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METRO TV, UH, 30 SECONDS.[Call to Order]
OK, WELCOME TO THE, UH MARCH 21ST MEETING OF THE AD HOC COMMITTEE ON LAND USE. THIS IS A SPECIAL MEETING. UM IT IS 1:05 P.M. CHERYL, CAN YOU READ THE NOTICE FOR US? THIS MEETING HAS BEEN HELD TO KRS 61.826 AND COUNTS 58 R FOUR. I'M CHAIR ANDREW OWEN AND I'M JOINED ONLINE BY COUNCILWOMAN SHAMIKA. WRIGHT PERES, UH, COUNCILMAN KHALIL BEAN, WHO THE RUMOR WAS THAT HE WAS KICKING BACK IN HIS RESTAURANT, DRINKING BEERS AND WATCHING NCAA BASKETBALL GAMES DURING THIS MEETING, BUT LOOK AT IT. HE IS HE IS DIALED IN. UM I JOINED ONLINE BY UH, COUNCILMAN SCOTT REED AND JOINED IN CHAMBERS BY COUNCILWOMAN. ON A PURPOSE. UH, NO BEERS HERE TODAY , ANDREW. NO BEERS HERE. WELL, I HATE TO HEAR THAT, KHALIL. I HATE TO HEAR THAT. YES. UH OH.SORRY THERE'S WE'RE ALSO JOINED BY COUNCILMAN DAN SYME. UM. COUNCILMAN TONY P. ARGENTI HAS
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AN EXCUSED ABSENCE AND WE'RE NOW ALSO JOINED BY COUNCILWOMAN JENNIFER CHAPPLE. AND CINDY CROWLEY. PEOPLE ARE ALL COMING IN AT ONCE, UM, A COUPLE OF THINGS BEFORE WE GET STARTED, UM WE DISCUSSED MIDDLE HOUSING, UH, AT LENGTH AND SINCE OUR LAST MEETING THAT LED THE DRAFT LEGISLATION HAS BEEN RELEASED. UM I, I WANNA MAKE SURE THAT EVERYBODY ON THIS THAT'S A MEMBER OF THIS COMMITTEE GETS A COPY OF THAT SENT TO THEM AND IF WE CAN ALSO KIND OF PROVIDE IN THAT EMAIL KIND OF A, UH, A LIST OF DATES OF KIND OF PROCESSES, IT HAS TO BE IN FRONT OF THE PUBLIC FOR SO LONG AND THAT SORT OF THING. WHAT I'D LIKE OUR COMMITTEE TO DO IS TO HELP SHEPHERD THAT LEGISLATION ALONG. I'M HOPING THAT THAT IS SOME LOW HANGING FRUIT THAT WE'RE ABLE TO MOVE ALONG. AND HOPEFULLY GET, UM GET PASSED INTO, UH, MAKE THE CHANGE BASICALLY PASSED INTO LAW SOMETIME SOONER THAN LATER. SO WANTED TO FOLLOW UP ON THAT, UH, ON A LESS POSITIVE, UH, NOTE. I ALSO WANTED TO MENTION THAT YESTERDAY AFTERNOON THERE WAS AN AMENDMENT PROPOSED IN THE STATE LEGISLATURE THAT WOULD BASICALLY CREATE A MORATORIUM FOR ANY LOCAL GOVERNMENTS LIKE OURS TO DO ANY AMENDMENTS TO, UM TO THE LAND DEVELOPMENT CODE. UH, I CERTAINLY HOPE THAT THAT AMENDMENT WASN'T ADDED, BECAUSE OF OUR COMMITTEE, BUT I'LL I'VE SAID IT BEFORE ON THIS. CHAMBER FLOOR AND I'LL SAY IT AGAIN IF LOCAL LAND USE ISSUES ARE NOT LOCAL. UH AND ARE NOT DECISIONS THAT SHOULD BE MADE AT THE LOCAL LEVEL AND WHY THE STATE HAS ANY PREROGATIVE TO DETERMINE HOW WE DEAL WITH THOSE ISSUES. I I DON'T KNOW WHAT IS SO WE'LL KEEP A CLOSE EYE ON THAT. BUT JUST WANTED TO MENTION THAT AND MENTION HOW MUCH, UH, I THINK THAT THAT IS NOT A PROPER COURSE OF ACTION BY THE STATE LEGISLATURE. ALL RIGHT WITH THAT SAID, UM, WE HAVE A COUPLE OF GUESTS WITH US TODAY. UM, WE HAVE A SPECIAL PRESENTATION THAT BE GIVEN BY, UM MEG. MCMAHAN.WHO IS THE PLANNING DIRECTOR OF MINNEAPOLIS, MINNESOTA. UM THE REASON WE ASKED MEG TO COME IN IS IF YOU TALK TO PEOPLE IN THE PLANNING FIELD, WHAT CITY IS LEADING ON THE ISSUE OF LAND USE ZONING CHANGES, THANKS TO BE MORE PROGRESSIVE AND TRY TO UPDATE THE LAND DEVELOPMENT CODE . MOST PEOPLE WILL AGREE THAT MINNEAPOLIS IF NOT THE LEADING CITY ON THESE ISSUES, IS ONE OF THE LEADING CITIES. SO, MEG, UH, IF YOU WOULD TELL US WHAT'S GOING ON IN MINNEAPOLIS. AND
[Special Discussion]
WHAT SOME OF THE CHANGES THAT HAVE BEEN MADE AND WHAT BENEFITS YOU GUYS ARE SEEING. THAT WOULD BE VERY HELPFUL. THANK YOU. SURE THANK YOU VERY MUCH. IT'S UM A NEG. MCMAHON IN THE PLANNING DIRECTOR WITH THE CITY OF MINNEAPOLIS. CAN YOU ALL HEAR ME, OK? EXCELLENT. SO UM, EMILY ASKED THAT I JUST COME AND, UM, TALK WITH YOU A LITTLE BIT ABOUT SOME OF THE WORK THAT WE'RE DOING IN MINNEAPOLIS AND I'M HAPPY TO DO THAT. SO UM I THINK A LOT OF THE RE THE ZONING REFORM THAT MINNEAPOLIS HAS UNDERTAKEN OVER THE LAST FEW YEARS. REALLY I THINK BEGAN IN THE EARLY TWO THOUSANDS. ONE OF THE FIRST ACTIONS THAT WE TOOK WAS TO PROHIBIT SURFACE PARKING LOTS IN OUR DOWNTOWN AND THEN WE ADOPTED SOME LICENSING REGULATIONS THAT MADE IT REALLY DIFFICULT TO OWN AND OPERATE COMMERCIAL SERVICE PARKING LOTS IN DOWNTOWN, AND WHAT ENDED UP HAPPENING IS WE SAW MOST OF OUR SURFACE PARKING LOTS START TO REDEVELOP INTO HOUSING. UM, WE'VE HAD ONE OF THE BIGGEST DOWNTOWN HOUSING BOOMS OF ANY CITY. UM, IN TERMS OF, UM AH! THE RATE OF GROWTH. UM AND WE'VE INCREASED OUR POPULATION OF ABOUT 50 50,000 PEOPLE OVER THE LAST 15 YEARS, AND A LOT OF THAT HAS BEEN, UM, JUST BUILDING HOUSING. UH, WHERE WE USED TO PARK CARS. UM WE HAVE NEW NEIGHBORHOODS IN DOWNTOWN THAT HAVE SPROUTED UP. UM AND SO IT'S JUST BEEN A LOT OF ACTIVITY, AND IT'S REALLY EXCITING. UM PIECE OF THIS PUZZLE, AND I THINK HELPED KIND OF MAKE THE CASE FOR WHY, UH, LAND USE REFORM REALLY COULD HAVE AN IMPACT ON UM, THE AMOUNT OF HOUSING THAT WE COULD HAVE FOR FOLKS. UH, WE WERE ONE OF THE FIRST OR EARLIER ADOPTERS FOR, UM, ALLOWING ACCESSORY DWELLING UNITS, AND WE DID THAT IN 2014. UM AND THEN, YOU KNOW, STARTED OFF KIND OF TIGHT WITH SOME DEED RESTRICTIONS THAT YOU COULD HAVE AN AD U, BUT YOU HAD TO ONE OF THE UNITS HAD TO BE OWNER OCCUPIED. UM, AND THEN, UH, I THINK THAT WAS THE WAY TO SORT OF EASE IN TO SOME OF THESE REGULATIONS. AND THEN OVER TIME, WE'VE KIND OF LOOSENED THEM UP.[00:15:02]
AS WE'VE REALIZED. YOU KNOW YOU YOU CAN ALLOW THESE THINGS IN THE SKY DOESN'T FALL SO WE CAN MAYBE ALLOW A LITTLE BIT MORE. UM, BUT A LOT OF OUR ZONING REFORM WORK MOST OF IT. REALLY BEGAN AND TOOK PLACE THROUGH THE PROCESS OF OUR 2040 COMPREHENSIVE PLAN UPDATE. SO IN MINNESOTA IN OUR METRO AREA, CITIES ARE REQUIRED UNDER STATE LAW TO HAVE A COMPREHENSIVE PLAN . WE'RE REQUIRED TO UPDATE THOSE PLANS EVERY 10 YEARS, AND WE HAVE A REGIONAL PLANNING AUTHORITY CALLED THE METROPOLITAN COUNCIL THAT OVERSEES THAT PROCESS. AND SO AS PART OF OUR, UM JUSTIN S, UH, DECENNIAL, COMPREHENSIVE PLAN UPDATE, UH, WHICH BEGAN IN 2016, AND THEN UM, WAS FINALIZED AND THE PLAN WENT INTO EFFECT JANUARY 1ST 2020, THEN THAT'S A 20 YEAR PLAN TO 2040. SO WE CALL IT OUR 2040 PLAN. UM, WE REALLY PIVOTED PRETTY SIGNIFICANTLY FROM PAST LAND USE PRACTICES. WE DID AN ENORMOUS AMOUNT OF ENGAGEMENT. AND WE IDENTIFIED REALLY EARLY ON SOME KEY GOALS THAT WE'RE GOING TO BE THE, UM GUIDING LIGHTS OF THAT WORK, AND ONE OF THEM WAS THAT WE WOULD HAVE COMPLETE NEIGHBORHOODS. UM AND ANOTHER WAS THAT WE WOULD HAVE ACCESSIBLE AND AFFORDABLE HOUSING FOR ALL. UM, ONE THING THAT'S TRUE ABOUT MINNEAPOLIS IS IT'S ONE OF THE MOST SEGREGATED COMMUNITIES