HomeMy WebLinkAboutCH4-HousingPLAN OF STILLWATER
Chapter 4 : Housing 4-1
Housing
Introduction
As a maturing community, Stillwater has its
share of challenges and opportunities to maintain
its historic but aging housing stock, while
simultaneously providing housing choices and
life-cycle housing for all of its residents.
Stillwater has historically had a wide variety of
housing types to serve the needs of residents of
different ages and income levels. A wide range
of housing densities and types can be found from
Downtown Stillwater to the still-developing
western edge of the community. Demographic
trends suggest that the metro area will see an
increased demand for smaller, more efficient
housing units as baby boomers retire and make
different housing choices. With its unique access
to amenities such as the river and retail options,
Downtown Stillwater is uniquely situated to
meet a portion of this demand. The Land Use
Plan has also introduced a new land use category
(i.e., mixed-use) along the Highway 36 corridor,
which will offer new opportunities to meet a
growing demand for residential development in
a mixed use fashion.
While growth rates may not equal those seen
in the late 1990’s and early 2000’s, Stillwater’s
developable parcels and redevelopment initiatives
(e.g., Lakeview Hospital site and the Highway 36
corridor) will provide enough land capacity to
achieve the housing forecasts projected for this
planning period (see Table 4.1).
Chapter 4 Contents
Introduction ........................4-1
Goals & Objectives ...................4-2
Existing Conditions ..................4-3
Housing Affordability ................4-5
Implementation ....................4-12
Table 4.1: Housing Projections (Metropolitan
Council)
Year Households
2010 7,076
2020 8,400
2030 9,000
2040 9,600
4-2
PLAN OF STILLWATER
Chapter 4 : Housing
Goals & Objectives
The City of Stillwater worked with its citizens,
City Council, commissions and CPAC to develop
housing goals with supporting objectives. The goals
and objectives are the foundation of the Housing
Plan, as they define what the community envisions
its future to become.
Housing Goals
Goal 1. Provide a quality living environment
for the residents of Stillwater by maintaining
and improving the city’s existing housing stock
and by planning for a range of new housing
opportunities.
Objectives
1. Maintain the city housing stock in good
condition.
2. Maintain the mix of housing types and tenure
in Stillwater’s older residential areas.
3. Retain the unique and/or historic character of
existing residential.
4. Provide for a range of new housing opportunities
from large lot single family to multifamily.
5. Ensure that all new housing, including high
density, adheres to the highest possible
standards of planning, design and construction.
Goal 2. Provide a balanced choice of housing
types and densities suitable to a wide range of
demographic groups, with a focus on life cycle
housing.
Objectives
1. Locate multifamily and attached housing close
to community services and public parks.
2. Locate assisted housing near transit lines and
public parks.
3. Support the provision of a supply of affordable
housing for the elderly, physically and
intellectually disabled, and others with special
housing needs who wish to live in Stillwater.
4. Encourage housing for a range of household
income and age levels where local services are
available.
5. Enhance the livability of residential areas
through development controls and the
provision of public facilities and services to
meet the needs of the neighborhood.
6. Review affordable housing needs and develop
a method of better matching needs to supply.
Goal 3. Establish a housing pattern that respects
the natural environment while striving to meet
local housing needs and the community’s share
of metropolitan area housing growth.
Objectives
1. Explore development concepts such as higher
density infill, mixed use developments,
and cluster housing to maintain open space
character and provide a mix of housing types.
2. Designate residential densities and housing
types sensitive to natural resources and land
conditions.
3. Use the planned unit development process for
reviewing innovative development concepts
and protecting natural resource areas.
4. Encourage innovative subdivision design
including clustering techniques to preserve
open space or natural features.
Goal 4. Establish a community of well-maintained
housing and neighborhoods including ownership
and rental housing.
Objectives
1. Encourage market rate rental apartments as an
element of mixed use projects in the Downtown
area.
2. Explore using TIF and other funds to provide
housing rehabilitation grants to very low and
low income, senior owner-occupied housing
needing rehabilitation assistance.
3. Support efforts of Washington County CDA
in providing assisted housing at appropriate
locations.
PLAN OF STILLWATER
Chapter 4 : Housing 4-3
4. Support and actively promote housing
rehabilitation programs for existing owner-
occupied homes and rental buildings or units
in historic neighborhoods. This includes
promotion of County, State and non-profit
programs.
5. Support and actively promote 1st Time
Homebuyers programs to assist new
homeowners entering the market for existing
homes.
