4.3. SR 11-08-2004
Item 4.3.
MEMORANDUM
TO:
Mayor and City Council
FROM:
Heidi Steinmetz, Assistant Director of Economic Development
~
DATE: November 8, 2004
SUBJECT: Overview of Greater MN Housing Fund Growth Corridor
Initiative Conference and Consider Pre-application Submittal of
Initiative Program
Attachment
. Planning & Building Better Communities in Minnesota's Growth Corridor - Pilot
Counties: Wright, Sherburne, Isanti, and Chis ago
. Revised Growth Corridor Initiative Program Guidelines & Pre-Application
Background
At the September HRA meeting, Commissioner Motin provided information on the Greater
Minnesota Housing Fund's (GMHF) Growth Corridor Initiative program. He explained
that Elk River might want to consider participating in the program. Staff gathered more
information at the GMHF Growth Corridor Initiative conference on October 20, 2004.
At the November HRA meeting, the HRA discussed the program and whether or
not the HRA should consider submitting a Pre-Application for the program. It was HRA
consensus that the City Council consider the submittal due to the Council's position on
affordable housing, and the City's current "monitoring" mode regarding housing.
Program Description
The program will respond to issues affecting high-growth communities located at
the edge of the seven-county metro area. Initially, the program will include four pilot
counties: Wright, Sherburne, Isanti, and Chisago. Four elements to the program include:
. Coordinated planning
. Land use
. Housing
. Community participation & local control
Overview of Greater MN Housing Fund Growth Corridor Initiative Conference & Consider Pre-application Submittal for
Initiative Program
November 8, 2004 City Council Meeting
Page 2 of2
There are two examples of the types of projects that might occur as part of the program in
the attached "Planning & Building Better Communities..." pamphlet. The two projects are
located in Cambridge and North Branch and include master planning oflarge sites,
inclusionary housing, cost controls, and permanent housing affordability. Both cities have
received monies for land acquisition.
Issue
A Request for Proposals (RFP) to participate in the program was announced at the October
20'h conference. Further described in the attached Program Guidelines & Pre-Application,
the purpose of the RFP is to choose two communities within the four-county area that will
receive financial and technical support from GMHF for "model" projects similar to the
Cambridge and North Branch projects. Model projects will include:
. Area-wide master plans
. Life cycle housing (different housing styles)
. Efficient land use
. Increased citizen participation
Financial and technical support is available for site selection and site design, public
infrastructure planning, home designs, and reducing regulatory barriers to affordable
housing.
Program goals are oudined on Page 14 of the attached Pre-Application. Applicants to the
program should be interested in "pursuing cost-reduction strategies" to housing such as
modest-size lots and narrow street widths as examples. Minimum program requirements are
specified on Pages 15 & 16.
The Pre-Application deadline is December 15, 2004. Applicants will then be invited to
submit a formal application by February 4, 2005.
Staff Request
Given the City Council's position on affordable housing, and the City's current
"monitoring" mode regarding housing; an application to the GMHF program would require
the City to take an active role in promoting/encouraging affordable housing.
Staff requests the City Council's direction regarding the submittal of an application.
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Greater Minnesota Housing Fund's
Growth Corridor Initiative (GCI)
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t:JI.~ Contents
Page
Growth Corridor Initiative (GCI) Program Overview.............. 1
Gel Program Description and Resources............................... 2
Gel Case Study: North Branch, Minnesota............................ 3
Recommended Community-Based Planning Process............. 4
Eligible "Growth Corridor" Community Characteristics........ 6
Gel Case Study: Cambridge, Minnesota...................:............ 8
GREATER MINNESOTA HOUSING FUND
Founded in 1996 by The McKnight Foundation and Blandin Foundation, Greater Minnesota
Housing Fund (GMHF) is a private, nonprofit organization that supports the creation of
affordable housing in areas of economic vitality throughout the 80 counties outside of the
Twin Cities metro area. GMHF serves as a housing intermediary, providing important funding,
as well as bringing people, money and expertise together to support the development of
affordable housing in greater Minnesota's communities. To date, the organization has
provided over $62 million to support the development of over 5,500 affordable housing
units worth almost $606 million in greater Minnesota.
GMHF's Growth Corridor Initiative
Introduction
With over $62 million in capital funds awarded
to date, Greater Minnesota Housing Fund
(GMHF) has been supporting the creation
of affordable housing in the 80 counties outside the
Twin Cities metro area since 1996. Launched as ajoint
effort of The McKnight Foundation and Blandin
Foundation, GMHF is an intermediary through which
foundations, corporations and local employers
contribute to affordable housing through gap loans,
technical assistance, public education and research,
advocacy and special initiatives.
Catalyst for Progress and Innovation: GMHF
serves as a catalyst for progress and innovation,
specializing in creating strategically important
programs that promote livable neighborhoods through
wise use ofland, mixed-income housing, cost reduction
techniques, traditional neighborhood design and
employer involvement.
