CPED STAFF REPORT Prepared for the Planning Commission CPC Agenda Item #11 June 14, 2021

ZONING CODE TEXT AMENDMENT

Initiator: Council Members Gordon, Schroeder, and Goodman Introduction Date: July 17, 2020 Prepared By: Amber Turnquest, Principal City Planner, (612) 352-6047 Jason Wittenberg, Planning Manager, (612) 673-2297 Ward: Citywide Neighborhood: Citywide Intent: Amend ordinance regulations to adopt a regulatory framework to allow for new — and to better regulate existing — (SRO) units to implement policies in Minneapolis 2040.

APPLICABLE SECTION(S) OF THE ZONING CODE

Title 20, Zoning Code:

1. Chapter 520 Introductory Provisions. 2. Chapter 535 Regulations of General Applicability. 3. Chapter 546 Residence Districts. 4. Chapter 547 Office Residence Districts. 5. Chapter 548 Commercial Districts. 6. Chapter 549 Downtown Districts. 7. Chapter 551 Overlay Districts.

The following chapters were also introduced: Chapter 525, 527, 530, 531, 536, 537, 541 and 550. However, staff is not recommending changes to these chapters as part of this amendment and is therefore recommending returning them to the author.

BACKGROUND

Council Members Gordon, Schroeder, and Goodman introduced an ordinance on July 17, 2020, to amend the City’s regulations to permit the development of single room occupancy (SRO) units. The intent of these amendments are to implement policy guidance in Minneapolis 2040 that calls for the pursuit of innovative housing types and eliminating homelessness. The City Planning Commission Committee of the Whole previously reviewed and provided comments to this zoning code text amendment at the March 25, 2021 meeting.

Staff held two stakeholder engagement meetings. The first on September 29, 2020, to review the history and operational requirements and on February 5, 2021, to review the language and provide comment. Department of Community Planning and Economic Development

The text amendment is intended to allow residential units that would fill a gap on the affordable housing continuum for people who earn low-wages or work intermittently, creating a regulatory framework to allow for new — and to better regulate existing — rooming and single room occupancy units.

Rooming-type units are currently allowed only when establishing housing with supportive services (e.g., supportive housing, community residential facilities, assisted living, nursing homes). While SROs are proposed to be classified as a type of congregate living within the zoning code, SRO housing would not include supportive services.

Definition. SRO units are distinguished from “dwelling units” by the fact that each living space would not be required to include kitchen or bathroom facilities. The definition of single room occupancy housing is proposed to be introduced in Chapter 520.160:

Single Room Occupancy (SRO) Housing - A facility providing housing that is operated by a non-profit organization, government agency, or healthcare agency, as defined in and meeting the requirements of Chapter 244, Housing Maintenance Code. It does not include:

1) Community residential facilities.

2) Board and care homes, nursing homes, assisted living facilities.

3) Supportive housing.

New SRO units would generally be limited to parcels where policy and regulation allow four or more dwelling units, beginning with lots 7,500 square feet or larger located in the Interior 2 built form district and more intense districts. The R3 zoning district is proposed as the lowest intensity district where SROs would be allowed. In the R3 district, the use could be established on a lot with at least 7,500 square feet, aligning with the locations where with four or more residential dwelling units are allowed. In the R4 district and above, 5,000 square feet of lot area would be required. Conversions of existing buildings and new of SROs would be permitted.

SROs would be limited to no more than two occupants per room. Rooming units are not subject to minimum zoning requirements related to minimum floor area (300 for accessory dwelling units, 350 square feet for efficiency units, and 500 square feet for units with one or more bedrooms). The required size of rooms/units within SROs is left to the code and Housing Maintenance Code to address.

SRO units could only be established by non-profit or government agencies with a track record of successfully managing housing. Standalone licenses would ensure renter protections for tenants.

FINDINGS

What is the reason for the amendment and what public purpose will be served? The reason for the amendment is to permit the development of single room occupancy (SRO) units. The text amendment is intended to allow residential units that would fill a gap on the affordable housing continuum for people who earn low-wages or work intermittently, creating a regulatory framework to allow for new — and to better regulate existing — rooming houses and single room occupancy units. The proposed text amendment is intended to encourage the establishment of SRO units.

