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Home My WebLink About7B, Resolution 2010-040, Electing to Continue Participating in the Local Housing Incentives Account1 , �` ■� � - ��. EN HILI,S � � Re uest for Council Action q .................._......_........................................W............_�.._.... .... ................ .. ..... ....... .... .......... ......... . . . . . . . . . .. . .. . . ....... ....__..... .. . ................................�......................_.............................. . ............ ..�.......... .... .... .... .......... ........ .. ......_.................... .................._............................................... . .............................. ........._....�............... ......._._....... ..........................................._...._............._.............. ..._................_.... ... Prepared By: Meagan Beekman, City Planner Council Meeting Date: August 9, 2010 Resolution 2010-040: Electing to continue participating in the local housing incentives account program under the Metropolitan Livable Communities Act. Budgeted Amount: Actual Amount: Funding Source: n/a n/a n/a Recommendation: Approve Resolution 2014-040: Electing to continue participating in the local housing incentives account program under the Metropolitan Livable Communities Act. Supporting Documents: • Memorandum dated August 9, 2010, from Meagan Beekman • Metropolitan Council Affordable Housing Fact Sheet • Resolution 2010-040 MEM4RANDUM DATE: August 9, 2010 TO: Mayor and City Council Patrick Klaers, City Administrator FROM: Meagan Beekman, City Planner SUBJECT: Approve Resolution 2010-040: Electing to continue participating in the local housing incentives account program under the Metropolitan Livable Communities Act. Action Req uest Approve Resolution 2010-040: Electing to continue participating in the local housing incentives account program under the Metropolitan Livable Communities Act. Back�round � In 1995, the City opted to participate in the Metropolitan Livable Community Act Local Housin� Incentives Account (LCA/LHIA). Participating in this program is voluntary; however, it provides the City with the opportunity to compete for grants and loans to support activities that help the City meeting housing goals; remediate environmental contaminated sites; and support projects that link jobs, housing, and transit. Through this program, the City received $200,000 in 2006 to remediate contamination at the Traverse Business Center property and $75,000 for Twin Cities Army Ammunition Plant (TCAAP) property reuse planning in 2002. Al1 cities that participate in the LCA/LHIA program are required to establish affordable and life- cycle housing goals for the next decade (2011 through 2020). As part of the 2030 Comprehensive Plan, the City already acknowledged that the City's share of the regional affordable housing need was 288 new affordable housing units. This number was calculated by the Metropolitan Council and was based on such information as available land, access to jobs, and access to transit. In recognition of many cities limited resources to create new affordable housing, the Metropolitan Council has shifted from one target affordable housing number to a target range for affordable housing and life-cycle housing. The new target range of affordable housing units in Arden Hills is 187 to 288 new units over ten years. The life-cycle housing target range for Arden Hills is 285 to 800 new units. Both of these ranges are in line with the City's 2030 \\Metro-inet.us\ardenhilis\Planning\Community Development\Housing�Met Council - LCA\080910 - Regular Meeting - LCA Participation - Memo.doc Page 1 of 2 Comprehensive Plan and zoning regulations provided the TCAAP property redevelops in accordance with the 2030 Comprehensive Plan. If the TCAAP property does not redevelop by 2020 and/or if the property redevelops in a manner substantially different than what has been envisioned, these ranges will need to be re-evaluated. A reference to the TCAAP redevelopment has been included in the resolution to specifically recognize that the numbers may need to be re- evaluated. If a city is not able to meet the affordable housing goals by 2020, there are no repercussions. However, if a city does not participate in the program, the city is not eligible for certain grant programs, including the Livable Communities Demonstration Account (LCDA), Local Housing Incentive Account (LHIA), and Tax Base Revitalization Account (TBRA). The LCDA and TBRA grants in particular could be useful on the old City Hall/Public Works property, in the B2 District, and for TCAAP (http://�vww.met�acouncil.or�iservices/livcom.mlLCAresourc;es.htm). Definitions The Metropolitan Council uses a standard formula and definition for defining affordable housing. A fact sheet providing information on affordable housing and income limits from the Metropolitan Council is attached. The Metropolitan Council defines life-cycle housing