6.a 6. Housingv'
-.q
Housing affordability is an issue every community needs to address. In Scandia, about 30% of
all households spend 30% or more of the household income on housing, and are considered to
experience housing cost burden (shown in Figure VI -A). About half of all cost -burdened
households have incomes at or below 80% AMI; the other half have incomes higher than 80%
AMI.
Housing affordability has become a growing concern in Scandia, detailed in Appendices D and
E. Only 15% of all households experienced housing cost burden in 1990; in 2015, that
percentage doubled to 30%. High housing costs can make it difficult for young families to
move into the community or for older residents on fixed -incomes to age in their community.
Figure VI -A— Housing Cost Burden
Percent of Housholds Experienceing Housing Cost Burden in Scandia
60%
50% 48%
40% 33%
30% 28% 27% 25 0 30% 30% 27%
/0
20% 15% 14% 16% 15%
10%
0%
Census 1990 Census 2000 ACS 2006-2010 ACS 2011-2015
■ All households experiencing cost burden ■ Owners experiencing cost burden
■ Renter households experiencing cost burden
Source: US Census and American Community Survey
1. Housing Units
Housing in Scandia is predominantly single family detached, which is characteristic of rural
communities. Approximately 94% of the occupied housing stock in Scandia are detached
single family, compared to 4% attached single family residences. There is a limited amount
of multifamily housing in Scandia. Multifamily units make up roughly 2% of the city's
housing stock with 0.6% of being duplexes, triplexes, and quads and 1.4% being larger,
five units or more buildings. These data are noted in Table VI -C.
Household
Household Type
Type
Units
Percentage
Single -Family Detached
1,428
94%
Townhomes (single-family attached)
59
4%
Duplex, triplex and quad
9
0.6%
Multifamily (5 units or more)
21
1.4%
Total Households
1,518
Source: American Community Survey, 2011-2015
As shown in Figure VI -B, over 70% of the city's housing stock has been built since 1970
with almost a quarter of all units built between 1970 and 1979. About a third of Scandia's
DRAFT Scandia 2040 Comprehensive Plan Housing
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housing units were built in the last 25 years (1990-2015). The proportion of the city's
oldest housing units built in 1939 or earlier, has decreased from 19% of the city's total
stock in 2000 to 12% in 2015.
25%
20%
15%
10%
5%
0%
L
ti
0
re vi-ts — Hee or Mouse
Year Structure Built by Tenure
u I I I IN.
0 tip'° s° °�°°
y°°o yC5 y°�o y°°o
Source: American Community Survey, 2011-2015
■ Owner
■ Renter
There has been little housing development in Scandia since 2010, though the pace of
development has increased in 2015 and 2016, shown in Figure III -C. Most development
since 2000 has been in single family, detached homes.
Figure VI -C— Residential Building Permits
New Housing Units Permitted by Scandia
160
140
120
100
80
60 -
40 -
20 -
0 -
2000-2004 2005-2009 2010-2014 2015-2016
■ Duplex, triplex and quad ■ Multifamily (5 units or more)
■ Single -Family Detached ■ Townhomes (single-family attached)
Source: Metropolitan Council
2. Housing Demographics
Table VI -D illustrates the distribution of owner -occupied and renter -occupied households
in Scandia by age. The largest cohort of owners is the 55 to 64 -year old range, making up
about 34% of all homeowners in Scandia. This cohort also makes up the largest share of
renter households, representing 42% of all renters. About 60% of all households in Scandia
are owned or rented by residents age 55 or older. In contrast, approximately 6% of all
DRAFT Scandia 2040 Comprehensive Plan Housing
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households are headed by persons under the age of 35, and about 20% of all household are
headed by persons under the age of 45.
Age Distribution
of Owners
Householder Age
Owners
Renters
15-24
10
0
25-34
53
28
35-44
132
23
45-54
342
20
55-64
448
63
65-74
311
17
75 or Older
71
0
Total Households
1,367
151
Source: American Community Survey, 2011-2015
Scandia has a high rate of homeownership; 90% of all housing units are owner occupied.
