ITEM 4.1ITEM 4-1
TPC3601 Thurston Avenue N, Suite 100
Anoka, MN 55303
Phone: 763.231 .5840
Facsimile: 763.427.0520
TPC@PlanningCo.com
MEMORANDUM
TO: Otsego Planning Commission
FROM: D. Daniel Licht, AICP
DATE: 13 July 2016
RE: Otsego —Zoning Ordinance; Temporary Family Health Care Dwellings
TPC FILE: 101.01
BACKGROUND
During the recent legislative session, a law was enacted amending Minnesota Statutes 462
(Municipal Planning) to provide allowance for temporary family health care dwellings under
zoning ordinances adopted by local units of government. As the title implies, these dwellings
are temporary portable housing units accessory to a principal dwelling to assist families in
providing medical treatment, rehabilitation, and/or end of lie care outside of traditional
medical facilities. Minnesota Statues 462.3593 establishes definitions, performance standards,
and review procedures for the temporary family health care dwellings, as well as an opt out
provision whereby cities can elect not to allow the units.
Exhibits:
A. StarTribune article June 4, 2016
B. NextDoor Housing brochure
ANALYSIS
Use. Minnesota Statutes 462.3593, Subd. 1 includes the following provisions defining a
temporary family health care dwelling:
"Temporary family health care dwelling" means a mobile residential dwelling providing
an environment facilitating a caregiver's provision of care for a mentally or physically
impaired person that meets the requirements of subdivision 2.
■ "Caregiver" means an individual 18 years of age or older who:
(1) provides care for a mentally or physically impaired person;
and
(2) is a relative, legal guardian, or health care agent of the
mentally or physically impaired person for whom the
individual is caring.
■ "Instrumental activities of daily living" has the meaning given in section
256B.0659, subdivision 1, paragraph (i).
■ "Mentally or physically impaired person" means a person who is a
resident of this state and who requires assistance with two or more
instrumental activities of daily living as certified in writing by a physician,
a physician assistant, or an advanced practice registered nurse licensed to
practice in this state.
■ "Relative" means a spouse, parent, grandparent, child, grandchild, sibling,
uncle, aunt, nephew, or niece of the mentally or physically impaired
person. Relative includes half, step, and in-law relationships.
Example units are trailer mounted with retractable wheels for temporary placement upon a
property and are similar to contemporary ice fishing houses. The units may either be
purchased or the company behind the Statute is also providing lease options for users
interested in temporary family health care dwellings. Allowance of such uses would be
consistent with the goals of the Comprehensive Plan to provide housing options for persons of
all needs, including those addressed by the Statute requiring specialized housing and care
related to medical issues. However, allowance of temporary family healthcare dwellings must
also be considered within the context of the performance standards outlined by Minnesota
statutes 462.3593 and other requirements the City might impose as to whether such uses will
be compatible with surrounding land uses and are adequately served by infrastructure to
protect public health safety and welfare intended to maintain high quality residential
neighborhoods.
Performance Standards. Minnesota Statutes 462.3593. Subd. 2 outlines performance
standards applicable to temporary family health care dwellings:
■ Be primarily assembled at a location other than its site of installation;
■ Be no more than 300 gross square feet;
■ Not be attached to a permanent foundation;
2
■ Be universally designed and meet state -recognized accessibility standards;
■ Provide access to water and electric utilities either by connecting to the utilities
that are serving the principal dwelling on the lot or by other comparable means;
■ Have exterior materials that are compatible in composition, appearance, and durability
to the exterior materials used in standard residential construction;
■ Have a minimum insulation rating of R-15;
■ Be able to be installed, removed, and transported by a one -ton pickup truck as defined
in section 168.002, subdivision 21b, a truck as defined in section 168.002, subdivision
37, or a truck tractor as defined in section 168.002, subdivision 38;
■ Be built to either Minnesota Rules, chapter 1360 or 1361, and contain an Industrialized
Buildings Commission seal and data plate or to American National
Standards Institute Code 119.2; and
■ Be equipped with a backflow check valve.
The zoning related performance standards include provisions intended to ensure the temporary
use of the unit including limited area, prohibition on permanent foundations, and
transportation by either one -ton pickup or semi -tractor commonly available. The performance
standards also address temporary connection to electric and water utilities (including a
backflow check valve), but not sanitary sewer; the units would likely need to include a holding
tank and require regular maintenance for this purpose. Under the application information
required for a temporary family health care dwelling permit, an executed contract for septic
service management or other proof of adequate septic service management must be
submitted. However, City staff does not believe that the performance standards established
by Minnesota Statutes 462.3593 provides adequate means to ensure adequate sewer service.