A Broad and Ambitious New Initiative: Building
on the success and lessons of GMHF's Building Better
Neighborhoods (BBN) starter home program, GMHF
is laun~hing the Growth Corridor Initiative, a new,
broad and ambitious initiative designed to meet the
needs of high-growth cities along the growth corridors
of greater Minnesota.
While high population growth and rapid
development offer tremendous economic opportunities,
acute challenges remain for preserving the quality of
life for both long-time residents and newcomers.
Ensuring that the rich natural resources, small-town
charm, local employment and affordable housing
opportunities do not fall victim to metropolitan sprawl
is critical to the long-term vitality of these high growth
communities.
Beyond a Single, Residential Subdivision:
GMHF's new Growth Corridor Initiative will provide
funding support for area-wide integrated planning
efforts, capacity-building for planning and
implementation staff, and capital funding to foster large
scale model projects in greater Minnesota's growth
corridors.
Although GMHF's primary focus will continue to
be the creation of affordable housing, the Growth
Corridor Initiative is intended to go beyond a single
residential subdivision. Broad and flexible support will
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assist communities to comprehensively plan for the
range of other opportunities and challenges before them,
including natural resource conservation, recreation,
transportation, economic development, zoning and
public financing.
In its pilot year (2005-2006), Growth Corridor
Initiative funding will be available to municipalities in
Chisago, Isanti, Sherburne and Wright Counties.
Program Overview and Principles
GMHF is launching the Growth Corridor Initiative
at a critical moment in time for high-growth
communities on the edge of the seven county
metropolitan area. While development pressures have
been steadily increasing, communities have not yet lost
the opportunity to conduct careful, community-driven
decision making that will focus on results and the
implementation of projects that will set the stage for
future growth.
Through partnerships with interested communities,
and by serving as the catalyst for other philanthropic
and local investment, GMHF's Growth Corridor
Initiative program is committed to supporting:
II Planning: Support effective, area-wide planning that
addresses needs in growing communities for affordable
housing, economic development, transportation
infrastructure, community facilities, open space and
recreation, and the conservation and enlargement of
natural systems.
II Land Use: Promote efficient land use patterns that
support the growth of economically, environmentally,
and socially healthy cities.
II Housing: Encourage development of a variety of
housing types, styles and price points that meet the
affordability and life-cycle housing needs of growing
communities and reduce distances which workers must
travel to reach employment.
II Community Participation & Local Control:
Increase meaningful citizen participation throughout the
community planning process to facilitate greater public
education and awareness of local development issues.
Gn"art'r I\liIlneSr)tu HOUSllj)2. f;..dld
Growth Corridor Inititative (GCI)
Phases of Program Support
Maximum GMHF
Funding
Available
Program Description and Resources
Frequently, when communities undertake a
comprehensive planning process, they have limited
resources and staff capacity. Consequently, resulting
plans often fail to engage citizens in a meaningful way
and may lack effective implementation strategies.
The Gel program will help communities plan and
build better communities through:
Better Land Use Planning: By accessing higher quality
data, GIS mapping and assessment, and market
research tools, communities will be able to make more
strategic and informed decisions about managing
growth.
Enhanced Community Participation: By
incorporating principles and methods of community-
based planning, more creative and complete community
participation will inform the planning process and
develop local leadership and knowledge.
Type of Assistance
Match Required
Phase 1
Community Planning
Assistance
ltol
Hol
Program Phases
The Growth Corridor Initiative (GCI) is a four phased
program that helps communities plan for future
development through a community-based planning
process.
Phase 1 I Resources for Area-Wide Planning Support.
The community planning process will address:
. Growth forecasts: Population, households and jobs
. Land use inventory utilizing GIS technology
(Supply and intrinsic suitability for development)
. Community and neighboring community
participation
. Goals and policies related to growth management
. Community vision and master planning
Growth Corridor Jnitiative
Actionable Goals: Practical goals and new resources
will result in the implementation of strong projects that
demonstrate the new vision for the community.
Funding for Staff to Implement Plan: Participating
communities will receive access to funding to add
planning or community development staff for a two-year
period following the completion of the plan.
Capital Funding for Model Projects: Participating
communities will receive priority funding for technical
assistance grants, plus loans for site assembly,
construction financing and homebuyer assistance to
complete one or more demonstration-quality
developments.
Required Outcome
,
Up to $50,000
Up to
$25,000/year for
two ears
Phase 2 I Resources for Implementation through
"capacity-building" grants to cities. GMHF will provide
two years of support for local planning and development
staff or contract personnel to manage the implementation
of pending housing projects and policy initiatives in
selected communities.
Phase 3 and 4 I Technical Assistance and Capital
Funding for Model Projects in each community. One or
more model projects that include at least 70 affordable
housing units must be identified as part of the larger
planning process. Affordable housing must be part of a
larger mixed-income and/ or mixed-use development.