Existing Conditions
Stillwater has a good mix of housing available to its
residents including single family detached, single
family attached/townhome, condominium, and
apartment housing. Characteristics associated with
this housing stock are described throughout this
section. Figures presented throughout this section
are based on the 2012 – 2016 American Community
Survey (ACS), unless otherwise noted. The ACS
was the most comprehensive data set available for
Stillwater during the time of this update.
Housing Type
As seen in Table 4.2, the majority of housing units in
Stillwater are traditional single family homes (5,184:
1-unit detached homes). The second most common
type is a 1-unit attached home (920 homes), which
includes such housing types as townhomes or row
homes. Stillwater has relatively few multiple-unit
structures such as apartments. The percentage of
multiple-unit buildings has increased with recent
construction of new condominium projects in
downtown and senior housing complexes in the
western part of the community.
It is important to ensure that there are housing
choices for the current residents as they move
through their life cycle and for the future residents
as the demographics of the population changes (see
“Community Background”).
Housing Tenure
In 2016, the Metropolitan Council reported a total of
7,958 units in Stillwater. This estimate determined
77% of all housing units were owner-occupied
and 23% were renter-occupied (see Table 4.3). This
ratio of owner-versus renter-occupied has stayed
relatively the same since 2000, which consisted of
78% owner-occupied and 22% renter-occupied.
National trends have indicated a larger shift in
preference between renting and ownership. In
general, this shift is linked to specific demographics
such as the Baby Boomer generation who are
downsizing and a younger population choosing
to live in smaller units without the burden of a
mortgage. The City should monitor the number of
renter-occupied housing.
Table 4.2: Units in Structure (2016 ACS)
Table 4.3: Housing Tenure
(Metropolitan Council)
Type Number of
Units Percent
Owner Occupied 6,127 77%
Renter Occupied 1,831 23%
Total:7,958 100%
4-4
PLAN OF STILLWATER
Chapter 4 : Housing
Table 4.4: Age of Total Housing (2016 ACS)
2016
Year Built Number Percentage
Total housing units 7,764 -
2010 or Later 145 2%
2000 to 2009 1,498 19%
1990 to 1999 1,081 14%
1980 to 1989 811 10%
1970 to 1979 1,097 14%
1960 to 1969 625 8%
1950 to 1959 503 6%
1940 to 1949 170 2%
1939 or earlier 1,834 24%
of the rental units were built before 1980. Costly
repairs and renovations can be challenging for
apartment building owners because of limited
revenues and financial assistance programs and
need of major renovations which can lead to
increased rents and a loss of affordability.
Building Permit Trends
Table 4.6 shows the number of residential building
permits issued each year between 1997 and 2016.
The City experienced a peak in new residential
permits between 1999 and 2004 before leveling out
in 2005. The city experienced a high in 2002 with
the issuance of permits of 290 residential units. In
2016, 37 residential permits were issued.
The City has also seen a growing interest in
providing Accessory Dwelling Units (ADUs),
which typically include a Conditional Use Permit
(CUP). ADUs can be a living area located on the
grounds or attached to a single-family home. The
demand for ADUs has grown in popularity to
accommodate aging parents.
As Stillwater’s population ages, the City should
explore updates to its zoning code that continue
to support ADUs. ADUs are allowed in areas
zoned in the Cove Traditional Residential (CTR)
Traditional Residential (TR) and Two Family (RB)
Table 4.5: Age of Rental Housing (2015 ACS)
2015
Year Built Number Percentage
Total housing units 1,826 -
2010 or Later 9 0%
2000 to 2009 251 14%
1990 to 1999 176 10%
1980 to 1989 323 18%
1970 to 1979 224 12%
1960 to 1969 196 11%
1950 to 1959 99 5%
1940 to 1949 34 2%
1939 or earlier 514 28%
Table 4.6: Building Permits (Stillwater)
Year Number of
Permits
Percentage Change
from Previous Year
2006 53 -
2007 40 -24.53%
2008 60 50.00%
2009 34 -43.33%
2010 45 32.35%
2011 54 20.00%
2012 39 -27.78%
2013 43 10.26%
2014 48 11.63%
2015 13 -72.92%
2016 37 184.62%
Total 466 -
Age of Housing Stock
According to the 2016 ACS, the housing stock
in Stillwater has a wide range of ages. Table 4.4
demonstrates healthy growth in built homes over
each decade dating back to 1970. However, it
is important to recognize that 54% of the homes
were built prior to 1980. This large percentage of
homes built prior to 1980 is of concern as the 30-
year mark is often referred to as the point where
homes may need major renovations and repairs,
and houses built prior to 1978 were not constructed
with current energy codes.