Figure VI -D shows historical homeownership rates in the city; the current homeownership
rate in Scandia is estimated to be the lowest rate the city has seen in 25 years.
Figure VI -D — Housing Ownership
Housing Tenure
100% 0°° 8% 1
80%
60%
■ Renter
40% 94% 92%
■ Owner
20%
0% - -
1990 2000 2010 2015
Source: US Census, American Community Survey
3. Housing Values
Housing values in Scandia are higher compared to other areas in the region. Scandia has
higher values than both Forest Lake and Washington County, as shown in Figure III -E.
Scandia's median housing value is $293,700, compared to $230,100 in Forest Lake and the
County average of $243,600. About 13% of the city's housing market is valued below
$200,000 while about 23% are valued above $400,000. While high home values can be
beneficial to homeowners and the city, they can price out young families, lower -wage
workers like teachers and health care assistants, and seniors on fixed -incomes.
DRAFT Scandia 2040 Comprehensive Plan Housing
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Figure WE — Housing Values
25%
20%
D
0 15%
a�
10%
ai
a 5%
0% 1.1 111 IMI L
III III III
Co�°, �o�°� ote
ri
°oc
pp' pp' pp' pp' pp' p) pp' °o
yhpp ��hp°pp pp �ppp°pp`'°p,
1:2 1:2�
■ Forest Lake ■ Scandia ■ Washington County
Source: Metropolitan Council Tabulation of American Community Survey Data.
DRAFT Scandia 2040 Comprehensive Plan Housing
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Figure VI -F - Owner Occupied Units by Value
Owner -Occupied Housing by Estimated Market Value
S c a n d i a METROPOLITAN
C O U N C I L
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City and Township Boundaries
Lakes and Major Rivers
Street Centerlines
DRAFT Scandia 2040 Comprehensive Plan
Prepared by: Bolton & Menk, Inc.
Owner -Occupied Housing
Estimated Market Value, 2015
$238,500 or Less
$238,501 to $350,000
$300,001 to $450,000
Over $450,000
1 inch = 1.1926 miles „f
Source: MetroGIS Regional Parcel Dataset, 2015 estimated market values
for taxes payable in 2016.
Note: Estimated Market Value includes only homesteaded units
with a building on the parcel.
Housing
Page 48
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Lakes and Major Rivers
Street Centerlines
DRAFT Scandia 2040 Comprehensive Plan
Prepared by: Bolton & Menk, Inc.
Owner -Occupied Housing
Estimated Market Value, 2015
$238,500 or Less
$238,501 to $350,000
$300,001 to $450,000
Over $450,000
1 inch = 1.1926 miles „f
Source: MetroGIS Regional Parcel Dataset, 2015 estimated market values
for taxes payable in 2016.
Note: Estimated Market Value includes only homesteaded units
with a building on the parcel.
Housing
Page 48
C. Projected Housing Needs
The City of Scandia is anticipated to see modest population growth, and an additional 1,000
households, by 2040. Exact housing needs and demand for new housing development will be
influenced by the actual population growth and average household size. The amount of land
needed to accommodate new housing units will be influenced by several factors, including the
desire for accessory dwelling units and the location of new units. Most of the city's housing
growth is anticipated to take place in the Village Neighborhood designation, which permits
higher density residential development than General Rural or Agricultural. Accessory dwelling
units on existing lots can also accommodate the city's projected population growth without
greatly increasing the demand for developable land.
Figure VI -G — Household Projections
Household Projections in Scandia
2
1,910 ,100
1,700
1,498 1,518
1,294
1,060
851
408
1970 1980 1990 2000 2010 2020 2030 2040
t Number of Households
Appendix A details the housing needs and gaps identified by respondents to the 2017
Community Survey. Residential development was noted as one of the top priorities for the city
for the next 20 years. Most survey respondents expressed a desire for mid-range, single-family
homes on larger lots. When asked to identify gaps, the most common response was about the
lack of senior or assisted living (45% of survey responses).
