City of Bloomington, MN Council Minute 2020, 12 Aug 2020

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From YouTube: August 10 Council Minute

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Mayor Tim Busse runs down the Monday night meeting with the City’s Housing and Redevelopment Authority, including updates on the Opportunity Housing Ordinance.

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Hello bloomington, I'm mayor tim bussey, and this is the council minute for the week of august 10th.

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This week the city council met concurrently with the bloomington hra to.

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Discuss housing issues that will shape our community for years to come now before getting into the details of.

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The meeting, it's probably a good idea to explain what the bloomington hra is and why we met with them. The hra is the city's housing and redevelopment.

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Authority, the hra helps provide affordable housing opportunities.

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It coordinates the city's efforts to preserve existing neighborhoods.

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And promotes development and redevelopment that enhances bloomington.

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The hra does its work through a number of different programs that you may have.

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Heard of, or maybe some of you have even participated in, such as.

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Our rental assistance program, housing, rehab loans,.

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And our first time home buyer assistance funding for the hra comes from federal.

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State, local and regional sources and the housing and redevelopment authority.

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Is governed by a five-member commission appointed by the city council.

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The hra staff are city employees in our community development department.

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And on monday night they walked us through a lot of information, because.

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Well, there's a lot going on in the city of bloomington. Last year the city council adopted an opportunity, housing, ordinance and the purpose of the opportunity housing.

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Ordinance is to promote the development of new, affordable housing and to ensure the preservation of existing housing. That's affordable and that's referred to as.

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Naturally, occurring affordable housing. The ordinance aims to do both.

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While at the same time, promoting private market development in the city of.

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Bloomington that last part is really important, so let me say it again: we are actively encouraging private.

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Market development in the city, sometimes when people hear.

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That the city is building affordable housing, they have visions of government-owned or government-operated housing and that's.

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Simply not the case, what we are doing with private.

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For-Profit developers and with non-profit development corporations.

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Is creating tools and incentives to make sure that new.

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Or rehabilitated housing in bloomington includes affordable units.

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In the total mix, well, why is this important.

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For a couple of reasons, first, as part of the city's 10-year comprehensive plan.

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That's approved by the metropolitan council.

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Bloomington has housing goals to do our part to meet the region-wide need.

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For affordable housing- and there is a region-wide need.

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For affordable housing, this regional approach is designed to make sure that.

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Every community has a range of housing options and that no community becomes overly concentrated with just one piece of the.

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Housing pie, the second and more important reason.

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That we have goals for affordable housing is because we know there is a need in our community.

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That exceeds the current stock of housing units for people living at or.

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Below the area's median household income, more.

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Simply demand for housing that people can afford far exceeds the supply staff, provided us really helpful data.

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About who lives in bloomington and who needs housing that fits their.

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Family's needs I'm going to throw some numbers at you here. So please.

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Hang with me, we look at the median income in bloomington and for 2018.

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The most recent year that we have data the median income in bloomington.

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Was 72 thousand dollars a year, which is almost.

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Five thousand dollars a year less than the seven county metropolitan area.

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And it's the metro area, income commonly referred to as ami.

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That is used to set the targets for the cost of each rental unit.

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So we know right off the bat bloomington residents are below the area, income.

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Ranges which makes housing a little bit more expensive, then we look at average rents in bloomington.

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A one bedroom unit in bloomington averages one thousand.

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One hundred thirty seven dollars a month, a two bedroom averages.

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Fourteen hundred a month, if there is only one wage earner in the family to.

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Afford those rents requires an hourly wage of twenty one.

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Dollars and eighty seven cents an hour for a two-bedroom, it's 26.90 an hour.

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Now, when talking about housing, we often use a measure, that's called.

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Households that are cost burdened, that means.

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The cost of a household's rent or the cost of their mortgage if they're a.

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Homeowner is more than 30 percent of their income.

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In bloomington about 27 percent of households.

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Are cost burdened more than one quarter of our households in our city.

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The real crisis is for renters, where 43 are paying more for housing than they.

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Can afford for homeowners it's about 20 percent.

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The point is this: housing affordability is one of the greatest challenges.

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That bloomington and communities across minnesota are facing.

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Especially now in the midst of a global pandemic, you know this.

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For many of you, your income is probably not going up as much as your rent or the.

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Grocery bill or other living expenses- and it's very.

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Important to me, and everyone on the city council, that people who work in our.

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Community, the people who work in our hotels and in hospitality, the people who work in manufacturing and non-profits and in our.

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Schools and in our churches, the people who work in this community.

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Should be able to afford to live in this community, and it's also.

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An issue for our retirees on fixed incomes, not getting priced out of their home or their apartment, is a real concern.

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It takes a comprehensive approach to make sure that we are meeting current.

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Needs and to be planning for a variety of safe and desirable housing options that will attract families to bloomington. Let's wrap up on an optimistic note.

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Bloomington is doing as much as any community in the twin cities to meet.

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Housing needs, in fact, if you look at this map, you'll see we have more than 2500 residential units in the development pipeline right.

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Now and more than 700 of those units meet some affordability target and, like I said, we aren't just focused.

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On rental, housing or multi-family residential projects.

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The city council has focused renewal as one of our strategic goals.

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That means we need to focus on keeping our single-family residential stock in.

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Good shape this map shows where homeowners around bloomington have reinvested in their property with the help of the hra and the city over the past four years.

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This investment of city and hra dollars into our neighborhoods.

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Is helping ensure that the housing stock remains safe and appealing.

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And that it continues to grow in value after all,.

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We know that, for many people buying a home is the biggest investment they will.

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Ever make providing help to ensure that investment is sound is what our home loan program is all about. Throwing a lot of.

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Information at you over the last few minutes, if you have any question.

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Please do not hesitate to contact me or any member of the city council we'll be.

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Happy to talk more about this, that's a wrap on this week's council.

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Minute, thanks for tuning in we'll see you next week until then be well and stay safe, bloomington.