11-19-2018 Planning Commission Packet

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CMP Part 3C. Housing Plan immediate housing needs. 3. Orono will encourage developers to provide a variety of housing types and cost ranges.Whenever a multiple family or clustered housing development is proposed, Orono will actively encourage setting aside a reasonable number of units for large families and/or for low and moderate income families. Orono will participate and assist developers in applications for loan guarantees or other suitable forms of housing subsidy aids which may be available. Orono will also consider proposals for lifecycle housing options for sites which have not been guided for such use, but where such use may be appropriate if developed in a manner that is sensitive to the surrounding land uses and has the necessary services available. Such areas may include property that is currently guided or zoned for more intense uses such as commercial or industrial, or may include sites adjacent to existing higher intensity uses. 4 Housing construction will be subject to uniform state building code requirements but will not be burdened with unnecessary zoning requirements. Orono does not intend to require arbitrary minimum dwelling sizes or minimum amenity installations as these artificial standards only drive up the cost of housing while limiting the buyer's freedom of choice. 5. Orono will promote energy conservation methods and procedures. Orono will actively pursue and advertise all available programs for energy conservation funding. 6. To achieve its housing goals outlined above,the City will evaluate opportunities to utilize public and non-profit programs or to partner with other agencies in these programs. There is a wide variety of tools and programs available to cities and property owners, developed to encourage affordable housing, and include the following. • • • . •• . . . • • • - . . • . . • . . . . . . . . . • • . . . . .. , •• - • .Property owners should be advised that while available, Orono has historically applied the use of Orono tax dollars very conservatively, only for projects that strongly met City housing, land use, environmental, and quality of life goals. • Orono Housing and Redevelopment Authority. The City Established an HRA in 1991. The City has used its HRA to assist in the development of Senior housing complex and may do so in the future. • Housing Bonds: Minnesota State Statute allows HRAs to issue housing bonds to provide affordable housing via the acquisition of an existing buildings,development of elderly or disability housing, or the acquisition of accumulated equity for low income preservation. • Tax Abatement: Cities may issue bonds to be used to support the construction of affordable housing, using a portion of the property tax received (tax abatement) from the development to finance these bonds. This removes this property from paying taxes for the services needed for this property, its residents and the community in general. The City may develop a tax abatement policy to determine if and when the level of affordable housing and the guaranteed length of affordability provide sufficient public benefit to justify the use of tax abatement. • Tax Increment Financing: Cities may create a housing district to create a tax increment financing (TIF) district. The TIF bonds issued on this district are to be used to support the construction of affordable housing, and property taxes received above the original tax value (increment) from the development are utilized to finance these bonds. The property tax revenue that otherwise would be available to pay for city services would be restricted and not available to pay for the services. The City may develop a TIF policy to determine if and when the level of affordable housing and City of Orono Community Management Plan 2020-2040 Part 3C, Page 16