As noted in Appendix B, focus group participants also expressed a desire for housing north of
Highway 97, north/west of the current village center and around Big Marine Lake. There was
interest in senior housing options, which ranged from care facilities to varying house sizes
(smaller single family, townhomes) and lot configurations, such as accessory dwelling units.
To accommodate projected housing needs, the Future Land Use plan expands the Village
Neighborhood designation north and west, a reflection of both public comments and orderly,
contiguous residential expansion. This designation accommodates smaller homes and smaller
lot sizes, blending into the historical character of the Village Center. The zoning ordinance also
includes density bonuses for the development of life -cycle housing, where the housing units are
designated for residents age 55 or older or are affordable to households with incomes less than
120% of AMI. Large lot, single family homes are the primary housing type permitted in
General Rural, Agricultural Core, and the St. Croix River zoning districts to preserve the city's
rural character.
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D. Affordable Housing Allocation
The Affordable Housing Allocation reflects the region's forecasted population that will need
affordable housing. According to the Metropolitan Council's affordable housing allocation,
Scandia's share of affordable housing need is zero units, noted in Table VI -E.
Affordable
At or below 30 AMI
0
From 31 to 50 AMI
0
From 51 to 80 AMI
0
Total Number
0
While the City of Scandia does not have an affordable housing allocation, residents have
expressed a concern about the lack of affordable housing in the city. High housing costs were
identified in the Community Survey as one of the top three challenges facing Scandia. About
37% of existing housing units are affordable to households with incomes at or below 80% AMI.
As mentioned in the previous section, Scandia offers a density bonus for the development of
affordable housing (up to 120% AMI) in the Village Neighborhood zoning district. The City
will work with developers and Washington County to inform residents of available programs
and identify opportunities for implementation.
E. Housing Implementation Plan
There are a variety tools that aid the development of affordable housing. Table VI -F lists
several of the tools available to the City of Scandia.
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Table VI -F — Housing Implementation
Housing
Goal/Need
Available Tool
Opportunity and Sequence of Use
Potential Partners
Assist first-time homebuyers with financing a
Start -Up Loan
home purchase and down payment assistance
Minnesota Housing
Program
through a dedicated loan program
Home
Assist homeowners in financing home
Washington
Multi-
Improvement
maintenance projects to accommodating a
County CDA,
Loans
physical disability
Minnesota Housing
Generational
Community
Develop an ordinance permitting the
Living
ADU Ordinance
construction of accessory dwelling units or
Property Owners
guest homes in specific zoning districts
Work with groups and stakeholders to develop
Senior advocacy
Program or
guiding principles, frameworks, and action
groups or
Framework
plans to consider and incorporate the needs of
networks,
older residents into development decisions
residents
Assist homeowners in financing home
Home
maintenance projects like roof repair,
Washington
Improvement
plumbing and electrical work, accommodating
County CDA,
Loans
a physical disability, or select energy efficiency
Minnesota Housing
Maintaining
improvement projects
Existing Housing
Units
Subsurface
Sewage
Assist homeowners with noncompliant
Washington
Treatment System
subsurface sewage treatment systems
County
Repair Grant/Loan
Encourage development of new housing units,
Tax Increment
redevelopment and/or infrastructure
Washington
Financing
improvements through the creation of a TIF
County CDA
New Housing
district
Construction
Provide gap financing for new or
GROW Fund
redevelopment projects affordable to owner or
Washington
renter households at or below 60%AMI
Count HRA
y
The City will review zoning and subdivision
ordinances to identify the potential
opportunities for cluster development and
flexible development that will encourage
Planning
Other
City Ordinances
affordable housing.
Commission and
The City will review its zoning and subdivision
City Council
ordinances to identify any regulations that
inhibit the housing priorities in this document.
This effort is slated for completion by 2020.
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