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ARDEN HILLS CITY COUNCIL—APRIL 27, 2026 11 Council work session, staff were directed to bring back a draft ordinance or policy to address requiring affordable units in project proposals. Community Development Director Reilly stated a draft ordinance tailored to Arden Hills' market conditions was developed for discussion purposes. Both new residential construction and rehabilitation of existing multi-family homes are included in the ordinance which is intended to be market-sensitive, avoid negative impacts to the tax base, and address stated concerns about community character. Following discussion and some revisions to draft language at the February 9, 2026, City Council work session, staff were directed to bring a draft to the Planning Commission for public hearing. Community Development Director Reilly provided further information on the discussion that was held at the Planning Commission meeting. He recommended the Council strike the second paragraph on Page 4 in Attachment A as the language identifies a fee in lieu but there is not a matching paragraph establishing a location for those funds to go. Staff will bring the concept back at a later date. Staff offered the following Findings of Fact: • The City of Arden Hills is proposing to amend ordinance language for Chapter 13 —Zoning Code by adding Section 1320.16 Requirements for Affordable Housing. • The proposed ordinance is consistent with the adopted Comprehensive Plan policies to: o Encourage the incorporation of affordable and life-cycle housing into new development and redevelopment where feasible. o Identify programs, policies, and strategies that encourage aging in community for senior citizens. • The health, safety, and economic welfare of present and future residents of Arden Hills depends on the availability of housing choices affordable to people and families at various income levels, including those earning less than 80% of Area Median Income. • Stable, safe, and affordable housing provides measurable health and economic benefits for individuals, families, and the community as a whole. • There is a demonstrated need to encourage the development of affordable housing for Arden Hills' workforce and families. • New residential development can accommodate demand for affordable housing for service workers, teachers, public safety personnel, and other essential community members. • The preservation of naturally occurring affordable housing (NOAH) is critical as market pressures increase rents and threaten the displacement of existing affordable units. • Economic integration of affordable housing within market-rate developments creates diverse, stable neighborhoods and prevents the concentration of poverty and the concentration of wealth. • Amendments to the Zoning Code regulations require a public hearing prior to action by the City Council. • The Planning Commission held the required public hearing on April 8, 2026. Community Development Director Reilly requested the City Council hold a public hearing at this time. Councilmember Weber asked if the density bonuses work with preexisting density bonuses, as was offered within the North Heights senior project.