2 Department of Community Planning and Economic Development

How is the amendment consistent with the purpose of the zoning district(s) or ordinance chapter(s) being amended? New SRO units would generally be limited to parcels where policy and regulation allow four or more dwelling units, beginning with lots 7,500 square feet or larger located in the Interior 2 built form district and more intense districts. Minneapolis 2040 includes the following description of the Interior 2 built form district: “New and remodeled buildings in the Interior 2 district should be small-scale residential. Individual lots are permitted to have up to three dwelling units. Multifamily buildings with more than three units are permitted on larger lots. Limited combining of lots is permitted. Building heights should be 1 to 2.5 stories.” The R3 zoning district is proposed as the lowest intensity district where SROs would be allowed. In the R3 district, the use could be established on a lot with at least 7,500 square feet. In the R4 district and above, 5,000 square feet of lot area would be required. Conversions of existing buildings and new construction of SROs would be permitted. Note that some R3 zoning districts may exist in the Interior 1 built form district. To align with policy, any R3 (or higher) residential zoning will likely be removed from the Interior 1 district when the citywide rezoning study is completed. Rezoning from an R1-R2B district to an R3 district is generally not supportable in the Interior 1 built form district or on lots smaller than 7,500 square feet in the Interior 2 built form district. A maximum parking requirement for SRO housing was adopted as part of the recent zoning code amendment affecting off-street parking and travel demand management. Are there consequences in denying this amendment? Denying this amendment would continue to limit housing options and prevent the City from taking steps to align its zoning regulations with the new comprehensive plan. Such a lack of alignment would stifle progress toward important policy goals. What adverse effects may result with the adoption of this amendment? Substantial adverse effects are not anticipated as a result of this amendment. The policies that are informing proposed regulations were adopted following a robust public engagement process. The City is now implementing those policies. Staff acknowledges that there is a stigma associated with SROs which could be contentious in many circumstances because of real or perceived impacts. As proposed, SRO units could only be established by non- profit or government agencies with a track record of successfully managing housing. Standalone licenses would ensure renter protections for tenants. Further, this zoning code text amendment will be accompanied by amendments to the Housing Maintenance Code, with licensing standards intended to avoid or mitigate any adverse effects. Licensing through the Housing Maintenance Code includes a requirement that an applicant demonstrate the ability to operate units effectively and will provide tenants with protections afforded to renters. Tier III rental dwellings would not be eligible for use as SROs. Changes to the Housing Maintenance Code will be considered at a public hearing by the City Council’s Business, Inspections, Housing & Zoning (BIHZ) Committee.

How does the amendment relate to other City ordinances? CPED is coordinating with other City departments on additional amendments to other City ordinances to address licensure, health, safety, etc. An amendment to Chapter 244, the Housing Maintenance Code, will occur concurrently with the zoning code text amendment process. The Housing Maintenance Code will be amended to define single room occupancy housing units, redefine the definition for rooming houses, and lists requirements for SROs.

What factors are influencing the timing of the proposed amendment? Why? There is a need to permit the development of additional housing types within the City to fill a gap on the affordable housing continuum for people who earn low-wages or work inconsistently. Affordable housing has become more difficult to secure for those working in low-wage occupations. This zoning code amendment is one piece in the City’s overall effort to ensure that people have access to safe and dignified housing.

3 Department of Community Planning and Economic Development

How does the amendment compare to practices in other ? Staff found in a number of the cities surveyed, SROs are used as housing options for low income individuals and senior citizens. Communities such as San Francisco, New York City, and Boston are using SROs to provide additional affordable housing options.

How will this amendment implement the comprehensive plan? The amendment will implement the following applicable goals of Minneapolis 2040 (2020):

Goal 2. More residents and jobs: In 2040, Minneapolis will have more residents and jobs, and all people will equitably benefit from that growth. Goal 3. Affordable and accessible housing: In 2040, all Minneapolis residents will be able to afford and access quality housing throughout the city. The following policies and action steps from Minneapolis 2040 (2020) apply to this proposal: Policy 35: Innovative Housing Types: Pursue innovative housing types and creative housing programs to help meet existing and future housing needs. b. Review and revise existing policies, programs, and regulations to remove barriers and support innovative, energy efficient, and creative housing options, such as multi-generational housing that supports large family structures, single room occupancy, shared housing, co-housing, and cooperative-housing. c. Invest in the training and expansion of housing code enforcement to monitor and ensure owner- occupant and investment properties are meeting the standard of building maintenance and health conditions.

Policy 40: Homelessness: Eliminate homelessness through safe, stable, and affordable housing opportunities and strategies for homeless youth, singles, and families. e. Support and expand low barrier housing opportunities to better serve households with criminal and credit reports through rental housing that serves tenants with the greatest barriers to securing housing, such as having no or very low income, poor rental history and past evictions, or criminal histories. g. Create a regulatory framework to allow new rooming houses, single room occupancy units, and other forms of transitional housing.