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CASE STUDY
North Branch: ESSBY
Development Area
The City of North Branch is currently
planning for the development of a 400-acre site
adjacent to Interstate Highway 35 for a large-scale
mixed-use project that will include housing,
commercial and industrial uses.
The city's master plan provides a community
growth strategy for the next ten years. The
community's vision for growth includes inclusionary
housing and permanent affordability policies. The
housing project is planned to begin construction in
spring of 2005.
North Branch envisions an exceptionally well
designed, master-planned development with a mix
of business and residential uses, housing choices
that will serve families of all income levels,
community facilities and open space components-
all in a planned area that utilizes proven cost
reduction techniques and the best in community
planning and design. The development and growth'
strategy includes liJ:lkages to!!,ajor .ar~a~\Vide
infrastructure improvemimts. . -....... . ...." "
. GMHF is assisting the City of North Branch
with technical assistance and funding for planning,
and has awarded interim financing for land
acquisition and homebuyer gap financing to this
exciting project.
This model project demonstrates excellent
planning and design, innovative city policies, public-
private partnerships and the creation of a range of
housing choices, including the development of
permanently affordable housing.
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Greater Minnesota Housing Fund
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STEP 1:
CONVENE, ENVISION, INVENTORY & ANALYZE
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Project
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Inventory, Map & Analyze:
1, Demogrophics
2. Existing Land use
3. Natural! Environmental
features
4 . Transportation Systems
5, Community taclllties
6, 1 O.year housing study
7. Economic conditions
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STEP 2:
S, POLICIES & ALTERNATIVES
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REVIEW, ADOPT & IMPLEMENT
Month 8
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Prepare dra" plan
1, Land use plan
2. Environmental
features
3. Transportation plan
4. Community facilities
5. 1 a-vear housing plan
6. Economic
development plan
7. Implementation
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. - Update zoning
Review & subdivision
. _ Capital Improvements
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PAC - Regular plan review
m. eeflng - Resource Deveiopment
. - Project Planning &
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Eligible Communities
Local city and county govemment agencies in
Chisago, Isanti, Sherburne and Wright
Counties are eligible to apply for GMHF Growth
Corridor Initiative funding in the pilot year 2005-
2006. Special consideration will be given to cities
that plan collaboratively with surrounding
townships and neighboring communities.
Communities who can positively answer the
following questions will be most competitive for
funding:
II Growth: Is your community experiencing rapid
growth and projected to continue to develop
rapidly?
iii Community Process: Is the community willing
to conduct an integrated master planning process
with broad-based community participation, timely
and meaningful involvement of stakeholders, and
sustained communication with all the
participants?
II Planning Principles: Is the community willing
to consider the benefits that are available through
TRENDS!
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JOt? ~rowth Strong
Along Transportation
Corridors
Facts,
. Growth corridor counties are experiencing
significantly higher job growth than the typical
Minnesota county.
. .. The highest growth rates in counties
adjacent to the seven-county metro are in
Chisago and Wright Counties.
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Implications:
. As the price ofland skyrockets in rapidly
developing communities, it is increasingly
difficult to match a growing workforce with an
adequate supply of affordable housing.
Growth Corridor lnitiative
the use of GMHF technical assistance and funding
to achieve the following community planning
principles:
a. Development Patterns: Promotion of compact
development patterns, including the provision of
a diverse housing stock and well-planned
transportation options.
b. Public Infrastructure & Community Facilities:
Efficient and cost-effective provision of public
infrastructure and community facilities,
including the consideration of environmental and
social costs.
c. Economic Development: Advancement and
retention of sustainable economic development
strategies, including the development of local
resources.
d. Natural Resources: Conservation and
enhancement of natural resource systems,
including agricultural land, forests, water
resources, open spaces, recreational areas, and
scenic resources.
II Site Control: Does your community have, or
can it obtain, site control for a large-scale
residential or mixed-use development?
SOUTce: 1990 and 2000 Census Data
Interstate Highways
Percent Change in labor Force (1990-2000)
:--, .10 18 - 0%
d 0.01 -10%
_101.35%
C-.J 351. 62 77%
TRENDS
More Households
Added in Growth
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. Corridor Counties
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., The number of households in many growth
corridor counties grew by at least 25% between
1990 and 2000; Sherburne county grewby more
than 58%.
