HRSR INFORMATION 08-26-2002 ! w _
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2 ' ' ” . : THE BUSINESS JOURNAL 1 twincities.bizlaurnais.COr August 2,2002
New law makes Wayzata re-examine affordable housing policy
•
BY SCOTT D.SMITH cities from passing strong measures to pro- , developments. '
STAFF REPORTER mote affordable housing," Callanan said. At that time, Wayzata's attorney, Robert
A state law that was quietly passed this The nonprofit's mission is to promote and Meller of. Minneapolis-based Best &
session has caused one suburb to stop Rick Packer, chair of the public policy preserve affordable housing statewide. Flanagan, advised the city that it had the
exploring a policy requiring developers to committee for the Roseville-based Builders Wayzata officials are sticking with its authority to institute such requirements.He
build affordable housing, but affordable . Association of the Twin Cities, agrees with attorney's interpretation. based his opinion on a state statute and an
housing advocates disagree that was the that interpretation."(The law]has strength- "We thought the Legislature would adopt opinion rendered by the Minnesota
law's intent. ened our position and it makes it easier for some laws that were helpful and supportive Attorney General's Office.
The city of Wayzata was considering an us to challenge cities that use too much of a of affordable housing, and it turns out that In June,Meller changed his tune based on
ordinance to require residential developers strong hand,"he said. our attorney is telling us that the opposite the new state law.The law says cities can put
to build affordable housing units in some But Rachel Callanan,policy director of the happened,"said Dave Frischmon,Wayzata's in place requirements regarding sale prices,
circumstances. But Wayzata's city attorney St. Paul-based Minnesota Housing director of finance. rents,maximum income levels of initial and
told city officials that the state law, which Partnership, said her group doesn't agree In March,Wayzata instituted a multifami- subsequent buyers and land trust agree-
goes into effect today,says that municipali with Wayzata's interpretation of the law, ly residential development moratorium to ments,but those requirements are"subject
ties can't do that unless developers volun- which her group supported. give itself time to explore a mandatory to agreement by the developer."
tarily agree to do so. "We don't think that the law excludes inclusion of affordable housing in new Said Packer:"There has to be a deal struck
between the developer and the city."
Wayzata is not alone in wanting to foster
affordable housing.
St.Cloud,Sartel,Waite Park,Sauk Rapids,
and St. Joseph are pursuing a joint agree-
ment that would set a goal of having 15 per-
cent of new rental and for-sale development
be affordable. The communities hope to
meet their goal by getting developers to vol-
. .
.? untarily cooperate, said David Carlberg,
planning director for St.Cloud.
a;N; k,t y But if municipalities were given the
'T y fi ' ' " i''x authority to do so,more would move toward
t,.l .:4 �y sr. yb s 'i .c vY.r ki?,1,. ,
r e}?�';�'x 4 �;V;Ii�G r::44i°:�,?' '' ~ 1 mandatory affordable-housing policies, he
,. •'�^AC•."':4i.''s ,�`Y'i.,.^ 73k'.,.5:,.rMi7s:•>'JYi;B..` �l ,,4-.,.;.: : said
`(. Afy'(. Ott � S l:` ktr,+ ,��y+: a�.�J,'..\�5
.� M,� �,� t� ,,5, a:,�,,(�i,+,` The debate is somewhat academic for
i�' •:y,• ., ''` 't' w, " Minneapolis and St. Paul.Affordahle-hous
• .: Y ,r N:f,:;• :': ing initiatives in fully deVeloped-cities
• : h$$'I(11ow the last thin n i almost always require puusd.0'•;' ), .,F+;�a i t which cities can use as leverage, said Al
in your diet �Cti r
;' ,: t ,�:r�; Carlson,project manager in St.Paul's plan
, j 4 '� ate
i� CY!_.1..:' _.4."...K:::-,::,. --'-`4 '' '(',n i yids,+,
�'i `, Wing department.
,r_
J} �'- Ann Higgins, intergovernmental relations
.,r, , , < {;:�;.:.:::. officer for the League of Minnesota Cities,
,t,£ ; Y v "`:; : ,;;; said the bill was written because cities and
t, , ' '.
,',,.,:;.J...;:.. = :1•. housing activists wanted to expand the .
-;;M r', . rights of cities to foster affordable housing.
The law is an example of the legislative
. process of compromise."This was a product
- that each of us could take something back
._ home with us,"Higgins said,because it clar-
ifies what cities can do.
_s r., 4;r 3 'F" The association hopes the law will have a
�'"r � ' h -,' e .. `K ` positive result of allowing cities to work with
X35,,�;,; , .,. ,:,' ;- p g
-,,-6,/-1- .V t 'k' ,.', l ,.),,,k',? . .'.. -,v! ^;` developers that want to create affordable
housing,Higgins said.`But if it needs more
work, we'll be there to champion more
options for cities."
ssinith @biiz]uumals.com I(612)288-2101
410.4"11'. 10 ,.111':_,P Voll _-■■; c,F to,-.■F1v titist. With :,I Sf, F F If p Ivacy 15 Il.H; in FL?l;1ec.! F;JG'Fr .,ilr. ,I(TH: (,,;y !SP-,
AFFORDABLE HOUSING LAW
fh,It ;Pit t;12;- IP 0 HHt ;FIJI i n, ,,,;,,l UIiOFFI ■,1•f Ldb'.-'I P F'ciS I,'III' Ill JCi2y "' . ° I■.IV• ift r...'Lli. P.Iiit hioll 1 Approved:April 8,2002
i . . l ( [ll', 1!lt, di _'r,d1 I' on),,Id-., lit I_�hI I 'I ,,IC: lf.'lli! '.I, ,y,:ti, rlt,iltl,l t ,'1 iFI;t'01` ■ ,111-'i1R,e.,i Effective date:Aug.1,2002
- Authors:State Sen.Richard Cohen,DFL-St.Paul
ctii- ;,,t,. 'f,:'t H., 1,ily.h(1-,,, �F■1/'0 ;x11(.;) : �'11. I` V'lL ^r!;•,v,�10 °—:1_, '.ai i12•ll,G'II i!li'?IFCSU1 Rep.Ray Vanderveer,R-Forest Lake
.
I i":IFF , I ;!:` -,in,-! ;I F i .'I'I'JIII ;IF�`�'Ut-1` 1-,-, I C. I1[,l _ r' nE1:1"'I , -■ ( ,17 ib' l '1,i,, 'ii' Sutamaiy ticipalities subject to developer
•: aoprovaf,can establish the following criteria
wwien:approving:a project
•sale prices:or rents for affordable units..
T l : •maximum income knits for initial and subsequent
r .1' purchasers of renters of affordable units
' t" ' e means..for maintaining long-term affordability,in-
i ], C ' cluding equity sharing,or similar activities and
land trust agreements