said Todd Schultz,Sauk easy. nesota Housing Finance Agency Rapids'community development Developers, many of whom to repair existing homes and sell director. "Those units didn't were wary about the agreement them to first-time home buyers count,though,because they came in the first place because they who otherwise might not be able in before the agreement?' thought it'd be difficult to meet, to afford them. Schultz has contacted develop- say it's been tough to develop af- Sauk Rapids received a ers of the already-approved fordable homes because they $49,000 grant last year to help and asked them aren't able to recoup the costs of qualified homeowners with ywould make some of their building them. home-improvement projects. I hborhoods es adhere to the affordable- "I don't think from a profit Leaders are still waiting for word housing agreement.It's possible point of view there's any incentive about another$500,000 grant that will happen,he said. for developers to do this,"said they applied for. • •