HomeMy WebLinkAbout08-27-08CITY OF ST. OS~PH
1
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St. Joseph Planning Commission
August 27, 2008
6:00 PM
Administrator 1. Call t0 Order
~udy ~Me~~rcns
2. Chapter 5, Housing
M~wor
AI Kass~~~r 3. Adjourn
Councilors
Steve ~ran~
Rick Schultz
Rcnee Svmanietz
Dale Wick
zs Colle~;c Avcnue North PO Box 668 Saint ~oseph, Minnesota 56374
Phone 3zo.363.~2oi fax 3zo.363.o34z
HOUSING
i
I
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HOUSING
I. PURPOSE
Housing is a key issue for all residents. Housing costs are typically the number one expenditure for most
individuals; in addition, it is the single highest source of most individual wealth. Studies have alluded to social
benefits of housing such as self-respect, responsibility, and pride leading to increased participation in
community and civic activities. In addition, housing plays a critical role in state and local economies including
employment in the construction, real estate, financial, and insurance industries. Housing is the largest land
use and largest capital asset within the City. Proactive consideration of housing related issues will help the
City meet future housing needs.
The purpose of this Chapter is to summarize housing issues within the
City of St. Joseph and establish goals and work items promoting a
healthy residential infrastructure and furthering a variety of life-cycle
housing options. This Chapter can help city leaders and community
members better understand the local housing situation and encourage
dialogue about housing concerns in St. Joseph. Planning for housing
helps create dwelling units that meet a broad range of needs and are
coordinated with other Comprehensive Plan elements such as land use,
transportation, economic development, utilities, and community
facilities.
The issues have been identified through:
• An analysis of City demographics affecting housing needs;
• An evaluation of existing housing units and conditions;
• A review of land use options for housing growth; and,
• The establishment of a housing plan.
~~ HC111S1>11G MEANS .. .
Traditional single-family detached
homes, single-family attached homes
such as townhomes, multiple family
structures (apartments), and
manufactured homes. The term
refers to owner-occupied dwellings,
as well as rental, cooperative, and
condominium ownership
arrangements.
City of St. Joseph Comprehensive Plan Chapter 5, Page 1
HOUSING
II. HOUSING SUMMARY
r Housing Projections. Continued household growth within the City is
expected over the next two decades. An additional 4,411 dwelling units
are projected to be added by 2030.
HOUSING SUMMARY r Life Cycle Housing. The development of life-cycle housing works to
Increase of 163 dwelling sustain the community by preventing a polarization of residents in one
units projected by 2030 age or income group. As one generation of residents moves through
its life cycle it can move into the housing provided by the previous
generation, just as the next generation will move into the housing being
A variety of life cycle vacated. St. Joseph leaders seek to provide a variety of life cycle
housing is sought: types, housing types, sizes and values.
sizes, and values
Mix of Housing Types. St Joseph has an appropriate ratio of rental to
owner-occupied housing units (27% rental to 73% owner-occupied).
An appropriate rental (27%) The majority of owner-occupied housing units are detached single
to owner (73%) ratio of DU family dwellings. The majority of rental units are contained in structures
exists housing ten to 19 units.
Vacancy Rates. St. Joseph has a slightly higher rental vacancy rate
Vacancy rates (rental and (1.66%) than other communities sampled and the state average. Most
owner-occupied) are within vacant rental units were market rate general occupancy units. When
normal area limits compared with rental vacancies, the vacancy rate for owner-occupied
units is slightly higher ai 2.40 percent. A healthy vacancy rate is
generally assumed to be from three to five percent. Less than three
Median rental rate is percent may reveal excess demand, more than five percent may reveal
significantly lower when excess supply.
compared to other cities
- Rental RateslMortgage Cost. The median gross rent ($430) in St.
Joseph is significantly lower than the average of communities
Average mortgage payment surveyed. The average monthly housing cost in St. Joseph for homes
is somewhat lower when
compared to other cities with a mortgage ($856) is nearly the lowest of all areas surveyed.
When compared to other cities, St. Joseph has a significantly higher
percentage of homeowners and renters spending more than 30% of
The number of home sales their income on housing costs. The 30% figure is a common threshold
and sales values ihave for measuring housing affordability.
varied since 2000
r Housing Sales. The average sales value of residential units in Stearns
County increased from 2000 through 2006. Within St. Joseph, like
Maximum monthly housing national trends, housing sales have slowed in recent years. However,
costs unlike trends in certain areas nationwide, the value of existing home
2008 HUD Sect. 8 -Family sales has not dramatically decreased.
of 4
Extremely low income = r Maximum Housing CostlMonth: 2008 HUD Section 8 income
$484 guidelines set monthly maximum affordability rate for a family of four
Very low income = $806 as: extremely low income persons at $484/month; very low income at
Low income = $1,290
$806/month, and low income at $1,290.
- Demand for Additional Units. Demand appears to exist for
Most existing housing is in construction of additional market rate and subsidized rental units along
good condition with new attached single family homes and move-up owner-occupied
homes.