in much broader terms. Life-cycle housing incorporates a broad range of housing options to meet people's preferences and circumstances at a11 of life's stages which means providing a balance of single-family homes, apartments, condominiums, townhomes, and senior housing options. Life-cycle housing does not have income guidelines because it is meant to address people's housing needs throughout the course of their lives as incomes change. Recommendation Approve Resolution 2010-040: Electing to continue participating in the local housing incentives account program under the Metropolitan Livable Communities Act. Attachment • Metropolitan Council Affordable Housing Fact Sheet • Resolution 2010-040 Page 2 of 2 ac men . . . e ro 0 1 an ouncl or a e ousln ac ee �� EN HILLS August 9, 2010, City Council Meeting . �� :�� ;��. �� :t:��; 4��.? .. ¢'sE $��}rr�t5� �. ,� �� :�:� ��' ��s 3�., :�n` :�� {� ,Y,;,�y � k yT�r�: �� $ ��;i�.v '%�R.:�"/.i�."`: Z,� �� . . �� .�� .�,:`�'.3A�..Si - r�.3;.�£: �' zA^� ;7? �� : �� 3�� : �� :��r�t;�: ��:��.� � � � �� kYx �� : �a�3 . h �.. �'.h..��. �,�� . :_ ;:,,,�. _��..::, � :._::::, or a e Creating healthy communities Affordable housing is core to a strong economy and a healthy region. Housing is affordable when a family with a moderate or low income pays no more than 30-40% of its monthly income for housing. Increasingly, housing is not affordable for many Twin Cities area working families. This lack of affordable housing for people of all ages and incomes causes families stress, dampens productivity and stifles job growth. The Metropolitan Council recognizes that durable and well-maintained housing is important to the local and regional tax base, livability and business climate, as well as to the health of the region as a whole. The Council creates affordable housing opportun- ities in the region through several programs and initiatives. Creating choices with housing vouchers The Council's housing and redevelopment authority (Metro HR.A) administers the federal Section 8 Housing . ousin Choice voucher program, and several related programs, in communities throughout Anoka, Carver, and most of suburban Hennepin and Ramsey Counties. The programs use the existing private rental market to provide safe, sanitary and affordable housing for a monthly average of 6,600 low- income seniors, disabled individuals and families . Participating property owners are guaranteed a stable source of rental income. Eligible households pay 30% to 40% of their incomes for rent, and Metro HRA pays the �em.ainder, �ithin established fair-market rent guidelines. Families may rent any type of housing in the Metro HRA service area, thus avoiding a concentration of assisted housing. All housing units in the program are inspected annually by HRA staff. in 11 cities in suburban Anoka, Hennepin and Ramsey Counties. The Family Afford- able Housing Program (FAHP) gives families with low incomes the opportunity to live in neighborhoods outside areas with high levels of poverty. The FAHP units are leased to families on the Minneapolis Public Housing Authority and Metro HRA waiting lists. At least 40% of the units are reserved for households with incomes of 30% of area median income or less; the remainder are leased to households with incomes of 80% of inedian or less. The cities where the homes are located each identified the need for more affordable rental housing in their comprehen- sive plans, and signed an agreement with the Council to participate in the program. A private professional firm handles day-to-day property At the end of 2007, the program had a waiting list of 5,500 eligible households. Scattered suburban public housing The Council operates a small, scattered-site public housing program of 150 units located management. Council determines housing needs Communities in the seven- county metropolitan area are required by state law to plan to meet their local share of the region's overall projected need Metropolitan Council • 390 Robert St. N. • Saint Paul MN 55101 •�XTebsite: vwvw.metrocouncil.org 651-602-1000 • TTY: 651-291-0904 • Data Center: 651-602-1140 � E-mail: data.centerC�metc.state. mn, us s€�.'' �;�'<�;: {�';� .9� 5i ,��sy� %�. �:;'':: �. �Y>':.�: Y��n� ��: � f�:.. ¢.�;. .� �:��. �,;... �� #: �: �. �:��£ � i�. � ��s�. �. :��l� ,�:r� �: ��.H � � ��f ��.x �� . �� f ��k>�+i).kk�kkkSF ��:�a�� ,�_.: ��,�. �� <t Y� "��' �'. �Z� 33�Y � �:�_�__ �:�: _� '��; �, a�.. �h�� '�;,��. ��;i;�3'r�� {.;�3�4�' �p��ky �� zo �y:<c\� az � � �',. .<� ;`F:;;,7r3 �� ;�?' � �' , �" �'��y. �'� � &�� € KV..�..�:� �.. � € �� k+� K�' � � R; '�i;:h%t:�s� ��..,y��:.t . ;:��'�'� :�� :%ti iv�S.S';,�j�'a�a`. '�'`i�>i;�z? �` �� s �.�i'�.�'°�.� �>.X*'S'� S."�'.`. �.