2. HRSR 02-01-2016 - Laserfiche WebLink

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RECOMMENDATIONS AND CONCLUSIONS • Market Rate General Occupancy Rental Townhomes— In addition to the recommended traditional multi-story apartment projects, we find demand exists for larger townhome units for families- including those who are new to the community and want to rent until they find a home for purchase. An additional 50 to 60 rental townhome units could be supported in Elk River over this decade. We recommend a project with rents starting at approximately$1,200 for two-bedroom units to $1,500 for three-bedroom units. Units should feature contemporary amenities (i.e. in-unit washer/dryer, high ceilings, etc.) and an attached two car garage. • Affordable General Occupancy Multifamily Housing—There have been three affordable developments built since 2007 in Elk River. These developments have been extremely successful and have maintained nearly 100%occupancy since opening. Unlike the market rate supply, existing affordable properties are typically dominated by families with children who find it more difficult to afford ownership property and market rate rents. The success of the moderate income affordable Coachman Ridge (53 units) rental project by Duffy Development near the transit station continues to support the excess demand shown for affordable housing. These projects would have income-restrictions established by HUD and would likely target households with incomes between 50%to 80% of area median income; however some could be workforce units with affordability up to 120% AMI. We find that demand exists for about 100 affordable units through 2025. Affordable housing attracts households that cannot afford market rate housing units but do not income-qualify for deep subsidy housing. Affordable projects attract a broad group of people based of tenants based on the unit type. One-bedroom units target singles and couples, whereas two and three-bedroom units target families. Some retired seniors would also be attracted to an affordable concept. We recommend an affordable concept that would target residents at 50%to 60%AMI. A workforce housing project targeting households from 80%to 120%AMI could also be pursued in Elk River. • Affordable General Occupancy Rental Townhomes—Rental townhomes affordable to moderate-income households would also be in high demand throughout Elk River. There is currently only one income based townhome development in the City (Lanesboro Heights— Section 8)that is full with a long waiting list. Affordable rental townhomes have been found to very popular throughout many communities. These projects would have income- restrictions established by HUD and would likely target households with incomes between 50%to 80%of area median income; however some could be workforce units with affordability up to 120%AMI. We recommend a project with two- and three-bedroom units and a project of 30 to 40 units. Units should feature central air conditioning, full appliance package, in-unit washer/dryer, an attached one/two car garage. Such developments are popular with families that cannot afford housing options in the for-sale market or market rate rentals. MAXFIELD RESEARCH&CONSULTING,LLC 108