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Page 5 of 10 larger lots may be appropriate. Both of these are proven ways to reduce cost-burden related to property taxes and encourage construction of more diverse types of homes. Two additional tools are also contemplated for implementation in the future: 1. Creation of an affordable housing fund: A Minnesota statutory tool that allows the city to set aside funds specifically for creating or preserving housing across all types and scales – rental, ownership, new construction, and rehabilitation. Notably, no tax levy is required. 2. Collaborate with Ramsey County: Ramsey County's newly created Housing and Redevelopment Authority adds further flexibility to County-supported housing opportunities. County programs can also support business development, help seniors age in place and community, and attract new families to Arden Hills. The draft ordinance being considered for public hearing is included as Attachment A. The attached public hearing draft was crafted in response to the conversation at the Council meeting and features significant refinements to address implementation concerns and offer more options to both policymakers and homebuilders to achieve the stated goal of increasing the number of homes in Arden Hills that are affordable to those who wish to live here. Table 1: Difference in required units Options Income Standard Maximum household income Minimum % of Units Commission (Att. A) Council (Att. B) 1 Very Low Income 50% AMI - 5% 2 Low Income 60% AMI 5% 7.5% 3 Workforce Housing 80% AMI 10% 10% One discussion point the Commission should consider is if there is interest in increasing the minimum percentage of units affordable to those at 80% AMI (which is similar to the lower cost end of the existing rental rates the market commands today) to 15%. City Council members requested the Commissioners consider this question and stated a desire for “middle of the road” approach. Below is information about other cities in the region and their approaches to affordable housing in order for the Commission to evaluate what “middle of the road” might mean. Many cities in the region have adopted inclusionary housing policies or ordinances, sometimes referred to as inclusionary zoning ordinances. Staff considered all known adopted inclusionary housing policies when crafting the draft ordinance. Special attention was paid to those policies or ordinances that have been adopted by nearby communities, including Shoreview, Bloomington, Eden Prairie, Edina, Forest Lake, Hopkins, Richfield, and St. Louis Park. Other municipal approaches to affordability considered include incentives within an existing PUD process, such as those used by Woodbury and Chanhassen. Shoreview’s more recent multi-family developments, The Emrik SV, Loden SV and Aloma Apartments, were produced before the city’s Affordable Housing Ordinance was adopted and received subsidy to do so.