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11-14-23 HRA Work Session Agenda November 14, 2023 — 6:30 PM Golden Valley City Hall Hybrid Meeting 1.2023 Housing Needs Analysis Overview HRA WORK SESSION AGENDA Housing and Redevelopment Authority Work Sessions are being conducted in a hybrid format with in- person and remote options for attending. Remote Attendance: Members of the public may attend this meeting by streaming via Webex, or by calling 1-415-655-0001 and entering access code 2633 018 0727 and webinar password 1234. Additional information about attending electronic meetings is available on the City website . Discussion Item(s) HRA Work Session meetings have an informal, discussion-style format and are designed for the HRA to obtain background information, consider policy alternatives, and provide general directions to staff. No formal actions are taken at these meetings. The public is invited to attend HRA Work Session meetings and listen to the discussion; public participation is allowed by invitation of the HRA. City of Golden Valley HRA Work Session November 14, 2023 — 6:30 PM 1 EXECUTIVE SUMMARY Community Development 763-512-2345 / 763-512-2344 (fax) Golden Valley Housing and Redevelopment Authority Work Session November 14, 2023 Agenda Item 1. 2023 Housing Needs Analysis Overview Prepared By Cherie Shoquist, Housing and Economic Development Manager Summary The Comprehensive Housing Needs Analysis 2023 (www.goldenvalleymn.gov/612/Housing-Programs- Resources) was commissioned in 2022 to be conducted by Maxfield Research and Consulting, LLC. This is an update to the 2017 Housing Needs Analysis completed by Maxfield Research and Consulting, LLC and included in the housing section of the 2040 Comprehensive Plan. The 2023 study projects housing demand from 2023 through 2035 and provides recommendations on the amount and type of housing that could be built in Golden Valley to satisfy demand from current and future residents over the next decade. The study identifies the potential demand for over 2,600 new housing units through 2035 divided between general-occupancy housing (53%) and age-restricted senior housing (46%). Below is a breakdown of those housing units: Projected General Occupancy Housing Demand 2023-2035 : 1,394 New Units 552 For-Sale 141 Single Family 411 Multifamily 842 Rental 278 Market Rate 336 Affordable 228 Subsidized Projected Senior Housing Demand 2023-2025 : 1,218 New Units 951 Active Adult 0 Deep Subsidy 127 Shallow Subsidy 187 Owner 2 300 Rental 267 Service Enhanced 81 Independent Living 81 Assisted Living 105 Memory Care The Executive Summary finds that: "Overall, the housing market in Golden Valley has been strong during and through the COVID-19 pandemic for all housing sectors. Golden Valley continues to be a highly active new construction rental housing submarket in The Twin Cities and several more projects are under construction and approved. Despite new supply, the rental housing vacancy rate is 3.6% and below market equilibrium. Golden Valley has also been a high-demand for-sale market through the pandemic as buyers desired an inner- ring suburb location. Median sales prices are up nearly 20% from early 2020. However, the recent uptick of mortgage rates led by the Federal Reserve’s fight on inflation has moderated appreciation and sales velocity is down. Most senior housing property occupancies have recovered from the pandemic while senior housing is poised for strong growth this decade due to the aging of the population." Challenges and Opportunities The following were identified as the greatest challenges and opportunities for developing the recommended housing types: Accessory Dwelling Units Affordable Housing/Naturally Occurring Affordable Housing Age of Existing Housing Stock Aging Population Construction & Development Costs COVID-19 Impacts Local Housing Programs Inflation Job Growth/Employment Land Supply (Lack of) Lifestyle Renters Modular Housing Mortgage Rates Short-Term Stay Housing Single-Family Rental Housing Demand Financial or Budget Considerations Not applicable Legal Considerations Not applicable Equity Considerations The Comprehensive Housing Needs Analysis is a critical element of the Comprehensive Plan and serves 3 as a gauge of where we need to be in our development to meet the needs of our growing community. This report will assist with the City’s goals to preserve and promote economically diverse housing options in our community. In response, we will need to create responsive, economical, and equitable systems to address any and all growth disparities or barriers, such as the high cost of development, labor shortages, permit review timeframes, and other regulatory barriers that may exist. We need to be proactive in our meeting the housing needs of our community that meet a variety of income levels, ages, and sizes. Recommended Action Presentation and brief discussion 4