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City of Arden Hills – 2040 Comprehensive Plan <br /> <br /> <br />Approved: January 14, 2019 <br />7-20 <br />useful tool to support the development of both rental and ownership housing <br />units affordable at 50% AMI or below. <br />Housing Bonds: Minnesota State Statute allows HRAs the ability to issue <br />housing bonds to provide affordable housing. Ramsey County HRA can issue <br />housing bonds to provide affordable housing for those Arden Hills residents in <br />need. Housing bonds are a useful tool to support the development of both re ntal <br />and ownership housing units affordable at 50% AMI or below. <br />Tax Abatement: Arden Hills may consider supporting the construction of <br />affordable housing and through the use a portion of the property tax received (tax <br />abatement) from the development to finance the affordable housing. This <br />removes this property taxes revenue from paying for the services needed for this <br />property, its residents and the community in general. Tax abatement should only <br />be considered when the level of affordability, the guaranteed length of <br />affordability and the long-term quality of the affordable housing provides a benefit <br />greater than the services needed that go unpaid during the abatement term. Tax <br />abatement is a useful tool to support the development of both rental and <br />ownership housing units affordable at 80% AMI or below. <br />Tax Increment Financing: Arden Hills may consider creating a housing district <br />to create a tax increment financing (TIF) district. The TIF bonds issued, or a pay- <br />as-you-go finance arrangement, on this district are to be used to support the <br />construction of affordable housing and entire property taxes received above the <br />original tax value (increment) from the development to finance these bonds. This <br />removes this property taxes revenue from paying for the services needed for this <br />property, its residents and the community in general. TIF should only be <br />considered when the level of affordability, the guaranteed length of affordability <br />and the long-term quality of the affordable housing provides a benefit grea ter <br />than the services needed that go unpaid during the TIF term. TIF is a useful tool <br />to support the development of both rental and ownership housing units affordable <br />at 50% AMI or below. <br /> <br /> <br />