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Mixed Income Housing Policy

About 

The purpose of the Mixed-Income Housing Policy is to meet the City of Brooklyn Park’s goal of preserving and promoting economically diverse housing options in our community by creating high quality housing in Brooklyn Park for households with a variety of income levels, ages, and sizes.

The City recognizes the need to provide affordable housing to households of a broad range of income levels in order to support a diverse population and to provide housing for those who live or work in the City. The City is adopting this Policy to encourage the integration of units that are affordable to low- and moderate-income households and working families into new housing developments across the city.

The requirements set forth in this Policy further the housing goals in the City’s Comprehensive Plan and Brooklyn Park 2025 to create and preserve affordable housing opportunities. These requirements are intended to provide a structure for participation by both the public and private sector in the production of mixed-income housing developments.

Policy

I. Applicability and Minimum Project Size

This Policy applies to rental residential developments that add or create ten or more residential units.

II. Affordable Dwelling Units

A. General Requirement

A development that is subject to this Policy shall include Affordable Dwelling Units. The minimum number of Affordable Dwelling Units required shall be determined based on the affordability standard chosen by the developer according to the criteria set forth in table T-1 below.

Table T-1

Options
(Choose one) 		 Minimum Number of affordable units required Minimum affordability standard
1 At least 5% of total project units Affordable for households at 30% Area Median Income (AMI).
2 At least 10% of total project units Affordable for households at 50% Area Median Income (AMI).
3 At least 15% of total project units Affordable for households at 60% Area Median Income (AMI).

B. Financial Assistance

If a demonstrated financial gap exists in the provision of affordable units, the following sources of funds shall be evaluated and explored, in partnership with the Economic Development Authority (EDA):

  1. Tax Increment Financing (TIF) (if applicable)
  2. Tax Abatement
  3. EDA Housing Set Aside Funds
  4. Land Write-downs
  5. Other Government Housing Development Sources such as:
    • Hennepin County AHIF or HOM funds
    • Minnesota Housing Programs (tax exempt bonds, low income housing tax credits, deferred financing)
    • Met Council LCDA, LCDA TOD, or LHIA funds
    • Private foundation dollars

C. Calculation of Units Required

The number of Affordable Dwelling Units required shall be based on the total number of dwelling units approved by the City. If the final calculation includes a fraction, the fraction of a unit shall be rounded up to the nearest whole number.

If an occupied property with existing dwelling units is expanded, the number of required Affordable Dwelling Units shall be based on the total number of units following completion of expansion.

D. Calculation of Area Median Income (“AMI”)

For purposes of this Policy, Area Median Income means the Area Median Income calculated annually by the Minnesota Housing Finance Agency for establishing rent limits for the Housing Tax Credit Program.

E. Rent Level Calculation

The monthly rental price for Affordable Dwelling Units shall include rent and utility costs and shall be based on the AMI for the metropolitan area that includes Brooklyn Park adjusted for bedroom size.

F. Period of Affordability

All Affordable Dwelling Units shall remain affordable for at least 20 years.

G. Location of Affordable Dwelling Units

Except as otherwise specifically authorized under this Policy, all Affordable Dwelling Units shall be integrated within the proposed development.

H. Phased Development

Construction of Affordable Dwelling Units shall be concurrent with construction of market rate dwelling units. For projects in which a development is to be constructed in multiple phases, the affordable units shall be distributed somewhat proportionally to meet the intent of the policy. Notwithstanding the foregoing, the total number of Affordable Dwelling Units in the completed project shall comply with the requirements in section ll(A) above.

III. Standards for Affordable Dwelling Units

A. Size and Design of Affordable Units

The size and design of Affordable Dwelling Units need not be identical to that of market rate units, but must be consistent with and comparable to market rate units in the same development. The size and design of Affordable Dwelling Units, including bedroom count and accessibility, must be approved by the City.

B. Exterior/Interior appearance

The exterior materials and design of Affordable Dwelling Units shall be indistinguishable in style and quality from the market rate units in the same development. The interior finish and quality of construction of Affordable Dwelling Units shall at a minimum be comparable to entry level rental or ownership housing in the City.

IV. Integration of Affordable Dwelling Units

A. Distribution of Affordable Housing Units

Affordable Dwelling Units shall be incorporated into the overall project and shall not be separated from market rate units.