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. .. Household growth is strong in counties that
have good access to transportation and a growing
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metro are popular areas to build, but land and
development costs often price fmishedunits well
outside of es!ablished lev~l~ ?f .uro~.dability.
gBBN Objectives: Is the site suitable to
accomplish GMHF's Growth Corridor Initiative and
Building Better Neighborhoods (BBN) objectives,
including:
a. Master Planning: Providing impetus for a master
planning effort.
b. Model Project: Serving as a positive model to
influence future development choices and
opportunities in the area.
c. Planning Beyond the Project Boundaries:
Striving to achieve community planning objectives
beyond the project boundaries (e.g. extension of
essential infrastructure; key roadway, trail and
pedestrian linkages; natural resource system
conservation and enhancement; strategic linkages
of housing with jobs; expansion of parks and open
space; or the improvement of market conditions
for local businesses).
d. Ten-Year Housing Action Plan: Preparing and
adopting a Ten-Year Housing Action Plan, which
contains goals for housing diversity, affordability
and the relationship between proposed housing
and employment opportunities.
e. Municipal Utility Service: Avoiding the expansion
of large-lot, private well and septic development
patterns.
SOUTce: 1990 and 2000 Cl:nsus Data
Interstate Highways
Percent Change In Number of Households
D -5.39.0%
I!ZflI01 -10%
.,0.1.25%
025_1-58.5%
Commitment for Implementation: Will the community
commit to implement the community plan, including
the Ten-Year Housing Action Plan, and be willing to
devote local resources to ensure effective
implementation?
Application Process
GMHF will provide Growth Corridor Initiative (GCI)
program resources for up to two communities in 2005.
Awards will be made through a competitive Request for
Proposal (RFP).
The Pre-Application RFP will be available on October
20, 2004.
Pre-Application responses are due by 5 P.M. on
December 15, 2004.
Highly competitive communities will be asked to submit
a formal application in January, 2005.
Candidate communities will be interviewed by members
of the selection committee as part of the selection
process. Awards wiD be announced in early 2005.
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CASE STUDY
City of Cambridge:
Heritage Green
Development
The Chy of Cambridge is
developing 86 acres in the central
city asS. mixed-use project that
",ill. ir,.<;luqe, 292 mixed-income
units.
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Located on the old state hospital
site, the highlights of this model
project include:
. Combination of single-family
homes, andfor-sale and rental
townhomes for families and
seniors;
. High-q\1a1ity home designs on
<;omps.ct Iqts witl1alleys. , "
~. Pedestrian-friendly streetscape
'with street trees,sidewalks a.n~
linkages to . surrounding
neigJ?,borhoods"..:
~ Inq()rporation of open space and
, acentral J:>l3.1'k~ ~~~munity;,:nter
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. Connections to the central city
"i..nd existirig infrastructure. .
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. . Th~.<;olIlmtlnity, .9ambridge city
officials and the development
teaniare committed to features
of traditional neighborhood
design,iJ:J.qluding the design
. priJ:J.cip~e~...of GMHF's Building
Better'Neighborhoods (BBN) .~
program. With a commitment to
making a substantial number qf
uJ:J.its. affordable, the City will
incorporate a new Community
'Land TTust to keep a percentage
of the owner-occupied units
permanently affordable.
>, M:9reVthanISO community
members have participated in a
communitycplanning process that
began in April 2001. GMHF is
. assisting Heritage Green with
"BEN Technical Assistance,
funding for planning, and a $1
million loan of McKnight
Foundation Challenge Grant
Growth Corridor Iniliatiyp
funds for
construction,
financing.
land acquisition,
and homebuyer gap
Heritage Green models best
practices in community par-
ticipation, mixed-use development
planning, home design and
partnerships among many
philanthropic funders to help
achieve a community vision for
growth.
City leaders participated in the
Central Minnesota Initiative
Foundation's Healthy Communities
Program and the Blandin
Community Investment Program.
The city ultimately received funding
from the Blandin Foundation for
further leadership development
training and grant funds to purchase
the site.
Development Team: City of Cambridge,
MetroPlains Development, Central
Minnesota Housing Partnership, Lumber
One, Bright Keys Development, and
Hoisington Koegler Group.
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The Greater.Minnesota Housing Fund seeks
community partners interested in:
. Affordable Life-Cycle Housing
. Compact and Walkable Neighborhoods
. Conservation-Based Design Strategies
. Environmental Stewardship
. Sound, Long-term Public Investments
Greater Minnesota Housing Fund (GMHF) is launching its
Growth Corridor Initiative (GCI) program through a
competitive Request for Proposals (RFP). Interested
communities should complete the GCI Pre-Application RFP
by December 15, 2004.
For more information, call GMHF at 651-221-1997, or visit us
online at www.gmhfcom.
Valuable Outcomes for Your Community:
Through GMHF's Growth Corridor Initiative program, communities will achieve:
Growth Management Strategies:
Development of local and regional strategies
to effectively plan and manage growth.
.~' .;./
Area-Wide or Comprehensive Plan:
Completion of an Area-Wide Master Plan or
Comprehensive Plan, depending on the
current needs and goals of the community.
Ten-Year Housing Plan:
Completion of a Ten-Year Housing Plan with
action steps for implementation including
policy issues, production goals and fmancing
plan.
Improved Local Policies:
New or revised city policies to better guide
development and implement the goals of the
Comprehensive Plan, Area-Wide Master Plan
and IO-Year Housing Plan. This may include
development of new methods or sources to
permanently increase local funds for
affordable housing.
