Agenda - Council - 07/26/1983 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I Coon Rapids city council has authorized a 5 percent increase in the price limits for the moderate- and modest-cost price categories. REFLECTING ON THE EXPERIENCE Coon Rapids' experience with Shannon Park shows significant housing cost savings can be achieved by reducing public regulatory and development standards. The project also demonstrates affordable housing can be built through positive public-private sector cooperation, negotiation and zoning flexibility. Local concern that buyers should share in cost savings achieved through reduced standards can be addressed through agreements with developers and builders on housing price limits (see page 5).. The single-family portion of the Shannon Park planned unit development has shown strong sales. Currently, building permits have been issued for homes on 124 of the 140 lots in the project. The average estimated sale price of single-family homes sold in the project through September 1982 was $62,900, substantially lower than..~be average cost of new Single-family housing in the city. Housing sales in ~.'project were~timulated by Coon Rapids' second ~below.mar.kct .rate mortgage'.bon~ program initiated in spring 1982. This program offered mortgages ~t 'interest rates as 1Ow"a~ 10 percent at a time when other new home financing'-i~t~rest rates in the Twin Cities Metroplitan Area were averaging between 15 and 18 p'erc~n~"~ '' The Coon Rapids experience benefits both developer and the city. The follow~.~'z] advice may be helpful to other communities considering a similar approach. A general commitment to fostering affordable housing must be present among a community's staff and appointed and elected officials to provide a context for achieving negotiated, affordable housing prices. There must be representatives from the local developer/builder'-~- -, community willing to negotiate housing prices, who trust the loc~t~.-~ government enough to allow significant public participation in pricing decisions that traditionally have been the sole responsibility of the' private sector. The community must be willing to spend considerable time and effort in achieving negotiated housing price limits. DOING IT AGAIN The Shannon Park affordable housing experiment offers some valuable lessons to Coon-Rapids on how to aproach future small lot, single-family housing developments. Insights led to the following general conclusions. Designing Housin~ for Small Lots The 55-foot width of most lots in Shannon Park generally proved inadequate, since most builders tended to squeeze conventional housing units designed for 80-foot wide lots into the 55-foot lot width. This approach sacrificed side yard setbacks a~d gave the appearance of overcrowding from the street. The city concluded that 60 feet is the narrowest aceptable lot width for conventional single-family detached housing styles. It also found that 20 feet is the narrowest acceptable side yard setback between the livifig areas of