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City of Arden Hills – 20430 Comprehensive Plan Approved: September 28, 201809 Amended: December 12, 2016 7-14 7.4.2 Housing Affordability Affordable housing is an issue in every Twin Cities area community. With housing costs outpacing many wages, it is becoming increasingly important to focus on affordable housing. Because of the disparity of housing costs and wages throughout the Twin Cities, affordable housing continues to be a major initiative of the Metropolitan Council. According to the Metropolitan Council, housing is considered affordable if it is priced at or below 30 percent of the gross income of a household earning 560 percent of the Twin Cities median family income. In 20107, the area median income for the seven-county Minneapolis-St. Paul area adjusted by the Department of Housing and Urban Development for a family of four was $78,50090,400. Therefore, in 20107, housing was considered affordable if annual housing costs for a family of four do not exceed 30 percent of $47,100$45,200, which translates to $13,5604,130 per year or $1,13077.50 per month for housing. While the purchasing power of $1,177.50 130 per month depends on interest rates and other household factors, it could be sufficient to purchase a home that is priced in the range of $150,5000. To implement the Livable Communities Act in 2007, the Metropolitan Council uses as the upper limit of affordability for ownership purchase price and monthly rents, the following dollar amounts: TABLE 7.5 4 - 201507 OWNED OCCUPIED AFFORDABLE HOUSING PRICES Household Income Level:Affordable Home Price 80% of area median income $238,500 50% of area median income $151,500 30% of area median income $84,500 Source: Metropolitan Council Dr a f t 11 / 0 1 / 2 0 1 7