B. Tenants

Affordable Dwelling Units in rental projects shall be rented only to income eligible families during the period of affordability. Once a household’s income exceeds one hundred twenty percent (120%) of AMI, the unit cannot be counted as an Affordable Dwelling Unit.

V. Alternatives to On-Site Development of Affordable Dwelling Units

It is the preference of the City that each new qualifying development provide its share of affordable housing, however, the City recognizes that it may not be economically feasible or practical in all circumstances to do so. The City Council may approve an alternative to providing Affordable Dwelling Units proposed by the applicant that directly provides or enables the provision of affordable housing units within the City. The alternative must be approved by the City and made a condition of approval of the Affordable Housing Performance Agreement.

VI. Incentives for Developers

The City may choose to provide incentives to participating developments in the form of exceptions from the underlying zoning codes. These incentives may include:

1. Rental developments:

  • A minimum of a ten percent (10%) density bonus

VII. Non-Discrimination Based on Rent Subsidies:

Developments covered by this Policy must not discriminate against tenants who would pay their rent with federal, state or local public assistance, or tenant based federal, state or local subsidies, including, but not limited to rental assistance, rent
supplements, and Housing Choice Vouchers.

VIII. Affordable Housing Plan

A, Applicability

Developments that are subject to this Policy shall prepare and submit an Affordable Housing Plan to the City.

B. Approval

The Affordable Housing Plan shall be approved by the City Council. Minor modifications to the plan shall be subject to approval by the City Manager. Major modifications shall be subject to approval by the City Council. Items shall be designated as major or minor in the Affordable Housing Plan.

C. Contents

The Affordable Housing Plan shall include at least the following:

  1. General information about the nature and scope of the development.
  2. The total number of market rate units and Affordable Dwelling Units in the development.
  3. The floor plans for the Affordable Dwelling Units showing the number of bedrooms and bathrooms in each unit.
  4. The approximate square footage of each Affordable Dwelling Unit and average square foot of market rate unit by types.
  5. Building floor plans and site plans showing the location of each Affordable Dwelling Unit.
  6. A good faith estimate of the price of each Affordable Dwelling Unit. The price of Affordable Dwelling Units may be adjusted at the time of sale if there has been a change in the median income or a change in the formulas used in this Policy.
  7. The order of completion of market rate and Affordable Dwelling Units.
  8. Documentation and specifications regarding the exterior appearance, materials and finishes of the development for each Affordable Dwelling Unit illustrating that the appearance is comparable to the appearance of market rate units.
  9. An Affordable Dwelling Unit Management Plan setting forth the policies and procedures that will be used to administer the Affordable Dwelling Units in accordance with the Affordable Housing Performance Agreement and this Policy.
  10. For requests to an alternative to on-site provision of affordable housing, evidence that the proposed alternative will further affordable housing opportunities in the City to an equivalent or greater extent than compliance with the otherwise applicable on-site requirements of this Policy, and evidence that the alternative will not cause the City to incur any net cost as a result of the alternative compliance mechanism.
  11. Any and all other information that the City may require to verify compliance with this Policy.

Recorded Agreements, Conditions and Restrictions

An Affordable Housing Performance Agreement (the “Performance Agreement”) shall be executed between the City and the developer in a form approved by the City Attorney. The Performance Agreement shall be based on the Affordable Housing Plan described in Section VII and shall include:

  1. the location, number, type, and size of affordable housing units to be constructed;
  2. rental terms; occupancy requirements;
  3. a timetable for completion of the units;
  4. restrictions to be placed on the units to ensure their affordability; and
  5. any additional terms the City may require.

The applicant shall execute any and all documents deemed necessary by the City, including, without limitation, restrictive covenants and other related instruments, to ensure the affordability of the Affordable Dwelling Units in accordance with this Policy.

The applicant shall prepare and record all documents, restrictions, easements, covenants, and/or agreements that are specified by the City as conditions of approval of the application prior to issuance of a Building Permit for any development subject to this Policy. Such Documents shall be recorded in the office of the Hennepin County Recorder or Registrar of Titles, as applicable.

X. Definitions

Affordable Dwelling Unit: A dwelling unit within a residential project subject to this Policy that meets the applicable affordability standards in Table T-1.

Affordable Housing Plan: A plan that documents policies and procedures for administering the Affordable Dwelling Units in accordance with the Affordable Housing Performance Agreement.

Affordable Housing Performance Agreement: An Agreement between the City or EDA and the developer that formally sets forth development approval and requirements to achieve Affordable Housing in accordance with this Policy.