03-13-2024 Workshop Packet - Laserfiche WebLink

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Primary Objectives: The primary objectives of the new 0.25% Metro Area Sales include: 1. Affordable Housing: Allocating funds to support the development and maintenance of affordable housing projects within city limits. 2. Homelessness Prevention: Implementing programs and services aimed at preventing and addressing homelessness, ensuring a safety net for vulnerable populations. 3. Housing Stability: Enhancing housing stability for residents by investing in initiatives that promote long-term residency and community engagement. Allocation and Distribution: The sales tax revenue is strategically allocated to housing-related programs and developments. Each municipality will have the flexibility to tailor their housing initiatives based on local needs, ensuring that funds are directed towards the most impactful projects. Distribution mechanisms are designed to support a variety of housing solutions, reflecting the diverse requirements of communities across Minnesota. Several municipalities have either implemented or are in the process of developing a plan for implementation of the new Metro Area Sales and Use Tax for Housing. Here are some examples: • Minneapolis: Minneapolis is using the 0.25% sales tax to fund affordable housing initiatives, including the construction and preservation of affordable housing units, supportive housing programs, and homelessness prevention efforts. • St. Paul: St. Paul is using the 0.25% sales tax to fund affordable housing, with funds going towards the creation of new affordable housing units, rental assistance programs, and housing stability services. • Bloomington: Bloomington is using the 0.25% sales tax to fund housing initiatives focused on increasing the availability of affordable rental housing, providing down payment assistance for first-time homebuyers, and supporting homeless prevention programs. • Brooklyn Park: Brooklyn Park is using the 0.25% sales tax for affordable housing, with funds allocated to the construction of new affordable housing units, rental assistance programs, and housing support services for low-income residents. • Robbinsdale: Robbinsdale is using the 0.25% sales tax to fund affordable housing initiatives, including the preservation of existing affordable housing units, homeownership assistance programs, and supportive services for individuals experiencing homelessness. • Vadnais Heights: Vadnais Heights has not finalized their plan; however they are in the process of completing a Housing Study to inform how the funds should be spent as well as see if there are any personnel or additional staff needs to implement the funding initiatives. • Shoreview: Shoreview is using the 0.25% sales tax for affordable housing, with funds allocated to be distributed utilizing their existing HRA programs.