Similar challenges face the City’s rental structures
(e.g., apartments). For example, 58% (see Table 4.5)
PLAN OF STILLWATER
Chapter 4 : Housing 4-5
district. Providing this type of housing can offer the
following benefits:
• Create new housing units, while respecting
the look and scale of single-family dwelling
development.
• Increase the housing stock in existing
neighborhoods in a manner that is less
intense than alternatives.
• Allow more efficient use of existing housing
stock, public infrastructure, and the
embodied energy contained within existing
structures.
• Provide a mix of housing options that
responds to changing family needs and
smaller households.
Sales and Market Value
The 2016 median value of an owner occupied housing
unit in Stillwater was slightly lower ($248,400)
compared to Washington County ($253,300) as a
whole. When comparing the average median value
of owner occupied housing units between 2010 and
2016, Stillwater’s average median value decreased
by 6%. Washington County also experienced a
decrease of 5% during this time frame.
Census estimates are not a true reflection of the
current housing market in Stillwater. For example,
the North Metro Realtor Association reported a
median sales price for a single-family home in 2017
to be $316,000. This is a 26% increase compared to
their 2013 reported sale price of $233,000.
Housing Subsidies
The City has a small number of buildings and
scattered-site units (total of 727 units) that receive
public assistance (see Table 4.7). Providing
affordable housing to households at the lowest
income levels is challenging without public
financial assistance to help make that housing
affordable. A limited number of public subsidies
are available, primarily through federal project-
or place-based assistance or through tenant-based
assistance, more commonly known as the Section
8 Housing Choice Voucher Program. In the case of
project-based assistance, a resident pays no more
than 30% of their income toward rent and utilities.
Housing Assessment\
The analysis of existing conditions and the
community engagement process identified the
following housing needs in Stillwater:
• Increased variety in housing stock - the City
predominantly consists of single-family
residential homes. There is a need a variety of
housing options, such as larger multi-family
complexes, town homes, or senior housing
options.
• Expanding housing affordability - While
Stillwater is more affordable than some
surrounding communities, there still is almost
a quarter of the population that is experiencing
housing cost burdens. The City needs to
continue to support and partner on affordable
projects.
• Maintaining existing housing stock - With its
aging housing stock, it is important that the
City supports maintenance and reinvestment
efforts. This can be particularly important
in neighborhoods of naturally occurring
affordable housing.
• Creating mixed-use opportunities – There is
a need for live/work units. The City currently
allows home occupations (the use of a residential
dwelling for business, trade or professional
purposes) with certain limitations. Future
mixed-use projects could accommodate more
intense live/work units along the Highway 36
corridor or in downtown (see Chapter 2 Land
Use).
4-6
PLAN OF STILLWATER
Chapter 4 : Housing
Housing Affordability
One of the most important factors in analyzing the
housing stock is its affordability and marketability.
Stillwater has a good supply of affordable housing
stock within its existing and older housing stock.
This is due to the age of the housing as well as
the size of the homes, particularly in the older
neighborhoods. These same factors also contribute
the city’s marketability and housing value. With
older and smaller homes, the average market value
is less than that of the newer construction. It will
be important to help homeowners to maintain this
housing so it remains affordable.
Meeting Regional Needs
The Metropolitan Council has encouraged every
community in the Twin Cities to strive to make
a portion of its housing affordable at a range of
income levels. Housing is technically considered
affordable when it consumes no more than 30% of
gross household income. Affordability is important
because families that need to spend more than 30%
of their income on housing costs may not have
enough income left to afford basic needs such as
food, child care, medical expenses, clothing, or
transportation needs
When households have incomes at or below 80
percent of the area median income (AMI), home
ownership becomes a challenge. This household
group tends to pay more than 30 percent of its
income on housing and has less disposable income
to pay for other goods and services. Also, those
residents with lower incomes have significantly
fewer housing choices to meet their family needs.
In addition to income, the age distribution of
households (older residents staying in their homes
longer) has an effect on the availability of homes
that are affordable.
The following highlights Stillwater’s housing stock
when compared to affordability measures:
• In 2017, for a family of four, a household
earning less than 80% of the Area Median
Income (AMI) equated to an annual income
of $68,000. At this income level, a four
person family is able to afford the purchase
of a home with a price of $236,000 or rent
a two-bedroom apartment for $1,627 per
month (see Table 4.8 and Table 4.9).
• In Stillwater, 61% of all housing units are
considered affordable to households earning
no more than 80% of the Twin Cities AMI
(see Table 4.10).
• Forty-eight percent of Stillwater’s housing is
affordable for households earning between
51% and 80% of AMI. However, households
earning less than 30% of AMI can only
afford less than 4% of the housing in the
community (see Table 4.10).