�'%: :� :;�::a:� is3<'':c>. for low- and moderate-income housing. State law also requires the Metropolitan Council to assist communities to accomplish this planning. As part of the decennial planning cycle, the Council made an estimate of the region's overall need for new affordable housing units between 2011 and 2020, and allocated that need among communities in the region that are connected to the regional wastewater collection and treatment system. Each community is responsible for identifying the amount of land needed to accommodate both its overall forecasted growth and its share of the region's affordable housing need. Grants support community efforts The Council, through the Local Housing Incentives Account of the Livable Communities program, makes grants to communities to help create and preserve affordable rental and ownership housing. From 1996 through 2007, the Council awarded $18.5 million in grants (11 Z grants to 56 communities). The grants provide gap financing for projects that are expected to add 2,022 new affordable rental units and 670 rehabili- tated rental units; and 5 80 affordable new and 320 rehabilitated ownership units. The projects represent $482 million in total development investments. Metropolitan Council • 390 Robert St. N. • Saint Paul MN 55101 For more information • V1Slt �1�� : V��'. �inetrocou�.cil.or� l�.causin ind.ex.lztm for more details about the Council's housing programs. • To contact the Metro HR,A, call 651-602-1428. • Related fact sheets: - Fa�-riil Afforc��.ble Ho�.�si��. Prc>�r��.�n - L,i��a��le C�omn7unities Pub.14-08-053 Sept.2008 Website: www.metrocouncil.org 651-602-10�0 • TTY: 651-291-0904 • Data Center: 651-602-1140 • E-mail: data.centerC�metc.state. mn. us ac men . eso u lon - .�� EN HILLS August 9, 2010, City Council Meeting �S. EN HILLS CITY OF ARDEN HILLS CUUNTY 4F RAMSEY STATE OF MINNESOTA RES4LUTION NO. 2010-040 RESO�UTION ELECTING TO CUNTINUE PARTICIPATING IN THE LOCAL HUUSING INCENTIVES ACC(JUNT PR4GRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT CALENDAR YEARS 2011 THROUGH 2O20 WHEREAS, the Metropolitan Livable Communities Act (Minnesota Statutes sections 473.25 to 473.255) establishes a Metropolitan Livable Communities Fund which is intended to address housing and other development issues facing the metropolitan area defined by Minnesota Statutes section 473 .121; and WHEREAS, the Metropolitan Livable Communities Fund, comprising the Tax Base Revitalization Account, the Livable Communities Demonstration Account, the Local Housing Incentive Account and the Inclusionary Housing Account, is intended to provide certain funding and other assistance to metropolitan-area municipalities; and WHEREAS, a metropolitan-area municipality is not eligible to receive grants or loans under the Metropolitan Livable Communities Fund or eligible to receive certain polluted sites cleanup funding from the Minnesota Department of Employment and Economic Development unless the municipality is participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254; and WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan Council to negotiate with each municipality to establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide; and WHEREAS, previously negotiated affordable and life-cycle housing goals for municipalities participating in the Local Housing Incentives Account Program expire in 2010; and WHEREAS, a metropolitan-area municipality can participate in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254 if: (a) the municipality elects to participate in the Local Housing Incentives Pragram; (b) the Metropolitan Council and the municipality successfully negotiate new affordable and life-cycle housing goals for the municipality; (c) the Metropolitan Council adopts by resolution the new negotiated affordable and life-cycle housing goals for the municipality; and (d) the municipality establishes it has spent or will spend or distribute to the Local Housing Incentives Account the required Affordable and Life-Cycle Housing Opportunities Anlount (ALHOA) for each year the municipality participates in the Local Housing Incentives Account Program. NOW, THEREFORE, BE IT RESOLVED THAT the City of Arden Hills 1. Elects to participate in the Local Housing Incentives Program under the Metropolitan Livable Communities Act for calendar years 2011 through 2020. 2. Agrees to the following affordable and life-cycle housing goals for calendar years 2011 through 2020: Affordable Housing Goals Range Life-Cycle Housing Goals Range 187-288 285-800 The affordable housing goals range and the life-cycle housing goals range are based on the assumption that the former Twin Cities Army Ammunition Plant (TCAAP) will redevelop in accordance with the 203 0 Comprehensive Plan that was adopted on September 28, 2010. If TCAAP does not redevelop by 2020 or develops in a manner different than contemplated in the Comprehensive Plans, the housing goals will need to be re-evaluated. 3. Will prepare and submit to the Metropolitan Council a plan identifying the actions it plans to take to meet its established housing goals. �.DOP'TED �Y 'THE CIT�' CUITNCII..� OF T�IE CIT'�' OF AIZDEl�T �IIIaLdS T�IIS 9t" DAY OF August, 2010. Stanley D. Harpstead, Mayor ATTEST: Patrick Klaers, City Administrator