Local Staff Development:
Funding support for increased staff capacity
to respond to development pressures and
implement priority projects.
Master Plan:
Site selection and site design, public
infrastructure planning and home designs for
a high-quality, master-planned, mixed-income
and mixed-use development.
New Capital for Development:
GMHF debt or equity financial participation
in a large-scale, integrative model project for
land acquisition, infrastructure, and
construction, and GMHF assistance to broker
other public and private financing. GMHF can
assist with early site assembly where it will
minimize costs, improve affordability and
provide better leverage for communities to
implement planning goals.
GREATER MINNESOTA HOUSING FUND
332 Minnesota Street, Suite 1310-East. Saint Paul, MN 55101
main (651) 221-1997 I tf (800) 277-2258 I fax (651) 221-1904 I gmhf@gmhf.com I www.gmhf.com
GIVlEF is a special project of Tbe TvIcKnight Founctc,tion 3116 BIc:',ndin Foundc\tion.
THE MCKNIGHT FOUNDATION
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
REVISED
GCI Program Guidelines
& Pre-Application
Pre-Application Due December 15, 2004
Greater Minnesota Housing Fund
332 Minnesota Street, Suite 131 O.East
Saint Paul, Minnesota 55101
651.221.1997 1.800.277.2258
Rc\'iseJ to/25j04
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Growth Corridor Initiative Goals
Support area-wide planning that addresses pressing needs
in growing communities for affordable hous111g, eco~offi1c
development, transportation infrastructure, commuruty
facilities 0 en s ace and reservation of natural systems.
Encour~ge development of a range of life-cycle housing to
meet the housing needs of growing commun1t1es, reduce
distances workers must travel to employment, and stabilize
the re . on's workforce.
Promote efficient land use patterns that support the
balanced growth of cities and towns in ways that are
economicall ,environmentall , and social! health',
Increase citizen engagement throughout the planning
process to facilitate greater public awareness and
involvement in local develo ment.
GREATER MINNESOTA HOUSING FUND
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Introduction
A Broader Response to Local Planning
and Development Needs
While high population growth and rapid
development offers tremendous economic
opportunities for municipalities in the growth.
corridors of Minnesota, acute challenges remain
for preserving the quality of life for both long-
time residents and newcomers. Ensuring that
the rich natul:al resources, small-town chann,
local employment and affordable housing
opportunities do not disappear under
metropolitan sprawl is critical to the long-term
vitality of high-growth communities.
Greater Minnesota Housing Fund's primary
focus is creation of affordable housing; however,
the Growth Corridor Initiative is intended to
move beyond project planning to provide broad
and flexible support to help communities plan
for broader and longer term opportunities and
challenges.
New Resources to Plan and Implement
Greater Minnesota Housing Fund's new Growth
Corridor Initiative will provide funding support
for area-wide integrated planning efforts,
capacity-building for planning and
implementation staff and capital funding to
foster large scale, integrative model projects in
greater 1v1innesota's growth corridors. In its
pilot year (2005-2006), Growth Corridor
Initiative funding will be offered to two
Planning Goals
Housing Goals
Land Use Goals
Community Participation
& Local Control
!'W!l1
F
municipalities in Chis ago, Isanti and Sherburne
and Wright Counties. Special consideration will
be given to cities and counties that have planned
cooperatively with surrounding townships and
neighboring communities
GMHF is launching the Growth Corridor
Initiative at a critical moment in time for high-
growth communities beyond the edge of the
seven county metropolitan area. \X1hile
development pressures have been steadily
increasing, conununities have not yet lost the
opportunity to conduct careful, community-
driven decision making that will focus on results
and the implementation of projects that will set
the stage for future growth.
New Local and Regional Partnerships
Through a working partnership the Central
Initiative Foundation and its Healthy
Communities Program (HCP) , GMHF will
work with interested communities to support
community based planning and provide
resources to implement parts of those plans.
GMHF will also assist in packaging other public,
philanthropic and private investment for model
demonstration projects. Local dollars will be
required to leverage these new GtvfHF
resources.
Program Goals
The goals of GMHF's Growth Corridor
Initiative program are described below:
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Program Criteria
GMHF will require GCI pilot program applicants to meet the following
cri teria:
. Rapidly Growing Community. The selected community will be experiencing tapid
gtowth and will be ptojected to continue to develop rapidly. Positive consideration will
be given to candidate communities where the ptoposed development could serve to
avoid the expansion of large-lot, private well and septic development patterns, and
where the ptoject could serve as a positive model to influence future development
choices and opportunities in the area.
. Willingness to Adopt a Ten-year Housing Action Plan. The community will prepare
and adopt a Ten-year Housing Action Plan. The Housing Action Plan should first assess
the existing inventoty and current housing stock in the community to include
information on the existing housing conditions, current stakeholders, and existing
financing options for affordable housing, current land capacity and others. In addition,
local development policies, funding resources and the tole of key stakeholders and
model ptoject specifics will be identified.
