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City manager outlines past affordable-housing terms, says newer deals include longer affordability windows
Summary
City Manager Andrew Neal reviewed the city’s evolving affordable-housing commitments, saying earlier projects had shorter affordability periods while newer agreements require longer terms (up to 30 years) and that some projects have perpetual affordability due to special arrangements.
City Manager Andrew Neal summarized the city’s approach to affordable housing at the March 4 meeting, explaining how the city’s terms have changed since 2015 and answering council questions about compliance and enforceability.
Neal told the council that earlier arrangements (circa 2015) typically used a 15-year affordability period, the standard increased to 20 years in 2018, and the city’s 2022 policy requires a 30-year affordability period when city or HRA financing is used. He said a small number of developments have perpetual affordability because of special agreements: the 7200 France project includes 15 permanently affordable units by bilateral agreement, and the 4040 Flats (referred to as 4040) and community land-trust single-family homes have 99-year ground leases associated with the Edina Housing Foundation.
Council members pressed for clarity about compliance and enforcement. Neal said the city now has stronger tools than it did in the early years to ensure developers honor commitments when incentives are provided, including the ability to withhold tax-increment payments if required conditions are not met. He said the city’s monitoring staff reported that affordable units in recently required developments are occupied or have pending applicants rather than sitting vacant.
Council member Risser noted that older projects still show open deficiencies in compliance reporting, and other members asked staff for a deeper compliance review that identifies which properties are noncompliant and what recourse exists when units fall out of affordability periods.
Ending: Neal and staff told the council they will provide more detailed compliance information as a follow-up and that the city will use its more recent contractual tools where appropriate to secure promised affordability periods.
