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City of Arden Hills – 2040 Comprehensive Plan <br /> <br /> <br />Approved:, 2018 <br />7-9 <br />Affordable housing is an issue in every Twin Cities area community. With <br />housing costs outpacing many wages, it is becoming increasingly important to <br />focus on affordable housing. Because of the disparity of housing costs and <br />wages throughout the Twin Cities, affordable housing continues to be a major <br />initiative of the Metropolitan Council. <br />According to the Metropolitan Council, housing is considered affordable if it is <br />priced at or below 30 percent of the gross income of a household earning 50 <br />percent of the Twin Cities median family income. In 2017, the area median <br />income for the seven-county Minneapolis-St. Paul area adjusted by the <br />Department of Housing and Urban Development for a family of four was $90,400. <br />Therefore, in 2017, housing was considered affordable if annual housing costs <br />for a family of four do not exceed 30 percent of $45,200, which translates to <br />$13,560 per year or $1,130 per month for housing. While the purchasing power <br />of $1,130 per month depends on interest rates and other household factors, it <br />could be sufficient to purchase a home that is priced in the range of $150,500. <br />To implement the Livable Communities Act in 2007, the Metropolitan Council <br />uses as the upper limit of affordability for ownership purchase price and monthly <br />rents, the following dollar amounts: <br />TABLE 7.4 - 2015 OWNED OCCUPIED AFFORDABLE HOUSING PRICES <br />Household Income Level:Affordable Home Price <br />80% of area median income $238,500 <br />50% of area median income $151,500 <br />30% of area median income $84,500 <br />Source: Metropolitan Council <br /> <br /> <br /> <br /> <br /> <br /> <br />Dr <br />a <br />f <br />t <br /> <br />11 <br />/ <br />2 <br />0 <br />/ <br />2 <br />0 <br />1 <br />7