City of St. Joseph Comprehensive Plan Chapter 5, Page 2
HOUSING
'' Condition of Housing. The condition of the existing housing stock in St. Joseph has been
documented to be in generally good condition. A windshield survey of various residential areas
conducted by MDG in May of 2008 reveals that most housing structures are well maintained.
However, some evidence of deterioration was cited, particularly in the original townsite and in areas
adjacent to more intense land use (i.e. commercial).
City of St. Joseph Comprehensive Plan Chapter 5, Page 3
HOUSING
III. HOUSING PROJECTIONS
Data sources and population estimate/projection information used in the creation of the 2008 Comprehensive
Plan Update is contained within Chapter Three of the Plan. The data includes projected household growth
through the year 2030. Table 5-1 below illustrates current and future housing forecasts and is based
population forecasts included in the St. Cloud Area Wastewater Treatment Plant Facilities Plan. The
projections forecast an additional 4,411 households by 2030.
TABLE 5-1
ST. JOSEPH POPULATION AND HOUSING PROJECTIONS
Year Population
Forecast Household
Forecast
2010 8,117 3,171
2015 10,217 __ _
_3,991
2020 _
12,808 5,003
2025 _
13,908
_ 5,433
2030 _
15,753 6,154
Source' Population forecast: St. Cloud Area Wastewater Treatment Plant Facilities Plan
Persons/household = 2.56 (2006 MN. Demographer's estimate)
City of St. Joseph Comprehensive Plan Chapter 5, Page 4
HOUSING
IV. HOUSING ISSUES
A. LIFE CYCLE HOUSING VARIETY
The housing stock within a community must be responsive to the needs of its residents. Housing needs are
not static but change over time as people move through different stages of their lives. Housing needs tend to
evolve from: (1) affordable basic units for young people just beginning to enter the workforce, to (2)
affordable single family units r ~-- w~_.~_.~ t~=• ~- -~•~
for first time home buyers ~~' ;,,
and young families, to (3) ,, -. _ ~, i
t ~ ..
move up housing for people F~. F~ L 1 ` ~2 ~ ": -, ~
with growing families and/or - - ,~ _ ' - = ,~ ~ ~~~
incomes, to (4) empty-nester ~ x ~ `~ ~ I ,1 e
dwellings for persons whose f ~ '~ ! '"~' -
children have grown and left ~ ` ~
home, to (5) low~_ ~"- ~
maintenance housing - ~~~- -~`= - ~-
options for aging persons as their ability to maintain their property decreases, and finally to ;6) assisted living
environments to provide health and medical care to the elderly.
To address the life-cycle needs of residents ii is critical that a community provides a wide range of housing:
Types (i.e. apartment/townhome/condominium rental, townhome/condo/single-family owner-
occupied ,assisted living);
Sizes (i.e. one, two, three bedroom rentals; starter homes; move-up homes); and,
Values: (i.e. efficiency -luxury rental units; starter homes -executive homes).
The availability of life-cycle housing works to sustain the community by preventing polarization of residents in
one age or income group. As one generation of residents moves through its life cycle it can move into the
housing provided by the previous generation, just as the next generation will move into the housing being
vacated. Additional information regarding types, sizes, and values within St. Joseph's housing stock are
included later in this Chapter.
B. COMPARISON OF SELECTED HOUSING CHARACTERISTICS
In the near decade since enumeration of Census 2000, the housing sector throughout the nation progressed
from rapid expansion to a recent slowdown. The national trend is evident at the municipal level as well. Table
5-2 below illustrates increases in dwelling units since 1999 in St. Joseph, Sartell, Sauk Rapids, and Waite
Park. It is noted the number of dwelling units in City of St. Joseph increased 53.4% since 1999, a brisk rate
outpacing the cities of Sauk Rapids (29.4%) and Waite Park (14.4%) but trailing Sartell (61.2%).
TABLE 5-2
HOUSING GROWTH 2000 THRU 2007
Characteristic/City ~. Joseph Sartell Sauk Rapids
- Waite Park
--
2000 Census Hag Units ~~ ~~ , ~~~ 4 r --
~ -- _ _ _
# Units Added thru 2007 613 2,162 1,183 440
Total Housing Units 1,760 5,693 5,200 3,505
% units added slots Census 2000 enumeration 34.8% 38.0% 22.8% 12.6%
% change since Census 2000 enumeration 53.4% 61.2% 29.4% 14.4%
City of St. Joseph Comprehensive Plan Chapter 5, Page 5
HOUSING
The most comprehensive, accurate, and readily-available comparative information at the municipal level is
Census data. Therefore, the discussion in this section relies primarily on Census data.
Comparative analysis of selected housing characteristics in nearby communities can assist in the evaluation
of the local housing stock. The following table compares certain housing characteristics in St. Joseph with
those in the cities of Waite Park, Sauk Rapids, and Sartell. As depicted in Table 5-3 on page seven:
• St. Joseph has an appropriate ratio of rental (27.3%) to owner-occupied (72.7%) units.
• St. Joseph has a variety of unit types from single-family detached and attached to rental units in
various structure sized.
• St. Joseph (29%) had fewer vacant single family homes as a percentage of vacant dwelling units
than both Sartell (34%) and Sauk Rapids (39%).