• Figure 4.1 depicts occupied housing by
estimated taxable market value (2016) and
shows that homes valued at $243,500 or
less are spread throughout the community.
Higher valued homes are also scattered
across the City, although more concentrated
in the western part of the community and
along the St. Croix River.
The median sale price in 2016 (American
Community Survey) was $248,200.
This sales price is within the 2016 price
of $243,500 considered affordable to a
household earning 80% of the median
income (see Table 4.8).
• The 2016 median rent in Stillwater, as
reported in the American Community
Survey was $981. This figure is lower than
the maximum rent of $1,017 for a two
bedroom unit considered affordable to a
household earning 50% of the AMI (see
Table 4.9).
• In Stillwater, there are a total of 229 housing
units within the 30% AMI purchase
price threshold. However, there are 369
households paying more than 30% of their
income for housing (see Table 4.11).
• Approximately 20% of Stillwater households
are cost burdened households.
PLAN OF STILLWATER
Chapter 4 : Housing 4-7
Table 4.8: Low-income Households and
Levels of Affordability for Home Ownership
(Source: U.S. Department of Housing and Urban
Development & Met Council)
30% of
AMI
50% of
AMI
80% of
AMI
Affordable purchase
price (2017)$85,000 $151,500 $236,000
Affordable purchase
price (2016)$85,500 $153,500 $243,500
Table 4.9: Low-income Households and Levels
of Affordability for Rentals (Source: U.S.
Department of Housing and Urban Development
& Met Council)
Number of
bedrooms:
Affordable
rent
(including
utilities)
at 30% of
AMI
Affordable
rent
(including
utilities)
at 50% of
AMI
Affordable
rent
(including
utilities)
at 80% of
AMI
Studio $474 $791 $1,265
1-BR $508 $848 $1,356
2-BR $610 $1,017 $1,627
3-BR $705 $1,175 $1,880
4-BR $786 $1,311 $2,097
Table 4.10: Stillwater Housing Units by AMI Thresholds (Source: Met Council)
All units <= 30% of
AMI
<= 30% of
AMI
31% - 50%
of AMI
31% - 50%
of AMI
51% - 80%
of AMI
51% -80%
of AMI
81% of
AMI and
up
81% of
AMI and
up
7,958 299 3.76%726 9.12%3,834 48.18%3,099 38.94%
Table 4.11: Percent of Housing Ownership Cost
Burdened (Source: Met Council)
Income Total Units Cost Burdened
Households
< 30%299 369
31-50%726 541
51-80%3,834 446
Total:4,859 1,356
Table 4.7: Publicly Subsidized Units (Met Council)
All publicly subsidized
units
Publicly subsidized senior
units
Publicly subsidized
units for people with
disabilities
Publicly subsidized units:
All others
727 145 0 582
4-8
PLAN OF STILLWATER
Chapter 4 : Housing
Stillwater
Bayport
Baytown Twp.
Grant
Lake Elmo
Oak Park
Heights
Stillwater
Twp.
-
Owner-Occupied Housing by Estimated Market Value
1/5/2018
.1 in = 0.61 miles
Stillwater
County Boundaries
City and Township Boundaries
Streets
Lakes and Rivers
Owner-Occupied Housing
Estimated Market Value, 2016
$243,500 or Less
$243,501 to $350,000
$350,001 to $450,000
Over $450,000
Source: MetroGIS Regional Parcel Dataset,
2016 estimated market values for taxes payable
in 2017.
Note: Estimated Market Value includes only
homesteaded units with a building on the parcel.
Figure 4.1: Owner-Occupied Housing by Estimated
Market Value (Metropolitan Council)
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Future Land U se
Very Low Density Residential
Low Density Residential
Low/Medium Density Residential
Medium Density Residential
Neighborhood Commercial
Downtown Mixed Use
Highway Mixed Use
Research, Development Park
G
Figure 4.2: Land Use
Changes or Potential
Development Areas
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PLAN OF STILLWATER
Chapter 4 : Housing 4-11
Analysis of Need
Through its regional planning efforts, the
Metropolitan Council has prioritized housing
affordability in the Thrive MSP 2040 Regional
Policy. The Metropolitan Council determined the
allocation of affordable housing needed to meet the
rising need of affordable housing across the Twin
Cities metropolitan region. Housing is considered
“affordable” when no more than 30% of household
income goes to housing. As such, households with
different income levels have different thresholds of
“affordable” (see Table 4.8 and Table 4.9).
The Metropolitan Council has selected the
four-person household thresholds as a general
measurement for affordable housing needs at each
income level. This allocation of affordable housing
need is calculated based on a variety of factors
including:
• Projections of growth of households
experiencing housing cost burden.
