Chapter 06. HousingVI. HOUSING
As part of the 2040 Comprehensive Plan update, the Metropolitan Council provides housing
estimates for each community in the seven -county metropolitan area, based on the 2010 Census and
the number of permitted units between 2010 and 2015. However, this level of analysis is only
meant to provide a framework, and typically works best in larger communities. Given the small size
of the City of Scandia, it can be difficult to obtain accurate data for housing units.
To provide a more accurate picture of current housing conditions in Scandia, data for occupied
housing units from the 2011-2015 American Community Survey (ACS) was used to provide a
baseline for current housing conditions in Scandia. This was determined to be the most appropriate
data to use, as it most closely aligned with Washington County property assessments in Scandia and
focused solely on occupied units. There are a number of seasonal dwelling units in Scandia (i.e.
cabins), but there is no consensus between data sources (US Census/ACS, Washington County, and
the Metropolitan Council) as to how many seasonal "vacant" units there are in Scandia. This can be
misleading, as seasonal units are counted as "vacant" even though they are owned and occupied for
varying lengths throughout the year. Based on community experiences, the City of Scandia has very
low to no vacancy rates for permanently occupied units.
To help guide effective, community focused policies pertaining to housing in the City of Scandia,
the city presumes there to be low/no vacancies within city limits. Seasonal housing units may or
may not become permanently occupied in the future; this is the decision of the property owner, not
the city. The City of Scandia will plan for and consider policies that do not assume any conversion
of seasonal units into permanent residences, meaning development or redevelopment is assumed to
be needed to accommodate all future households. This will ensure that enough land is reserved for
residential uses in areas that are close to or are connected to existing residential areas and service,
supporting orderly residential growth. Any conversion of seasonal units to permanent housing
would ultimately decrease the number of new housing units and amount of land needed in Scandia
to accommodate projected population growth.
A. Housing Goals and Objectives
Goal: Support a variety of housing types and densities for residential uses in and surrounding
the Village Center and other areas where appropriate.
Obiectives•
• Encourage residential development in areas where sufficient infrastructure capacity
can be provided.
• Offer density bonuses for development providing senior housing, lifecycle housing,
or work with property owners on the transfer of development rights.
Goal: Expand life -cycle housing opportunities for residents at all points of life.
Objectives:
• Encourage residential buildings to be designed for accessibility in order to meet the
needs of current and future owners.
• Continue to work with the Washington County Community Development Agency
to identify opportunities for providing additional affordable senior housing in the
Village Center.
Goal: Encourage a range of housing choices that fit with the character of the community
Obiectives•
• Review current development ordinance for districts to allow smaller lot sizes or
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higher densities while respecting the rural character and land uses.
Encourage Open -Space Cluster housing development and Lot Averaging
development.
Continue to monitor the general condition of the housing stock, with a special
focus on the physical condition of the older housing.
B. Existing Housing
As of 2015, Scandia contained approximately 1,518 occupied -housing units, 98% of which are
single family and 2% or which are multi -family. About 90% of the households (1,367 units) in
Scandia are owner -occupied, compared to 10% renter -occupied units (151 units). About 37% of
homes in Scandia are affordable to households with incomes at or below 80% Area Median
Income (AMI). However, about 30% of households in Scandia experience cost burden. There
are 40 subsidized units in Scandia, all of which are designated as senior housing. These and
other housing conditions are outlined in Tables VI -A and VI -B.
Table VI -A — Housing Conditions
Burden
Housing Units
Number of
Units
Percent
of Total
Total Occupied Housing Units
1,518
100%
— Owner Occupied
1,367
90%
— Rental
151
10%
Single Family Homes
1,488
98%
Multi -family Homes
30
2%
1%
Publicly Subsidized
— Senior Housing
40
3%
— Housing for People with Disabilities
0
0%
— All Other Publicly Subsidized Units
0
0%
Affordable Housing
Housing Units affordable to households with incomes
at or below 30% Area Median Income (AMI)
16
1%
Housing Units affordable to households with incomes
between 31 and 50% Area Median Income (AMI)
137
9%
Housing Units affordable to households with incomes
between 51 and 80% Area Median Income (AMI)
416
27%
Source: Metropolitan Council Tabulation ofAmerican Community Survey Data, 2011-2015
Table. . • .eriencing Cost
Burden
Existing households experiencing housing cost burden
with incomes below 30% AMI
83
5%
Existing households experiencing housing cost burden
with incomes between 31 and 50% AMI
114
8%
Existing households experiencing housing cost burden
with incomes between 51 and 80% AMI
22
1%
Source: Metropolitan Council Tabulation of American Community Survey Data, 2011-2015
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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 Households Experiencing Cost Burden in Scandia
60%
48%
50%
40% 33%
25
30%
28% 27% 0 30% 30% 27%
/°
20% 15% 14% 16% 15%
10%
0%
Census 1990 Census 2000 ACS 2006-2010 ACS 2011-2015
MAI I 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.
TableHousehold
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
housing units were built in the last 25 years (1990-2015). The proportion of the city's
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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
tiC
0.
ti��O
1�hO
ti
i-mure VI-lS —Aee OT MOu51
Year Structure Built by Tenure
■ Owner
Ifi0 Renter
L
tib& ti�yo
�O �O
,IC5 1y 10 y°, N:�O
Source: American Community Survey, 2011-2015
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 VK — 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
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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
100%
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
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.
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Housing Tenure
100%
8% 10%=
80%
60%
■ Renter
4% 92%
40%
■ 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.
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reV11-t — Mousing values
25
20%
0 15%
v
ao
m
10%
v
U
U1
a 5%
0/
o I� 11 ■ I I 1
Opp OCP pC, CCP 00P 00p 000 ppO ote
,gyp p0 O pO pO pO pO pO pO pO
\.�yy ypO �y�hy�O y1h 'Lpp 'LSO "'p0 RpO �hO
■ Forest Lake ■Scandia ■ Washington County
Source: Metropolitan Council Tabulation of American Community Survey Data.
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Figure VI -F - Owner Occupied Units by Value
Owner -Occupied Housing by Estimated Market Value
S ca n d is METROPOLITAN
C D ll N C I L
• p
r•• h r • • • • • • • •
• • • `
� tile.+ • • • • • • '• • it
♦ o • 1
`�• •` i •r • •• • % • •
+� !
Forest • i • • • 6 • Scand�atr r • •
M Lake -.� e ! i • • off
1 • i • • • • • r •i •+ ! •• •
so W
! • • . _ _• +
i T • !•
• • s • • • +
• Marin
r •
• •• • • e on.• ■
•• j 1
• ! ! ! • • • • j St. Crpix,�/
Hugo I •• • May,Twp. • • +• • I so000
•• r d
j • ' ~ • _ • • • • j •'
Owner -Occupied Housing 1 inch = 1.1926 miles
-_-; County Boundaries Estimated Market Value, 2015 �E
City and Township Bounda nes $238,500 or Less
Lakes and Major Rivers $238,501 to $350,000
source: MetroGIS Regional Parcel Dataset, 2015 estimated market values
Street Centerlines fo $300,001 to $450,000 for taxes payable in 2016.
10 over $450,000 Note: Estimated Market Value includes only homesteaded units
Mth a building on the parcel,
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C. Projected Housing Needs
The City of Scandia is anticipated to see modest population and household growth 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
2,100
1,910
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.
TableAffordable
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. The City of Scandia will consider the
following tools on a case-by-case basis, as development occurs.
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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- Loan
home purchase and down payment assistance
Minnesota Housing
Programm
through a dedicated loan program
Home
Assist homeowners in financing home
Washington
Improvement
maintenance projects to accommodating a
County CDA,
Loans
physical disability
Minnesota Housing
The City will continue to support ordinances
Planning
Multi-
ADU Ordinance
permitting the construction of accessory
Commission and
Generational
dwelling units or guest homes in specific zoning
City Council
Community
districts
Living
Planned Unit
The City would consider a PUD application for
Planning
Development
senior housing in the Village Mixed Use district.
Commission and
(PUD)
City Council
The City will work with groups and
Senior advocacy
stakeholders to develop guiding principles,
Program or
frameworks, and action plans to consider and
groups or
Framework
incorporate the needs of older residents into
networkkss ,
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
The City would consider the creation of a TIF
Tax Increment
district to encourage development of new
Washington
housing units, redevelopment and/or
Financing
infrastructure improvements affordable at or
County CDA
below 80% AMI
The City would consider assembling a site for
senior housing. This may include acquiring and
New Housing
Site Assembly
holding land as well as sub -allocating such monies
City
Council/Developer
Construction
to a qualified developer approved by the City
Council.
The City would consider housing bonds to
Housing Bonds
support the new construction of affordable
Washington
and/or senior housing affordable at or below
County CDA
80% AMI.
Tax Abatement
The City would consider tax abatement to
Washington
support the new construction of affordable
County CDA
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Table
Vl-F — Housing Implementation
and/or senior housing affordable at or below
80% AMI.
MN Housing
The City would consider supporting an
Washington
Consolidated RFP
application to support the new construction of
County CDA,
senior housing.
Minnesota Housing
Provide gap financing for new or
Washington
GROW Fund
redevelopment projects affordable to owner or
County CDA
renter households at or below 60% AMI
Home Buyer
The City will consider partnering with the CDA
Washington
Education
and other agencies to offer resources to
County CDA
homeowners pre- and post -purchase.
Homeowner
The City will consider partnering with the CDA
Washington
Maintaining
Counseling
and other agencies to offer counseling and
County CDA
Homeownership
foreclosure prevention to homeowners.
The City will consider supporting the addition
Washington
Community Land
of appropriate single-family homes into the
County CDA
Trust
Two Rivers Community Land Trust to increase
affordable housing options.
The City will review zoning and subdivision
ordinances to identify the potential
opportunities for cluster development and
flexible development that will encourage
City Ordinances
affordable housing.
Planning
The City will review its zoning and subdivision
Other
Commission and
ordinances to identify any regulations that
City Council
inhibit the housing priorities in this document.
This effort is slated for completion by 2020.
Local Fair Housing
The City will consider developing a Fair Housing
Policy
Policy.
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