Minnesota Statutes 462,3593, Subd. 3(c) and (d) establishes additional performance standards
for temporary family health care dwellings:
The temporary family health care dwelling must be located on property where the
caregiver or relative resides.
A temporary family health care dwelling must comply with all setback requirements that
apply to the primary structure and with any maximum floor area ratio limitations that
may apply to the primary structure.
The temporary family health care dwelling must be located on the lot so that septic
services and emergency vehicles can gain access to the temporary family health care
dwelling in a safe and timely manner.
■ A temporary family health care dwelling is limited to one occupant who is a mentally or
physically impaired person.
Term. Minnesota Statues 462.3593, Subd. 4 provides that a permit for a temporary family
health care dwelling is valid for six months and that one six month extension may be requested.
Minnesota Stautes 462.3593, Subd. 5 provides that a city may revoke a temporary family health
care dwelling permit with a 60 day notice for violation of the performance standards.
However, The performance standards do not address provision of a security as part of a
temporary family health care dwelling permit to ensure removal of the unit after the expiration
of the allowed term of use. The City has seen in the past where similar temporary dwellings to
accommodate families have remained long after the conditions for allowing the structure
expired in the case of manufactured homes allowed to be located on farm properties.
Allowance of a temporary dwelling unit upon the property for an extended period of time
beyond that intended by Minnesota Statutes 462.3595 would be inconsistent with the
provision of Section 20-16-2 of the Zoning Ordinance regulating use of structures as dwelling
units.
Process. Minnesota Statutes 462.3593, Subd. 3 establishes a "temporary family health care
dwelling permit" and application information requirements for approval of such units. The
application process is subject to Minnesota Statutes 15.99 (60 -Day Rule). Minnesota Statutes
462.3593, Subd. 7 establishes the maximum fee that a city may charge for a temporary family
health care dwelling permit of $100 for the initial permit and $50 for a permit extension.
Minnesota Statutes 462.3593, Subd. 8 states that a city does not have to hold a public hearing
to consider issuance of a temporary family health care permit due to the time sensitive nature
of such applications. Given the technical nature of the performance standards, our office
would recommend that such applications be handed in accordance with the Administrative
Permit provisions outlined in Section 8 of the Zoning Ordinance unless Otsego elects to opt out
of allowing temporary family health care dwellings.
Opt Out. Minnesota Statutes 462.3593, Subd. 9 provides an opt out clause to the allowance of
temporary family healthcare dwellings. The opt out provision is enacted by amending the
Zoning Ordinance to include the following language in Section 20-16-2 of the Zoning Ordinance
(Dwelling Unit Restriction):
F. The City opts -out of the requirements of Minnesota Statute
§462.3593, which defines and regulates Temporary Family Health
Care Dwellings, pursuant to authority granted by Minnesota
Statutes, Section 46 .3593, Subdivision 9.
Section 20-16-2.E of the Zoning Ordinance already provides by administrative permit for
allowance of temporary dwelling units by on residential lots during reconstruction of the
principal dwelling damaged due to fire or natural disaster. The provisions of this section are
similar to the performance standards for temporary family health care dwellings, but includes
language addressing a sewer connection and also a security requirement for removal. The
S
maximum length of time a temporary dwelling unit is allowed under this section is 150 days or
30 days after a certificate of occupancy has been issued. The Planning Commission and City
Council may consider opting out of the Statutory provisions for temporary family health care
dwellings and instead modify Section 20-16-.2.E of the Zoning Ordinance to include such uses if
deemed to be an acceptable land use subject to appropriate performance standards.
CONCLUSION
Allowance of temporary family health care dwellings in Otsego is a land use policy decision for
the Planning Commission and City Council as to whether such uses are appropriate. City staff
recommends that the City opt out of allowing temporary health care dwellings for the reasons
outlined herein, specifically regarding sewer service and enforcement of the term limit. The
City Council Administrative Subcommittee discussed temporary health care dwellings at their
meeting on 13 July 2015 and also recommends that the City opt out. Planning Commission will
discuss allowance of temporary family health care dwellings at their meeting on 18 July 2016,
including whether to opt out of their use in Otsego. City staff requests that the Planning
Commission motion to call for a public hearing to be held on 15 August 2016 to consider
amendment of the Zoning Ordinance to address temporary health care dwellings.