RECOMMENDATIONS

The Department of Community Planning and Economic Development recommends that the City Planning Commission and City Council adopt staff findings to amend Title 20 of the Minneapolis Code of Ordinances, as follows, and further recommends that Chapters 525, 527, 530, 531, 536, 537, 541, and 550 be returned to the author:

A. Text amendment to adopt a regulatory framework to allow single room occupancy (SRO) units. Recommended motion: Approve the text amendment to regulations that govern single room occupancy units within the City. Chapter 520 related to the Zoning Code: Introductory Provisions Chapter 535 related to the Zoning Code: Regulations of General Applicability

4 Department of Community Planning and Economic Development

Chapter 546 related to the Zoning Code: Residence Districts Chapter 547 related to the Zoning Code: Office Residence Districts Chapter 548 related to the Zoning Code: Commercial Districts Chapter 549 related to the Zoning Code: Downtown Districts Chapter 551 related to the Zoning Code: Overlay Districts

ATTACHMENTS

1. Chapter 520 related to the Zoning Code: Introductory Provisions 2. Chapter 535 related to the Zoning Code: Regulations of General Applicability 3. Chapter 546 related to the Zoning Code: Residence Districts 4. Chapter 547 related to the Zoning Code: Office Residence Districts 5. Chapter 548 related to the Zoning Code: Commercial Districts 6. Chapter 549 related to the Zoning Code: Downtown Districts 7. Chapter 551 related to the Zoning Code: Overlay Districts

5 ORDINANCE

By Gordon, Schroeder, and Goodman

Amending Title 20 of the Minneapolis Code of Ordinances relating to Zoning Code.

The City Council of the City of Minneapolis do ordain as follows:

Section 1. That the definition of “cluster development” be amended and that new definitions for “single room occupancy housing” and “single room occupancy housing unit” be added to Section 520.160 in alphabetical sequence to read as follows:

520.160. - Definitions. Unless otherwise expressly stated, or unless the context clearly indicates a different meaning, the words and phrases in the following list of definitions shall, for the purposes of this zoning ordinance, have the meanings indicated. Additional definitions may be found within specific chapters of this zoning ordinance. All words and phrases not defined shall have their common meaning.

Cluster development. A unified development of not less than two (2) dwelling units or rooming units, either attached or detached, in which one (1) or more principal buildings are grouped together in order to preserve common space for the benefit of the residents of the development. Cluster development allows flexibility in the location of residential structures and the size of individual lots in order to encourage a variety of housing types and the efficient use of land. Rooming units shall only be allowed as part of intentional community cluster developments generally allowed for congregate living uses.

Single room occupancy housing. A facility providing housing that is operated by a non-profit organization, government agency, or healthcare agency, as defined in and meeting the requirements of Chapter 244, Housing Maintenance Code. It does not include:

1) Community residential facilities.

2) Board and care homes, nursing homes, assisted living facilities.

3) Supportive housing.

Single room occupancy housing unit. Any rooming unit, operated by a non-profit organization, government agency, or healthcare agency, as defined in and meeting the requirements of Chapter 244, Housing Maintenance Code.

Section 2. That Section 535.90 contained in Chapter 535, Regulations of General Applicability, be amended to read as follows:

535.90. - General standards for residential uses. (a) Size and width. The minimum gross floor area of a dwelling unit, except efficiency units and accessory dwelling units, shall be five hundred (500) square feet. The minimum gross floor area of efficiency units shall be three hundred fifty (350) square feet. The minimum gross floor area of accessory dwelling units shall be three hundred (300) square feet. The minimum gross floor area of single room occupancy housing units and rooming units allowed in congregate living uses shall be governed by the building code and Chapter 244, Housing Maintenance Code. Not less than eighty (80) percent of the habitable floor area of single-, two-, or three-family dwellings shall have a minimum width of eighteen (18) feet.

(b) Principal entrance and pedestrian access.

(1) Single-, two-, and three-family dwellings. Single-, two-, and three-family dwellings shall include a principal entrance facing the front lot line. In dwellings with more than one (1) unit, providing all units access to a shared front facing entrance is encouraged. Subject to Table 535-1, Permitted Obstructions in Required Yards, the principal entrance and all dwelling units shall be connected to the public sidewalk by hard-surfaced walkway not less than three (3) feet wide and shall include stairs where needed. Where no public sidewalk exists, the walkway shall extend to the public street. The principal entrance may face a side lot line when part of a front vestibule or extended portion of the front façade, provided the entrance is located no further than eight (8) feet from the façade closest to the street.

(2) All other residential uses. Residential buildings shall be oriented so that at least one (1) principal entrance faces a public street rather than the interior of the site. Clear and well-lighted walkways at least four (4) feet in width shall connect building entrances to the adjacent public sidewalk and to any parking facilities located on the site. In the case of a corner lot, the principal entrance shall face the front lot line.

(c) Windows.

(1) Single-, two-, and three-family dwellings. Not less than fifteen (15) percent of the walls on each floor of single-, two-, and three-family dwellings that face a public street shall be windows. The bottom of any window used to satisfy the ground floor window requirement facing a public street shall not be more than four (4) feet above the adjacent first floor elevation. Not less than five (5) percent of the walls on each floor of single-, two-, and three-family dwellings that face a rear or interior side lot line shall be windows. Windows located in a door shall not be counted toward satisfying the minimum window requirement.