• The median gross rent in the City of St. Joseph ($430) is less than all communities surveyed
including Sauk Rapids ($471), Sartell ($554), and Waite Park ($563).
• Average monthly housing costs for homes with a mortgage ($856) was the lowest of all areas
surveyed. Average monthly housing expense in St. Joseph for homes without a mortgage ($262)
was above that of Waite Park ($221) but lower than that in Sartell and Sauk Rapids.
• As described in the 2000 Census, 41 % of renters and 22% of homeowners in St. Joseph spent
more than 30% of their income on housing costs. The 30% level is commonly used as a break-
point measure for housing affordability. The percentages for St. Joseph are higher than those in
the communities of Sartell, Sauk Rapids, and Waite Park. The high number is attributed to the
number of college students living in the community and working part-time or attending school
full-time.
City of St. Joseph Comprehensive Plan Chapter 5, Page 6
HOUSING
TABLE 5-3: COMPARISON OF SELECTED HOUSING CHARACTERISTICS
CharacteristiclCity St. Joseph Sartell Sauk Rapids Waite Park Average
2000 Census Hsg Units 1,147 3,531 ~ 4,017 3,065 n/a
Occupied Housing Units 1,104 3,432 3,910 2,989 n/a
N° of Hag. Units Occupied 96.25% 97.20% 97.34% 97.52% n/a
Vacant Housing Units, BY Status 28 93 97 97 n/a
For Rent 12 16 37 39 nla
For Sale _
5 44 26 11 n/a
RentedlSold, rat oo~ ied _
11 15 9 16 n/a
For Seasonal, Reaeational, or Occasional Use 3 5 3 5 n/a
For M~ rato Workers _
0 0 0 0 n/a
Other Vacant _
6 8 21 7 n/a
Vacant Housing Units, t3y Structure Type _
28 93 97 97 n/a
one, detached _
8 32 38 3 nla
fie. atlaChed 0 0 0 6 nla
Two 0 0 28 0 n/a
3 or 4 0 0 9 0 nla
5 to 9 8 0 0 6 nla
tOto19 6 0 0 10 n/a
20 to 49 0 0 12 66 n/a
~* 0 12 5 6 n/a
Manufactured Homes 6 49 5 0 n/a
°~ of owner Occupied Hsg. Units Vacant 2.40% 2.50% 2.40% 3.20% 2.63%
°~ of Rental Hsg. Units Vacarrt 1.66% 1.51 % 0.23% 0.22% 0.90%
2000 Census OlOHag UnRs 803 2,638 2,578 1,184 n/a
°k Total Owner Occupied 72.74% 76.86% 65.93% 39.61 % n/a
2000 Census ReM. Hag Units 301 794 1,332 1,805 nla
% Total Renter occupied 27.26% 23.14% 34.07% 60.39% n/a
Units in structure
one detached 800 2244 2471 1167 nla
one, attached 47 65 70 125 nla
Two 8 11 159 51 n/a
3 or 4 38 25 64 41 nla
5 to 9 44 42 162 87 n/a
10 tD 19 112 217 365 212 n/a
20 to 49 9 294 366 950 n/a
~* 15 238 237 402 nla
tvtanufactured Homes 34 377 102 47 n/a
Median Gross Rent ' $430 $554 $471 $563 $505
Median Monthly Hsg Cost wf Mortgage $856 $1,056 $998 $829 $935
Median Monthly Hsg Cost wlo Mortgage ~ $262 $297 $269 $221 $262
°~ of renters spending more than 30~. on rent 41.3% 38.7% 23.4% 32.1 % 33.88%
°~ of owners spending more than 30% on mortgage 21.6% 13.5% 15.9% 17.1 % 13.62%
oource: u a census
City of St. Joseph Comprehensive Plan Chapter 5, Page 7
HOUSING
C. POPULATION AGE CHARACTERISTICS AND AVAILABLE HOUSING CHOICES
Population age characteristics and available housing options are essentially interrelated and can be
analyzed in terms of correlative trends over time.
National demographic trends affecting the housing market at this time are:
• Problems within the subprime mortgage industry have lead to more stringent lending
requirements,
• The potential for an economic downturn,
• The general aging of the population (increased need for retirement housing/assisted living
facilities), and
• The presence of grand-parents in caregiver roles for grandchildren (an increasingly popular
alternative to day care) has lead to a delay in the movement from larger move-up homes to
empty-nester type housing options.
St. Joseph's existing population as described in the Demographic Profile (Chapter 3), the majority of St.
Joseph's population is concentrated between the ages of 20 and 44. The volume of young adults within the
community likely reflects the presence of the College but also the type of home-buyers attracted to housing
options available within the City (i.e. new single family starter homes). In the year 2000 median age was 21.8
years.
Examination of age cohorts reveals St. Joseph is gaining a very significant amount of children who were
between newborn and 19 years of age in 1990. This likely reflects younger couples with children or growing
households locating in the community. The City is maintaining its share of those aged 25 to 44 in 1990 and
attracting additional persons who were aged 60 to 65 in 1990.
