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Draft Ordinance Language <br />February 9, 2026 <br />a. Minnesota Statutes § 462.358, subd. 1 a, which authorizes municipalities to adopt <br />ordinances for the purpose of increasing the supply of affordable housing using <br />land use mechanisms; <br />b. Minnesota Statutes § 462.358, subd. 11, which authorizes municipalities to enter <br />into agreements requiring affordable housing with established pricing and long- <br />term affordability controls; and <br />c. Minnesota Statutes § 473.859, which requires municipal comprehensive plans to <br />promote creation of affordable housing for low- and moderate -income individuals <br />and families. <br />3. DEFINITIONS <br />The following terms shall have the meanings indicated: <br />AFFORDABLE. Housing is affordable when a household pays no more than 30% of <br />gross household income for housing costs, including rent or mortgage payment, utilities, <br />fees, and charges. <br />AFFORDABLE HOUSING UNIT. A dwelling unit that has income and rent restrictions <br />pursuant to this ordinance to ensure affordability for eligible households. <br />AREA MEDIAN INCOME (AMI). The median household income as most recently <br />determined by the U.S. Department of Housing and Urban Development (HUD) for the <br />Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, <br />adjusted for household size and number of bedrooms. <br />DEVELOPMENT. A new residential or mixed -use development, including construction <br />in phases or stages, for which city approvals are being or have been sought. <br />DWELLING UNIT. One or more rooms designed for residential use by a single <br />household, containing cooking, living, sanitary, and sleeping facilities. <br />ELIGIBLE HOUSEHOLD. A household with annual income at or below 80% of AMI for <br />rental units, or at or below 110% of AMI for ownership units. <br />MARKET -RATE UNIT. A residential dwelling unit not subject to affordability restrictions <br />under this ordinance. <br />NATURALLY OCCURRING AFFORDABLE HOUSING (NOAH). Existing rental <br />housing that is affordable to households at or below 60% of AMI without public subsidy, <br />typically constructed between 1940 and 1990 and classified as Class B or C property. <br />SUBSTANTIAL REHABILITATION. Improvements to a property where the cost <br />exceeds 20% of the property value (excluding land) after improvements. <br />WORKFORCE HOUSING. Housing affordable to households earning between 60% and <br />80% of AMI, typically needed by teachers, public safety personnel, healthcare workers, <br />and other essential workers. <br />4. APPLICABILITY <br />4.1 Developments Subject to Requirements <br />Page 2 of 8 <br />