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The following words and terms, when used in this chapter, have the following meanings unless the context indicates otherwise.
ACCESSORY DWELLING UNIT. See DWELLING, ACCESSORY.
AFFORDABLE. Housing is AFFORDABLE when no more than 30% of the gross income of the household is required to pay for such housing and utility costs, fees and charges.
AFFORDABLE HOUSING BUILDING. A multiple-family dwelling, where at least 9% of the units are let for an amount that is affordable to households at or below 60% of AMI.
AFFORDABLE HOUSING DEVELOPER. A developer of housing whose portfolio serves households at or below 60% of AMI.
AFFORDABLE HOUSING PLAN. The plan submitted by a developer as part of a final site and building plan or final development plan approval pursuant to this chapter and Chapter 21.
AFFORDABLE HOUSING TRUST FUND. A trust fund established by the City Council for the purpose of collecting and disbursing funds for affordable housing programs in accordance with the requirements set forth in Article VIII.
AFFORDABLE RENTS. The rent and utilities for the affordable opportunity housing units will be based on HUD Fair Market Rents for the Metropolitan Statistical Area, which includes Bloomington, Minnesota.
AREA MEDIAN INCOME (AMI). The median household income as most recently determined by the United States Department of Housing and Urban Development for the Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for household size and number of bedrooms.
BLOOMINGTON HOUSING AND REDEVELOPMENT AUTHORITY (HRA). The Housing and Redevelopment Authority in and for the City of Bloomington that was created by an act of the Legislature of the State of Minnesota entitled “Municipal Housing and Redevelopment Act” approved and in force April 23, 1947 and by Special Law, Chapter 616, 1971 as amended by Special Law, Chapter 344, 1977, and that operates as the city’s public housing agency and whose purposes include administration of a Section 8 Housing Choice Voucher and other public housing programs.
DENSITY BONUS UNIT. A unit as a result of an increase in density permitted above the per acre limit established by the city code.
DESIGNATED TRANSIT AREA, TIER I. The area within a one-half mile walk of a transit stop or station for transit lines designated METRO by Metro Transit, measured from the closest general purpose door of the development to the nearest qualifying transit stop or station.
DESIGNATED TRANSIT AREA, TIER II. The area within a one-half mile walk of a transit stop or station that offers at least hourly service weekdays between 7:00 a.m. and 6:00 p.m., measured from the closest general purpose door of the development to the nearest qualifying transit stop or station.
DEVELOPMENT. A new or existing residential housing development at a site, including a mixed use development with a housing component, for which approvals have been or are being sought from the city.
DWELLING. One or more rooms designed for residential use by a single family that contain cooking, living, sanitary and sleeping facilities and that are physically separated from any other dwelling units in the same structure. Types of DWELLINGS are:
(A) DWELLING, SINGLE-FAMILY. A building designed or used for residential occupancy by one household with or without an approved accessory dwelling unit.
(B) DWELLING, ACCESSORY. A secondary dwelling unit, but not a manufactured home built on a permanent chassis, located on the same lot as a single-family dwelling unit, either physically attached to, within, or detached from the single-family dwelling unit. Accessory dwelling units must be developed in accordance with the standards set forth in § 21.302.03.
(C) DWELLING, TWO-FAMILY. A building designed or used for residential occupancy by two households in separate dwelling units fully separated by an unpierced wall extending from ground to roof or an unpierced ceiling and floor extending from exterior wall to exterior wall, except for a common stairwell exterior to both units, including both duplexes and double bungalows but not including accessory dwelling units.
(D) DWELLING, MULTIPLE-FAMILY. A building that includes three or more dwelling units.
ELIGIBLE HOUSEHOLD. A household with an annual income at less than or equal to the required AMI of an opportunity housing unit.
HOUSEHOLD. One person or more living alone or two or more persons sharing residency.
HOUSING TAX INCREMENT. Increments from a housing district that can be used to finance affordable housing projects or public improvements that are directly related to the project, as well as administrative expenses pursuant to state law.
INCOME. Household income adjusted for household size includes:
(A) EXTREMELY LOW INCOME. Household income at or below 30% of AMI.
(B) VERY LOW INCOME. Household income above 30% to at or below 50% of AMI.
(C) LOW INCOME. Household income above 50% to at or below 60% of AMI.
(D) MODERATE INCOME. Household income above 60% to at or below 115% of AMI.