On the other hand, the City is experiencing a significant net loss of persons aged 20 to 24 in 1990 and those
aged 65+ in 1990. The net loss indicates a lack of opportunity for young adults within the community and the
potential demand for additional housing options for the elderly.
City of St. Joseph Comprehensive Plan Chapter 5, Page 8
HOUSING
V. HOUSING SALES
The following Table (5-4) represents median sales prices for qualified sales in selected cities in Stearns
County and Benton County earlier in this decade. The data from the Minnesota Department of Revenue,
Division of Property Taxes illustrates a 79% increase in median sales prices for residential properties in St.
Joseph between 2000 and 2007. The data reflects arm's length transactions of residential units. The data
may not reflect the actual sales price for dwelling units constructed and sold within the same year as it is
based on assessed market value computed in January of each year. Sales ratio studies run from October of
one year to September of the next. Figure 5.1 illustrates changes in median sales values by city over time.
The data reveals in St. Joseph, like national trends, housing sales have slowed in recent years. However,
unlike trends in certain areas nationwide, the value of existing home sales has not dramatically decreased.
TABLE 5-4
COMPARISON OF NUMBER $ MEDIAN VALUE OF RESIDENTIAL SALES
City/Year
St. Joseph
Number Med. Value
Sauk Rapids
Number Med. Value
Sartell
Number Med. Value
St. Cloud
Number Med. Value
Waite Park
Number Med. Value
2000 39 $ 93,500 162 $ 105,650 139 S 124,550 66L $ 94,450 57 $ 92,000
2001 54 $ 106,450 166 $ 122,825 175 $ 137,000 726 $ 107,950 54 $ 106,450
2002 74 $ 118,450 175 $ 132,200 188 $ 145,900 773 $ 118,900 74 $ 118,450
2003 69 $ 132,250 182 $ 144,325 261 $ 157,650 872 $ 128,900 69 $ 132,250
2004 68 $ 144,500 214 $ 145,700 246 $ 165,400 803 $ 136,500 68 $ 144,500
2005 97 $ 158,700 243 $ 163,700 250 $ 179,775 909 $ 145,000 97 $ 158,700
2006 77 $ 159,610 190 $ 162,225 189 $ 187,000 662 $ 151,500 72 $ 147,095
2007 68 $ 167,100 142 $ 162,700 197 $ 183,400 547 $ 152,250 68 $ 167,100
Figure 5.1
Median Sales Value Trends
---
5190 -- -- --
- --- - --
4 -- - -- - -
5185 ~ ----- - ----
5180 - --- -- - - - --
175 ~ ----
170 -- --- - -- - - - - -- --- _ _ - -
-.
$165 - - - ---- --- --- --- - - -
5160 _ - -- --
i v 515 5 - - - -- - - - _ _ _ - - --
~ N 150 --- - -- -- --_ _ - _ - -
--- -- - -
145 - _ -- - - -- - - - - ------
0 5140 --- --
~ 5135 - - - - -. - -- - - -- --
$130 - - -- - --- -- - - - -
125 - - ---- __ --- - - - -
-- -
I 5120 ~ -- -- -- - - -- - - - - - - - - ---
5115 ~ _ --~ =~- - ------ --- - ------ - -- -- -
--
5110 - - - -- - - - -
- - ----
~ 5105 --- ._- --
--- - -
5 S 00 -- - _ __ - - - ----
~~'
590 -
I
2000 2001 2002 2003 2004 2005 2006 2007
i
-+~Sauk Rapids
--E-Sartell
rte. St. Cloud
1
=~-Waite Park
St.Joseph
City of St. Joseph Comprehensive Plan Chapter 5, Page 9
HOUSING
VI. HOUSING AFFORDABILITY
Initial reaction to an affordable housing development is often negative, but upon closer examination many
economic and social benefits are evident. New affordable housing can support local economic development
initiatives, increase area property values, and help ensure community residents have decent housing at
costs all can afford.
"Affordable Housing" is defined differently by various organizations and reflective of a snapshot in time. To
provide an assessment of whether an adequate supply of affordable housing exists in St. Joseph the
following strategy will be employed. First, the number of households within various income categories will be
estimated. Next, affordable monthly housing costs will be derived from income data. Then, the average value
of dwelling units will be calculated. Finally, the two data sets will be compared generally assess whether or
not an adequate supply of affordable housing exists.
Need for Affordable Housing 2008
The United States Department of Housing and Urban Development generally defines housing as affordable if
it costs less than thirty (30) percent of a household's income. However, HUD's Section 8 Income Guidelines
are the basis for most affordable housing programs. Section 8 guidelines define low and moderate incomes
on a sliding scale, depending on the number of persons in the family. For example, a four person household
is considered 'low income' if their family income is 80 percent of the area's median family income.
For the purposes of the 2008 Comprehensive Plan, the fiscal year 2008 HUD Income Limits for the St. Cloud
Metropolitan Statistical Area will be used to describe affordable housing as follows for a family of four
oersons. The 2008 HUD guideline limits in Figure 5.2 are based on fiscal year 2008 Fair Market Rent (FMR)
areas which incorporate data from Census 2000 and the annual American Community Survey.
