2040 Comprehensive Plan: Envision Shakopee

FIGURE 3.8 - AFFORABLEHOUSING STOCK

AFFORDABLE HOUSING STOCK Shakopee has both naturally-occurring and dedicated affordable housing 1 . Naturally-occurring affordable housing are those homes with prices or rents low enough to be affordable to low- and moderate- income households while not receiving public subsidy. Examples of community members that may fall into low- and moderate-income households are teachers, health-care workers, police and fire department employees. Dedicated affordable housing are those homes that receive public subsidy either at the local, state, and/or federal level. Pursuing more of both housing options will make it possible for working people of a range of incomes to live in Shakopee. As the city continues to develop, ensuring Shakopee remains a welcoming and affordable place for young families, workers, and older adults is essential. The U.S. Department of Housing and Urban Development defines housing affordability as a percentage of Area Median Income (“AMI”), which for the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area in 2016 was $90,700 for a family of four. The corresponding table illustrates how Shakopee’s supply of affordable units (including both naturally-occurring and dedicated-affordable units) does not meet current needs of cost-burdened households. Dedicated, subsidized affordable options are also limited in Shakopee. The gap for senior housing is particularly stark; today in Shakopee there are approximately 1,340 residents who are above the age of 75, or approximately 3.3% of all residents. As seen in the table to the right, there are currently no publicly subsidized senior housing units within the city.

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Shakopee Housing Units in Shakopee

Percentage of Total

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Total housing units 14,174 Units affordable to households as a percentage of Area Median Income (AMI) ≤ 30% 383 3% 31 – 50% 2,435 17% 51 – 80% 6,729 47% Total housing units experiencing housing cost burden ≤ 30% 1,054 7% 31 – 50% 841 6% 51 – 80% 1,357 10% Publicly subsidized affordable units Publicly subsidized units (all) 396 3% Senior housing 0 0% Housing for people with disabilities 0 0% All other subsidized units 396 3% Housing Affordability Thresholds by AMI Bands: » » <30% AMI: $74,000 home value or $630 monthly rent for family of four » » 31–50% AMI: no more than $104,000 home value or $1,010 monthly rent for a family of four » » 51–80% AMI: no more than $257,000 home value or $1,650 monthly rent for a family of four » » Source Metropolitan Council

1 Naturally-occurring affordable housing (“NOAH”) refers to housing units that are affordable without public subsidy or regulation. Because these rents and prices are unregulated, housing that was previously affordable to lower incomes can become too expensive as market conditions change.

81 ENVISION SHAKOPEE | SECTION III: COMMUNITY ENVIRONMENT