• Current supply of existing affordable
housing, whether subsidized or naturally
occurring.
• Disparity of low-wage jobs and housing for
low-wage households within a community.
Through these calculations, the Metropolitan
Council has determined that the Affordability
Housing Need Allocation for Stillwater between
2021 and 2030 is 227 units (see Table 4.12). The way
that communities accommodate this affordable
housing allocation is by designating adequate
vacant land or developable land at minimum
densities (units/acre) that are high enough for
affordable housing to be an option. Essentially,
the more units/acre allowed on a site, the less cost
per unit to be built, which makes the development
an option for affordable housing developers, as
well as market-rate developers. The affordable
housing allocation does not mean that the City
must guarantee the construction of this many
affordable units by 2030. Rather, through future
land use guidance, the City needs to ensure that the
opportunity for affordable housing exists by having
adequate vacant or redeveloped land guided for
higher densities to meet the stated share.
In order to meet our affordable housing goals
(see Table 4.12), the City has to identify which
properties could be used to meet these needs using
two different density ranges:
• 12 units/acre to address the community’s
allocation of affordable housing need at
<50% AMI (197 units).
• 6 units/acre to address the community’s
allocation of affordable housing need at 51-
80% AMI (30 units).
The best candidates would be properties in areas of
the community that have the opportunity for infill
or redevelopment, as well as areas with potential
land use changes that could increase a property’s
density from the 2030 Comprehensive Plan. Figure
4.2 identifies the properties that seem to be the best
candidates. The acreage of these properties are
then multiplied by the minimum units per acre to
determine the minimum number of units that could
be developed on this available land. Table 4.13
summarizes these calculations. It is important to
recognize the Highway Mixed Use and Downtown
Mixed Use categories for the redevelopment areas
only require a proportion of their developable land
to be residential. Those percentages were applied
to the unit count calculations.
Stillwater is more than able to meet its allocation of
affordable housing need by 2030 (see Table 4.14).
This assumes fairly aggressive redevelopment
initiatives will occur along Highway 36 and within
Downtown Stillwater. If this is achieved, the City
can meet its affordable housing goal set at 12
units per acre (197 units) in these two areas of the
community. The affordable housing goal set at 6
units per acre (30 units) will primarily be absorbed
by the western part of the community that is guided
for medium-density residential. This part of the
community has several large tracts of undeveloped
land available to meet this goal.
4-12
PLAN OF STILLWATER
Chapter 4 : Housing
Table 4.13: Stillwater Affordable Housing Calculations
Growth Areas
Net
Developable
Acres (\
Min. %
Res.
2021 - 2030
Phasing
Assumption
Net
Developable
Residential
Acres
Min.
Units/
Acre
Units
Highway 36 Mixed Use
Mixed Use 136.53 30%35%14.34 12 172
Lakeview Hospital (existing site)
Medium Density
Residential
12.63 100%30%3.79 6 23
Downtown Redevelopment
Mixed Use 4.84 30%100%1.45 25 36
Site B
Medium Density
Residential
11.90 100%50%5.95 6 36
Site E
Medium Density
Residential
25.65 100%25%6.41 6 38
Total
191.55 - - 31.94 -305
Table 4.14: Stillwater Affordable Housing
Allocation Need
Number
of Units
Per Acre
Metropolitan
Council
Affordable
Housing
Allocation
Need
Stillwater’s
Future
Affordable
Housing
Calculations
Difference
6 Units
Per Acre
30 97 + 67
12 Units
Per Acre
197 208 + 11
Total:227 305 78
Table 4.12: Stillwater Affordable Housing Goals
(Source: Met Council)
Affordable Housing
Need Allocation Units
At Or Below 30% AMI 117
From 31% to 50% AMI 80
From 51% to 80% AMI 30
Total Units 227
AMI = Area Median Income
PLAN OF STILLWATER
Chapter 4 : Housing 4-13
Implementation
The following Implementation Plan identifies efforts
Stillwater will pursue to create opportunities to
maintain the existing housing stock, and to provide
increased housing options for future residents.
These implementation measures are designed as
a resource tool the City can effectively undertake
and enforce, while others are designed as tools to
encourage developers to incorporate affordable
housing into future development. However,
barriers exist in the region, as well as in Stillwater
that can make the development of affordable
housing challenging. Some of these barriers are
beyond the City’s control including:
• Steady increases in land prices.
• Increase in construction costs. When
combined with land prices, it becomes more
difficult to provide affordable units through
new construction.
• Physical limitations of land due to wetlands,
poor access, poor soils that would increase
the cost of land development or construction
thus making it more difficult to build
affordable units.