Figure 5.2
HUD Income Limits - 2008
Median Family Income (MFI) $64,500
Extremely Low Income (30% of MFI) $19,350
Very Low Income (50% of MFI) $32,250
Low Income (80% of MFI) $51,600
Source: vnvw.hud.gov
The following calculation is employed to determine the maximum dollar amounUmonth available for housing
expenses for a family of four. The median family income by category (i.e. extremely low, very low, low) is
divided by 12 (months in a year), the result is multiplied by 30% (maximum percent of income that should be
spent per month on housing). After determining the maximum available/month for mortgage related
expenses (i.e. $1,290) it is possible to determine the potential 'affordable' owner-occupied unit value. At
$1,290/month with a 30-year fixed rate mortgage at 7% interest a low income family could support a
maximum housing value of $193,800 (not including taxes and insurance). Figure 5.3 illustrates potential
dollars available per month for housing costs in the St. Cloud MSA.
Figure 5.3
HUD Income Limits - 2008
Category
MFI
Extremely low income
Very low income
Low income
Income Limit $ Available/Month for Housin
$64, 500 $1,613
$19,350 $ 484
$32,250 $ 806
$51,600 $1,290
City of St. Joseph Comprehensive Plan Chapter 5, Page 10
HOUSING
Table 5-5 below illustrates changes in household income within the City. Table 5-5 is based on U.S. Census
data, 2008 projections from Claritas Inc. (a market/demographic analysis firm), and Municipal Development
Group.
TABLE 5-5
INCOME DISTRIBUTION
Household Income No. of Households
Census 2000 No. of Households
2008 Estimate Change
$0 -14,999 70 152 82
$15,000 - $24,999 --
_ _ 81 -_ _ _- --
- -._.._176 - -- ---
---- --__ 95 --- --- -
$25,000 - $34,999 _ 161 174 13
$35,000 - $49,999 154 313 159
$50,000 - $74,999 _ 269 305 36
$75,000 - $99,999 219 163 -56
$100 000 - $149,999 _ 104 83 -21
$150,000 - $249,999 19 28 9
$250,000+ 0 0 0
Table 5-5 indicates approximately 815 households could qualify as `low to moderate income' status under
HUD guidelines. The high number may in part be attributed to the large number of college students living in
'households' within the community.
It is noted the Census Bureau definition of a "household" includes all people who occupy a housing unit as
their usual place of residence. The Census Bureau classifies all people not living in households as living in
group quarters of which there are two types: institutional (for example, correctional facilities, nursing homes,
and mental hospitals) and non-institutional (for example, college dormitories, military barracks, group homes,
missions, and shelters). College students living in non-college owned housing off-campus are, therefore,
included in the definition of a 'household'.
In 2008 the City reports approximately 100 single family detached rental units are occupied by college
students. In addition, a market research report by McComb Group, Ltd. reports nearly 100 rental units are
occupied by college students defined as 'households'. For the purposes of this discussion, MDG will
therefore discount the previous estimate of households potentially qualifying as "low to moderate income"
status from 815 to 615 households.
Most families/individuals earning less than 50% of median income (extremely to very low income) can't afford
to own a home and must instead rent a dwelling. As such, we may separate the estimated likely demand for
affordable rental units from the estimated demand for affordable owner-occupied units based on income. To
those ends, the data in Table 5-5 indicates nearly 300 families may be looking to rent rather than own. In
addition, the potential demand for affordable owner-occupied units may be over 300 families.
It is necessary to note the data in Table 5-5 includes persons who own the dwelling they occupy (mortgage
paid off) and families of less than four persons. As such, this data should be used as a rule of
thumb/guideline as opposed to a precise calculation. City leaders should also keep in mind the need for
affordable housing can be magnified if housing values rise and incomes stagnate.
Affordable Housing Availability
The next step in the affordability analysis is to accurately determine the number of dwelling units available in
St. Joseph by monthly costs. Since extremely and very low income persons often rent rather than own a
dwelling, the categories will be separated. The number of owner-occupied dwellings in the City available for
a monthly cost of $806 to $1,290/month and the number of rental units available for $484-$806/month.
City of St. Joseph Comprehensive Plan Chapter 5, Page 11
HOUSING
Value of Exisfing Owner-Occupied Units
The method of ascertaining potential affordable owner-occupied housing availability reflected herein relies on
housing value estimates developed by the national market research firm Claritas. The Claritas estimates are
based on the 2000 Census, the Census Bureau's Annual Community Survey, and other national statistics.
Table 5-6 illustrates the estimated number of homes within certain value categories.
The data in Table 5-6 indicates the majority of housing units in St. Joseph have estimated values in 2008
between $100,000 and $200,000.