IN THE UNITED STATES. AND, UM THE WAY THAT OUR COMMUNITY LOOKS REALLY WAS SHAPED NOT BY ACCIDENT, BUT BY A COMBINATION OF FEDERAL POLICIES, LENDING PRACTICES, PRIVATE INVESTMENT AND TO SOME DEGREE ZONING. UM THAT REALLY SHAPED WHERE PEOPLE COULD LIVE AND COULD AFFORD TO LIVE. AND SO WE HAVE. UM VERY AFFLUENT WHITE NEIGHBORHOODS. AND WE HAVE, UM, LESS AFFLUENT IN NEIGHBORHOODS OF COLOR, AND IT'S PRETTY CLEAR AS YOU DRIVE AROUND. UM, WHICH IS WHICH AND ONE OF THE THINGS THAT WE, UM REALLY DECIDED EARLY ON IN THE PROCESS WAS THAT THAT EQUITY AND, UM ELIMINATING RACIAL DISPARITIES IN OUR COMMUNITIES WAS GONNA BE A FOUNDATIONAL GOAL OF OUR, UM LAND USE PRACTICES IN OUR 2040 PLAN, AND SO A LOT OF THE DECISIONS WE MADE WERE PREDICATED ON THAT AS A AS A BASIS. UM AND SO ONE OF THOSE THINGS WAS TO LOOK REALLY HARD AT OUR ZONING. AND REALIZED THAT ABOUT 84% OF OUR LAND AREA, UH, ONLY ALLOWED YOU TO BUILD ONE SINGLE FAMILY HOME. UM, AND THAT MEANT THAT IF YOU COULDN'T AFFORD TO BUY THAT SINGLE FAMILY HOME, YOU COULDN'T AFFORD TO LIVE IN THAT NEIGHBORHOOD. AND SO UM, WE DID ENORMOUS AMOUNT OF COMMUNITY ENGAGEMENT OVER ABOUT TWO YEAR PERIOD OF TIME. AND REALLY DISCOVERED THAT FOLKS WANTED TO HAVE MORE ACCESSIBLE HOUSING AND MORE OPPORTUNITY. UM AND SO, UM, WHAT THAT RESULTED IN WAS A LAND USE PLAN. THAT REALLY ALLOWED A LOT MORE DIFFERENT, UM, VARIETY OF HOUSING TYPES IN A LOT MORE PLACES. AND SO ONE OF THE BIG HEADLINES, UM, YOU KNOW, MINNEAPOLIS BEING THE FIRST CITY TO ELIMINATE SINGLE FAMILY ZONING, UM, WE STILL ALLOW SINGLE FAMILY HOMES TO BE BUILT, BUT, UM, IN IN ALL OF OUR NEIGHBORHOODS ANYWHERE, A SINGLE FAMILY HOME IS ALLOWED. YOU COULD BUILD A DUPLEX OR TRIPLEX, UM, ON LARGER LOTS THAT ARE, UM GREATER THAN UH, UM 10,000 SQUARE FEET IN SIZE, YOU CAN BUILD FOUR OR MORE UNITS OF HOUSING. AND THAT'S ALL SORT OF BASED ON FLOOR AREA RATIO REGULATIONS, UM, TO SHOW KIND OF THE LIKE THE BULK OF HOW THAT CAN BE DONE. UM WELL, WE ALSO DID, THOUGH, IS AND PEOPLE LIKE TO TALK ABOUT THE ELIMINATION OF SINGLE FAMILY ZONING. IT'S A FLASHY THING TO SAY, UM IN REALITY. IN THE FOUR YEARS SINCE THAT POLICY HAS BEEN PUT INTO PLACE. I THINK WE'VE CONSTRUCTED SOMETHING LIKE 37 TRIPLEXES IN THE CITY. UM, IT'S BEEN PRETTY PRETTY UNDERWHELMING. I THINK THE PROPONENTS AND OPPONENTS OF IT HAVE BEEN, I THINK UNDERWHELMED. UM AND I CAN GET INTO SOME OF THE DETAILS ABOUT WHY THAT IS, IF YOU'RE CURIOUS, UM, A LITTLE BIT LATER. BUT WHAT I THINK WAS MOST IMPACTFUL WAS WE REALLY ALLOWED A LOT MORE DENSITY? ON OUR, UM TRANSIT CORRIDORS AND A MAJOR ARTERIAL SO WE HAVE SOME, YOU KNOW, M MORE MAJOR ROADWAYS, B RT, UM, ROADWAYS THAT HAVE, UH, FREQUENT BUS SERVICE. UM, THAT PREVIOUSLY HAD BEEN ZONED SINGLE FAMILIES. YOU DRIVE DOWN THEM, AND YOU HAVE SORT OF THESE STATELY HOMES. UM, THAT RUN DOWN THESE CORRIDORS. UM AND I THINK REALLY IDENTIFIED THOSE AS AN OPPORTUNITY FOR ADDITIONAL INTENSIVE, UH, INTENSITY OF USE.AND SO, UM WE CREATED, UM WELL, SO FIRST WE SPLIT OUR ZONING INTO TWO. TWO TYPES, SO WE HAVE A BUILT FORM. UM AND WE HAVE 14 BUILT FORM DISTRICTS AND THEN WE HAVE, UM, LAND USE ZONING. KIND OF WHAT YOU WOULD THINK OF AS BASIC LAND. USE ZONING. UH AND THERE'S 12 OF THOSE, AND SO EVERY PERSON IN THE CITY IS ASSIGNED A BUILT FORM AND A LAND USE, UM, CATEGORY, SO WE CREATED
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A BUILT FORM CATEGORY. UM THAT ALLOWED FOR, UH, MID-SIZED MIDDENS. I'M GONNA APPLY THAT TO A LOT OF THOSE, UM, MATERIAL CORRIDORS, AND THAT'S WHERE WE'VE SEEN PROBABLY THE MOST.CONSTRUCTION OF HOUSING THOUSANDS OF NEW UNITS. AND LOTS THAT WERE PREVIOUSLY ZONED SINGLE FAMILY OR DUPLEX ONLY, UM AND WE'RE SEEING 12 UNITS AND 20 UNITS. AND UM I THINK IN ONE INSTANCE IN 86 UNIT APARTMENT BUILDING AND A LOT THAT WAS FORMERLY ONLY COULD YOU COULD ONLY HAVE A SINGLE FAMILY HOME ON SO UM, THAT HAS BEEN REALLY UM, REALLY IMPACTFUL. AS PART OF THAT WORK. WE ALSO, UM AND I. I WILL SAY, I THINK THE THING THAT WE DID THAT HAS ALLOWED THE MOST AMOUNT OF HOUSING TO BE BUILT. UM, WAS WE ELIMINATED MINIMUM PARKING REQUIREMENTS CITYWIDE.
UM SO WE NO LONGER REGULATE PARKING. NOW WITH THAT WE, UM, ADOPTED A TRANSPORTATION DEMAND MANAGEMENT PROGRAM. UM SO IT'S NOT LIKE, YOU KNOW, PROJECTS ARE STILL REVIEWED. UM, THEY HAVE TO SHOW HOW THEY'RE GONNA GET FOLKS TO AND FROM THEIR SITE, UM, UTILIZING, UH, NON UM, VEHICLE.
UH, MOBILITY, UM, WAYS. AND UM, THAT HAS BEEN ENORMOUSLY IMPACTFUL BECAUSE WHEN YOU'RE LOOKING AT INFILL DEVELOPMENT UM FITTING THE BUILDING AND THE PARKING ON THE LOT IS REALLY, REALLY DIFFICULT. UH AND THEN, OF COURSE, FINANCING THE PARKING . SO HERE IN MINNEAPOLIS. WE FIND THAT STRUCTURE. PARKING IS ABOUT $40,000 A STALL TO CONSTRUCT. AND SO WHEN YOU'RE LOOKING AT LIKE A 12 UNIT BUILDING UM, TO HAVE PARKING REQUIREMENTS THAT THEN HAVE TO BE BUILT INTO THAT BUILDING AND THEN AND THEN UNDERGROUND. UM, BECAUSE THERE ISN'T ROOM ON THE SITE IT JUST IT. IT MAKES THE PROJECT INFEASIBLE. AND SO WE'VE HAD PROJECTS THAT HAVE BEEN ABLE TO BE BUILT BOTH FROM A FINANCIAL PERSPECTIVE, BUT ALSO JUST A PHYSICAL PERSPECTIVE THAT THEY FIT. THEY FIT BETTER ON THAT SITE. UM SO THOSE ARE SOME OF THE I THINK MORE SIGNIFICANT.
UM CHANGES THAT WE'VE SEEN. UH, SINCE WE'VE ADOPTED OUR OUR, UM 2040 PLAN. IT'S TAKEN ABOUT THREE YEARS. REALLY UM FROM THE ADOPTION OF THE PLAN TO FULLY REWRITE THE ZONING CODE, UM WHICH I THINK ISN'T AN UNUSUAL AMOUNT OF TIME. I THINK THAT'S ABOUT RIGHT. UH, IT WAS A PRETTY SIGNIFICANT ENDEAVOR. UM, TO OVERHAUL THAT PLAN. WE DID IT IN TWO PIECES, SO WE DID. FIRST THE BUILT FORM REGULATIONS, UM AND THE AND THOSE WENT INTO EFFECT JANUARY OF 2021. UH AND THEN WE ADOPTED OUR LAND USE REGULATIONS AND THOSE WOULDN'T AFFECT JULY OF 2023. AND I THINK, UM ONE PIECE. OF WORK THAT WE'VE DONE HAS REALLY BEEN AROUND STREAMLINING OUR PROCESSES. AND MAKING IT REALLY CLEAR WHAT'S ALLOWED AND WHAT ISN'T SO WE HAVE MINIMUM HEIGHT AND MAXIMUM HEIGHTS AND THERE'S MINIMUM FLOOR AREA RATIOS AND MAXIMUM FOUR AREA RATIOS. WE HAVE MAXIMUM PARKING REQUIREMENTS. UM AND SO HAVING REALLY CLEAR RULES AND THEN STICKING TO THEM. MEANS THAT THERE'S MORE PREDICTABILITY FOR THE FOR THE DEVELOPERS, RIGHT? SO THEY KNOW COMING IN THE DOOR. IF WHAT THEY'RE GONNA PROPOSE IS GONNA BE SUPPORTABLE OR NOT. BUT THERE'S ALSO MORE PREDICTABILITY FOR THE NEIGHBORHOOD. IN OUR FORMER UNDER OUR FORMER PLAN. UM, IT WAS A LOT IT WAS A WE THOUGHT OF IT AS A NIMBLE PLAN. IT WAS FLEXIBLE. IT WAS TOO FLEXIBLE.