• Limited amount of remaining developable
land.
• Higher costs for redevelopment.
• State, county and local tax structures.
To help overcome these barriers, the City has
created a land use plan that support higher density
development. Guiding land at these densities
(6 units per acre and 12 units per acre) can make
it financially feasible for a developer to build
affordable housing or market rate housing. In an
effort to help promote resources for developers and
residents, the City has identified various housing
programs available to the Stillwater area (see Table
4.15). These programs will be promoted by the City
as it works towards its affordable housing goals.
Housing Action Plan
Moving forward, the City will look to develop a
Housing Action Plan by the end of 2022. Developing
a housing action plan that is dedicated and focused
on the topic of housing will be an important tool for
the City to better understand the critical housing
issues facing the community and the most effective
means to address them. This will enable future
planning efforts to focus on solutions. The housing
action plan is discussed in more detail in Chapter
12 Implementation, and recommends this initiative
occurs in the next three years. In summary, the
housing action plan should include:
1. Establish a Housing Improvement Area.
Designate older parts of the community as an
area of naturally occurring affordable housing
(or housing improvement area) for the purpose
of making funds available for updating and
improving homes. Perform a comprehensive
survey of the neighborhoods to identify
demographic make-up, residents wishing to
improve their properties, possible time-line
for selling property, and type and location of
housing desired by potential buyers.
2. Establish Housing Programs and Tools
Evaluate financial impacts of various regulatory
provisions to ensure they are not barriers to
maintaining and preserving affordability. This
can include exploration of financial programs
and tools that may help in achieving sometimes
conflicting objectives (i.e. high design aesthetic
vs. maintained affordability or energy efficiency
capital costs vs. savings in operating costs.)
4-14
PLAN OF STILLWATER
Chapter 4 : Housing
Chapter 12 Implementation recommends
adopting at least two to three tools designed to
increase the supply of affordable housing in the
near term. New tools and funding mechanisms
may include those listed in Table 4.15.
Implementation Measures
The following implementation measures describe
the actions Stillwater will take to implement the
community’s goals and policies for housing. These
measures are based on three main objectives as
listed in the beginning portion of this chapter:
residential character, housing for all, and new
residential development. Many of these items are
things the City itself can do, while others will occur
through partnerships the City will seek to provide
for and maintain housing quality and increase
affordable housing opportunities.
Affordable Housing Strategies
1. Design affordable housing in a manner that
complements the surrounding market rate
housing, while incorporating a variety of housing
styles and smaller units into single family housing
developments.
2. Establish performance metrics to regularly
measure and report on the success in the
construction/rehab of affordable units.
3. Utilize techniques, such as land trusts, to
maintain long-term affordability.
4. Work with the Washington County Community
Development Agency (CDA) to provide affordable
housing for the elderly and families.
5. Periodically review land use regulations to
determine the effectiveness of current ordinances
in encouraging additional affordable units as well
as encouraging modifications to keep the existing
housing stock desirable and livable.
6. Review and modify ordinances that support
caregiver suites, accessory dwelling units and tiny
homes.
7. Promote a wide range of housing types, styles,
densities and choices to meet life cycle housing
needs.
8. Use the land use plan as a tool to provide a variety
of residential land uses in a range of densities,
concentrating higher density opportunities along
major transportation and transit corridors, and
around future job centers.
9. Allow the creative use of site planning or PUDs
that provide flexibility for development containing
affordable housing such as a reduction in lot size,
setbacks, street width, floor area and parking
requirements.
Coordination and Collaboration Strategies
1. Work with partners to assure that any affordable
housing units, especially ownership units, employ
tools to maintain their affordability rather than to
be “flipped” for profit.
2. Partner with, support and market programs
offered by the County, State, MHFA, Federal
Government and non-profits to fund the
development of affordable housing.
3. Utilize the city’s website, newsletter and other
sources for promotion and advertising of housing
programs.
4. Continue to assist the Washington County CDA
in the administration of the housing rehabilitation
program to maintain the existing older housing
stock, maintain neighborhood character and the
diversity and supply of moderate cost housing.
5. Use the Comprehensive Plan as a tool to articulate
the City’s housing goals and affordable housing
needs when working with developers and property
owners. These discussion should occur early on in
the development review process.
PLAN OF STILLWATER
Chapter 4 : Housing 4-15
Housing Program Strategies
1. Participate in the Livable Communities Act Local
Housing Incentives Program.
2. Consider designating a portion of TIF to fund
activities that increase new affordable housing.
3. Explore using TIF and other funds to provide
housing rehabilitation grants to very low and low
income senior owner occupied housing needing
rehabilitation assistance.
