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Home My WebLink AboutVIII-15 Supporting Housing and Local Decision-Making Authority City Council Memorandum To: Mayor Fasbender and City Council From: John Hinzman, Community Development Director Date: February 22, 2022 Item: Resolution: Support of Housing and Local Decision Making Authority Council Action Requested: Adopt the attached resolution supporting housing and local decision making authority. The resolution is based on a draft authored by the League of Minnesota Cities. A simple majority is necessary for action. Background Information: The resolution is in response to the proposed “Legalize Affordable Housing Act” HF 3256 which was recently introduced and referred to the State Government Committee (Local Government Division). The bill would have significant impact on our local land use authority. In general the bill would codify certain land use densities within our comprehensive plan and remove local land use authority by establishing areas of significantly higher residential housing densities across the City. The bill would: - Mandates upzoning in cities across the state - Establish a minimum 8 dwelling units per acre density for unsubdivided land - Eliminate planned and staged development within the metro area - Removed long-standing and important and accountable city planning authorities, effectively privatizing planning functions. - Codify the Comprehensive Plan giving Metropolitan Council significant authority over local land use authority. - Change the purpose of the comprehensive plan from an aspirational document to a regulatory document. The League of Minnesota Cities have mobilized to oppose the Bill and Attachments: • Resolution • Powerpoint - League of MN Cities and Metro Cities VIII-15 CITY OF HASTINGS STATE OF MINNESOTA RESOLUTION ______ A RESOLUTION SUPPORTING HOUSING AND LOCAL DECISION-MAKING AUTHORITY Council member ___________________________ introduced the following Resolution and moved its adoption: WHEREAS, local elected decision-makers are in the best position to determine the health, safety, and welfare regulations that best serve the unique needs of their constituents; and WHEREAS, zoning regulation is an important planning tool that benefits communities economically and socially, improves health and wellness, and helps conserve the environment; and WHEREAS, local zoning regulation allows communities to plan for the use of land transparently, involving residents through public engagement; and WHEREAS, cities across the state are keenly aware of the distinct housing challenges facing their communities and they target those local housing challenges with available tools; and WHEREAS, multiple bills restricting local decision-making related to housing have been introduced in the 2021-2022 biennium. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HASTINGS that this Council supports local decision-making authority and opposes legislation that restricts the ability for local elected officials to respond to the needs of their communities. LET IT ALSO BE RESOLVED that this Council supports housing policy that advances solutions to support full housing spectrum solutions, local innovation, incentives instead of mandates, and community-specific solutions throughout Minnesota. Council member ______________________ moved a second to this resolution and upon being put to a vote it was adopted by the Council Members present. VIII-15 Adopted by the Hastings City Council on February 22, 2022, by the following vote: Ayes: Nays: Absent: ATTEST: __________________________ Mary Fasbender, Mayor ________________________________ Kelly Murtaugh, City Clerk (City Seal) I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 22nd day of February, 2022, as disclosed by the records of the City of Hastings on file and of record in the office. ________________________________ Kelly Murtaugh, City Clerk (SEAL) This instrument drafted by: City of Hastings (JH) 101 4th St. E. Hastings, MN 55033 VIII-15 2022 Housing Bills February 16, 2022 Charlie Vander Aarde –Metro Cities Irene Kao –League of Minnesota Cities 1 VIII-15 91 member cities Represents the collective interests of cities across the seven-county metro region at legislature, executive branch and Metropolitan Council Represents shared interests of metropolitan cities at Metropolitan Council across scope of Council functions Policies are developed by our members and guide our work in St. Paul