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<br /> --- ._. _.".u.___ <br /> distribution fund should be used to meet this funding gap. . <br /> LE-18. State Aid for Urban Road Svstems <br /> . <br /> Problem: Current rules governing municipal state aid expenditures are restricting the <br /> efficient use of these funds and do not adequately acknowledge the constraints of road <br /> systems in urban city environments. <br /> Solution: Rules affecting the municipal state aid system need to be changed to <br /> acknowledge the technical and practical restrictions on construction and reconstruction <br /> of urban road systems. New municipal state aid design standards should not apply to <br /> reconstruction of existing state aid streets that were originally constructed under <br /> different standards, Future changes to state aid rules should improve the balance of <br /> elected officials and engineering professionals in the decision-making process. <br /> LE-19. Tax Policies to Encourage Housing <br /> Problem: State and federal tax policies have, in some instances, limited construction of <br /> housing that is affordable to persons with very low and moderate incomes. <br /> Solution: Tax policy should encourage production and increase the supply of affordable . <br /> housing: <br /> . remove the state sales tax on building materials for production of dlulti-family <br /> rental housing units for which the Minnesota Housing Finance Agency and/or <br /> local housing and redevelopment authorities have provided assistance; <br /> . provide additional state funds to increase the supply of housing in locations where <br /> the local housing real estate market discourages construction of housing to meet <br /> local needs, including added funding for the state Affordable Rental Housing <br /> Investment Fund; <br /> . support federal Fair Market Rents (FMRs) at a level sufficient to make <br /> affordable rental housing widely available. <br /> LE-20. State Programs to Encourage Housing <br /> . <br /> Problem: State programs to increase the supply of affordable housing outside certttal cities <br /> are not well funded. <br /> Solution: To encourage builders to provide affordable honsing outside central cities . <br /> funding should be increased for: <br /> 14 League of Minnesota Cities <br /> - <br />