(2) All other residential uses. Residential buildings shall maintain compliance with the residential windows requirements of Chapter 530, Site Plan Review.

(3) Half stories. Half stories shall not be subject to the minimum window requirement.

(4) Window area computation. Minimum window area at the first floor or ground level shall be measured between two (2) and ten (10) feet above the adjacent grade. Minimum window area on walls above the first floor shall be measured between the upper surface of a floor and the upper surface of the floor above.

(d) Attached garage facing the front lot line. Attached accessory uses designed or intended for the parking of vehicles accessory to single-, two-, or three-family dwellings shall extend no more than five (5) feet closer to the front lot line than the façade of a habitable portion of the first story of the dwelling when the garage door or doors face the front lot line. In addition, the width of the garage wall facing the front lot line, including basement-level garages, shall not exceed sixty (60) percent of the width of the entire structure.

(e) Conversions. The addition of a dwelling unit or units that result in a two- or three-family dwelling shall be subject to the following standards:

(1) Fire escapes or stairs that provide access above the ground floor shall be enclosed or located entirely to the rear of the principal residential structure.

(2) Mechanical equipment, including utility boxes and panels, shall not be located on the front building façade.

(3) Windows in additions that face a street shall be compatible with the existing windows of the street- facing walls.

(4) Exterior materials that face a street shall be compatible with the existing exterior materials of the street-facing walls.

(f) A residential building nonconforming as to these requirements shall have all the rights of a conforming building, except that said building shall not be enlarged, altered, or relocated in such a way as to increase its nonconformity with these requirements.

Section 3. That the Residential Uses section of Table 546-1 Principal Uses in the Residence Districts contained in Section 546.30 of Chapter 546, Residence Districts, be amended to read as follows:

Table 546-1 Principal Uses in Residence Districts Specific Use R1 R1A R2 R2B R3 R4 R5 R6 Development Standards RESIDENTIAL USES Dwellings Single-family dwelling P P P P P P Two-family dwelling P P P P P P Single- or two-family dwelling existing on the effective date of this ordinance or conversion of P P a building existing on the effective date of this ordinance to a single- or two-family dwelling Cluster development C C C C C C C C ✓ Multiple-family dwelling, three (3) units P P P P P P P P Multiple-family dwelling, four (4) units or more P P P P ✓ Planned Unit Development C C C C ✓

Congregate Living Community residential facility serving six (6) or fewer persons P P P P P P P P ✓ Community residential facility serving seven (7) to sixteen (16) persons C C C C C C C C ✓ Community residential facility serving seventeen (17) to thirty-two (32) C C C persons ✓ Board and care home/ Nursing home/ Assisted living C C C ✓ Emergency shelter serving six (6) or fewer persons C C C C C C C C ✓ Emergency shelter serving seven (7) to sixteen (16) persons C C C C ✓ Emergency shelter serving seventeen (17) to thirty-two (32) persons C C C ✓ Faculty C C C ✓ Fraternity or sorority C C C ✓ Hospitality residence C C C ✓ Intentional community P P P P P P P P ✓ Residential hospice C C C ✓ Single room occupancy housing P P P P

Supportive housing C C C ✓

Section 4. That the Residential Uses section of Table 546-6 R3 Lot Dimension Requirements contained in Section 546.480 of Chapter 546, Residence Districts, be amended to read as follows:

Table 546-6 R3 Lot Dimension Requirements

Uses Minimum Lot Area Minimum Lot (Square Feet) Width (Feet)

RESIDENTIAL USES

Dwellings

Single-, two-, or three-family dwelling 5,000 40

Cluster development 5,000 or 1,500 sq. ft. per dwelling 40 unit, whichever is greater Planned Unit Development ½ acre or 1,500 sq. ft. per dwelling As approved by unit, whichever is greater C.U.P.

Congregate Living

Community residential facility serving six 5,000 40 (6) or fewer persons

Community residential facility serving 7,500 or 1,250 sq. ft. per rooming 40 seven (7) to sixteen (16) persons unit, whichever is greater

Emergency shelter As approved by C.U.P. As approved by C.U.P.

Single room occupancy housing 7,500 sq. ft. 40

Section 5. That the Residential Uses section of Table 546-7 R4 Lot Dimension Requirements contained in Section 546.530 of Chapter 546, Residence Districts, be amended to read as follows:

Table 546-7 R4 Lot Dimension Requirements

Uses Minimum Lot Area Minimum Lot (Square Feet) Width (Feet)

RESIDENTIAL USES

Dwellings

Single-, two-, or three-family dwelling 5,000 40

Cluster development 5,000 or 1,250 sq. ft. per dwelling 40 unit, whichever is greater

Planned Unit Development ½ acre or 1,250 sq. ft. per dwelling As approved by unit, whichever is greater C.U.P.