TABLE 5-6
2008 HOUSING VALUE ESTIMATES
Value Number of Units Percentage of Units
Less than 520,000 16 1.6%
x20,000 - 539,999 10 1
540,000 - 559,999 8 0.8%
560,000 - 579,999 ~ 11 1
580,000 - 599,999 49 4.8%
5100,000 - 5149,999 456 44.7%
5150,000 - 5199,999 330 32.3%
5200,000 - 5299,999 124 12.1
5300,000 - 5399,999 9 0.9%
5400,000 - 5499,999 3 0.3%
5500,000 - 5749,999 0 0%
5750,000 - 5999,999 0 0%
51,000,000 or more
5 -
0.5% ll
Source: Claritas
Rental Units
A 2007 Market Research Report by McComb Group, LTD included an inventory of rental housing within St.
Joseph. The information in Table 5-7 summarizes information contained in the Market Research Report. The
rental inventory illustrates 70 subsidized general occupancy units, 16 subsidized senior units, 84 student
units, 20 market rate senior units, and 140 market rate general occupancy units.
Rental units 330 rental units within the City, 36 are available exclusively for seniors, 84 for students, and the
remaining 210 units are available for general occupancy.
There are currently no efficiency units and 61 student units with greater than three bedrooms. The average
rents for one, two, and three bedroom market rate units are $479, $652, and $929 respectively. Vacancy
rates are notably low within all units in the City.
The McComb Group, LTD market research study forecasts a projected absorption rate (additional demand)
over the next ten years of 26 to 30 units per year. The absorption forecast would nearly double the amount of
rental units within the City. It's noted the study cites increased need for rental units as a result of the current
housing slump and tightening lending restrictions. It is further noted the McComb Group Study did not
include analysis of the impact of increased on campus residency requirements at the College of St. Benedict
and St. John's University.
City of St. Joseph Comprehensive Plan Chapter 5, Page 12
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HOUSING
Affordable Housing Assessment
Based on the following information as summarized from previous discussion, potential exists for a shortage
of general occupancy subsidized housing units within St. Joseph. Owner-occupied units within the
community appear to be generally within affordable parameters.
• Demand analysis illustrates an estimated 600 households are potentially in need of affordable
housing options.
• Analysis of estimated 2008 housing values and historic sales for owner occupied dwellings
reveals averages below the projected affordable mortgage value of $193,800. The value was
derived by limiting housing costs to an annual rate of thirty percent of income for those earning
80% of median income for a family of four and based on a 30-year fixed-rate mortgage at a
seven percent rate of interest.
• The U.S. Census Annual American Community Survey reveals the majority of persons living in
the St. Cloud Metropolitan Statistical Area spending more than 30% of their income on housing
costs are clustered in income classes between $20,000 and $50,000. In St. Joseph nearly 700
households (48% of all households) have estimated annual incomes between $20,000 and
$50,000 according to the national research firm Claritas.
• Analysis of existing rental units reveals 26% (86 of the 330 units available) are rent-controlled;
excluding rental units provided exclusively for students, 35% of rental units available are
subsidized.
• Analysis of existing general occupancy rental unit supply, excluding those with more than three
bedrooms, reveals average rental rates in 2007 of: $479/1 BR, $652/2BR, and $929/36R. The
average rental rates are well above the income available for housing-related expenses for
extremely low income families ($484 available for housing/month for a family of four) and very
low income families ($806 available for housing/month for a family of four).
City of St. Joseph Comprehensive Plan Chapter 5, Page 14
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VII. OTHER HOUSING CONSIDERATIONS
A. VARIETY OF HOUSING TYPES AND SIZES
Estimates by market research firm Claritas reveal the existing housing supply in St. Joseph continues to
feature a relatively standard ratio of rental (27%) and owner-occupied (73%) dwelling units.
The rental unit supply includes a substantial number of student rental units (84) most of which are four or five
bedroom units. Within the City of St. Joseph, less than one-third of the rental units are subsidized; there are
no efficiency units and very few non-student rental units with three or more bedrooms.
The vast majority of existing dwellings in St. Joseph (71%) are single family detached units, commensurate
with the St. Cloud MSA average (70%) illustrated in the latest American Community Survey (ACS). The
median owner occupied dwelling value in St. Joseph as projected by Claritas in 2007 is $145,624,
significantly lower than the St. Cloud MSA 2006 ACS median of $181,900.
It appears the St. Joseph housing stock is primarily clustered in the moderate middle and could also benefit
from additional development of luxury units.
B. CONDITION OF EXISTING HOUSING STOCK
The condition of the existing housing stock in St. Joseph has been documented to be in generally good
condition. A windshield survey of various residential areas conducted by MDG in May of 2008 reveals that
most housing structures are well maintained. However, some evidence of deterioration was cited, particularly
in the original townsite and in areas adjacent to more intense land use (i.e. commercial).
While not necessarily a determining factor of condition, a structure's age is generally proportional to the
needed maintenance and likelihood of necessary rehabilitation and/or redevelopment. Neglected
maintenance, especially for older structures, can lead to deterioration that will have a blighting influence to
adjacent properties and the entire neighborhood. Claritas data indicates 123 (8.5%) of housing units were
constructed prior to 1939 whereas, 397 (28%) of units within the City are located within structures after 1999.
