Roseville EDA reviews Stantec housing-market study update; staff says study will inform LAHA spending

The Roseville Economic Development Authority on Feb. 24 received an update from consultant Stantec on a housing market study meant to help the city assess housing production, preservation and possible use of state Local Affordable Housing Aid (LAHA) proceeds.

Community Development Director Janice Gunlock told the EDA the presentation was for information only: “This information is just information. We're not asking the EDA to establish any new policies regarding housing production or preservation, and we're not asking you to allocate any funds to any programs. This is just information at this point.” She said the prioritization exercise the body will later complete is “important only in the sense that we don't want the study to reflect anything you don't want in the study.”

Tom, a Stantec consultant, summarized the study's findings and a menu of strategies—ranging from market-rate apartment development to preservation of naturally occurring affordable housing (NOAH), accessory dwelling units, inclusionary policies, tax-credit development and capacity-building tools such as housing trusts and land trusts. He described Roseville as “an extremely desirable location” with both assets and constraints: limited land availability, rising construction costs and older housing that creates preservation needs.

Stantec presented a continuum of strategies grouped as production, preservation and capacity building. Examples discussed included: - Market-rate apartments and inclusionary housing tied to development incentives such as tax increment financing or tax abatement. - Tax-credit (LIHTC) projects, typically resource intensive but securing long-term affordability. - Regulatory changes to encourage small-scale multifamily or accessory dwelling units by right in targeted zoning districts. - Acquisition and targeted redevelopment or rehabilitation of older multifamily buildings (NOAH preservation) and manufactured housing cooperative conversions.

Gunlock highlighted LAHA, the locally retained portion of a housing sales tax created by state legislation: Roseville is collecting LAHA proceeds and “we do have to spend them by year 4 of their receipt, and if we don't spend them, they do have to be returned back to the state.” She said state law “is very prescriptive on what those funds can be spent on, primarily affordable housing or homelessness prevention,” and the study could help match local priorities to those allowable uses.

On zoning and process, Stantec noted small increments—e.g., allowing five stories instead of four on some sites—could change the economics and attract development. The consultant also recommended reviewing stormwater requirements for small multifamily projects and other code provisions that developers identified as barriers to small-scale multifamily.

Members of the EDA discussed trade-offs and local preferences. Councilor Strong asked what “small-scale by right” meant; staff explained it refers to allowing certain multifamily projects by-right (staff review) rather than requiring conditional-use public hearings. EDA members and the consultant also discussed constraints such as adjacency to single-family neighborhoods and the role of public investments to make tax-credit deals feasible.

Stantec emphasized the city already uses several tools—rental licensing and tenant-notification ordinances, a multifamily loan fund and relationships with local CDCs—and said some strategies require controlling property (acquisition) or more assertive municipal action to be effective. The consultant recommended the EDA review a worksheet provided to board members, marking strategies by impact, ease and personal interest to identify priorities ahead of a formal prioritization exercise.

The EDA did not take formal action on the study at the meeting; staff said the next step is for EDA members to complete the prioritization worksheet individually, after which the board will reconvene to rate and prioritize strategies to be reflected in the final study and to identify options that could align with LAHA spending.