VIII-15 837 members (of 854 Minnesota cities) Mission: The League of Minnesota Cities promotes excellence in local government through effective advocacy, expert analysis, and trusted guidance for all Minnesota cities VIII-15 Housing Discussions at the Capitol Single Family Home/Duplex-focused bill from Rep. Steve Elkins Tenant Protection policy and rental assistance $$ bills New construction $$ bills Housing preservation $$ bills Comprehensive Housing bill –city supported legislation VIII-15 Housing Policy Should… 1.Address the full spectrum of housing from preservation of naturally occurring affordable housing on up to market rate 2.Support the local innovation that cities are deploying to address needs and promote development 3.Provide incentives to cities that allows for local efforts that meet diverse local needs 4.Provide community-specific solutions throughout Minnesota that are sensitive to the different housing needs across cities Housing Needs in Cities: State Policy Solutions That Work VIII-15 Zoning Reform Bill Named the “Legalize Affordable Housing Act” •Previewed in August, first introduced last week HF 3256 –Rep. Steve Elkins (DFL-Bloomington), Rep. Mike Howard (DFL-Richfield) •Referred to State Government committee (Local Gov division) Senate companion will be introduced by Sen. Rich Draheim (R-Howard Lake), who chairs the Senate Housing committee VIII-15 Rep. Elkins Zoning Reform Bill Metro Cities, League of Minnesota Cities, Municipal Legislative Commission, Coalition of Greater MN Cities & MN Association of Small Cities oppose this bill. •Mandates upzoning in cities across the state. •Establishes minimum 8u/acre density for unsubdivided land. •Eliminates planned and staged development in metro area. •Removes long-standing and important and accountable city planning authorities, effectively privatizing planning functions VIII-15 Rep. Elkins Zoning Reform Bill Article 1 –Street Impact Fees •Differs from city-supported language for infrastructure accountability in SF 277 (Pratt) / HF 527 (Masin) Article 2 –Street Improvement Districts •Long-standing LMC, Metro Cities-supported language in SF 1998 (Johnson Stewart) / HF 1565 (Elkins) VIII-15 Rep. Elkins Zoning Reform Bill Article 3 –Planning and Zoning Reforms Preempts interim ordinances A housing proposal that is consistent with the comprehensive plan on the date of submission and is submitted or pending before the adoption of an interim ordinance is exempt from the regulations, restrictions, or prohibitions in the interim ordinance. VIII-15 Rep. Elkins Zoning Reform Bill Article 3 –Planning and Zoning Reforms Municipal Planning Consistency (M.S. 462.357) Official Controls: Subdivision Regulation; Dedication: (M.S. 462.358) Comp Plans for Local Governments (M.S. 473.858) Adoption; Conflicts, Amendment of Controls, Devices (M.S. 473.865) Regulations, fiscal devices or official controls do not conflict with a land use plan if they permit all uses that are permitted or required in the land use plan at densities permitted or required by the plan, and they prohibit all uses expressly prohibited by the plan. (allows an exception for C/I uses) VIII-15 Rep. Elkins Zoning Reform Bill Article 3 –Planning and Zoning Reforms Affordable Housing Goals (M.S. 473.254) Requires that only parcels that are consistent with and promote the policies of the Metropolitan Development Guide and are zoned for multifamily housing at the guided level of density may qualify toward a municipality's affordable and life- cycle housing goals. VIII-15 Rep. Elkins Zoning Reform Bill Article 4 –Limiting Regulations on Residential Development Mandated Statewide Upzoning (M.S. 462.357) Duplexes or ADUs allowed on all parcels currently zoned for single family housing VIII-15 Rep. Elkins Zoning Reform Bill Article 4 –Limiting Regulations on Residential Development PUD Restrictions (M.S. 462.3575) A city can’t require a PUD if the proposed residential development complies with existing city zoning ordinances or subdivision regulations, or qualifies as a conditional use. Establishes limitations on requiring specific materials for aesthetic reasons. A city can not require more than a one-car garage. No minimum sq footage for a residential building or accessory structure to a residential building. VIII-15 Rep. Elkins Zoning Reform Bill Article 4 –Limiting Regulations on Residential Development Industrial & Modular Buildings Allowed (M.S. 462.357) Prohibits city regulations