Agenda - Council Work Session - 04/28/2020

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CHALLENGES AND OPPORTUNITIES Challenges and Opportunities Table CR-2 identified and recommended housing types that would satisfy the housing needs in Ramsey over the next eleven years. The following were identified as the greatest challenges and opportunities for developing the recommended housing types (in no particular order - al- phabetically). • Accessory Dwelling Units ("ADU"):_ Accessory dwelling units ("ADUs") go by several differ- ent names such as: In-law suites, garage apartments, backyard cottages, granny flats, etc. An ADU is simply a small, stand-alone residential dwelling unit located on the same prop- erty as a detached single-family home. However, in some cases an ADU could include an addition on an existing home, apartment over a garage, or be locating within an attic or basement within the home. Legally, however, an ADU is still a part of the original parcels PID number and title is with the property owner. The most common reason for building an ADU is generating rental income for the home owner or housing a family member (often for free). Because of increased density on the property and smaller sized units, ADUs have the poten- tial to increase housing affordability and create a wider range of housing options. Many communities that permit ADUs in their zoning code limit the number of accessory structures to just one; however, some cities have recently revised their zoning code to allow up to two accessory structures. Some communities monitor ADU construction by limiting new con- struction to only owner -occupied housing units (main structure is owned), minimum lot size, setbacks, and number of occupants or bedrooms in the accessory structure. • Age of Housing Stock. As illustrated in the Housing Characteristics Section of the report (Ta- ble HC-3, the median year built for a home in Ramsey is 1993 and over 50% of the housing stock was built in the past two decades. As such, Ramsey has a newer housing stock com- pared to most Twin Cities suburban communities. At the same time, about 23% of the housing stock in Ramsey was constructed in the 1970s, a portion of the housing stock in Ramsey may be in need of remodeling programs that reinvestment into the city's owner and renter housing stock. • Affordability. As illustrated in Table HA-4, most householders (83%) can afford the average market rate rent for a one -bedroom at an existing rental project ($1,200) in Ramsey. How- ever, when adjusted for rental household incomes the affordability decreases as 74% of renters could afford a one -bedroom rent. Because the rental housing stock in Ramsey is newer, market rate rents are higher than other Anoka County communities. At the same time, household incomes for Ramsey householders are higher with a median income of $64,000. The new rental housing development in the COR has targeted "lifestyle renters" or those with higher incomes who have enough money to buy a house but choose to rent for the convenience and lifestyle. Many of these renters may be cost burdened, but they choose so for the location, amenities, and proximity to transit. MAXFIELD RESEARCH AND CONSULTING 152