10-28-2020 Council Packet - Laserfiche WebLink

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As a participant in the Livable Communities Program, the City of Little Canada would be eligible to participate in and apply for funding from the following programs: • Tax Base Revitalization Account (TBRA): Cleans up contaminated sites for redevelopment that creates jobs and/or produces affordable housing. Also known as the brownfields program. In 2020, the Met Council allocated $5.75 million in grants including up to $250,000 for site investigation. In addition, $250,000 is dedicated to seed funding. • Livable Communities Demonstration Account (LCA): Supports development and redevelopment that links housing, jobs and services while demonstrating efficient and cost-effective use of land and infrastructure. In 2020, the Met Council allocated $9 million to this account. • Local Housing Incentives Account (LHIA): Funds production and preservation of affordable housing choices for households with low to moderate incomes. In 2020, the Met Council allocated $4.5 million to this account. • Transit Oriented Development (TOD): Funds development around light rail or high frequency bus stations. In 2020, the Met Council allocated $5 million to this account. Affordable Housing Goals When determining the number of units to meet the regional affordable housing need, communities with a higher share of existing affordable housing than the regional average had their final allocation adjusted downward. In contrast, communities with lower share of existing affordable housing had their final allocation adjusted upward. Thus, the total number of units identified takes a community’s existing affordable housing stock into consideration. While the Metropolitan Council forecasted the future need for this total number of new affordable units over the 2021-2030 decade, it also acknowledged the reality of limited funding available to create new affordable housing opportunities. The City’s LCA affordable housing goal for the 2021-2030 decade is listed as a range of 40 to 72 units in the 2040 Comprehensive Plan. Life-Cycle Housing Goals Similarly, the Metropolitan Council also requests the city to set a life-cycle housing goal to diversify the type and density of housing to meet residents’ changing housing needs and preferences. In our case, the 2040 Comprehensive Plan establishes a goal of 250 units of life-cycle housing. This goal includes the potential number of units permitted by the land use guiding in the City’s 2040 Plan for medium and higher density mixed use development or redevelopment projects. Affordable and Life-Cycle Housing Opportunity Amount (ALHOA) In order to meet the affordable and life-cycle housing goals, cities are required to provide a local funding contribution referred to as the Affordable and Life-Cycle Housing Amount (ALHOA). For 2021, the City of Little Canada’s ALHOA is $39,310. Cities must spend at least 85% of this total. Expenditures that meet the city contribution requirement can include the following: • Staff salary for time spent administering affordable housing programs (as long as it is not reimbursed by a grant or a pass-through funding resource) • Staff or consultant time working on site assembly or affordable housing development activities, researching/preparing affordable housing policies, or other activities that directly support affordable housing efforts. • Tax increment provided for an existing Housing TIF District that included affordable housing. RECOMMENDED ACTION: Staff recommends approval of a Resolution to Re-Enroll in the Livable Communities Act and participate in the Local Housing Incentives Account Program under the Metropolitan Livable Communities Act.