against industrialized/modular buildings for residential use built in conformance with Minnesota Rules, chapter 1361 VIII-15 Rep. Elkins Zoning Reform Bill Article 5 –Municipal Dedication Fees •Municipal Dedication Fees (M.S. 462.357) •The park fee is capped at 10% of the fair market value of the development. Allows land and/or cash to count toward park ded fee. Not-buildable land may be dedicated but is not included in 10% cap. Land for regional trails is included. •Requires cities to cap land for transpo at MnDOT MSAS admin rules. Prohibits city collecting land wider than 32’ that is not a collector or arterial street. Requires city to use guidance from nat'l traffic engineering orgs for non-collector, non-arterial streets. •Sidewalks included. VIII-15 Rep. Elkins Zoning Reform Bill Article 6 –Metro Area Density Metro Area Density (M.S. 473.859) Zoning for unsubdivided land for residential use, including areas identified as land that may come within the urban service area for residential development and that is not connected to the metropolitan disposal system, must provide for a density of residential development of no less than 8u/acre or no more than 1u/10 acres for long-term rural land. VIII-15 Rep. Elkins Zoning Reform Bill Article 7 –Sewer Availability Charge Sewer Availability Charge (SAC) (M.S. 473.517) Development in unsewered areas is assessed at actual density, but no less than four SAC units per acre. VIII-15 Rep. Elkins Zoning Reform Bill Article 8 –Building Permit Deadlines 60 Day Rule (M.S. 15.99 and M.S. 473.865) A building permit application must be processed in accordance with M.S. 15.99 VIII-15 Rep. Elkins Zoning Reform Bill Article 9 –Building Permit Fees Building Permit Fees (M.S. 326B.153) The commissioner shall establish a cost per square foot valuation of new and additions to one-and two-family, townhouse, and accessory utility buildings. Cities would be allowed to set their own building permit fees. VIII-15 Rep. Elkins Zoning Reform Bill Article 10 –Energy Cost Disclosure Requirement Seller would be required to disclose cost of the usage of electricity, natural gas, and water over the last 12 months VIII-15 Rep. Elkins Zoning Reform Bill Article 11 –Construction and Development Fee Report Increase threshold for full reporting of municipal fee and expense report from currently $5,000 to $7,000 However, currently required to send in report attesting to collecting less than $5,000 Article 12 –Oak Grove and Nowthen Land Use Exception Repealed VIII-15 City Responses Preserve Local Decision-Making Authority Maintain Local Roles in planning, land use, zoning Support actual policies and programs that address housing affordability and homeownership LMC bill VIII-15 Comprehensive Housing Spectrum Act –city supported Provisions include: •Assisting cities in addressing the market-based challenges to new construction, which include the rising cost of land, labor, and lumber •Resources and policy solutions to preserve existing naturally occurring affordable housing (NOAH) in communities •New Housing Cost Reduction Incentive Program to award cities state grant funding when waiving fees or adopting inclusionary housing policies to support affordable single-or multi-family construction •Additional authorization of Housing Infrastructure Bonds to support qualified single-and multi-family affordable construction and rehabilitation efforts •Additional funding for existing programs –Challenge Fund Grant and Local Housing Trust Fund matching grants, and new programs -grant for preservation and rehabilitation of NOAH units •Broader flexibility to use tax increment financing for qualified housing projects and transfer certain increment to a Local Housing Trust Fund •State resources to assist cities with cost of public infrastructure necessary for residential development •Addressing negative impact of corporate investor purchases of single-family, owner-occupied homes that are often transitioned into rental units, which greatly diminishes homeownership opportunities VIII-15 What Can Cities Do? Your city can adopt a model resolution on housing and development: VIII-15 Follow Along This Session @MetroCitiesMN and Metro Cities News weekly newsletters VIII-15 Follow Along This Session @MinnesotaCities #lmcleg LMC Cities Bulletin weekly newsletters VIII-15 Questions? Charlie Vander Aarde Metro Cities charlie@metrocitiesmn.org 651-215-4001 Irene Kao League of Minnesota Cities ikao@lmc.org 651-281-1260 VIII-15