INCOME LIMITS. The Department of Housing and Urban Development (HUD) sets income limits based on Median Family Income estimates and Fair Market Rent area definitions. Multifamily Tax Subsidy Projects (MTSP) Income Limits are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits authorized under section 42 of the Internal Revenue Code (the Code) and projects financed with tax exempt housing bonds issued to provide qualified residential rental development under section 142 of the Code.
MARKET RATE UNIT. A residential dwelling unit marketed for sale or lease above 115% of AMI.
NEXUS STUDY. An analysis that estimates new affordable housing demand generated in response to new market rate residential real estate development due to spending by new resident households.
NATURALLY OCCURRING AFFORDABLE HOUSING (NOAH). Existing owner-occupied or rental residential housing that is (a) affordable for at least 20% of the units to a household at or below 60% of AMI, (b) classified in the Class B and C real estate categories, and (c) was constructed between 1940 and 1990.
OPPORTUNITY HOUSING UNIT. A housing unit that has income and affordability restrictions pursuant to this chapter.
OPPORTUNITY FUND. Private investment vehicle, certified by the United States Department of Treasury, to aggregate and deploy capital for eligible uses on property in an opportunity zone.
OPPORTUNITY ZONE. A census tract in the City of Bloomington that has been designated by the United States Department of Treasury as eligible to receive private investments through opportunity funds.
OWNER. The individual or entity who holds title to a property as indicated in Hennepin County’s property records.
PRIMARY RESIDENCE. The legal and verified permanent residence of a household.
DISTRICT PLAN. An adopted plan focused on one or more sites within an area that is intended to guide development, land use, transportation, preservation and other factors over a number of years or in several phases for a specific area or district.
RESIDENTIAL DEVELOPMENT. A residential or mixed use development, that includes any single family, duplex, townhouse, condominium dwelling, or other residential unit. RESIDENTIAL DEVELOPMENT includes the conversion of rental housing to condominiums or similar residential uses if applicable.
SITE. A lot, or group of adjacent lots intended, designated or approved to function as an integrated unit, that is proposed for development in accord with the provisions of this code and is in a single ownership or has multiple owners, all of whom execute a joint application for development.
SUBSTANTIAL REHABILITATION. When the cost of improvement of an affordable housing building exceeds 20% of the value of the property, excluding land, after improvements.
(a) New residential construction, regardless of type of dwelling unit. For newly constructed, converted, or infill multi-family or townhome residential developments with 20 or more newly created units, at least 9% of the newly created units must be affordable to households at or below 60% of AMI. For newly constructed or infill single-family detached residential developments with 20 or more newly created units, at least 9% of the newly created units must be affordable to low income family households up to 115% AMI.
(b) Calculating affordable units. In determining the number of opportunity housing units required under this chapter, any decimal fraction less than 0.5 is rounded down to the nearest whole number and any decimal fraction of 0.5 or more is rounded up to the nearest whole number. For purposes of § 9.18 (density bonus), any additional units authorized and approved as a density bonus are not counted in determining the required number of affordable units.
(c) Phasing. Developments subject to this chapter include but are not limited to development that is undertaken in phases, stages, or otherwise developed in distinct parts.
(d) Preservation and rehabilitation. When a NOAH property with 20 or more units that receives some form of financial assistance from the city or HRA is transferred or is otherwise conveyed to a new owner or member of the prior owner or undergoes substantial rehabilitation, then at least 9% of the units must be preserved as affordable to households at or below 60% of AMI through approval of an affordable housing plan and execution of an affordable housing agreement. This section does not apply to a NOAH property of 19 or fewer units. “Financial assistance” only includes direct financial assistance from the city or HRA and does not include participation in the 4d property tax program or the Section 8 housing choice voucher program.
(e) City assistance. In consideration of the 9% requirement of this section, a developer or owner of a NOAH property preserving opportunity units in accordance with this chapter may utilize the options and tools as provided in this chapter.
(f) Opportunity housing requirement. The requirements of this section are generally referred to in this chapter as the “opportunity housing requirement.”
In consideration of and as a way of providing the developer with tools and flexibility to meet the requirements of this chapter, a developer may meet its opportunity housing requirement by the construction of all required opportunity housing units on the site of the proposed residential development.