4. Work with local lenders, Washington County
HRA, Minnesota Housing Finance Agency
(MNHFA) and other housing agencies to provide
a comprehensive housing assistance strategy for
households needing assistance.
5. Participate in MNHFA programs that provide
housing assistance.
6. Participate in available housing rehabilitation
programs (e.g. MNHFA Rehabilitation Loan/
Emergency and Accessibility Loan Program, Rental
Rehabilitation Loan Program, and the Fix Up
Program)
4-16
PLAN OF STILLWATER
Chapter 4 : Housing
Table 4.15: Housing Programs
Housing
Tools
Circumstances & Sequence of Use Implementation Goal Housing Need
Addressed
Community Land
Trust (CLT)
A CLT achieves affordable homeownership by owning
the land on which a house is located, allowing a
resident to seek financing only for the house. The
resident enters into a long-term lease for the home to
remain on the property. An advantage of a CLT is that
the CLT can control the future sale of the property to
ensure that affordability can be maintained and can
scatter the CLT sites throughout the community. A
disadvantage of a CLT is that it will take significant
financial resources to purchase the land rights and the
homeowner receives only limited benefits from the
appreciation in the underlying land value.
The City supports applications by
partners (e.g., Twin Cities Habitat for
Humanity and Two Rivers CLT) to
support affordable homeownership.
The City will consider other
CLT applications for affordable
homeownership.
Need for housing that
is affordable for all
residents.
Consolidated
RFP via the
Minnesota
Housing
Finance Agency
(MHFA)
MHFA provides a RFP once annually where
affordable housing developers can apply for
funding to construct affordable housing.
The City will consider
supporting/sponsoring an
application to the Consolidated
RFP programs through MHFA
for residential project proposals
in areas guided for high density
residential uses and mixed
uses, especially if the units
being proposed would serve
households earning less than 50
percent of AMI.
Need for housing that
is affordable for all
residents.
Need for maintenance
of existing housing
stock.
Economic
Development
Authority
(EDA)
An HRA can use its levy authority to provide
financing for housing and redevelopment efforts.
An HRA can also operates a variety of housing
programs to address affordable housing needs at
varying income ranges.
Stillwater does not anticipate
using an EDA model in the near
future.
Need for housing that
is affordable for all
residents.
HOME
Program
The City supports applications by partners
through this federally-funded program
administered by the Washington County CDA
The City will continue to
support applications by
partners to support affordable
homeownership through this
program
Need for housing that
is affordable for all
residents.
The Minnesota Housing Finance Agency
provides Financial assistance programs to assist
homebuyers and homeowners at various income
levels.
Stillwater encourages developers
to utilize these types of
programs t that are targeted
towards households earning less
than 80% of the AMI.
Need for housing that
is affordable for all
residents.
Housing Bond
Issuance
A City can issue bonds on behalf of a housing
project when the project furthers the City’s goals
and demonstrates a financial need and when
there is sufficient capacity under the City’s
bonding limits.
The City will consider this tool
primarily for preservation and
rehabilitation of affordable
households and rentals.
Need for housing that
is affordable for all
residents.
Need for maintenance
of existing housing
stock.
Housing &
Redevelopment
Authority
(HRA)
An HRA may use its levy authority to provide
financing for housing and redevelopment efforts.
In addition to issuing conduit debt for projects
that benefit households earning less than 80
percent of AMI, the HRA also operates a variety
of programs with wider income ranges.
Stillwater does not anticipate
using the HRA model in the near
future.
Need for housing that
is affordable for all
residents.
PLAN OF STILLWATER
Chapter 4 : Housing 4-17
Housing
Tools
Circumstances & Sequence of Use Implementation Goal Housing Need
Addressed
Livable
Communities
Act Grant
Programs (LCA)
Stillwater is a participating community in the
Metropolitan Council’s LCA programs. Stillwater
may, when applicable, apply for LCA grants
on behalf of developers who provide a level of
affordable housing and the guaranteed length
of affordability that generates a public benefit
greater than the resources required to apply for
and administer the LCA grants. The LCA tools
vary by program and offer both development
financing as well as pre-development financing.
Stillwater invites developers
to apply for funds to support
development of housing units
which meets the City’s need for
housing below 80 percent of
AMI.
The City will work on
developing a local fair housing
policy as part of the Housing
Action Plan, which is required in
order to draw funds from LCA
programs.
Need for a variety
of housing types for
people of all stages of
life.