Congregate Living

Community residential facility serving six (6) 5,000 40 or fewer persons Community residential facility serving seven 5,000 or 1,250 sq. ft. per rooming 40 (7) to thirty-two (32) persons unit, whichever is greater

Board and care home/Nursing 20,000 80 home/Assisted living

Emergency shelter As approved by C.U.P. As approved by C.U.P.

Faculty house 10,000 80

Fraternity or sorority 5,000 or 1,250 sq. ft. per rooming 40 unit, whichever is greater

Hospitality residence 10,000 or 1,250 sq. ft. per rooming 80 unit, whichever is greater

Residential hospice 10,000 80

Single room occupancy housing 5,000 40

Supportive housing 5,000 or 1,250 sq. ft. per rooming 40 unit, whichever is greater

Section 6. That the Residential Uses section of Table 546-8 R5 Lot Dimension Requirements contained in Section 546.580 of Chapter 546, Residence Districts, be amended to read as follows:

Table 546-8 R5 Lot Dimension Requirements

Uses Minimum Lot Minimum Lot Area Width (Square Feet) (Feet)

RESIDENTIAL USES

Dwellings

Single- or two-family dwelling existing on the effective 5,000 40 date of this ordinance

Cluster development 5,000 40 Three-family dwelling 5,000 40

Planned Unit Development ½ acre As approved by C.U.P.

Congregate Living

Community residential facility serving six (6) or fewer 5,000 40 persons

Community residential facility serving seven (7) to thirty- 5,000 40 two (32) persons

Board and care home/Nursing home/Assisted living 20,000 80

Emergency shelter As approved by As approved by C.U.P. C.U.P.

Faculty house 10,000 80

Fraternity or sorority 5,000 40

Hospitality residence 10,000 80

Residential hospice 10,000 80

Single room occupancy housing 5,000 40

Supportive housing 5,000 40

Section 7. That the Residential Uses section of Table 546-9 R6 Lot Dimension Requirements contained in Section 546.630 of Chapter 546, Residence Districts, be amended to read as follows:

Table 546-9 R6 Lot Dimension Requirements

Uses Minimum Lot Minimum Lot Area Width (Square Feet) (Feet)

RESIDENTIAL USES

Dwellings Single- or two-family dwelling existing on the effective 5,000 40 date of this ordinance

Cluster development 5,000 40

Three-family dwelling 5,000 40

Planned Unit Development ½ acre As approved by C.U.P.

Congregate Living

Community residential facility serving six (6) or fewer 5,000 40 persons

Community residential facility serving seven (7) to thirty- 5,000 40 two (32) persons

Board and care home/Nursing home/Assisted living 20,000 80

Emergency shelter As approved by As approved by C.U.P. C.U.P.

Faculty house 10,000 80

Fraternity or sorority 5,000 40

Hospitality residence 10,000 80

Residential hospice 10,000 80

Single room occupancy housing 5,000 40

Supportive housing 5,000 40

Section 8. That the Residential Uses section of Table 547-1 Principal Uses in the Office Residence Districts contained in Section 547.30 of Chapter 547, Office Residence Districts, be amended to read as follows:

Table 547-1 Principal Uses in the Office Residence Districts Specific Use OR1 OR2 OR3 Dev. Standards RESIDENTIAL USES Dwellings Single or two-family dwelling P Single- or two-family dwelling existing on the effective date of this ordinance or conversion of a building existing on the effective date of this P P ordinance to a single- or two-family dwelling Cluster development C C C ✓ One (1) to four (4) dwelling units, as part of a mixed use building P P P Multiple-family dwelling, three (3) and four (4) units P P P Multiple-family dwelling, five (5) units or more P P P Planned Unit Development C C C ✓ Congregate Living Community residential facility serving six (6) or fewer persons P P P ✓ Community residential facility serving seven (7) to sixteen (16) persons C C C ✓ Community residential facility serving seventeen (17) to thirty-two (32) C C persons ✓ Board and care home/ Nursing home/ Assisted living C C ✓ Dormitory C C ✓ Emergency shelter serving six (6) or fewer persons C C C ✓ Emergency shelter serving seven (7) to sixteen (16) persons C C C ✓ Emergency shelter serving seventeen (17) to thirty-two (32) persons C C ✓ Faculty house C C ✓ Fraternity or sorority C C ✓ Hospitality residence C C ✓ Intentional community P P P ✓ Residential hospice C C ✓ Single room occupancy housing P P P Supportive housing C C ✓

Section 9. That the Residential Uses section of Table 547-2 Lot Dimension Requirements in the OR1 District contained in Section 547.270 of Chapter 547, Office Residence Districts, be amended to read as follows:

Table 547-2 Lot Dimension Requirements in the OR1 District

Uses Minimum Lot Area Minimum Lot (Square Feet) Width (Feet)

RESIDENTIAL USES

Dwellings

Single-, two-, or three-family dwelling 5,000 40

Cluster development 5,000 40

Planned Unit Development ½ acre As approved by C.U.P.