. Commitment to Sustainable Development Principles. The community must be
committed to utilizing GMHF resources to maximize its opportunities to achieve
sustainable development principles such as
o Compact development patterns; including affordable and life-cycle housing
choices; transportation options, including transit, pedestrian and bicycle ways;
and green space and enhanced aesthetics.
o Conservation and enhancement of natural resource systems including
agricultural land, forests, water resources, open spaces and recreational areas,
scenic resources, and other significant resources.
o Efficient and cost-effective public infrastructure and community facilities,
including the consideration of environmental and social costs.
. Use of Community Based Planning Process. The community must conduct a
planning ptocess consisting of the following characteristics:
o Broad-based community participation, including a variety of means for
citizens and interested parties to ptovide input thtoughout the ptocess.
o Timely and meaningful involvement of representatives of surtounding
jurisdictions, school districts, key governmental agencies and other stakeholders,
and efforts to cooperate on issues of mutual importance.
o Strong and sustained communication with all of the participants, by multiple
means, throughout the process, as well as a commitment to public education
regarding the issues surtounding gtowth management and decision making.
GREATER MINNESOTA HOUSING FUND
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Program Instructions
GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
ELIGIBILITY: In its pilot year (2005-2006), Growth Corridor Initiative funding will be available to municipalities iu
Chis ago, Isanti, Sherburne and Wright Counties.
PROGRAM FUNDING AsSISTANCE:
Phase I
Community
Planning
Assistance
Phase II
Staff/ Capacity
Building
Phase
III
GCI Model
Project Technical
Assistance
Phase
IV
Capital Funding
in-kind*
Up to $50,000
Creation or Update of Comprehensive Plan and
Housing Action Plan
1:1
Up to
$25,000/year
for two years
Implementation of Community Plan and Housing
Action Plan
in-kind
Up to $25,000
Model Project Plan including secured site and local
financing commitments
10: 1 (including
public and
private funding)
Up to
$I5,000/per
affordable
unit
Affordable Housing Development as part of a
mixed income, mixed use development
*If the planning assistance contract exceeds $50,000, communities will be expected to provide the additional funding
necessary.
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Please see next page for application Process and forms.
GREATER MINNESOTA HOUSING FUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
GCI Application Process
1. Pre-applicarion: (Attachment 1) Pre-applications will be due on December 15, 2004. All interested
applicants will be required to complete the GCI Planning and Capacity Building Pre.-application.
2. Pre-Application Review: GMHF staff and the GCI Selection Committee will review the pre-applications
and determine which community(ies) best meet the criteria for the GCI Pilot Program.
3. Full Application: Communities invited to submit a fmal Application will be notified by January 7, 2005.
The full application will be due on February 4, 2005, and will consist of the following components:
a. Community's GCI goals
b. Resolution of Support for program participation from elected bodies
c. Letters from community stakeholders expressing support for program participation
d. Description of current political pressures and challenges related to growth management and
affordable housing development
e. Description of current development patterns and potential model project sites
f. Assessment of staff needs for Phase 2 of the GCI Program
g. Memorandum of Understanding from participating entities
4. Interview: Candidate communities will be interviewed by members of the selection committee as part of the
selection process in mid~late February.
REVIEW AND SELECTION: A staff team from GMHF and an Advisory Selection Committee will review all full
applications. GMHF Board approval of the 2005 pilot communities will take place in late March and selected
communities will be notified by March 25, 2005. Awards will be judged based on:
. Communities most likely to fully implement the model project(s)
. Communities committed to the principles of the GCI Program
. Communities experiencing the most rapid growth
Special Consideration for Cooperative Plans:
Special consideration will be given to cities and counties that have planned cooperatively with surrounding townships
and neighboring communities.
CONTACT: For questions and additional infonnation contact:
Heidi Rathmann, Program Officer
hrathmann(~DYlllhf.com
Greater I'vIinnesota Housing Fund
332 Minnesota Street, 1310E
Saint Paul, MN 55101
\\.;\.\.;\.v.g-mhLcom
(651) 221-1997 x103 or toll free: 1(800) 277-2258
GREATER MINNESOTA HOlJSINGFUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
Attachmcnt I
2005 Pilot Program
GCI Pre-Application Form
Cover Sheet
A licant Contact Information
DIsanti
DSherburne
(Please attach additional page with primary contact information in multiple partner communities if appHcable.)
Completed pre.applications are Due to GMHF no later than 5:00 P.M., Friday, December 15,2004
An electronic version of this pre.application can be downloaded from www.gmhf.com.