UM, DEVELOPERS COULD COME IN AND THEY COULD ARGUE FOR MUCH HIGHER. UM TALLER BUILDINGS. UH AND SO NEIGHBORS, I THINK FELT NEIGHBORHOOD ORGANIZATIONS FELT LIKE THEY WERE SORT OF. ALWAYS ON ON, UM HAD THAT KIND OF ALWAYS KEEP AN EYE ON THE CITY TO SEE WHAT WAS COMING THROUGH THE DOOR. UH AND NOW WE CAN TELL THEM YOU KNOW THAT WE CAN GUARANTEE THERE WILL BE NO BUILDINGS HIGHER THAN YOU KNOW, X NUMBER OF STORIES. UM AND I THINK THAT'S HELPED WITH OUR PUBLIC PROCESS. A LOT. UM A LOT OF THE HOUSING WE HAVE NOW IS JUST ALLOWED BY, RIGHT. THERE ISN'T A PROCESS THAT YOU HAVE TO GO THROUGH OTHER THAN A BUILDING PERMIT. MAYBE AN ADMINISTRATIVE SITE PLAN REVIEW. UM AND SO WE'VE WE'VE TRIED TO MAKE THAT EASIER AND IT SEEMS TO BE WORKING. WE'RE SEEING FEWER VARIANCES. UM THAT THAT ARE COMING THROUGH AND THAT ARE GETTING APPROVED. UH AND JUST MORE HOUSING. WE'VE HAD, UH, QUITE A BOOM OVER THE LAST UM FOUR YEARS OF DEVELOPMENT, AVERAGING ABOUT 3800 HOUSING UNITS A YEAR. UM WHICH IS I? I THINK ABOUT 2% OF OUR TOTAL HOUSING STOCK. SO I THINK THAT'S THAT'S FAIRLY, UM, FAIRLY GOOD RIGHT NOW. UM, THOUGH I WOULD EXPECT WE'LL SEE A DOWNTURN HERE STARTING THIS YEAR, JUST WITH THE ECONOMY. WE JUST ARE NOT HAVING THIS THE SAME NUMBER OF PROJECTS COMING IN THE DOOR. HEY MEG, THIS IS GREAT. THIS IS EXACTLY WHAT I WAS HOPING FOR. CAN YOU QUICK? I KNOW WE'RE GONNA HAVE SOME QUESTIONS BASED ON WHAT YOU'VE ALREADY SAID. CAN YOU TALK QUICKLY ABOUT SOME OF
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THE IMPACTS THAT THESE CHANGES HAVE HAVE, UM, MADE IN TERMS I, I THINK I MENTIONED LAST WEEK AT OUR MEETING THAT I READ AN ARTICLE THAT SAID THAT HOUSING COSTS STATE OF MINNESOTA HAD GONE UP BY 13% OVER A CERTAIN NUMBER OF YEARS IN THE HOUSING COSTS IN MINNEAPOLIS HAD STAYED BASICALLY STATIC. CAN YOU TALK ABOUT WHAT THESE CHANGES TO THE CODE HAVE MEANT IN TERMS OF ON THE GROUND? WHAT THINGS COST AND THAT SORT OF THING? SURE SO IT'S YOU KNOW, I THINK IT'S DIFFICULT TO TIE A PARTICULAR YOU KNOW, ZONING CODE CHANGE TO A, UM YOU KNOW A MARKET OUTCOME. UH AND I KNOW A LOT OF FOLKS ARE ARE TRYING TO DO THAT RIGHT NOW. I, I WILL SAY, UM, THAT THE DATA REALLY IS SHOWING THAT, UM MINNEAPOLIS IS PRODUCING MORE HOUSING UNITS. UM THAN ANYWHERE ELSE IN THE STATE AND ANY OTHER, UH, MIDWESTERN CITY. UH, AND OUR RENTS HAVE STAYED STEADY, UM AND RELATIVE TO OTHER RENTS GOING UP. SO THE DATA POINTS THAT YOU MENTIONED ARE CORRECT. SO MINNESOTA AS A WHOLE IS SEEING, I THINK ANYWHERE FROM 13 TO 20% INCREASES IN HOUSING COSTS.MINNEAPOLIS HAS HAD A, UH UNDER 2% INCREASE. UM AND SO WE'RE SEEING THAT THAT'S RELATIVE ALSO COMPARED TO OTHER MIDWESTERN OR SIMILARLY SITUATED CITIES, UM TO US. AND SO THAT'S HOW TO AND THIS IS HOW I SAY, YOU KNOW, MACROECONOMICS. WORKS RIGHT? THE REASON WE HAVE A HOUSING CRISIS IS BECAUSE WE HAVE A SUPPLY CRISIS. WE'RE NOT PRODUCING ENOUGH HOUSING TO MEET THE DEMANDS OF THE FOLKS WHO NEED HOUSING. AND SO WHEN YOU WHEN YOU ALLOW MORE HOUSING TO BE BUILT AT ALL INCOME LEVELS. BY THE WAY, I MEAN, WHEN WE TALK ABOUT MINNEAPOLIS SPRING BREAK, PEOPLE WANT TO FOCUS ON AFFORDABILITY, AND ABSOLUTELY THAT IS REALLY, REALLY CRITICALLY IMPORTANT. UM BUT NOT EVERY HOUSING UNIT THAT'S BUILT IS QUOTE UNQUOTE AFFORDABLE. UM IN FACT, MOST AREN'T RIGHT. BUT WHEN YOU HAVE A, UM A POLICY THAT WRAPS ALL TOGETHER. WE'VE GOT INCLUSIONARY ZONING. UM, THE CITY BUILDS ITS OWN AFFORDABLE HOUSING, RIGHT? WE CAN KIND OF LIFT ALL BOATS. UM AND SO, YES, MORE HOUSING SUPPLY PUTS A DOWNWARD PRESSURE ON RENTS.
THAT'S AND THAT WE'VE ABSOLUTELY SEEN THAT HERE. UM, I. I DEFINITELY HAVE MORE QUESTIONS, BUT DOES, UH, LET'S SEE. UM, I'M ACTUALLY UM, I'M GONNA LET SOME OTHER PEOPLE KIND OF COME IN, UH, COUNCILWOMAN RU. OK THANK YOU VERY MUCH. I'M EXCITED TO HAVE YOU HERE AND I WAS JUST DISCUSSING WITH MEMBERS OF OUR NEIGHBORHOOD ASSOCIATIONS ABOUT SOME OF THE PROPOSED CHANGES THAT WE'VE GOT HERE IN SOME OF THE CONCERNS THAT THEY'VE GOT, AND YOU SAID SOMETHING ABOUT HOW YOU DIDN'T HAVE THAT MUCH DENSITY CHANGE IN ESTABLISHED NEIGHBORHOODS, AND I UNDERSTAND THAT CORRECTLY. UM, CHAIR COUNCILOR BURT. THAT'S THAT'S CORRECT. SO I ALWAYS SAY. YOU KNOW, A PLAN DOESN'T PRODUCE A HOUSING UNIT. YOU KNOW, ZONING CODE DOESN'T PRODUCE THE HOUSING UNIT. WHAT IT DOES IS IT PRODUCES AN OPPORTUNITY. UM, FOR HOUSING. THERE STILL HAS TO BE A MARKET DEMAND AND THERE STILL HAS TO BE. IT STILL HAS TO BE FINANCIALLY FEASIBLE TO BUILD.
AND I THINK WHAT WE FOUND. IS THAT GETTING TRIPLEXES TO PENCIL OUT. I DON'T KNOW THAT DEVELOPERS HAVE FIGURED QUITE FIGURED THAT OUT YET. UM ONE OF THE PROVISIONS OF OUR CODE IS, UM WE ALL WE ALLOW THE DUPLEXES AND TRIPLEXES, BUT IT HAS TO BE WITHIN THE SAME BULK THAT'S ALLOWED FOR A SINGLE FAMILY HOME. UM SO IT'S 2500 SQUARE FEET. 0.5 FA R 2.5 STORIES. UM AND I THINK THAT'S THAT IT IT IS POSSIBLE TO DESIGN A TRIPLEX WITHIN THAT PARAMETERS. UM, BUT IT'S NOT EASY. AND SO THERE HAS NOT BEEN, UM YOU KNOW, A WIDESPREAD CONSTRUCTION OF THIS HOUSING TYPE YET I THINK WE'RE HOPING TO MOVE. REMOVE SOME BARRIERS AS WE GO ALONG. UM, BUT POLITICALLY RIGHT. IT'S STILL A TOUGH A TOUGH SELL. AND SO WE WANNA WE WANTED TO KEEP SOME UM, RAINS ON IT IN THE BEGINNING. UH AND I'M SURE WE'LL FLEX THOSE AS WE MOVE FORWARD. OKAY THANK YOU.
HAVE YOU HAD MANY, UH CURRENTLY EXISTING HOMES BEING SUBDIVIDED. THAT WAS A BIG CONCERN IN MY COMMUNITY HAD UH, CHAIR COUNCILOR. SO WE'VE SEEN UM, SOME WE PROBABLY RATHER MORE SO THAN THAN LIKE A DEMOLITION AND A RECONSTRUCTION OF A TRIPLEX IN THE PLACE OF A SINGLE FAMILY HOME, BUT WE'VE SEEN MORE OF HAVE BEEN UM, CONVERSIONS AND SO SOMEBODY MIGHT CONVERT THEIR BASEMENT OR THEIR ATTIC. UM WILL ALLOW AD US, SO THERE MIGHT BE A SECOND UNIT THAT'S BUILT IN THE BACKYARD. UM SO WE HAVE SEEN MAYBE A COUPLE DOZEN OF THOSE UM BUT THEY TEND TO BLEND IN A
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LITTLE BIT BETTER. YOU KNOW, FOLKS, DON'T MAYBE NOTICE THEM RIGHT BECAUSE IT'S HAPPENING INSIDE THE STRUCTURE. I, WE HAVEN'T SEEN IN TERMS OF SUBDIVISION OF LIKE TEARING DOWN A HOUSE AND SPLITTING THE LOT AND BUILDING TWO HOUSES. UM BUT THAT WE HAVE MINIMUM LOT SIZES.SO YEAH, NOT MOST LOTS IN THE CITY COULDN'T BE SUBDIVIDED. OK, THANK YOU. I'LL HOLD MY NEXT QUESTION. LET SOMEBODY ELSE GO. I DON'T IS ANYBODY ELSE IN THE QUEUE? I DON'T SEE ANYONE ELSE.
IN THE MEANTIME, UM I? I WAS I WAS GONNA ASK THAT IT'S NOT SO I JUST WANTED TO MAKE SURE I HEARD THIS CORRECTLY, BUT IT SOUNDED LIKE THE TWO THINGS THAT WERE KIND OF SUPERCHARGES TO GETTING MORE HOUSING BUILT WAS SOME CHANGE YOU MADE IN IN DOWNTOWN SURFACE PARKING LOTS. THAT AND IF YOU COULD GO BACK OVER THAT FOR ME, I'D APPRECIATE IT. WHATEVER THE CHANGE WAS THAT MADE THOSE SO MUCH MORE VALUABLE TO GO AHEAD AND DEVELOP RATHER AND JUST TO SIT AND STAY SURFING PARKING LOTS BUT THEN ALSO ALLOWING MORE HEIGHT AND MORE DENSITY ALONG THE TRANSPORTATION OF MAJOR ARTERIALS WERE THOSE THE TWO THINGS THAT KIND OF SUPERCHARGED YOUR HOUSING BOOM? I WOULD SAY SO. WE PROHIBITED SURFACE PARKING LOTS IN DOWNTOWN. AND THEN WE REQUIRE OWNERS OF COMMERCIAL SERVICE PARK WANTS TO HAVE A LICENSE. WE CHARGE A PRETTY HEFTY FEE FOR THAT LICENSE, THEN THEY HAVE TO HAVE A LIGHTING AND SECURITY AND SAFETY PLAN. UM SO IT'S NOT EASY TO OWN AND OPERATE A COMMERCIAL PARKING LOT IN DOWNTOWN, SO THAT WAS ONE. UM, THE OTHER WAS ALLOWING GREATER DENSITY ALONG OUR TRANSIT CORRIDORS NEAR TRANSIT. UM, IN A ALONG MAJOR.
ARTERIALS MAJOR ROADWAYS. AND THEN THE THIRD WAS THE ELIMINATION OF PARKING MINIMUMS. AND WHEN YOU SAY INCREASED DENSITY DID YOU ALSO REDUCE HIGH HEIGHT RESTRICTIONS ON THOSE T MAJOR TRANSIT CORRIDORS? OR IS IT JUST, UH, A DENSITY? UH, ISSUE? SO WE ACTUALLY DON'T WE? WE DON'T REGULATE BY DENSITY IN MINNEAPOLIS. UM SO I. I USE THAT TERM BECAUSE IT'S JUST A COMMON TERM. UM, BUT WE REGULATE USING FLOUR RATIO AND THEN WE HAVE MINIMUM AND MAXIMUM HEIGHTS IN ALL OF OUR DISTRICTS, ALL DISTRICTS EXCEPT FOR DOWNTOWN. THERE'S NO MAXIMUM HEIGHT. UM AND SO DEPENDING ON WHERE IT IS. UH, WE HAVE UM FOR DIFFERENT KIND OF CORRIDOR DESIGNATIONS FOR OUR BUILT FORM. UM THAT WILL HAVE YOU KNOW, ANYWHERE FROM MINIMUM HEIGHTS OF 2 TO 6 MINIMUM HEIGHTS OF IN IN IN SOME TRANSIT DISTRICTS. WE HAVE A TRANSIT 30, FOR EXAMPLE, THAT HAS A MINIMUM HEIGHT OF 10 AND A MAXIMUM HEIGHT OF 30. UM SO IT IT KIND OF WILL RANGE BETWEEN THOSE OK, COUNCILMAN SO THANK YOU, MR CHAIR. UM COUPLE OF QUESTIONS. DO YOU REPRESENT THE CITY OF MINNEAPOLIS OR JUST THE METROPOLITAN AREA? SO I'M THE PLANNING DIRECTOR FOR THE CITY.