Congregate Living

Community residential facility serving six (6) or fewer 5,000 40 persons

Community residential facility serving seven (7) to sixteen 5,000 40 (16) persons

Emergency shelter As approved by As approved by C.U.P. C.U.P.

Single room occupancy housing 5,000 40

Section 10. That the Residential Uses section of Table 547-3 Lot Dimension Requirements in the OR2 District contained in Section 547.310 of Chapter 547, Office Residence Districts, be amended to read as follows:

Table 547-3 Lot Dimension Requirements in the OR2 District

Uses Minimum Lot Area (Square Feet)

RESIDENTIAL USES

Dwellings

Single-, two-, or three-family dwelling 5,000

Cluster development 5,000

Planned Unit Development ½ acre

Congregate Living

Community residential facility serving six (6) or fewer persons 5,000

Community residential facility serving seven (7) to thirty-two (32) persons 5,000

Board and care home/Nursing home/Assisted living 20,000

Dormitory 10,000

Emergency shelter As approved by C.U.P.

Faculty house 10,000

Fraternity or sorority 5,000

Hospitality residence 10,000

Residential hospice 10,000

Single room occupancy housing 5,000

Supportive housing 5,000

Section 11. That the Residential Uses section of Table 547-4 Lot Dimension Requirements in the OR3 District contained in Section 547.350 of Chapter 547, Office Residence Districts, be amended to read as follows:

Table 547-4 Lot Dimension Requirements in the OR3 District

Uses Minimum Lot Area (Square Feet)

RESIDENTIAL USES

Dwellings

Single-, two-, or three-family dwelling 5,000

Cluster development 5,000

Planned unit development ½ acre

Congregate Living

Community residential facility six (6) or fewer persons 5,000

Community residential facility serving seven (7) to thirty-two (32) persons 5,000

Board and care home/Nursing home/Assisted living 20,000

Dormitory 10,000

Emergency shelter As approved by C.U.P.

Faculty house 10,000

Fraternity or sorority 5,000

Hospitality residence 10,000

Residential hospice 10,000

Single room occupancy housing 5,000

Supportive housing 5,000

Section 12. That the Residential Uses section of Table 548-1 Principal Uses in the Commercial Districts contained in Section 548.30 of Chapter 548, Commercial Districts, be amended to read as follows:

Table 548-1 Principal Uses in the Commercial Districts

Use C1 C2 C3A C3S C4 Specific Development Standards

RESIDENTIAL USES

Dwellings

Single or two-family dwelling P P

Single or two-family dwelling existing on the effective P P P date of this ordinance

Cluster development C C C C C ✓

One (1) to four (4) dwelling units, as part of a mixed P P P P P use building

Multiple-family dwelling, three (3) and four (4) units P P P P P

Multiple-family dwelling, five (5) units or more P P P P P

Planned Unit Development C C C C C ✓

Congregate Living

Community residential facility serving six (6) or fewer P P P P P ✓ persons

Community residential facility serving seven (7) to C C C C C ✓ sixteen (16) persons

Community residential facility serving seventeen (17) C C C C ✓ to thirty-two (32) persons

Board and care home/Nursing home/Assisted living C C C C C ✓

Emergency shelter C C C C C ✓

Inebriate housing C C ✓

Intentional community P P P P P ✓

Overnight shelter C C ✓

Residential hospice C C ✓

Single room occupancy housing P P P P P

Supportive housing C C ✓

Section 13. That the Residential Uses section of Table 548-2 Lot Dimension Requirements in the Commercial Districts contained in Section 548.120 of Chapter 548, Commercial Districts, be amended to read as follows:

Table 548-2 Lot Dimension Requirements in the Commercial Districts

Use Minimum Lot Minimum Lot Area Width (Square Feet) (Feet)

RESIDENTIAL USES

Dwellings

Single-, two-, or three-family dwelling 5,000 40

Cluster development 5,000 40

Planned unit development ½ acre As approved by C.U.P.

Congregate Living

Community residential facility serving six (6) or fewer 5,000 40 persons

Community residential facility serving seven (7) to thirty- 5,000 40 two (32) persons

Board and care home/Nursing home/Assisted living 20,000 80 Emergency shelter As approved by As approved by C.U.P. C.U.P.