Please Submit GCI Pre-Application Forms by
5:00 P.M. Friday, December 15, 2004 to:
Greater Minnesota Housing Fund
332 Minnesota Street, Suite 1310-East
Saint Paul, MN 55101
(651) 221-1997
1 (800) 277-2258
(651) 221.1904 fax
GREATER MINNESOTA HOUSING FUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
GCI Applicant Information
A licant Contact Information
DIsanti
DSherburne
1. Type of Applicant:
D City D County DMulti-jurisdictional
If this is a multi-jurisdictional application, list other partners below. In addition, describe how each jurisdiction
will cooperate in the planning and other activities of program.
2. Stakeholders:
List the stakeholders you plan to engage within and outside of the community and describe their potential roles.
(Examples of potential stakeholders might include business and civic leaders, community organizations,
government agencies, neighboring townships, ere.) Include letters of interest/participation from stakeholders if
available.
GREATER MINNESOTA HOl~SJNG FUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
3. Status of Local Planning Needs:
What is the date of your community's latest Comprehensive Plan revision? Do you intend to update the plan as
part of the Growth Corridor Initiative planning process? If so, what factors are contributing to the need for an
update to the plan? List any other planning documents currently used by the city.
4. Citizen Engagement:
Has your community participated in a formal citizen-based planning effort? 0 Yes 0 No If so, indicate the
name of the planning effort.
o Healthy COITU11unities Program Date: Outcome:
(Initiative Foundation)
o Minnesota Design Team Planning Program Date: Outcome:
o Other: Date: Outcome:
GREATER MINNESOTA HOUSING FUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
5. Housing Demand:
Does your community have a current housing market study? (please attach a copy of the study to this
application.) 0 Yes D No Do you believe the study accurately reflects the market and housing needs in your
community? If not, why?
6. Existing Planning and Development Staff:
List the positions and the names of staff involved in corrununity development, planning and housing in your
community. Provide the name and title of the community's (or team's) lead staff person that would engage in this
9-12 month comprehensive planning process with GMHF and its consultant team.
7. Staffing Needs:
If you were to expand your staff capacity to better assist in planning and implementing development, what
position(s) would be most timely and critical for your community?
GREATER MINNESOTA HOUSING FUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
8. Previous Planning Assistance Obtained:
List any consulting Erms that have previously worked with your community on planning or housing issues. (Note:
Selected communities must be willing to work with G:MHF staff and its consultant team on the planning phase of
the project. Other consultants may be engaged as needed.)
9. Local Growth Trends:
\Xlhat are the most dramatic trends driving growth in your community? Please describe the key factors (e.g.,
population, demographics, housing, employment, etc.) and how you believe participation in this program could
help you plan for and manage them more effectively.
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
10. Opportunities Ahead:
State your conununity's three largest opportunities (i.e. related to housing, business community, government,
infrastructure, transportation, etc.) associated with growth. Provide a brief description of the key issues, urgency
of addressing them, political challenges/ environment, fmancial/ cost concerns, and how taking advantage of them
could positively affect qualify of life in the community.
a.
b.
c,
11. Challenges Facing Your Community:
State your community's three largest challenges related to growth. Provide a brief description of the key issues,
urgency of addressing them, political challenges/ environment, financial/cost concerns, and how not addressing
them could negatively affect qualify of life in the community.
a.
b.
c.
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
12. Affordable Housing Issues:
List current funding sources, policies and regulatory tools used in your community to promote the development
of affordable housing,
13. Potential Mfordable Housing Policies and Tools:
Is the community interested in using any of the following tools to promote affordable housing development?
Yes No Need more
information
Inclusionary Housing 0 0 0
Community Land Trusts 0 0 0
Density Bonuses 0 0 0
Planned Unit Developments 0 0 0
Tax Increment Financing 0 0 0
Subdivision Covenants 0 0 0
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
I. Demographic Information
Note: Please attach additional page(s) with demographic information for each community if it is a
multi-jurisdictional application.
POPULATION 1990 2000 Estimate for 2010
GROWTH
City
County
HOUSEHOLD
GROWTH
City
County
JOB GROWTH
City
County
HOUSING INFORMATION City County
2003 Home Starts
2003 # of Existing Home Sales
2003 Median Sales Price (existing homes)
2003 Median Sales Price (new homes)
Total Number of housing rental units
Current rental vacancy rate
GREATER MINNESOTA HOUSING FUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
II. LOCAL / REGIONAL EMPLOYER BASE
Please list the largest employers in the community, number of full-time employees at each and the
average wage of its typical worker (excluding management positions).
