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Housing & Economic Development <br />An affordable housing tax credit to help spur construction and secure additional <br />privateinvestment.Thisincentivecouldbeusedinconjunctionwithcity,regional,or <br />otherstateincentives;and <br />Maintaining existing municipal authority to establish a housing improvement area <br />(HIA). If the Legislature grants multi-jurisdictional entities the authority to create <br />HIAs,creationofanHIAmustrequiremunicipalapproval. <br />3-HFederalRoleinAffordableandWorkforceHousing <br />Federal funding plays a critical role in aiding states and local governments in their efforts to <br />maintainandincreaseaffordableandworkforcehousing.Providingworkingfamiliesaccessto <br />housingis animportantpiecetothe economicvitalityoftheregion. <br />Metro Cities encourages the federal government to maintain and increase current levels of <br />fundingfor affordableandworkforcehousing.Federalinvestmentinaffordableandworkforce <br />housing will maintain andincrease thesupply ofaffordableandlifecyclehousing aswellas <br />makehousingmoreaffordablethroughrental assistanceprogramssuch astheSection 8housing <br />choicevoucherprogram. <br />In July 2015, the U.S. Department of Housing and Urban Development (HUD) released a final <br />rule on affirmatively furthering fair housing (AFFH) with an aim to provide communities that <br />receiveHUDfundingwith clear guidelinestomeettheir obligation undertheFair Housing Act <br />of 1968 to promote and reduce barriers to fair housing and equal opportunity. HUD has since <br />provided newguidancetocomplywiththeAFFHrule. <br />Opportunity Zones is a community development program established by Congress in the Tax <br />Cuts and Jobs Act of 2017 to encourage long-term investments in low-income urban and rural <br />communities nationwide. The Opportunity Zones program provides a tax incentive for investors <br />to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing <br />intoOpportunityZones.Thetaxincentiveisavailableforuptotenyears. <br />128 census tracts were designatedas Opportunity Zones in 2018. The United States Treasury <br />released rules on April 17, 2019 which provide guidance and clarification for investors and fund <br />managers. It is anticipated that the Act may be a useful tool in spurring development in low- <br />income communities and could help with business development and jobs. There are also <br />questions about what impact the Act will have on the residents that live and businesses that <br />operate in these communities today. For example, while development may have positive impacts <br />such as increasing tax base or job opportunities, robust development could have unintended <br />consequencessuchasdisplacementofcurrentresidents andbusinesses. <br />Metro Cities urges the federal government to seek regular input from communities, especially <br />fromindividualsand businesseswithin Opportunity Zones,regardinghowthetoolisbeing used, <br />whether the tool is encouraging new development opportunities, and how community members <br />2022 Legislative Policies <br />30 <br /> <br />