Inebriate housing 5,000 40

Overnight shelter 5,000 40

Residential hospice 10,000 80

Single room occupancy housing 5,000 40

Supportive housing 5,000 40

Section 14. That the Residential Uses section of Table 549-1 Principal Uses in the Downtown Districts contained in Section 549.30 of Chapter 549, Downtown Districts, be amended to read as follows:

Table 549-1 Principal Uses in the Downtown Districts

Use B4 B4S B4C B4N Specific Development Standards

RESIDENTIAL USES

Dwellings

Cluster development C C C C ✓

One (1) to four (4) dwelling units, as part of a mixed use P P P P building

Multiple-family dwelling, five (5) units or more P P P P

Planned Unit Development C C C C ✓

Congregate Living

Community residential facility serving seven (7) to sixteen C C C C ✓ (16) persons

Community residential facility serving seventeen (17) to C C C C ✓ thirty-two (32) persons Board and care home/Nursing home/Assisted living C C C C ✓

Dormitory C C C C ✓

Emergency shelter C C C C ✓

Hospitality residence P P P P ✓

Inebriate housing C C C ✓

Intentional community P P P P ✓

Overnight shelter C C C C ✓

Residential hospice C C C C ✓

Single room occupancy housing P P P P

Supportive housing C C C C ✓

Section 15. That Section 551.370 contained in Chapter 551, Overlay Districts, be amended to read as follows:

551.370. - Conditional uses. In addition to the conditional uses allowed in the primary zoning district, the following conditional uses may be allowed in the IL Overlay District, subject to the provisions of Chapter 525, Administration and Enforcement.

(1) Dwelling units, emergency shelters, intentional communities, overnight shelters, single room occupancy housing, and supportive housing, subject to the following conditions: a. Emergency shelters, intentional communities, overnight shelters, and supportive housing shall be subject to the requirements of Chapter 536, Specific Development Standards. b. Alterations made to the exterior of an existing building shall maintain the architectural integrity and character of the building and surrounding area. c. The maximum height of single- and two-family dwellings and cluster developments shall be two and one-half (2.5) stories or thirty-five (35) feet, whichever is less. d. No vibration, excessive dust, noise, light, glare, smoke, odor, truck traffic or other substance or condition, shall be generated by uses in the building that will have an adverse impact on the residential use of the building. e. Emergency shelters and overnight shelters may not be a conditional use in the IL Overlay District until the completion of the next comprehensive plan update, as of December 11, 2015.

(2) Planned unit developments that include dwelling units residential uses allowed by this section.

(3) School, grades K—12, subject to the following conditions: a. Schools, grades K—12, shall be subject to the requirements of Chapter 536, Specific Development Standards.

Racial Equity Impact Analysis (REIA)

PURPOSE OF THIS TOOL: To facilitate consideration of racial equity and examine how Black, Indigenous, and People of Color (BIPOC) could be affected by a proposed action or decision of the City. The questions are designed to lead to strategies that will prevent or mitigate impacts and unintended consequences on BIPOC communities. For resources and support in completing this analysis, visit the Division of Race & Equity’s SharePoint site at minneapolismngov.sharepoint.com/sites/c00003/SREAP/REIA

SECTION 1: BACKGROUND

SUBJECT: Single Room Occupancy Amendment

WHO PARTICIPATED IN COMPLETING THIS ANALYSIS? Breyonne Golding, Amber Turnquest, Kellie Jones and Andra Bosneag

IS THIS ANALYSIS FOR A NEW OR UPDATED: (Select only one per analysis process) ☐ ORDINANCE ☒ CHARTER AMENDMENT ☐ CITY ENTERPRISE POLICY

DOES THIS IMPACT ONE OF THE CITY’S GOAL AREAS? (Select all that apply)

Policy Goals Operational Goals ☐ Public Safety ☐ Workforce ☒ Housing ☐ Spending ☐ Economic Development ☐ Data ☐ Public Services ☐ Community Engagement ☐ Environmental Justice ☐ Built Environment & Transportation ☐ Public Health ☐ Arts & Culture

WHAT IS THE DESIRED OUTCOME FOR THIS ORDINANCE, AMENDMENT, OR POLICY? The intent of this amendment is to increase residential options for stable, safe and affordable housing for City of Minneapolis’ renters and helps support the city’s other housing policies: Renter Eviction Protection Ordinance, the Minneapolis 2040 Plan, the Unified Housing Policy and the Strategic and Racial Equity Action Plan.

SECTION 2: DATA

LIST THE SPECIFIC GEOGRPAHIES THAT WILL BE IMPACTED AND THE RACIAL DEMOGRPAHICS OF CONSTITUENTS IN THOSE AREAS: The Single Room Occupancy Amendment does not have any specific geographic and racial component within certain areas in the City. The City of Minneapolis’ population is 414,581; which includes African American (18.9%), Natives, (1.1%), Asian (5.9%), Hispanic (9.6%) and two or more races (4.2%) according to the MN Compass (2015- 2019).

Renters comprise the majority of households in Minneapolis, growing by nearly fourteen thousand (14,000) households (17%) increase between 2000 and 2017. The vacancy rate in Minneapolis has remained below five percent (5%) since 2021 and is even lower (4.8%) for units under one thousand dollars ($1,000) in monthly rent. Since 2000, housing costs for renters have increased by seventeen percent (17%), while renter income has increased by only four percent (4%). Three out of four low income households (earning less than fifty percent (50%) of Area Median Income) in Minneapolis are housing cost-burdened, paying more than thirty percent (30%) of their income for rent.