OK? UM LOOKING AT THE MINNEAPOLIS MAP. IT LOOKED LIKE IT WAS, UM SORT OF LIKE DOWNTOWN. IT'S ALL UM WITHIN ITSELF. AND HERE IN LOUISVILLE. WE HAVE, UM, WE DO HAVE DOWNTOWN . BUT THEN WE HAVE, UM, OLD LOUISVILLE. THAT'S BEEN AROUND 100 PLUS YEARS AND THEN WHEN YOU GO PAST THE WATERSON EXPRESSWAY, YOU START TO GET IN A LITTLE URBAN AREAS. THEN YOU GET EVEN FURTHER OUT. IT GETS EVEN MORE URBAN. HOW DOES YOUR CALCULATIONS, UH, FACTOR INTO INFRASTRUCTURE NEEDS AND ALL THE THINGS IF WE IF WE LOOK UM, INCREASING THIS HOUSING AND HAVING TO SPREAD OUT TO, UH MORE OF THE AREA THAT WE HAVE THAT DOESN'T LOOK LIKE MINNEAPOLIS AREA. ARM CHAIR COUNCIL MEMBER. THAT'S I MEAN, THOSE ARE GOOD QUESTIONS. THEY'RE HARD TO JUST KIND OF, YOU KNOW, ANSWER IN A HYPOTHETICAL I THINK THE PLANNERS THAT YOU HAVE PROBABLY ARE ARE REALLY FAMILIAR WITH THE DIFFERENT POCKETS AND AREAS. MINNEAPOLIS IS A BIT UNIQUE, BECAUSE, UM THE CITY IS SMALL RELATIVE TO OUR METROPOLITAN AREA. WE ONLY COMPRISE ABOUT 14% OF THE TOTAL POPULATION OF OUR METRO AREA, AND SO, UM WE ARE FULLY DEVELOPED FULLY BUILT OUT CITY. UM THOUGH IT DOES. YOU KNOW, WE HAVE A DOWNTOWN. WE HAVE URBAN NEIGHBORHOODS AROUND THAT DOWNTOWN AND THEN WE HAVE MORE. I GUESS. WHAT? LOOK MAYBE MORE SUBURBAN NEIGHBORHOODS THAT SURROUND THAT AND THEN WITH POCKETS OF COMMERCIAL URBAN ACTIVITY KIND OF THROUGHOUT THAT , SO, UM, IN IN THAT WAY, I THINK WHAT WE FOUND IS BY SPLITTING THE ZONING CODE. SO I, I THINK I WAS LOOKING AT DENVER'S CODE THE OTHER DAY. DENVER IS 84. ZONING DISTRICTS
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AND, LIKE 15 DIFFERENT RESIDENTIAL DISTRICTS. UM WHAT WE WERE ABLE TO DO IS WE BY SPLITTING THEM? WE HAVE OUR BUILT FORM OVERLAYS AND THEN OUR LAND USE BASE, AND THEN THEY COMBINE. SO THE TOTAL NUMBER OF COMBINATIONS IS SOMETHING LIKE 87. BUT BECAUSE BECAUSE IT IT MAKES IT VERY FLEXIBLE RIGHT SO YOU CAN APPLY DIFFERENT LAND USE IN DIFFERENT BUILT FORM WHERE IT MAKES THE MOST SENSE. UM AND SO THAT'S ONE WAY THAT WE WERE ABLE TO ADDRESS ALL THE DIFFERENT KINDS OF PLACES WITHIN OUR CITY. SO THAT THAT IS ONE PATH. THERE'S PROBABLY OTHER WAYS TO TACKLE THAT PROBLEM. THANK YOU. UH, WE'LL TAKE ONE MORE, UH, VICE CHAIR, BATTON. YES THANK YOU, MEG FOR BEING HERE, UM THANKS. CHAIR UM, I'M A I AM AN AMI QUESTION. SO FOR YOUR AMI, HOW DO YOU CALCULATE THE AMI? IS IT A UNIFORM? IS IT UNIFORM FOR THE CITY? IS IT TO BE USED IN A IN A IN OTHER ADJACENT AREAS? UM, CHAIR COUNCIL MEMBER. SO AMI IS A LITTLE SLIPPERY BECAUSE, UM WE HAVE PROBABLY 14 DIFFERENT DEFINITIONS OF AMI IN OUR STATE STATUTES IN DIFFERENT PLACES.UM, DEPENDING ON WHAT PROGRAM YOU'RE USING. AND WHAT NOT UM, I THINK THE GENERAL RULE OF THUMB IS WE WOULD USE HS DEFINITION OF AMI, WHICH IS ASSIGNED TO EVERY, UM METROPOLITAN OR, UM, UH, COUNTY. UH ANNUALLY AND SO. WHEN WE'RE USING AFFORDABILITY. UM PARTICULARLY WITH FEDERALLY FUNDED PROGRAMS. THAT'S THE NUMBER WE'LL USE. UH, BUT WHEN WE TALK ABOUT MISSING MIDDLE HOUSING, I GUESS I PROBABLY SHOULD HAVE CLARIFIED THAT AT THE BEGINNING. UM, WHEN WE DEFINE MISSING MIDDLE WITHIN OUR REGULATIONS WERE REALLY TALKING ABOUT A PRODUCT TYPE AND NOT, UM, A RENT. GOAL AND SO IT'S REALLY THAT KIND OF TWO UNITS UP TO YOU KNOW 49 UNITS, DEPENDING ON WHERE IT IS THAT THAT WE'RE TALKING ABOUT IS AAA TYPE OF PRODUCT THAT REALLY IS TOUGH FOR THE MARKET TO DELIVER AND ISN'T ACCOMMODATED BY MOST ZONING. OK, THANK YOU. AND THEN, IS THERE SOMETHING OTHER? I MEAN, SO I WOULD ASSUME EVERY OTHER THAN THE AMI FORMULA. YOU WOULD USE THE HUB FORMULA MORE THAN THE AMI SO DOES THAT DIFFERENTIATE BETWEEN THE INNER CITY OF MINNEAPOLIS TO THE SUBURB AREAS? IT DOESN'T SO AN A SO IN, UM MINNEAPOLIS R AMI THAT'S ASSIGNED BY HUD. IS FOR HENNEPIN COUNTY, WHICH IS THE COUNTY OF MINNEAPOLIS IS IN SO NOT ONLY DOES IT INCLUDE ALL PARTS OF THE CITY. UM, BUT ALSO OUR SUBURBAN COMMUNITIES. UM, THAT SURROUND MINNEAPOLIS AS WELL. UM AND SO I. I THINK TO GET TO YOUR POINT IT IT'S PROBLEMATIC, RIGHT? BECAUSE, UM IT AN AMI. FOR ONE PERSON LIVING IN ONE AREA IS GONNA BE REALLY DIFFERENT. UM THAN WHAT FEELS LIKE KIND OF AVERAGE, OR YOU KNOW, MEDIAN INCOME. IN ANOTHER NEIGHBORHOOD.
AND SO THAT'S THAT IS A COMMON CRITICISM THAT WE HEAR WHEN WE'RE BUILDING NEW, AFFORDABLE HOUSING IN IN PLACES OF HIGH NEED, UM, IS THAT OFTEN TIMES IT'S JUST NOT AFFORDABLE ENOUGH.
AND SO UM THE CITY REALLY HAS INVESTED HISTORIC DOLLARS IN FUNDING DEEPLY AFFORDABLE HOUSING IN IN PLACES WHERE IT'S NEEDED. UM, BECAUSE UH, EVEN EVEN OUR CURRENT TAX CREDIT SYSTEM IT DOES NOT PROVIDE. AFFORDABLE ENOUGH HOUSING. UM, FOR A LOT OF FOLKS. THANK YOU.
THANK YOU, MEG. SO MUCH FOR BEING WITH US. THAT WAS REALLY, REALLY HELPFUL. UM SURE, I MAY.
