06-03-2026 PC Packet - Laserfiche WebLink

Home Browse Search

ARDEN HILLS PLANNING COMMISSION – April 8, 2026 2 PLANNING CASES A. Planning Case 26-006 – City of Arden Hills – Ordinance Amendments to Chapter 13 - Zoning Code Adding Section 1320.16 Requirements for Affordable Housing – Public Hearing Community Development Director Reilly stated in the fall of 2025, the City Council requested staff begin developing an affordable housing policy for new residential developments in the City of Arden Hills. Staff prepared several presentations about the history of and existing market conditions related to construction, cost, and affordability of new housing in the nation, state of Minnesota, the Twin Cities metropolitan region, Ramsey County and Arden Hills. At the October 2025 work sessions, the City Council received information about affordable housing in Arden Hills and the relation to the housing market nationwide. Two memos, summarized below, were produced detailing the root causes of the nationwide housing crisis, the effect specific to Arden Hills and potential solutions. Community Development Director Reilly reported Arden Hills faces a significant housing affordability challenge across all income levels and age groups. About 21% of all households are cost-burdened (spending more than 30% of income on housing), rising to 52% among renters. This includes more than a quarter of households making between 60% of the Area Median Income (AMI) and 80% AMI. In real dollars that is a four- person household with an annual income between $79,440 and $104,200. The median home sale price is $465,000 with only a three-month supply on the market — well below the five-to-six months considered healthy. Average rents exceed $1,800/month. Affordability pressures extend beyond lower-income residents: over a third of older households (65+) are now cost-burdened nationally, and many Arden Hills seniors face a "lifecycle housing mismatch" with few options between large single- family homes and expensive senior care facilities. Community Development Director Reilly explained the crisis is both national and local. Home prices have risen 60% nationwide since 2019, and the U.S. homeownership rate fell in 2024 for the first time in eight years — most sharply among households under 35. Two structural forces drive the shortage: decades of underbuilding "missing middle" housing (small-scale homes and small multi-family buildings), and incomes that have not kept pace with construction costs. New tariffs are expected to add roughly $10,900 per new home, and economic uncertainty is suppressing both builder confidence and buyer demand. Locally, Arden Hills is largely built out, institutional land holdings limit developable areas, and limited public transit adds to residents' true cost of living. Community Development Director Reilly reviewed the definitions for Affordable Housing, Attainable Housing, Workforce Housing, Subsidized Housing and Naturally Occurring Affordable Housing, provided further comment on the Inclusionary Housing Ordinance and offered the following Findings of Fact for the Planning Commission: • The City of Arden Hills is proposing to amend ordinance language for Chapter 13 – Zoning Code by adding Section 1320.16 . • 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.