Low Income
Housing
Tax Credits
(LIHTC),
The Low Income Housing Tax Credit (LIHTC)
program is the key financial tool to raise private
equity for the construction or rehabilitation
of affordable rental housing. The Washington
County CDA is the legal sub-allocator of the
tax credits for the county. Credits are awarded
based on criteria and procedures set forth in the
Qualified Allocation Plan (QAP) and Procedural
Manual, which are subject to approval by
the Washington County CDA Board of
Commissioners.
Stillwater will explore the use
of LIHTC with the Washington
County CDA.
Need for the
preservation of low
income housing.
Participation
in Housing-
Related
Organizations
The City will connect with others around
meeting housing needs in our communities
to create opportunities for cities, counties, the
Metropolitan Council and other stakeholders to
learn from one another. City staff are members of
various professional organizations which provide
resources and educational opportunities related
to housing including the Minnesota Chapter
of the American Planning Association, the
Minnesota Chapter of the National Association
of Housing and Redevelopment Officials,
HousingLink and others. Woodbury officials
also take part in trainings related to land use
and housing and are active in groups with other
city officials including the Regional Council
of Mayors which is staffed by the Urban Land
Institute.
Stillwater acknowledges there
are many housing collaboratives
in the region and intends to
participate in these groups. For
example, the City has collaborate
with the Metropolitan Interfaith
Council on Affordable Housing.
Participation in
organizations helps
the City grow
its professional
knowledge and
abilities to providing
housing resources for
the community as a
whole.
Rental License
and Inspection
Programs
The rights and duties of landlords and tenants
in Minnesota are spelled out in federal law, state
statutes, local ordinances, safety and housing
codes, common law, contract law, and a number
of court decisions. These responsibilities can vary
from place to place around the state.
Stillwater’s Building Inspections
Division is responsible for the
application and enforcement
of the building code and
related ordinances regulating
construction, alterations and the
use of buildings within the city.
Need for the
preservation of
affordable housing
units.
4-18
PLAN OF STILLWATER
Chapter 4 : Housing
Housing
Tools
Circumstances & Sequence of Use Implementation Goal Housing Need
Addressed
Site Assembly Site assembly is a context-specific tool that allows
land to be purchased at low prices and held for
future development. The tool is especially helpful
in meeting the needs of households earning less
than 50 percent of AMI.
Stillwater will consider using
local funds or other pass-
through dollars to assemble a
site in the locations guided at
appropriate densities and land
uses, as shown on the future
land use map, for projects which
include a portion of units that
are affordable to very low-, low-,
or moderate-income households.
Need for housing that
is affordable for all
residents.
Tax Abatement Local governments are permitted to offer tax
abatement for a public benefit, including the
creation of housing that is affordable to low
and moderate-income households. If a portion
of the tax collected from a property is abated,
such amount would need to be offset through
increased taxes levied on other properties.
Stillwater will consider a Tax
Abatement Policy. However,
tax abatement would not be
used solely for the purpose of
developing affordable housing.
Need for a variety
of housing types for
people of all stages of
life.
Tax Credits (4d)4d programs preserves affordable homes by
helping apartment building owners obtain
property tax reductions if they agree to keep a
portion of their rental units affordable.
The City considers requests for
a 4d tax reduction on a case-
by-case basis for apartments
where affordability is ensured
and physical improvements are
being made.
Need for housing that
is affordable for all
residents.
Tax Increment
Financing (TIF)
TIF is simple in concept, but complex in its
application. Through TIF, the increased
property taxes created by new development (or
redevelopment) are captured and used to finance
activities needed to encourage the development.
Please see page 7-14 for more information on TIF.
Stillwater may utilize TIF
to finance housing that is
affordable to households earning
less than 60 percent of AMI. A
housing TIF district in Stillwater
is intended to contain a project,
or a portion of a project,
intended for occupancy, in part,
by persons or families of low
and moderate income.
Need for housing that
is affordable for all
residents.
Washington
County
Community
Development
Agency (CDA)
Specific to housing, the Washington County
CDA helps Stillwater meet its housing needs in
several capacities. The CDA is a sub-allocator
of Low Income Housing Tax Credits and also
operates the GROW Fund. Both of these sources
of financing are critical in meeting the needs of
rental households earning less than 60 percent
of AMI. The CDA also serves as the public
housing authority for Stillwater and coordinates
the housing choice voucher program in the
community. The CDA also owns and develops
affordable rental properties in Stillwater. CDA
staff are also available for homeownership
counseling, foreclosure prevention assistance and
a wide variety of rental assistance needs.
CDAs provide sources of
technical knowledge as well as
potential financial tools that can
be layered into the financing
of a housing project that serves
households earning less than 80
percent of AMI. Stillwater will
encourage developers to work
with the CDA in helping meet its
affordable housing goals.
Need for housing that
is affordable for all
residents.