I STILL HAVE A BUNCH OF QUESTIONS ON MY LIST HERE, BUT I WILL REACH OUT, UH, THROUGH THROUGH THROUGH EMILY, UH, WITH THOSE QUESTIONS, AND WE CAN GET THOSE ANSWERED, SO I REALLY APPRECIATE YOU BEING WITH US. THANKS FOR HAVING ME. OUR OUR NEXT PRESENTATION IS GONNA BE, UH, DONE BY JOHN CENA, WHO IS THE PLANNING DIRECTOR OF MEMPHIS , TENNESSEE. UM HELLO, JOHN. CAN YOU HEAR US? YES, I CAN. GREAT UM SO, UM, IF YOU CAN, UH, KIND OF TELL US WHAT WHAT YOU GUYS HAVE BEEN WORKING ON IN MEMPHIS. UH FROM A LAND DEVELOPMENT CODE, UH, PERSPECTIVE AND WHAT HAS WORKED AND WHAT HASN'T. UH, YOU KNOW, THAT WOULD BE VERY HELPFUL. OK, THANK YOU. UM SO I'M I'M JOHN CENA AND I'M THE DIRECTOR OF THE PLANNING AND DEVELOPMENT DIVISION, NOT JUST
[00:40:03]
FOR THE CITY OF MEMPHIS, BUT, UH, CITY OF MEMPHIS AND SHELBY COUNTY. WE'RE WE'RE ACTUALLY A JOINT CITY AND COUNTY. AGENCY UM , IT'S MEMPHIS AND SHELBY COUNTY IS NOT A CONSOLIDATED GOVERNMENT . BUT PLANNING AND DEVELOPMENT IS A CONSOLIDATED AGENCY OF THE TWO GOVERNMENTS. SO OUR THE EXTENT OF OUR, UM UH, THE AREA THAT WE SERVE IS BOTH, UM, CITY OF MEMPHIS AS WELL AS THE UNINCORPORATED AREAS OF SHELBY COUNTY. UH, I'M HAPPY TO ANSWER ANY QUESTIONS LATER ABOUT. UM, YOU KNOW WHAT THAT AUTHORITY LOOKS LIKE, IF YOU'RE INTERESTED. UM SO SIMILAR TO WHAT? UH, MEG TALKED ABOUT, UM, A LOT OF THE EFFORTS THAT WE'VE TAKEN WITH RESPECT TO, UM CHANGES THAT HAVE BEEN MADE RELATIVE TO, UH UM HOUSING MISSING MIDDLE HOUSING. UH, IN PARTICULAR, UM, STARTED WITH OUR COMPREHENSIVE PLAN. UH, WE UH, STARTED A COMPREHENSIVE PLANNING PROCESS IN 2016 COMPREHENSIVE PLANNING IS NOT REQUIRED IN THE STATE OF TENNESSEE. UH, IT'S OPTIONAL. UM THE CITY OF MEMPHIS IS LAST COMPREHENSIVE PLAN WAS, UH, DATED TO 1981. SO IN 2016 IT HAD BEEN, YOU KNOW, OF COURSE, NEARLY 40 YEARS. UH, SINCE WE HAD, UH, PREPARED A PLAN AND UP TO THAT POINT, REALLY, THE CITY UM GROWTH, TRAJECTORY AND STRATEGY WAS TO INCENTIVIZE AND COURAGE. UM UM, OUTWARD EXPANSION OF THE CITY. UM AND THEN, UH, FOLLOW UP WITH, UH, ANNEXATION THAT GOT THE CITY TO A POINT OF GROWING TO ABOUT 350 SQUARE MILES ABOVE OUR POPULATION DENSITY HAD GOTTEN WELL UNDER 2000 PERSONS PER SQUARE MILE. UM AND IT HAD GOTTEN TO THE POINT AS WELL WHERE THE CITY REALLY WAS HAVING A HARD TIME SERVING, UM, NEWLY ANNEXED AREAS OF THE CITY, UH, WITH ONGOING SERVICE. SO THE CITY ACTUALLY, UM IN CONCERT WITH OUR COMPREHENSIVE PLAN, D ANNEXED 10% OF ITS LAND AREA, UH, IN ORDER TO, UH UH, ADDRESS THE FACT THAT THE ESSENTIALLY THE CITY HAD GROWN, UM, A LITTLE TOO LARGE. UM SO OUR COMPREHENSIVE PLAN THE FOCUS OF IT WAS, UH, HOW WE CAN UH, REFOCUS DEVELOPMENT BACK INTO THE CITY. UH, SINCE OUR STRATEGY REALLY HAD BEEN ABOUT FOCUSING DEVELOPMENT OUTWARD FOR SO LONG, UM, WE HAD LEFT A LOT OF PLACES WITHIN OUR CITY. UM UH, UNDERDEVELOPED OR VACATED, UH, AS A RESULT OF, UH, ESSENTIALLY ALLOWING, UH, PHYSICAL EXPANSION BASED ON VERY LITTLE POPULATION GROWTH. UH, PARTICULARLY OVER THE LAST 50 YEARS. UM AS A RESULT OF THAT STRATEGY. UM YOU KNOW, WE KNEW THAT WE HAD TO KIND OF FOCUS, UH, REDEVELOPMENT IN CERTAIN AREAS OF THE CITY, PARTICULARLY HAVING GROWN, UH, IS PHYSICALLY AS LARGE AS WE DID , UM, YOU KNOW WAS INFEASIBLE TO THINK ABOUT, YOU KNOW, A REDEVELOPMENT STRATEGY THAT ENCOMPASSED THE CITY IN ITS ENTIRETY. UH, WE NEEDED TO FOCUS ON WHERE WE COULD, UM, YOU KNOW, ANCHOR NEW DEVELOPMENT ACTIVITY.UH AND SO, WITHIN THAT STRATEGY, THE VALUE OF THINKING ABOUT, UM, UH, PROVIDING FOR MORE OF A HOUSING MIX. UM BECAME, UH, A MUCH OF OUR, UH, BECAME A MUCH GREATER DISCUSSION. UM, WITHIN OUR COMMUNITY, UH, THROUGH THE COMPREHENSIVE PLAN, AND PARTICULARLY, UH, HOW MISSING MIDDLE HOUSING TYPES, UH, HELPS TO STABILIZE AND SUPPORT. UM YOU KNOW, UH, DENSITY AND RETAIL ACTIVITIES WALK, TRANSIT ORIENTED DEVELOPMENT. UH, IN THOSE ANCHORS THAT WE I IS A PART OF THE COMPREHENSIVE PLAN. SO IN THINKING THROUGH THAT AND HOW WE ENABLE THAT THAT, UH, HOUSING MIX WE LOOKED AT A VARIETY OF DIFFERENT CONSTRAINTS THAT ARE PRESENT WITH RESPECT TO, UM YOU KNOW THE MARKET BUILDING MISSING MIDDLE HOUSING TYPES. ZONING WAS WAS ONE SUCH CONSTRAINT THAT WE LOOKED AT? UM BUT WE ALSO LOOK AT OTHER CONSTRAINTS SUCH AS, UH, CONSTRAINTS WITHIN THE BUILDING CODE, UH, WITHIN THE STATE'S TAX CODE, UH, AS WELL AS FUNDING AND FINANCING CONSTRAINTS, UH, THAT ARE COMMUNITY PHASED, UH, IN ORDER TO ENABLE THIS TYPE OF HOUSING TO BE BUILT IN THE AREAS THAT WE WANTED TO SEE IT. UM SO AFTER COMPLETING OUR COMPREHENSIVE PLAN, WHICH INCLUDED A NUMBER OF STRATEGIES AROUND THOSE PARTICULAR ELEMENTS . WE COMMISSIONED A HOUSING POLICY PLAN TO LOOK AT ALL OF THOSE AREAS. UH, THOSE THOSE, UH UH, AREAS OF STUDY IN MORE DEPTH. UM AND CAME OUT WITH A NUMBER OF STRATEGIES. BUT I'LL JUST SAY ON THE COLD SIDE UM YOU KNOW THE AREAS THAT MY DIVISION IS, IS MAINLY IN CHARGE OF, UM, IMPLEMENTING. WE DID SEVERAL THINGS INITIALLY, WITH RESPECT TO THE ZONING CODE NUMBER ONE ACCESSORY DWELLING UNITS. HA HAD ALWAYS BEEN ALLOWED, UH, IN OUR DEVELOPMENT CODE FOR LOTS OF
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10,000 SQUARE FEET OR GREATER, UM, BUT WHAT WE WERE FIND WAS WE ARE PROCESSING. UH, DOZENS OF APPLICATIONS FOR VARIANCES, UH, ON A REGULAR BASIS FOR LOTS THAT WERE, UH, SLIGHTLY SMALLER THAN 10,000 SQUARE FEET, UH, TO ALLOW FOR ACCESSORY DWELLING UNITS. SO WHAT WE DID WAS, UH, SIMPLY DROP THAT, UM UH, THAT MINIMUM LOT SIZE FROM 10,000 TO 7000 SQUARE FEET. WE'VE BEEN ABLE TO SEE, UM YOU KNOW, A CONTINUING, UH, AMOUNT OF ACCESSORY DWELLING UNITS BEING BUILT AS A RESULT OF THAT, AND THERE ARE VERY FEW VARIANTS. THAT WE ARE PROCESSING NOW, AS A RESULT, UH, FOR THOSE USES, WE ALSO REMOVED THE PARKING REQUIREMENT FOR ACCESSORY DWELLING UNITS, UH, FROM OUR CODE. WE REDUCED THE MINIMUM LOT SIZE FOR A SMALL SCALE. SINGLE FAMILY, UH, THE MINIMUM LOT SIZE HAD BEEN 6000 SQUARE FEET, UH, FOR SINGLE FAMILY AND THE MAJORITY OF DISTRICTS, UH, WITHIN OUR CITY. UM UH, FOR SINGLE FAMILY HOME TO BE BUILT, UH, WE DROP THAT DOWN TO 3000 SQUARE FEET AGAIN. WE WERE, UH, PROCESSING A LOT OF NOT ONLY VARIANCE APPLICATIONS, BUT PLAN DEVELOPMENT APPLICATIONS, UH, FOR SINGLE FAMILY HOMES ON LOTS OF, UH, OF 3,507,000. SQUARE FEET, UM, WITH NO OPPOSITION WHATSOEVER, AND SO IT WAS, IT SORT OF BECAME A NO BRAINER TO JUST, UH, SIMPLY MAKE THAT CODE CHANGE SO THAT WE COULD, UM, BE ABLE TO GET THAT THAT STYLE OF INFILL, UH, DONE, UH AT, UH, UH, QUICKER SPEED AND LOWER COST FOR DEVELOPERS. WE'VE ALSO, UM CHANGED OUR CODE TO ALLOW TOWNHOUSES AND WHAT WE CALL MULTIFAMILY LARGE HOMES, UH, WHICH ARE ESSENTIALLY SINGLE STRUCTURES OF 3 TO 6 UNITS TO BE BUILT IN DISTRICTS THAT ALLOW A TWO FAMILY STRUCTURE. UM FOR TOWNHOUSES. TH THOSE ARE ALLOWED IN MUCH MORE, UH, MUCH GREATER AREA OF, UH OF DISTRICTS THAT ARE ALLOWED TO FAMILY. THE MULTIFAMILY LARGE HOME, UH, ARE ON CORNER LOTS AND, UH AS WELL AS ON, UH N ER MATERIALS OR COLLECTORS THAT ARE IN OUR TWO DISTRICTS. WE ADOPTED A TRANSIT ORIENTED DEVELOPMENT. UH OVERLAY SIMILAR TO, UM UH WHAT, UH, MAG JUST SPOKE ABOUT IN TERMS OF SUPPORTING, UH, GREATER DENSITY FOR MULTIFAMILY ALONG TRANSIT.UM CORRIDORS ARE ARE TOD OVERLAY , UM, ALLOWS FOR MULTIFAMILY BY, RIGHT, UH, ON ALL OF OUR TRANSIT CORRIDORS, UH OF CERTAIN FREQUENCY. UM, AND THEN WE'VE ALSO, UM, UM, UH, ELIMINATED OR, UM, A MASSAGED OUR PARKING REQUIREMENTS. UH, FOR A NUMBER OF DIFFERENT USES, UM SO NOW ON STREET PARKING CAN BE COUNTED TOWARDS THE PARKING REQUIREMENT FOR, UH, 1 TO 6 FAMILY, UM, IN AREAS THAT ARE DEFINED AS MIXED USE, UH, WE'RE REMOVING THE PA PARKING REQUIREMENT THERE AS WELL. UH AND THEN, UH, MEG ALSO TALKED ABOUT HOW, UH, MINNEAPOLIS THEY TOOK. UH UH, SORT OF MULTIYEAR EFFORT, UH, TO COMPLETELY ADOPT THE THEIR CHANGES, UH, INTO THEIR CODE, SO THE CHANGES THAT I JUST SPOKE ABOUT ARE REALLY SOME INITIAL INCREMENTAL CHANGES THAT WE'VE MADE, AND WE HAD A LARGER CODE UPDATE, UH, PROCESS THAT WE EXPECT TO BEGIN LATER THIS YEAR, UH, TO LOOK AT A NUMBER OF OTHER AREAS AS WELL. UM THE SECOND AREA I WANTED TO TALK ABOUT IS THE BUILDING CODE CHANGES ONE OF THE THINGS THAT WE IDENTIFIED WITH RESPECT TO, UH UH, PRIMARILY THE 3 TO 6 UNIT BUILDINGS. IS ESSENTIALLY UH, THOSE BUILDINGS BEING REGULATED OUT OF THE COMMERCIAL BUILDING CODE AS OPPOSED TO THE RESIDENTIAL BUILDING CODE, UM, PROVIDED A LOT OF BARRIERS, UH, THAT THAT SIMPLY, UM MADE IT REALLY UNTENABLE FOR A LOT OF BUILDERS TO EVEN CONTEMPLATE BUILDING 3 TO 6 UNIT BUILDINGS. UM SOME OF THE MORE FREQUENT, UH, ISSUES THAT WERE CITED IN OUR CONVERSATIONS WITH BUILDERS, UM, WERE THE SPRINKLER REQUIREMENT ONCE YOU GO FROM TWO UNITS TO THREE UNITS, UM THE DIFFERENCES IN STAIR LOADING REQUIREMENTS. WHEN YOU GO FROM TWO UNITS TO THREE UNITS, UM AND THEN, UM, UM JUST I GUESS GENERALLY THE, UM LACK OF FAMILIARITY OF BUILDERS, WHO TYPICALLY BUILD ONE AND TWO UNITS OUT OF THE RESIDENTIAL CODE WITH PROVISIONS OF THE COMMERCIAL CODE. UM SO THERE'S SORT OF A COST. UH, UH, CONSIDERATION THAT PRESENTS A BAR. AS WELL AS, UH, I JUST FAMILIARITY WITH, UH, THE APPLICABLE CODE THAT PRESENTS. UM A, UH, AN ISSUE WITH THE TYPES OF BUILDERS WHO MIGHT BE MORE INCLINED TO BUILD 36 UNIT BUILDINGS. UM SO WHAT WE DID ACTUALLY, TWO YEARS AGO IN WORKING WITH OUR BUILDING OFFICIAL WHO'S A PART OF MY DIVISION WAS TO DRAFT A LOCAL AMENDMENT TO OUR BUILDING CODE, WHICH IN TENNESSEE, WE'RE ALLOWED TO DO, UM, THAT MOVES 3 TO 6 UNIT BUILDINGS FROM THE COMMERCIAL CODE TO THE