NAME OF EMPLOYER Numbcr of Full-timc Average \Vagc pcr
Emplo)ccs Hour
1. $
2. $
3. $
4. $
IV. OTHER
Bricfly dcscribc any current growth conditions that may not be reflected in the data above (e.g. new,
large employers, ).
v. Authorization of Pre-application Submittal
To Be Signed by City or County Administrator
Signature: I Date:
Name:
Tide:
Phone number: I Fax number:
Email:
GREATER MINNESOTA HOUSING FUND
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GREATER MINNESOTA HOUSING FUND'S
GROWTH CORRIDOR INITIATIVE
Attachment II
Model Project Technical Assistance
(Building Better Neighborhoods Program Guidelines)
PROGRAM GOALS
. Create vital, well-planned neighborhoods
. Encourage mixed-income developments by providing a range of housing types
. Encourage a mix of compatible uses including community facilities, recreational space, retail
and others
. Minimize subsidies needed to create affordable homes
. Reduce development costs through the most efficient use of land
. Reduce home construction costs
. Work with local public officials to reduce regulatory barriers to affordable housing
. Work collaboratively with communities to meet their housing needs
ELIGIBLE APPLICANTS
Non-profit developers, for-profit developers, and local government agencies
TYPES OF ASSISTANCE AVAILABLE
Greater Minnesota Housing Fund awards a technical assistance grant to qualified projects to
cover the costs of professional services related to:
. site selection and site design
. public infrastructure planning
. home designs
. working with local public officials to reduce regulatory barriers to affordable housing
The assistance is provided by GMHF staff and GMHF contract architects,
MINIMUM REQUIREMENTS
When applying for technical assistance funding, it is helpful for the applicant and the city in
which the development is proposed to understand the minimum requirements for full project
funding. Applicants for technical assistance should be interested in pursuing cost-reduction
strategies, such as modest-sized lots and narrower street widths, and in implementing one or
more value-added strategies, such as basic neighborhood landscaping and more traditional
home designs, Applicants will be asked to sign a Techni",/ Assistance Agreement before technical
assistance funding is committed to a project, Please refer to the following pages for the
requirements of the model project program,
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MINIMUM REQUIREMENTS
1) NEIGHBORHOOD DESIGN
a) Site
i) Proposed neighborhood shall be located near or adjacent to existing
infrastructure, connected to city sewer and water, and be within a reasonable
distance to neighborhood amenities, e.g. schools, parks, libraries and retail.
ii) Site design shall preserve and enhance existing natural amenities and should
integrate the new neighborhood development with the surrounding area.
b) Lot Sizes
i) The lot frontage for Building Better Neighborhoods lots shall be within the
range of 40,65 feet. Market-rate lots can be larger.
c) Streets
i) The streets in the neighborhood shall be within the range of 18-34 feet.
ii) The street layout shall make efficient connections with the surrounding area and
be efficiently designed.
d) Homes
i) Homes shall have a minimum of 2 bedrooms. Additional finished bedrooms and
batbrooms are encouraged to attract families with children.
ii) Homes shall have attractive facades and home plans should have direct
connections to the front and rear yard.
iii) Home designs shall minimize the impact of the garage on the streetscape
(setback from the front of home or where feasible utilizing service alleys at the
rear of homes).
e) Landscape Systems
i) Boulevard trees and individual lot landscaping shall be provided for in the
development package.
2) PROJECT
a) In order for the project to be eligible for full funding (i.e. interim fmancing and/ or gap
assistance to homebuyers), the Local Government shall participate fmancially, providing
3,5% of the total development costs through tax increment fmancing or financial
equivalent.
b) Community shall have a demonstrated need for affordable starter homes,
documented through a recent market study or housing needs assessment.
c) Developer shall utilize volume building to maximize economies of scale (construct
a minimum of 5 homes per year).
d) Homebuyers receiving GMHF gap fmancing must have household incomes equal
to or less than 80% of the statewide median income and must be families with
children. However, mixed-income neighborhoods are strongly encouraged and a
wide range of other financing resources are available to help households with
different income levels and family types.
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e) Homes must be connected to city sewer and water.
I) Homebuyer Acquisition Cost Limit (ACL) is not to exceed the GMHF ACL.
The ACL is revised annually.
2004 Income Limits
(80% of Statewide Median)
ADJUSTED FOR FAMILY SIZE
F amilv Size GMHF Income Limits
1 $37,000
2 $42,200
3 $47,500
4 $52,800
5 $57,000
6 $61,200
7 $65,500
8 $69,700
Funding sources such as tax increment financing, HRA levy and/or funding from the
Minnesota Housing Finance Agency will allow for a broader range of incomes to be served.
Market rate homes will be priced according to the market demand. Please refer to other
funders' guidelines for other income requirements.
Additional Model Project Priorities
In addition to meeting the minimum requirements, projects will be given additional
consideration if their final application evidences that one or more of the following will
be a part of the development. This list is for reference purposes only and does not
constitute an agreement or obligation on the part of the Greater Minnesota Housing
Fund to provide funding to any particular project.
. Employer involvement through fmancial contributions;
. Reduced fees for developer, realtor, and/or tide company;
. Reasonably priced site based on comparable land sales in the area;
. Mixed-income development, providing a range of housing styles and lot widths;
Use of innovative building techniques that reduce costs or improve livability;
Inclusion of neighborhood public space to promote resident interactions.
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