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37 Line 6: The ordinance was previously drafted as Chapter 911 to Title 9. Chapter 911 was
<br />38 assigned to the recently adopted Reasonable Accommodation requirements, so this ordinance
<br />39 has been revised to be Chapter 912 to Title 9.
<br />40 Line 87: Very low income was previously omitted in error from the list of affordability
<br />41 requirements under Section 911.3.B.2. This has been corrected.
<br />42 The remaining text of the ordinance has been unchanged since the REDA discussion on November 6,
<br />43 2023. As a reminder, this ordinance was drafted by the City Attorney and is modeled after the City of
<br />44 Minnetonka's ordinance. It aims to preserve as many options as possible for eligible activities and
<br />45 funding sources, focusing on affordable renter and ownership housing serving persons up to 80% of the
<br />46 area median income, although there is flexibility to go up to 120% of the area median income for home
<br />47 ownership units. Eligible activities include grants, loans, new development, rehab, rental assistance,
<br />48 down payment assistance, land trust gap funding, nonprofit support, and administrative
<br />49 expenses. Funding sources include donations, grants or loans from other agencies, land sale proceeds
<br />50(if the City were to ever have any), appropriations, development fees, investment earnings, tax
<br />51 increment financing, levy funds, and Local Housing Aid funds. Most importantly, the project prioritization
<br />52 includes serving persons at low and very low incomes as defined in the ordinance, as well as reducing
<br />53 disparities in homeownership, housing cost burden, housing instability, homelessness, home habitability,
<br />54 accessibility, and energy or water efficiency.
<br />55
<br />56 During the November 6, 2023 REDA discussion, staff mentioned that resources are limited and that
<br />57 additional efforts might need to be undertaken to identify more specific needs and priorities, such as
<br />58 completing an update to the 2016 Housing Needs Assessment. Staff is beginning to gather information
<br />59 about what type of study could be undertaken, beyond a simple needs assessment. This information will
<br />60 be presented to the REDA during a future meeting to determine what, if, any study should or could be
<br />61 undertaken in 2024.
<br />62
<br />63 Staff is seeking adoption of the ordinance as provided in Attachment 1. Due to the length of the
<br />64 ordinance, staff is also recommending a summary publication, which is provided as Attachment 2.
<br />65
<br />66 Policy Objectives
<br />67 The objective of the proposed ordinance is to comply with Minnesota Statutes, Section
<br />68 462C.16. Beyond complying with the technical aspects of establishing a LHTF, the proposed ordinance
<br />69 states "The City has determined to create a local housing trust fund that is an Affordable Housing Trust
<br />70 Fund which will encourage the creation of affordable housing for rental housing and owner-occupied
<br />71 housing, promote the preservation of existing affordable housing and naturally occurring affordable
<br />72 housing, and provide rental assistance and homeownership assistance to persons of very low income,
<br />73 low income and moderate income."
<br />74
<br />75 Racial Equity Impact Summary
<br />76 The LHTF aims to benefit programs and/or activities serving persons of very low, low and moderate
<br />77 incomes who are in need of housing, either rental or ownership. The proposed ordinance establishing
<br />78 LHTF prioritizes projects and/or activities that reduce disparities in homeownership and reduce housing
<br />79 cost burden, housing instability and/or homelessness. In Roseville, BIPOC households are far more
<br />80 likely to rent than own and renter households are far more likely to be housing cost-burdened compared
<br />81 to homeowners. Further, the median household income of Blacks is only 60% of White
<br />82 households. These demographics suggest the LHTF will have a positive impact on racial equity in
<br />83 Roseville. Staff originally intended on completing the Racial Equity Toolkit prior to presenting the
<br />84 ordinance to the City Council for adoption, however, staff finds that exercise may be more meaningful
<br />85 once more specific funding and/or programs are identified, which arise from an updated needs
<br />86 assessment given the ordinance was intentionally drafted to be general in nature so as to preserve as
<br />87 many options as possible.
<br />88
<br />89 Budget Implications
<br />90 None related to establishment of the LHTF, however, there should be recognition the City's Housing Aid
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