C. Lori Johnson, City Administrator
Tami Loff, City Clerk
Andy MacArthur, City Attorney
Barb Williams, Building Technician
E
New Brighton firm's tiny trailer homes offer aid for families in need - Star... http://www.startribune.com/tiny-trailer-homes-offer-a-solution-for-fami...
EAST METRO
New Brighton companyistiny trailer
homes offer solution for families in need
New Brighton entrepreneurs helped write a bill to allow their small
mobile homes into yards.
By Erin Adler (http://www.startribune.com/erin-adler/195633361/) Star Tribune
JUNE 4. 2016—12:42PM
At different times, Jesse Lammi and John Louiselle have received the same bittersweet
update: Their sick relative was healthy enough to leave the hospital.
The bad news: Their family had to track down a safe, affordable and local place for their
still -fragile family member to convalesce in just a few days.
The young entrepreneurs created New Brighton -based NextDoor Housing to help
families avoid that dilemma.
In a twist on the "tiny homes" trend, their company sells and rents out 240 -square -foot,
handicapped accessible trailers designed to sit temporarily in homeowners' backyards
when a family member can't quite live independently.
"Really, the goal here was to provide time and sanctuary for people in need," Lammi
said. "A spot where you can be near family but still have that privacy and
independence."
A new bill passed weeks ago allows parking the 8 -by -30 -foot structures — called Drop
Homes or granny pods — on single-family home lots for six months with a $100 permit,
unless barred by a local ordinance.
"Me nexus of NextDoor Housing really is just trying to add another option to the
current ones," Louiselle said.
Rep. Roz Peterson, R -Lakeville, and Sen. John Hoffman, DFL -Champlin, sponsored the
bill.
Lammi and Louiselle crafted a "relatively complicated" bill — the Temporary Family
Health Care Dwellings Bill —mostly on their own, Peterson said, an impressive feat.
Peterson was also taken with the idea of Drop Homes.
"I have a 96 -year-old father and personally experience the challenges," Peterson said.
"People need to have some choices and this is just one other ... tool in the toolbox."
Lammi and Louiselle grew up playing hockey together in the northern suburbs. They
reunited after college and came up with the NextDoor Housing concept, drawing on
college majors in health care and economics.
"It really was a combination [of both of usJ," Lammi said. `T kind of had modular
housing ideas, and John brought the health care side into it."
The business began in 2014 and leapt forward when the two received a $340,000 grant
from the Minnesota Department of Human Services.
NextDoor Housing contracts with a company in north -central Minnesota to construct
the homes. Each Drop Home plugs into a 50 -amp outlet and has heat, air conditioning,
heated water and a bathroom with a shower. They can be pulled with a one -ton pickup
truck, making them mobile.
The homes cost $45,000 to $70,000 to purchase or $1,250 a month to rent through
NextDoor. Combining that rent with in-home health care would cost about $3,500 a
month, the same or less than a spot in assisted living.
"The price of nursing home care has skyrocketed in the last five years," Louiselle said. "A
(http://stmedia.startribune.com/images
/ows_146501345512607.jpg)
The small mobile homes are designed to be
used by people who are recovering from an
injury or illness or for those who may have a
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Each mobile home (called a Drop Home)
features heat, air conditioning, heated water, a
bathroom with a shower and a bed and bedroom
1 of 2 7/11/2016 9:10 AM
New Brighton firm's tiny trailer homes offer aid for families in need - Star... http://www.startribune.com/tiny-trailer-homes-offer-a-solution-for-fami...
lot of people need that, but there are individuals who land in nursing homes that don't
necessarily need or want to be there."
A lot of interest has come from rural Minnesota, Lammi said, where there are already a
few Drop Homes sheltering people with medical problems. So far, three have been sold
and two rented.
Since the law takes effect Sept. 1, the real kickoff will be at the Minnesota State Fair in
August, where they'll "go full-scale launching our rental operation," Lammi said.
The goal is to sell or rent five Drop Homes by the fair's end, Lammi said.
New Brighton Mayor Val Johnson, a Lammi family friend who has advised both
partners on their business, called their brainchild "brilliant."
"When people have a good idea and they work diligently to make it happen, it's
important to support them," Johnson said. `It's not always about experience but more
about drive."
"We're the only company around doing this," Lammi said. "We really believe it's the
wave of the future."
Erin.Adler@startribune.com 612-673-1781
2 of 2 7/11/2016 9:10 AM
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HOUSING
3307 Snelling Ave S
MPLS, MN 55406
(612) 200-0849
info nextdoorhousing.com
www.nextdoorhousing.com