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RESIDENTIAL CODE. AND ADDRESS. UM UH, SOME OF THOSE MAJOR CONSIDERATIONS I TALKED ABOUT.UH UM, PRINCIPALLY WI WITH RELATED TO SPRINKLER. UM, WHAT WE DID WAS TO TRADE OUT THE SPRINKLER REQUIREMENT, UH, FOR STRUCTURES UNDER 5000 SQUARE FEET AND THREE STORIES FOR TWO HOUR, UH, FIRE RATED WALL SEPARATIONS BETWEEN, UH, ALL OF THE UNITS. UM RIGHT NOW, UM, YOU CAN, UM UM UH, THE FIRE RATED UNITS, UH, FIRE R. WALLS UH, WHEN YOU HAVE A SPRINKLER IS, UH, EITHER HALF, UH, HALF AN HOUR OR AN HOUR. UM UM, UH, DEPENDING ON THE TYPE OF SYSTEM, UM, AND SO GOING UP TO TWO HOURS, OBVIOUSLY IS A MUCH HIGHER STANDARD WITH RESPECT TO LIFE SAFETY, UM, IN TRADING OUT SPRINKLER REQUIREMENT. UM AFTER OUR LOCAL AMENDMENT WAS ADOPTED, UM, FIRST VETTED BOOK BY OUR, UH, BUILDING COUNCIL THAT WE HAVE, UH, THAT WORKS FOR OUR DIVISION. UH, AND THEN ADOPTED BY OUR CITY COUNCIL AND OUR COUNTY COMMISSION. WE GOT A CALL FROM THE TENNESSEE STATE FIRE MARSHAL A COUPLE MONTHS AFTER THAT, UM WITH, UH, CONCERNS ABOUT WHAT WE HAD DONE WITH OUR LOCAL AMENDMENT. UM AND SINCE THEN WE REALLY HAVE BEEN ENGAGED IN KIND OF A BACK AND FORTH WITH THE STATE FIRE MARSHAL TRYING TO COME TO TERMS. UH THAT WOULD WORK. UH, IN ORDER TO, UH, ALLOW FOR, UM, UM, YOU KNOW, SOME ADJUSTMENTS TO THE BUILDING CODE THAT COULD, UH INCENTIVIZE 3 TO 6 UNIT BUILDINGS TO BE BUILT, UH, IN OUR COMMUNITY, UM AS OF SEPTEMBER OF LAST YEAR. WE REALLY DID NOT GET TO A POINT WITH THE STATE FIRE MARSHAL THAT WE FELT LIKE, UM, WAS GOING TO MAKE A MATERIAL DIFFERENCE. AND SO, UM, WORKING WITH ACTUALLY, THE STATE HOME BUILDERS ASSOCIATION, A BILL WAS FILED IN THIS YEAR'S, UH, SESSION OF THE TENNESSEE GENERAL ASSEMBLY. UH, THAT, UH, WOULD INITIALLY WOULD HAVE ALLOWED LOCAL GOVERNMENTS TO MOVE? UH UH, THREE AND FOUR FAMILY BUILDINGS, UH, TO THE RESIDENTIAL CODE, AND THEN, UM, UM, WOULD NOT REQUIRE SPRINKLER WEAR TWO OUT OF FIVE SEPARATION IS, UM, UH, PROVIDED, UM THROUGH SOME, YOU KNOW NEGOTIATIONS, INCLUDING WITH THE STATE FIRE MARSHAL SINCE THE BILL HAS BEEN FILED, THAT BILL IS NOW DOWN TO, UM JUST, UH, THE SPRINKLER, UH, ISSUE. AND THE STATE FARM MARSHAL HAS GOTTEN COMFORTABLE WITH, UM SPRINKLER COMING OUT OF THREE AND FOUR FAMILY BUILDINGS.
AS LONG AS THE TWO HOUR SEPARATION IS MET, UH, IN THE SIZE OF THE BUILDING IS LIMITED TO 5000 SQUARE FEET. UM SO TBD ON WHETHER OR NOT THAT BILL GETS PASSED AT THE STATE LEVEL. UM BUT, UH, WE'RE HOPING THAT IT DOES, AND THAT IT ALLOWS FOR, UH UH, PARTICULARLY HOME BUILDERS, WHO ARE MORE LIKELY TO BUILD THREE OR FOUR FAMILY, UH, BUILDINGS, UH, AND NOT JUST OUR COMMUNITY, BUT IN THROUGHOUT THE STATE, UH, TO BE ABLE TO START BUILDING OF THAT STYLE OF HOUSING IN OUR IN OUR STATE. UM LAST THING I'LL SAY IS, UM, THAT IS NOT WITHOUT PRECEDENT. UH, LAST YEAR, THE STATE OF NORTH CAROLINA PASSED A SIMILAR BILL THROUGH THEIR GENERAL ASSEMBLY AND A LOT OF OUR LANGUAGE THAT WE USED FOR. UH, THE BILL IN TENNESSEE IS MODELED AFTER THAT.
SO UH, THERE'S PRECEDENT THAT, UM IS, UM AND STARTING TO, UM PERCOLATE. UH, NOT JUST, UH, HERE IN THE SOUTHEAST, BUT ALSO OTHER AREAS OF THE COUNTRY. I UNDERSTAND THAT THE STATE OF WASHINGTON HAS A SIMILAR BILL SPENDING THIS YEAR AS WELL. I HAVE YOU ANSWER ANY QUESTIONS YOU HAVE. THAT'S VERY HELPFUL. UH, I DON'T SEE ANYBODY IN THE QUEUE. IS THERE ANYBODY THAT? UH UM, I. I HAD A QUICK QUESTION ABOUT YOU SAID THE BUILDING CODE DIVISION IS UNDERNEATH YOU. SO IT'S IN UNDERNEATH PLANNING IN MEMPHIS. HAS THAT ALWAYS BEEN THE CASE? UM, SINCE 1984 YES.
OK, SO IT WASN'T A CHANGE THAT HAD TO BE MADE MORE RECENTLY AND FROM YOUR PERSPECTIVE HAVING THAT BUILDING CODE DIVISION UNDERNEATH YOU. I'M ASSUMING THAT YOU VIEW THAT AS A POSITIVE II. I VIEW IT AS A COMPLETE POSITIVE. YES, UM, IN ADDITION TO, UM JUST THE CO ORDINATION BETWEEN PLANNING, ZONING AND BUILDING THAT COMES FROM BEING UNDER THE SAME DIVISION. AND THEN, OF COURSE, THE CO ORDINATION AMONG YOU KNOW MAKING CODES WORK TOGETHER. UM I. I TOOK THIS POSITION SIX YEARS AGO . AND WHEN I TOOK THE POSITION, UM YOU KNOW, I OUR RESPONSE TIMES ON PLAN REVIEW, OR YOU KNOW, INTO THE TWO MONTH UH, TIME FRAME. OUR INSPECTION TURNAROUND WAS ROUGHLY A WEEK. WE'VE GOTTEN THAT DOWN TO ONE DAY FOR AN INSPECTION TURN AROUND AND NO MORE THAN 10 DAYS ON A COMMERCIAL PERMIT. NO MORE THAN SEVEN DAYS ON A RESIDENTIAL
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PERMIT. UM AND WE'RE DOING THAT, WITH ZONING AND BUILDING REVIEW, ALL BEING ALL TAKING PLACE TOGETHER. UM AND SO, UH, ONE OF I'D SAY ONE OF THE ADDITIONAL BENEFITS IS AGAIN NOT ONLY TO HAVE THE SAME REGULATORS IN THE SAME GROUP, BUT ALSO, UH, TO BE ABLE TO MAKE PROCESS EFFICIENCIES. UH SO THAT ONCE THE CODES DO WORK TO BUILD THIS TYPE OF HOUSING, WE CAN MOVE IT ALONG QUICKLY, TOO. THAT'S INCREDIBLE. I. I WANNA MAKE SURE EVERYBODY ON THE COMMITTEE HEARD THAT THAT IS WHAT YOU CALL STREAMLINING THE PROCESS, SO IT'S SOMETHING I THINK WE SHOULD SHOULD LOOK INTO. THANK YOU, JOHN. SO MUCH FOR JOINING US. I REALLY APPRECIATE IT. I AGAIN PROBABLY HAVE A NUMBER OF QUESTIONS HERE THAT I MIGHT STILL HAVE FOR YOU. BUT I WILL GET GET THOSE TO YOU THROUGH THROUGH. DIRECTOR LIU. UH, THANK YOU SO MUCH FOR JOINING US AGAIN. APPRECIATE IT. MY PLEASURE. ALL RIGHT. THE FINAL THING WE'RE GONNA DO TODAY IN MARILYN. THANK YOU SO MUCH FOR HANGING WITH US HERE, UM, WE HAVE A UPDATED HOUSING NEEDS ASSESSMENT. UH, IT'S THE FIVEYEAR UPDATE THE LAST TIME, I GUESS WAS 19. THIS CAME OUT YESTERDAY OR THIS WEEK. UH AND MARILYN HARRIS IS HERE TO KIND OF DO A LITTLE BIT OF A DEEPER DIVE INTO WHAT THAT UPDATE, UH SAYS. YES. THANK YOU FOR HAVING ME. I'M MARILYN HARRIS, DIRECTOR OF THE OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT. UM AS THE CHAIRMAN SAID, WE DID OUR LAST UPDATE. WE DID OUR LAST OUR ORIGINAL HOUSING NEEDS ASSESSMENT IN 2018. IT WAS RELEASED IN 2019. SO PLEASE UNDERSTAND THAT THIS DATA IS A IS ABOUT A YEAR OLD. SO UM, THAT IS IMPORTANT TO UNDERSTAND. WE USE. UM THE, UH, AMERICAN COMMUNITY SURVEY DATA AND PUMS DATA TO COME UP WITH ALL OF THIS, UH, IN ADDITION THE DATA THAT WE HAVE IN HOUSE. UM, SO THIS IS OUR FIRST FIVE YEAR UPDATE. AND UM, I THINK THE, UM KEY POINTS HERE ARE THAT OCCUPIED HOUSING UNITS IN OUR COMMUNITY HAVE GONE UP BY ABOUT 9% SO WE'VE SEEN A LOT OF THINGS INCREASE. UH ONE OF THE BIG FLAGS HERE IS THAT OUR HOUSEHOLD INCOME HAS ALSO GONE UP. BUT OUR GROSS RENT HAS GONE UP AT ALMOST THE EXACT SAME AMOUNT. UM, AND SO WE ALSO HAVE HAD UM, A INCREASE IN THE NUMBER OF HOUSEHOLDS AT OR BELOW 30% OF AREA MEDIAN INCOME. SO WHILE OUR INCOMES HAVE GONE UP, INFLATION HAS KICKED IN. AND UM, A AND WE HAVE A LARGER GROUP IN THAT 0 TO 30% THAT'S REALLY A KEY POINT HERE. THE UNEMPLOYMENT POVERTY RATE AND OUR CROSS BURDENED HOUSEHOLDS HAVE ALL GONE DOWN. WHICH IS EXCITING BECAUSE THAT MEANS WE'RE MAKING SOME PROGRESS . BUT UM, I, I WILL TELL YOU WE STILL HAVE A WAYS TO GO. THE UM, THE NUMBER EVERYONE HAS HEARD US SAY FOR THE LAST FIVE YEARS IS WE NEED 65,100 UNITS OF AFFORDABLE HOUSING FOR HOUSEHOLDS AT OR BELOW 30% OF AMI LIKE WE JUST REGURGITATE THAT LEFT AND RIGHT BECAUSE THAT'S THE NUMBER. WELL THAT NUMBER HAS NOW CHANGED TO 36,000 AND SOME CHANGE. UM AND THAT'S BECAUSE HOUSING COSTS AND INFLATION UM HAVE ALL GONE UP WHILE OUR INCOMES HAVEN'T GONE UP AT THE EXACT SAME RATE, THE EXCELLENT NEWS ABOUT THIS IS THAT WE HAVE CLOSED THE GAP FOR THE 80% UP TO, UM 200% OF AREA MEDIAN INCOME. UM AND SO THIS CHART IS REALLY THE CHART THAT WE LOOK AT A LOT. UM AND THAT WE SHOW EVERYONE. IT'S A LITTLE BIT DISTRACTING BECAUSE THERE'S SOME LINES ON THERE, BUT WE WANTED TO PUT THOSE THERE SO YOU COULD SEE WHAT THE LAST HOUSING NEEDS LOOK LIKE. UM MY CURSOR DOESN'T SHOW UP THERE. BUT IF WE JUST LOOK AT THE VERY FIRST COLUMN ON THE LEFT, UM YOU SEE THE LARGE RED BOX. UM RIGHT BELOW THAT, UM, IS A RED LINE IN THE MIDDLE OF THE HOUSE AND THAT, SAYS 26,483 THAT REPRESENTS THOSE RED LINES REPRESENT WHAT THE LAST THE INITIAL SURVEY LOOKED LIKE. AND NOW WE'RE WE PUT THOSE ON THERE SO EVERYONE COULD SEE THE CHANGE . UM BUT YOU WILL NOTICE FOR HOUSEHOLDS UP TO 80 100 AND 150. WE HAVE CLOSED THAT GAP, SO PREVIOUSLY WE USED TO SAY IF WE TOOK ALL OF THE, UM, GAP THAT WE HAD, IT WAS ABOUT 79,000 UNITS.UM AND WE ARE MORE AT LIKE 50,000 UNITS, AND THEY'RE REALLY IN THE 0 TO 3030 TO 50 RANGE.