WHAT DOES AVAILABLE DATA TELL YOU ABOUT HOW CONSTITUENTS FROM BIPOC COMMUNITIES CURRENTLY RELATE TO THE DESIRED OUTCOME COMPARED TO WHITE CONSTITUENTS? Renters are more likely to be low-income than homeowners and households of color are more likely to rent than white households. Of the more than eighty-nine thousand (89,000) renter households in Minneapolis, nearly fifty thousand (50,000) earned less than sixty percent (60%) of Area Median Income in 2016. Since 2000, Minneapolis also has lost roughly 15,000 housing units that are considered affordable for those earning fifty percent (50%) of the area median income. These units generally still exist, but they cost more to rent, making them unaffordable to low-income renters and contributing to the rise of cost-burdened households.

WHAT DATA IS UNAVAILABLE OR MISSING? HOW CAN YOU OBTAIN ADDITIONAL DATA? There is limited data on the specifics of single room occupancy based on race in the City of Minneapolis.

SECTION 3: COMMUNITY ENGAGEMENT

USING THE INTERNATIONAL ASSOCIATION OF PUBLIC PARTICIPATION (IAP2) PUBLIC PARTICIPATION SPECTRUM, WHICH PARTICIPATION STRATEGY(S) WAS USED WHEN ENGAGING THOSE WHO WOULD BE MOST IMPACTED?

☒ INFORM ☒ CONSULT ☒ INVOLVE ☐ COLLABORATE ☐ EMPOWER

DESCRIBE THE ENGAGEMENT AND WHAT HAVE YOU LEARNED? Engagement has been local to the City of Minneapolis and St Paul. The beginning of this work started in 2018, with Minnesota Housing Partnership creating the first the Twin Cities Affordable Housing Continuum, which included cost burdened residents and the institutions and entities engaged in that work. The meetings continued with local housing providers – shelters, transitional housing etc. – who shed light on a wider need for single room occupancy than previously anticipated based on the available data.

SECTION 4: ANALYSIS

HOW DOES THE OUTCOME FOR THIS ORDINANCE, AMENDMENT, OR POLICY HELP THE CITY ACHIEVE RACIAL EQUITY? Not all Minneapolis’ renters can access adequate housing, even if the housing is affordable for low-income renters. The types of housing in Minneapolis can be limiting to a renter who only needs and can afford a single room. In addition, competition for available housing, increases in rent, and stagnant wages have made it difficult for renters – especially renters of color to access safe, affordable housing in Minneapolis. The flexibility that comes with single room occupancy housing compared to traditional rooming houses, fills a missing part of the Minneapolis’ housing continuum by lowing the hurdle for low-income renters to access quality housing, increasing rental options for property owners, while aiming to reduce overcrowding in our metropolitan shelter system.

SECTION 5: EVALUATION

HOW WILL IMPACTS BE MEASURED? WHAT ARE THE SUCCESS INDICATORS AND PROCESS BENCHMARKS? The City will measure the impact through rental licensing to track the locations of increase single room occupancy housing. Success indicators include the reduction of shelter overcrowding and rental displacement, especially among people of color.

HOW WILL THOSE WHO ARE IMPACTED BE INFORMED OF PROGRESS OVER TIME? Those impacted would be informed of progress through the City and CPED’s website updates and mailings.

Turnquest, Amber

From: Joseph Frank Sent: Thursday, June 3, 2021 9:51 AM To: Turnquest, Amber Subject: [EXTERNAL] SRO Design for R1 & R2 Areas Attachments: CoLiving Slides.pptx

Hi Amber,

Attached is the design I have been exploring. The building can fit on a standard city lot and it looks like a regular single family home. I'm not sure why SRO's can't be build in R1 and R2 areas with a lower lot square footage requirement. The attached design would blend in well with most existing housing stock.

Thanks,

J. Alex Frank Magnolia Homes, LLC 763.360.8365

[EXTERNAL] This email originated from outside of the City of Minneapolis. Please exercise caution when opening links or attachments.

1 Co‐Living in the 21st Century

Prepared by: J. Alex Frank, Magnolia Homes, LLC Home Details

Total sq. ft.: 2,821 Upper Floor sq. ft: 979 Main Floor sq. ft: 1,104 Basement sq. ft: 738 Bedrooms: 8 Bathrooms: 4 Garage Stalls: 0 Width: 23' 0" Depth: 57' 0" Ridge Height: 30' 4" Foundations Available: Basement Main Floor Plan Upper Floor Plan Basement Floor Plan

Bath

Family 10 x 8 Living Mech Room