6.0. HRSR 07-23-2001 • city of Item #6
Elk -�-.
River
MEMORANDUM
TO: Housing Redevelopment Authority
FROM: Marc Nevinski, Assistant Director of Economic Development
DATE: July 23, 2001
SUBJECT: Elk River Housing Overview— Lisa Graphenteen, Central Minnesota
Housing Partnership
Background
This past spring, the HRA commissioned the Central Minnesota Housing Partnership
(CMHP) to complete a housing study for Elk River. As part of the study, the HRA
agreed to hold a public meeting to explore the topic of housing in Elk River. Lisa
Graphenteen from CMHP will provide an overview of Elk River's housing market
411/ and discuss methods for influencing housing development.
Attachments
• Housing Overview
• CMHP Newsletter- Summer 2001
•
• Elk River Housing Overview
Elk River HRA
July 23, 2001 5:00 PM
Lisa Graphenteen
Central Minnesota Housing Partnership
What is Affordable Housing?
Affordable housing is typically defined as housing that does not exceed 30% of a household's
income. The following are some scenarios of what households can afford based on their incomes
Hourly Wage $6.00-$7.00 $7.00-$8.65 $8.65-$11.00
Annual Wage $12,480-14,560 $14,560-17,992 $17,992-22,880
Housing Affordability $312-$375 $375-$450 $450-$575
Average 2 BDR Apartment $665 $665 $665
Rental Gap $290-$353 $215-$290 $90-$215
• $90,000 Home $759 $759 $759
Homeownership Gap $384-$447 $309-$384 $184-$309
Sample Jobs Cashier Bank Teller Receptionist
Child Care Worker Home Health Aide Nursing Aide
Retail Sales Teacher Aide Medical Assistant
• Annual income needed to afford a$90,000 house is $32,530 (approximately$15.50/hour)
• Annual income needed to afford a$120,000 house is $43,371 (approximately$20.85/hour)
• Elk River Average Industrial Wage - $11.54(Source: 1999 Business Retention&Expansion Survey)
• Sherburne County Manufacturing Sector Average Hourly Wage - $18.35 (Source :MN Department
of Economic Security—Second Quarter 2000 Wage Survey)
Why complete a housing plan and what will it provide?
Housing plans serve a variety of purposes. In most cases they are used to understand the current
housing market. This can help a community strategically plan for new growth. Some communities
also use the information to develop a plan for their involvement in the housing market and how they
can work towards maintaining the existing housing stock and developing new housing to meet
demographic changes. The plan truly serves as a guide and it is ultimately up to communities,
developers, and other organizations to implement components of the plan.
•
What role can Cities play in affordable housing?
• There are numerous ways in which a City can participate in the development of affordable housing.
The following are some samples of how developments can stay affordable and what role a
community can play.
Ways to Keep a Project Affordable
• Utilize existing infrastructure
• Access a reasonably priced site
• Find a suitable site for development or redevelopment
• Develop smaller lots and more modest homes
Tools to Assist in the Development of Affordable Housing
• Regulatory and Zoning Issues -reducing lot size, street width, or fees associated with
developments
• Inclusionary Zoning- development fits within the community's comprehensive plan(a part of
their vision for development)
• Tax Increment Financing
• Mixed unit developments
• Community and Employer Support
• Tax exempt bond financing
• Participation in planning process
• Apply for grant or loan funds that fill gaps in financing
•
What housing options exist in the community and what is the current housing situation?
The City of Elk River has experienced substantial growth over the past ten years with the addition
of 1,932 households and 5,304 people. The community does have a fairly high median household
income at$53,583 for 2000. Much of the household growth has occurred in households earning
over$35,000 although we will continue to see some growth below this level. Building permits do
show that new development has kept up with the growth although vacancy rates continue to remain
low according to the 2000 Census and the rental survey.
2000 Census Data
Rental Vacancy Rate 1.7%
Homeowner Vacancy Rate 1.4%
Rental Survey—May/June 2001
General Occupancy 3 of 447 units available 0.7%vacancy
Elderly 0 of 87 units available 0.0%vacancy
A healthy market is considered to be 5%vacancy, which allows for a variety of housing types and
options.
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