THERE IS A LITTLE BIT ON THE FAR LEFT. I MEAN, THE FAR RIGHT? I DO NOT KNOW MY LEFT OR MY RIGHT.
MY APOLOGIES ON THE FAR RIGHT? UM AND THERE'S ABOUT A NEED FOR ABOUT 900 UNITS FOR, UM, HOUSEHOLDS AT OR ABOVE 200% OF AREA. MEDIAN INCOME ARE DEVELOPERS WILL COVER THAT THEMSELVES. THEY THOSE PEOPLE DON'T NEED OUR HELP TO GET THOSE UNITS BUILT. WE NEED TO FOCUS OUR ON THIS 0 TO 50% WHERE WE CURRENTLY HAVE A GAP IN THE HOUSING MARKETS. UM AND THEN
[01:00:09]
THIS IS A, UM, INTERESTING CHART, AND I LIKE TO SHOW IT BECAUSE, UM, WHEN WE START TALKING ABOUT 30 50 80 THOSE AREA MEDIAN INCOME LIMITS. WE CAN ALSO SEE ON THIS CHART THE RENT THAT A HOUSEHOLD WHO OWN EARNS 30% COULD AFFORD AND SO ON THE FAR LEFT, UM YOU'LL SEE A HOUSEHOLD AT 30% OF AREA MEDIAN INCOME. THE MAXIMUM INCOME THERE IS THE $23,070. THAT MEANS THEY CAN AFFORD RENT OF 500. $77 WHEN WE LOOK AT OUR AVERAGE RENT IN THE COMMUNITY RIGHT NOW, IT'S ABOUT, UM $954, AND SO IT WOULD BE NOT AFFORDABLE TO A HOUSEHOLD AND THEN THE PURCHASE PRICE CEILING. UM WE SHOWED IT AT 86 4 12. PLEASE UNDERSTAND THAT IS REALLY BASED ON INTEREST RATES.UM AND AS INTEREST RATES FLUCTUATE WHAT PEOPLE CAN AFFORD FLUCTUATES. AND SO, UM, NOW THAT INTEREST RATES ARE 6.5 7% THAT 86,000 IS GOING TO DROP THIS IS A LOOK AT OUR EXISTING AFFORDABLE RENTAL UNITS AND I THINK, UH, THE KEY POINT HERE IS THAT, UM WE HAVE VERY FEW AFFORDABLE UNITS. IN THE OUT PART OUTSIDE PARTS OF OUR OF OUR CITY, AND I THINK THAT IS KEY.
AS THE MAYOR SAYS, YOU KNOW, WE WANT TO GET AFFORDABLE HOUSING INTO ALL PARTS OF OUR COMMUNITY.
THIS MAP IS A REALLY GOOD EXAMPLE OF WE DON'T HAVE AFFORDABLE HOUSING IN THE OUTER PARTS OF OUR COMMUNITY. AND SO WE WANNA FOCUS THERE. UM I WILL GIVE A LITTLE BIT OF A SHOUT OUT TO LOUISVILLE METRO HOUSING AUTHORITY HERE. THEY HAVE ACTUALLY GOTTEN, UM 11% MORE VOUCHERS INTO THE MARKET SINCE THE LAST HOUSING NEEDS ASSESSMENT, WHICH IS EXCELLENT THAT MEANS WE ARE HOUSING, MORE, UM, VERY LOW INCOME HOUSEHOLDS. THE YELLOW BOX IN THE MIDDLE. UM THAT IS THE NORTHWEST AND RUSSELL NEIGHBORHOODS AND THEY CONTAIN 14% OF ALL OF OUR AFFORDABLE HOUSING UNITS IN THE CITY. UM AND SO WE DO NOT WANT TO CONCENTRATE AFFORDABLE HOUSING IN THAT AREA. THEY ALREADY HAVE AN ABUNDANCE. UH, WE ARE AT RISK OF LOSING ABOUT 5000 UNITS WE HAVE ABOUT, UM 20,000 UNITS OF AFFORDABLE HOUSING ALL SPREAD OUT THROUGHOUT ALL THESE DOTS REPRESENT REPRESENT AFFORDABLE HOUSING UNITS. WE'RE AT RISK OF LOSING ABOUT 5000 OF THOSE OVER THE NEXT FIVE YEARS IF WE DON'T MAINTAIN AND PRESERVE THE AFFORDABLE HOUSING UNITS THAT WE HAVE AND, UM, THE LAST SLIDE FROM THE, UM THE PRESENTATION.
UM IS ACTUALLY THE CONSTRUCTION OR FROM FROM THE ACTUAL HOUSING NEEDS ASSESSMENT. THESE ARE CONSTRUCTION TRENDS AND LOUIS AND YOU CAN SEE THAT, UM OUR PERMITS AVERAGE ABOUT 1488 PER YEAR. UM WE HAVE HAD A REDUCTION IN SINGLE FAMILY AND MULTIFAMILY . UM NEW CONSTRUCTION. WE HAD A PEAK IN 2019 AT ABOUT 2414. BUT PLEASE ALSO RECOGNIZE THAT PRIOR TO THE PANDEMIC THAT WAS ABOUT 917 PER YEAR, SO WE'VE SEEN SOME FLUCTUATION THERE. THIS IS A MAP ACTUALLY OF RESIDENTIAL CONSTRUCTION PERMITS. WE SEE A LOT OF THIS IN SPREAD OUT ALL THROUGHOUT THE COUNTY AND THEN THE LAST THING I WANT TO SHOW YOU IS ALL OF THE WORK FROM MY LOUISVILLE HOME IS GOING TO BE, UM, ON THE DASHBOARD HERE. AND THIS IS A PUBLIC FACING DASHBOARD SO ANYBODY CAN GO SEE AND LOOK, UM AT AT WHERE WE ARE IN TRYING TO GET THESE 15,000 UNITS BUILT. AND FINALLY, IF YOU , UM YOU CAN FIND THIS ON THE, UM LOUISVILLE KY.GOV, UH, HOUSING BUT RIGHT OVER IN THE BLUE COLUMN, IT SAYS CLICK LINK BELOW TO VIEW AFFORDABLE RENTAL HOUSING MAP. I CAN'T DO IT HERE BECAUSE I DON'T HAVE ACCESS TO DO IT. BUT THAT IS AN INTERACTIVE. OF EVERY AFFORDABLE HOUSING UNIT IN THE CITY. AND SO IF SOME WANT A CONSTITUENT IS LOOKING FOR AFFORDABLE HOUSING IN YOUR AREA. YOU CAN ACTUALLY CLICK ON THAT MAP. IT'LL SHOW YOUR YOUR DISTRICT, YOUR METRO COUNCIL DISTRICT AND ALL OF THE UNITS THAT THEY THAT ARE IN YOUR COMMUNITY RIGHT NOW, UM, THIS IS A BRAND NEW THING THAT WE'VE JUST RELEASED AND WE PUT IT ON THE DASHBOARD BECAUSE WE FEEL LIKE PEOPLE ARE GOING TO BE ABLE TO GO THERE AND GET ALL OF THE INFORMATION THEY NEED. SO THAT'S IT. THAT'S MY SPIEL. I AM READY TO TAKE ANY QUESTIONS YOU MIGHT HAVE. THAT'S FANTASTIC. THANK YOU SO MUCH. THAT WAS DISTILLING A LOT OF INFORMATION INTO A VERY SHORT PRESENTATION, WHICH IS WHICH IS GREAT. I HAVE TWO QUICK ONES FOR YOU. WHEN YOU SAY, MAINTAIN AND PRESERVE. WE'RE AT RISK OF LOSING 5000. CAN YOU TALK A LITTLE BIT MORE ABOUT THAT? WHAT DOES THAT MEAN? SO WE REALLY HAVE COME UP ON WHAT IS CALLED THE 30 YEAR PERIOD FOR LICH, WHICH IS LOW INCOME HOUSING TAX CREDITS. UM WE'RE A LITTLE BIT PAST IT, BUT SOME OF THE PROJECTS THAT WERE FUNDED
[01:05:05]
THROUGH THE LOW INCOME HOUSING TAX CREDIT PROJECT 30. 1 32 33 YEARS AGO ARE NOW EXPIRING.THEY'RE THEY'VE HIT THEIR EXTENDED USE PERIOD. THEY ARE EXPIRING AND WITHOUT INTERVENTION, THEY COULD JUST BECOME MARKET RATE PROPERTIES, WHICH MEANS WE DON'T HAVE ANY CONTROL OVER THE RENT, UH, OF THOSE UNITS, SO A LOT OF TIMES THOSE PROJECTS WILL TRY AND RECAPITALIZE. THEY'LL EITHER GO BACK TO LOW INCOME HOUSING TAX CREDITS TO GET ADDITIONAL FUNDS TO RENOVATE. UM SOMETIMES THEY JUST SELL ON THE OPEN MARKET AND THEY BECOME MARKET. RIGHT. UM, SO WE JUST TO MAKE SURE THAT WE KEEP AS MANY AFFORDABLE UNITS IN THE, UM COMMUNITIES WE CAN QUESTION I HAD WAS ABOUT THE VOUCHERS. THE IMPROVEMENT IN THE NUMBER OF VOUCHERS WE HAD OUT IN THE MARKET. AND CAN YOU SPEAK TO HOW THAT HOW THAT L MH A WAS ABLE TO DO THAT? WHAT WHAT IMPROVEMENTS THEY MAKE? I THINK IT HAS A LOT TO DO WITH THE MTW AND THE UM BEECHER TERRACE, TAKING THOSE VOUCHERS AND PUTTING WHAT WAS PLACE BASED VOUCHERS INTO THE COMMUNITY, SO IT'S A COMBINATION OF THINGS THAT THEY'RE DOING. UH LET'S SEE ANYBODY IN THE QUEUE. DO YOU HAVE COUNCILMAN SIMON THANK YOU, MR CHAIR. I HAVE A COUPLE OF QUESTIONS, AND I'M GOING TO READ THESE SO I DON'T FUMBLE MY TONGUE. AND THIS IS ABOUT AMI. HOW DO YOU CALCULATE AMI? IS IT UNIFORM FOR THE CITY? IS IT USED FOR OTHER ADJACENT AREAS. AND DO YOU DIFFERENTIATE THE AMI AS YOU MOVE TO THE SERB SUBURBS OR OTHER LESS DEVELOPED AREAS? I CAN ANSWER ALL THREE OF THOSE.