The 2000 Census gathered data regarding the structural and facility characteristics of housing within all
communities. According to the Census, 13owner-occupied dwellings lacked complete plumbing facilities (hot
and cold piped water, a flush toilet, and a bathtub or shower) and four owner-occupied dwellings lacked
complete kitchen facilities (a sink with piped water; a stove or range; and a refrigerator). No rental units
lacked complete plumbing or kitchen facilities.
Although the U.S. Census does not have an official definition of overcrowded units, many professionals
consider more than one occupant per room as being a facility that is potentially overcrowded. The 2000
Census data indicates approximately two percent of owner-occupied dwellings had more than one occupant
per room and one percent of rental units had more than one occupant per room.
C. CONVERSION OF SINGLE FAMILY RENTAL DWELLINGS
The College of St. Benedict and St. John's University have announced plans to extend on-campus residency
requirements to third and fourth year students. The announced goal is to have 90% of all students housed on
campus. The residency requirement change is expected to impact the volume of detached single-family
rental units and may impact the volume of apartments designed for student rentals. A thorough economic
impact analysis of the change in residency requirement on the city's housing supply has not been conducted.
The location of detached single-family student rental houses is illustrated in Figure 5.4.
City of St. Joseph Comprehensive Plan Chapter 5, Page 15
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Figure 5.4
Locations of Single Family Detached Student Rental Units
City of St. Joseph Comprehensive Plan Chapter 5, Page 16
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VIII. HOUSING PLAN
GOAL #1: SUSTAINABLE, WELL-BALANCED SUPPLY OF LIFE CYCLE HOUSING
Objective A: Promote a variety of housing types, sizes and values.
Policy/Recommendations:
1. Continue to examine the existing supply and demand for dwelling units which meet
the changing life-cycle needs of St. Joseph residents.
2. Support zoning and subdivision regulations allowing for the construction of a variety
of housing types and price ranges.
3. Provide for and dutifully consider planned unit developments that provide a mixture
of housing types.
4. Allow for the development of multi-family housing units in areas that are physically
suited to serve higher densities.
5. Provide for and encourage mixed use structures within the downtown.
6. Support the development of additional market rate and subsidized rental units.
7. Support the development of additional single-family attached units.
8. Support the redevelopmenUre-use of detached single-family student rental units.
9. Actively review and promote potential areas of residential redevelopment and infill
as a means of sustaining neighborhoods.
Objective B: Maintain the existing variety of housing types, sizes and values.
Policy/Recommendations:
1. Support reinvestment in existing housing units which provide a variety of options for
all types of residents though public/private partnerships.
2. Protect the integrity of residential neighborhoods through code enforcement.
3. Support continued adequate rental unit conditions by administration of the rental
housing ordinance.
4. Establish and pursue appropriate remedies for care of vacant and/or foreclosed
properties (e.g. lawn & sidewalk maintenance; prevention of utility freeze-up).
Objective C: Promote, support, and participate in regional housing efforts, activities, and partnerships.
Policy/Recommendations:
City of St. Joseph Comprehensive Plan Chapter 5, Page 17
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1. Remain engaged in regional, state, and national efforts designed to support the
avoidance of foreclosures and/or the conversion of foreclosed properties to suitable
uses.
2. Frequently review local/regional housing information and participate in local/regional
housing studies and programs specifically as it pertains to the following:
a. Researching the feasibility of a lease to purchase program. Older existing
housing stock provides an affordable ownership opportunity when compared
with the costs of new construction. A regional lease to purchase program
should be investigated; however, to make such a program function, a public
or non-profit agency is needed to implement the program and funding
sources must be identified.
b. Awareness of diversity issues; recognize, embrace, and prepare for
increased diversity in population.
c. Addressing local and regional housing issues through cooperative efforts
with neighboring communities.
GOAL #2: WELL-MAINTAINED HOUSING
Objective A: Promote efforts to maintain existing housing stock and improve structures in need of major
repair.
Policy/Recommendations:
1. Continue to address maintenance problems and code violations as a means of
improving and strengthening the character of individual neighborhoods and avoiding
blighting conditions.
2. Proactively address violations of property maintenance which pose public health and
safety problems and threaten neighboring property values.
3. Explore and utilize home-improvement grants and loans to keep homes well-
maintained.
4. Investigate the potential for seeking a Small Cities Development Program grant to
assist with housing rehabilitation/construction especially as it relates to detached
single-family student rental homes which may become vacant as a result of a
change in campus residency requirements.
5. Actively participate in programs that would assist buyers of older homes in providing
for significant maintenance expenses such as re-roofing, replacing windows and
upgrading siding.
Objective B: Continuously monitor and analyze the volume and location of dwelling units with tax
delinquencies and/or those in foreclosure.
Policy/Recommendations:
City of St. Joseph Comprehensive Plan Chapter 5, Page 18
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Remain informed of potential strategies to minimize the impact of tax delinquent
and/or tax forfeited property on City resources. The League of Minnesota Cities is
currently working to address this issue.
GOAL #3: A VIBRANT CONNECTION BETWEEN HOUSING, ENVIRONMENT, RECREATION, AND EMPLOYMENT
Objective A: Embrace and promote the essential linkage between housing and employment.
Policy/Recommendations:
1. As additional commercial and/or industrial employment opportunities arise, strive to
provide and maintain pedestrian routes for those walking or bicycling, especially
along collector and arterial streets as a means of providing important links between
residential neighborhoods and places of employment.
2. As energy prices continue to rise and the population swells, consider and embrace
the need for park and ride or park and carpool facilities. The measures could be
especially effective if installed as part of a highway improvement project.
Objective B: Embrace and promote the essential linkage between housing and the environment.
Policy/Recommendations:
1. Through its Subdivision Ordinance and/or Flood Plain Management Ordinance,
restrict or prohibit residential development affecting public waters/watercourses,
wetlands, and other natural features as they perform important protection functions
in their natural state.
2. Implement goals, objectives and policy recommendations included in Chapter Two
(Physical Profile) of the 2008 Comprehensive Plan.
Objective C: Embrace and promote the essential linkage between housing and recreation.
Policy/Recommendations:
1. Be mindful of the need for adequate park and recreation facilities for families and
children within residential neighborhoods.
2. Monitor available park and recreational facilities available to various residential
neighborhoods and how they relate to the types of residents occupying the
neighborhood as it evolves.
City of St. Joseph Comprehensive Plan Chapter 5, Page 19
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IX. RESOURCES.
The programs listed below are currently in use or are available and may be used in the City as market
factors allow, assisting the City in implementing the aforementioned recommendations.
Federal resources:
1. Section 8 Certificates and Vouchers: Rent assistance that recipients can take with them when they
move, rather than being tied to specific housing. Tenants pay about thirty (30) percent of their
income FOR rent.
2. HOME (the Home Investment Partnership Program): Grant program for state and local governments
to acquire, rehabilitate or construct affordable housing for low-income renters or owners.
3. Community Development Block Grants (CDBG): Funds community development efforts, including
housing. Local governments that receive funding have wide discretion in its use.
4. The Federal Housing Administration (FHA) and Department of Veterans Affairs (VA): Insures and
guarantee loans, which increase housing market access for some families.
5. Low-Income Housing Tax Credits: Federal income tax credits for people or companies that invest in
the construction or substantial rehabilitation of rental housing. Developers of rental housing sell the
credits to investors. Proceeds from credit sales can cover some of a project's development and
construction.
6. Tax Exempt Bonds: Sold by state and local governments. Buyers accept a lower interest payment
because it is not taxable income. State and local housing agencies use the bond proceeds to finance
mortgages with below market interest rates.
State Resources
Home Mortgages:
1. Minnesota Mortgage Program: Provides mortgages with below-market interest rates to first-time
homebuyers through the sale of mortgage revenue bonds.
2. Minnesota Urban and Rural Homesteading: Awards grants to organizations and public agencies
that acquire, rehabilitate, and sell single-family homes that are vacant, condemned or blighted to
at-risk first-time homebuyers.
Home Improvement and Rehabilitation:
1. The Great Minnesota Fix-Up Fund: Provides home improvement loans with below-market interest
rates for low and moderate-income homeowners.
2. Community Rehabilitation Fund: Provides grants to cities for acquisition, rehabilitation, demolition
and new construction of single-family homes.
Rental Housing:
1. Low and Moderate Income Rental Program: Provides mortgages and rehabilitation funds for either
acquisition and rehabilitation of or new construction of rental housing for low and moderate-income
families.
2. Affordable Rental Investment Fund (ARIF): Provides low-interest first mortgages or deferred loans to
help cover the costs of acquisition and rehabilitation or new construction of low-income rental
housing.
City of St. Joseph Comprehensive Plan Chapter 5, Page 20
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3. Low Income Housing Tax Credits (LIHTC): LIHTC are MHFA's share of the tax credits allocated to
Minnesota.
4. HOME Rental Rehabilitation: Provides grants to rehabilitate privately-owned rental property in order
to support affordable, decent, safe and energy efficient housing for lower-income families.
5. Housing Trust Fund: Provides deferred loans without interest for the development, construction,
acquisition, preservation, or rehabilitation of low-income rental housing.
6. Rental Rehabilitation Loans: Provides property improvement loans to rental property owners
Other Resources
Local Government Sources:
1. Local Bonds: May be used to assist with financing affordable housing and are available in two types.
First, revenue bonds typically finance mortgages and are paid off with mortgage repayments.
Second, general obligation bonds are paid off with local tax collections.
2. Tax Increment Financing: Housing or redevelopment districts may be established by local
governments to assist eligible housing projects. Local governments capture the property tax
revenue generated by the new development and use the captured taxes to help finance the eligible
project. Occupants must meet income restrictions for housing TIF districts.
3. Local tax levies: May be used to directly finance affordable housing.
4. Local housing trust funds: Are local revenues dedicated exclusively to housing activities.
Non-Profit Sources:
1. Greater Minnesota Housing Fund: is a nonprofit agency that provides capital funding grants and
loans to affordable housing projects in greater Minnesota. Contributions from the McKnight and
Blandin Foundations finance the fund.
City of St. Joseph Comprehensive Plan Chapter 5, Page 21