(Ord. 2019-16, passed 2-25-2019)
(a) In consideration of and as a way of providing the developer with tools and flexibility to meet the requirements of this chapter, a developer may meet its opportunity housing requirement by the construction of opportunity housing units on a site different from the site of the residential development as follows:
(1) For-sale residential development. Off-site opportunity housing units equivalent to no less than 9% of the total dwelling units in the residential development must be made available for purchase at a housing cost to those households earning no more than 110% of the area median income.
(2) Rental residential development. Off-site rental opportunity housing units numbering no less than 9% of the total dwelling units in the residential development must be made available for rent with a housing mix of extremely low, very low and up to 60% AMI households.
(3) Additional requirements. All opportunity housing units constructed off-site of the residential development must also comply with all of the following requirements:
(A) The site of the opportunity housing conforms to the city’s affordable housing dispersion objective set forth in § 9.36;
(B) The site has a comprehensive plan designation authorizing residential uses and is zoned for residential development at a density to accommodate at least the number of required opportunity housing units within the residential development;
(C) The site can accommodate the development of the opportunity housing units;
(D) Environmental review for the site has been completed for the presence of hazardous materials and geological hazards, and all such hazards are or must be mitigated to the satisfaction of the city prior to acceptance of the site by the city;
(F) Construction of the off-site opportunity housing units must be completed prior to or concurrently with the market rate residential development pursuant to § 9.36(e).
(4) Location. Where the market rate residential development is located in a district plan area, the following will apply:
(A) The off-site opportunity housing units for the residential development must be located within the same district plan area.
(B) If at the time of submission of the affordable housing plan pursuant to § 9.32, the developer has petitioned and provided credible documentation in writing to the Community Development Department that there is insufficient available land within the district area plan to construct the off-site opportunity housing units, the opportunity housing units may be constructed upon a site approved by the city in another area in the city.
(5) Incentives. In cases where opportunity housing units are constructed off site, the tools and incentives described in Article III apply only to the site hosting the opportunity housing units.
(a) Based on research conducted in support of this section and pursuant to §§ 9.01 through 9.03, a verified payment in lieu rate is hereby established as set forth in City Code Appendix A per square foot and is calculated based on the leasable market rate unit square footage of the interior unit only, and not the total building square footage. For sale unit in lieu payment is calculated based upon the livable square footage only.
(b) The opportunity housing requirement in § 9.06 may be satisfied by making a payment to the Affordable Housing Trust Fund established by this chapter in lieu of constructing the opportunity housing units, provided that such payment is received by the city prior to the issuance of the building permit for the project.
(c) If a developer chooses not to construct a portion of the required opportunity housing units mid project, the developer may make a payment in lieu of developing the remaining units that is proportional to the requirement of this section, provided that such payment is received by the city prior to the issuance of the building permit for the project.
(d) If a developer chooses the in lieu payment, the fee in-lieu must be paid to the Affordable Housing Trust Fund, but the developer may assign the in lieu payment to another housing development when it is:
(1) To a development by the same developer that will include at least the sum amount of units that is no less than 9% of the total dwelling units in the developer's original housing development in addition to 11% of the total dwelling units in the proposed development, affordable to households at or below 60% AMI provided the development receives city final development plan approval within 24 months of issuance of building permit for the market rate development;
(2) To a development by different developer that will include at least the sum amount of units that is no less than 9% of the total dwelling units in the developer’s original housing development in addition to 11% of the total dwelling units in the proposed development, affordable to households at or below 60% of AMI provided the development receives city final development plan approval within 24 months of issuance of building permit for the market rate development; or
(3) To a NOAH property in the city to maintain, rehabilitate, and preserve the existing affordable housing units within 24 months provided the developer submits a maintenance repair plan and enters into an affordable housing agreement approved by the city.
(g) Interest earned from in lieu payment held in the Affordable Housing Trust Fund will be exclusively directed to the Affordable Housing Trust Fund. The Affordable Housing Trust Fund will retain, manage, and utilize the earned interest for affordable housing activities.
(h) If the requirements of § 9.09(d) are not met by the stated deadline, in lieu payment will be released to the Affordable Housing Trust Fund for affordable housing activities.
(i) If a housing development pursuant to the requirements of § 9.09(d) receives city final development plan approval but the approval expires or is cancelled by the developer for any reason, in lieu payment will be released to the Affordable Housing Trust Fund for affordable housing activities.
(j) If a NOAH project pursuant to the requirements of § 9.09(d) enters into an affordable housing agreement approved with the city but loses its status as NOAH, in lieu payment will be released to the Affordable Housing Trust Fund for affordable housing activities.
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