OK THE FIRST QUESTION IS AND JUST LIKE THE PLANNING DIRECTOR FROM MINNEAPOLIS, SAID. WE TEND TO USE THE HU AMI BASED ON THEIR HUD'S CALCULATION. AND SO THEY TAKE AND WE ARE A METROPOLITAN STATISTICAL AREA. SO WE ARE LOUISVILLE, BUT WE ARE ALSO SOUTHERN INDIANA, JEFFERSONVILLE , NEW ALBANY, ALL OF THOSE, AND THEN SOME OF OUR OUTLYING COUNTIES, UH, OLDHAM COUNTY, SHELBY COUNTY. THAT IS PART OF OUR MS A. SO OUR, UM AMI IS THE HU MS A FOR THIS REGION. SO DOES IT CHANGE WHEN WE GO FROM DOWNTOWN LOUISVILLE TO FAIRDALE? IT DOES NOT. WHAT WHAT IS ABOUT TO HAPPEN, AND I'M NOT THE EXPERT ON THIS. THAT WOULD BE, UM ELIZABETH TROJAN, BUT HUD JUST ANNOUNCED THAT THE SECTION EIGHT RENTS NOW HAVE TO WORK ON A SMALL MARKET AREA. SO WE'RE SEEING SOME CHANGE BY HUD TO SAY THE RENTS IN DOWNTOWN LOUISVILLE ARE DIFFERENT THAN THE RENTS IN FAIRDALE. DIFFERENT THAN THE RENTS AND PROSPECT. THEY'RE DIFFERENT THAN THE RENTS AND VALLEY STATION AND SO HUD IS STEERING US ALL TO LOOKING AT THAT. NOW DOES THAT MEAN THAT OUR AREA MEDIAN INCOME IS GOING TO BE GRANULATED TO THOSE SPECIFIC AREAS? I DON'T KNOW.
BUT HUD IS TAKING A LOOK AT IT BECAUSE THEY HAVE COME BACK AND SAID, USING ONE RENT FOR AN ENTIRE AREA. IS A FAIR HOUSING ISSUE, AND THEY DON'T BELIEVE THAT IT'S BEING BENEFICIAL. SO I DO SEE THAT WE'RE STARTING TO SHIFT THAT WAY. AT THIS EXACT MOMENT. AMI IS STANDARD FOR THE ENTIRE MS, A BUT WE COULD SEE SOME MOVEMENT IN THAT. JUST A COMMENT. MY CONCERN IS A AS YOU KNOW, I DO REPRESENT FAIRDALE AND WE'RE BEING LUMPED IN WITH WITH OTHER AREAS THAT THAT BRING IN A WHOLE LOT MORE MONEY THAN WE DO, AND OUR AMI IS ADJUSTED ABOVE WHAT THEY CAN AFFORD, AND I'M SEEING SINGLE FAMILY BRAND NEW APARTMENTS THAT ARE AVERAGING $1255. WE HAVE SINGLE BEDROOM APARTMENTS THAT ARE OVER $100. THAT IS NOT AFFORDABLE HOUSING AND I THE NAME OF AFFORDABLE HOUSING HAS REALLY GOT ME CONFUSED BECAUSE FOLKS IN MY DISTRICT CANNOT AFFORD THAT.
AND SO II. I JUST WONDERING, IS THERE ANY OTHER CALCULATIONS THAT WE CAN USE FOR FOLKS LIKE THAT? WHO ARE BEING LUMPED IN WITH PEOPLE IN CRESTWOOD? SO WHAT I WILL TELL YOU IS THE REASON THAT WE USE AN AREA MEDIAN INCOME. UM AND THIS IS REALLY IT'S REALLY WHEN A DEVELOPER IS DOING A PROJECT A TAX CREDIT PROJECT, WHICH IS, UM IF THEY'RE CALLING IT AFFORDABLE. UM IT'S PROBABLY GOT TAX CREDITS OR SOME OTHER TYPE OF SUBSIDY IN IT. WE HAVE TO A BANK WILL NOT UNDERWRITE IF I AM TRYING TO DETERMINE EVERY SINGLE HOUSEHOLD PAY 30% BECAUSE THEN I WOULD NEED TO KNOW WHAT YOUR INCOME IS AND YOUR INCOME IS AND YOUR INCOME IS BEFORE THE DEAL HAPPENS, AND THAT'S JUST NOT FEASIBLE. LIKE THE SCIENCE OF THAT JUST DOESN'T WORK. THE MATH OF THAT JUST DOESN'T WORK. SO HUD HAS GIVEN US THIS DEFINITION OF AFFORDABLE. I AM A BIG PROPONENT THAT THEY'RE NOT AFFORDABLE HOUSING UNITS. UM, OUR UNIT IS ONLY AN AFFORDABLE
[01:10:05]
HOUSING UNIT IF YOU LIVING IN YOUR UNIT IT'S AFFORDABLE IF YOU PAY NO MORE THAN 30% OF YOUR INCOME TOWARDS RENT, BUT WHERE I LIVE, IF I PAY 31% THAN MY UNIT IS NOT AFFORDABLE, EVEN IF IT'S THE SAME $1400 IN RENT DOES THAT MAKE SENSE? SO IT'S BASED ON EACH INDIVIDUAL HOUSEHOLD. SO WHAT WE SAY IS IT'S NOT NECESSARILY AFFORDABLE HOUSING. IT'S MORE AFFORDABLE HOUSING, AND THAT'S NOT A GREAT ANSWER. BUT THAT IS THE ONLY ANSWER. I CAN GIVE YOU WHAT WE CAN DO. UM AND KHC HAS DONE IT SOMETIMES. IS THEY FURTHER RESTRICT THOSE, UM, THOSE RENT LIMITS TO A DEEPER SUBSIDY LEVEL. SO INSTEAD OF SAYING YOU CAN DO IT AT 60% YOU DO IT. YOU RESTRICT IT TO 50% OR 40% BUT ULTIMATELY IF A DEVELOPER CANNOT AND WHETHER THERE ARE LARGE DEVELOPER OR SMALL DEVELOPER, IT DOESN'T MATTER IF A DEVELOPER CANNOT GET A PROJECT TO CASH FLOW SO THAT THEY CAN AFFORD TO MAINTAIN THE PROJECT FOR THE LIFE OF THE PROJECT. THEY WON'T DO THE DEAL.AND SO WE'VE GOT TO FIGURE OUT HOW TO MAKE SURE THAT THEY ARE GETTING THE RENT THAT THEY NEED TO MAKE SURE THEY MAKE THE MORTGAGE PAYMENTS TO THE LENDERS ON THE DEALS. INDULGE ME WITH ONE MORE. HOMEOWNERSHIP HOMEOWNERSHIP IS A ONE TIME SUPPORT, WHEREAS RENTAL ASSISTANCE IN FOREVER BOTH THE RENTAL AS WELL AS THE APARTMENT OWNER WHO MUST RECEIVE ASSISTANCE FROM GOVERNMENT EVERY 10 TO 20 YEARS TO STAY ON THE AFFORDABLE HOUSING ROLLS. HOW IS THIS BALANCED? IN OUR COMMUNITY. WELL, UM SO, I. I WANNA TAKE A STEP BACK, AND THEN I'LL ADDRESS THAT. SO WE HAVE GOT, UM, AN AND WE HAVE ONE OF THESE. FOR EVERY SINGLE MARKET AREA. AND UM, IT SHOWS HOW MUCH RENTAL WE NEED AND HOW MUCH HOMEOWNERSHIP WE NEED IN EACH SPECIFIC AREA. THE QUESTION OF HOMEOWNERSHIP IS A ONE TIME INVESTMENT AS OPPOSED TO RENTAL IS A CONTINUAL INVESTMENT. THAT'S NOT NECESSARILY TRUE. UM A RENTAL IS A ONE TIME UPFRONT INVESTMENT TO THE DEVELOPER, AND THEN THAT UNIT REMAINS AFFORDABLE AT A REDUCED RENT FOR 30 YEARS, SO IT MIGHT BE AT $50,000, A UNIT FOR 30 YEARS. IT REMAINS RENT RESTRICTED. UM A HOME BUYER MIGHT GET $30,000 IN DOWN PAYMENT OR CLOSING COST ASSISTANCE AT THE INITIAL OCCUPANCY. BUT THEN WHEN THAT HOMEBUYER SELLS THAT UNIT, IT MAY NOT BE A UNIT THAT IS SOLD AT A PRICE THAT IS AFFORDABLE TO THE NEXT PERSON, AND SO THEN WE WOULD HAVE TO SUBSIDIZE THE NEXT PERSON 2030 WHATEVER DOLLARS. THEY NEED TO MAKE IT AFFORDABLE TO THEM. SO BOTH HAVE WEAKNESSES . BOTH HAVE STRENGTHS. I. I DON'T THINK THAT ONE IS BETTER THAN THE OTHER. TERMS OF OUR INVESTMENT BECAUSE THERE ARE HOLES IN BOTH. THANK YOU. YOU'RE WELCOME. WELL UH, WE'VE GONE A LITTLE OVER TIME. AND I WANNA BE COGNIZANT OF THAT. I APPRECIATE. UH, EVERYONE BEING HERE OUR NEXT MEETING BECAUSE WE HAVE A BREAK HERE AT METRO COUNCIL WILL BE APRIL 18TH. I DON'T HAVE A SOLID AGENDA FOR THAT MEETING YET, BUT I WILL TRY TO GET THAT OUT TO EVERYONE. UH, AS SOONER THAN LATER, IF, UM IF WE HAVE NO FURTHER BUSINESS, THEN WE'RE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.