Res. #10-018 - Electing to Continue Participation in LHIA Program

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CITY OF CENTERVILLE Affordable Housing Action Plan Livable Communities Act Affordability is an important part of establishing life -cycle housing. In 1995 prior to the local comprehensive plan updates prepared for the period of 1998 and 2008 the Metropolitan Council created the Livable Communities Act (LCA). The goal of this program was to stimulate construction of affordable housing within the seven - county metropolitan region. Metro area communities were asked to participate voluntarily and Centerville has been a participant since its inception. Once they choose to participate, communities negotiate life -cycle housing goals with the Metropolitan Council. Various grant programs were established to assist local government in meeting their goals. Centerville's goals for the period of 1996 -2010 are shown in Table 27. Table 27 - Livable Communities Act Goal Distribution Years 1996 -2000 2001 -2005 2006 -2010 Multiple Family /Affordable 6017 70/7 60/7 Senior Housing /Affordable 16/16 0/0 14/14 Single Family /Affordable 125/45 125/30 125/22 Additional Non - Single Family 30 30 20 Source: City of Centerville Housing Action Plan Since 1996, 47 affordable rental units and 130 owner - occupied homes have been constructed in Centerville. Rental units are affordable to households earning 50% or less of the regional median income. Owner - occupied units are affordable to households earning 80% or less of the regional median income. These rates match the Metropolitan Council's definition of affordability, which stipulate that units are affordable if a household does not spend more than 30 percent of its income on housing expenses. The Twin Cities metropolitan area median income is $54,304. 80 percent of this amount is $43,443 is, which translates into a $201,800 owner - occupied home. 2020 LCA Goals As mentioned above the benchmark and goals expire in 2010. As part of the 2030 Regional Development Framework, the Metropolitan Council estimates that approximately 50,000 additional affordable housing units will be needed in the region during the planning period of 2011 -2020. The Metropolitan Council will be working with communities to adopt new agreements in 2011 for the next ten year cycle. In order to do this the Metropolitan Council conducted the study "Determining Affordable Housing Need in the Twin Cities 2011- 2020 ". With this new plan the Metropolitan Council has changed their definition of affordable housing from of 80% of area median income to 60% of area median income. The study then described an allocation method to all communities within the region based on the following four criteria: