Laserfiche WebLink
STAFF REPORT <br />TO:Chair Johnson and Members of the Planning Commission <br />FROM:Corrin Wendell, AICP, Community Development Director <br />DATE:February 8, 2024 <br />RE:Metro Area Sales and Use Tax for Housing 0.25% <br />ACTIONS TO BE CONSIDERED <br />To review and discuss the Metro Area Sales and Use Tax for Housing 0.25% and consider uses <br />for this funding. <br />BACKGROUND <br />The Minnesota 0.25% sales tax, established to address housing needs, serves as a crucial financial <br />tool for cities in the state. This dedicated sales tax revenue is earmarked specifically for housing <br />initiatives, enabling cities to fund affordable housing projects, combat homelessness, and enhance <br />housing stability within their communities. By allocating a fraction of the sales tax to housing, <br />cities in Minnesota can strategically invest in programs and developments that foster inclusive and <br />accessible housing solutions, thereby contributing to the overall well-being and vitality of their <br />residents. The tax demonstrates a commitment to addressing housing challenges and underscores <br />the importance of creating thriving and equitable communities across the state. <br />Introduction: <br />City staff would like to provide an overview of the Minnesota 0.25% sales tax allocated for housing <br />initiatives, highlighting its significance and impact on local communities. This dedicated sales tax <br />is a pivotal financial resource that empowers cities across the state to address pressing housing <br />needs, enhance affordability, and contribute to the overall well-being of residents. <br />Established to combat housing challenges, the Minnesota 0.25% sales tax is a targeted revenue <br />stream specifically designated for housing initiatives. Enacted to address the critical issues of <br />affordable housing and homelessness, this tax demonstrates the state's commitment to fostering <br />inclusive, sustainable communities. <br />Objectives: <br />The primary objectives of utilizing this sales tax for housing initiatives include: <br />1.Affordable Housing: Allocating funds to support the development and maintenance of <br />affordable housing projects within city limits. <br />2.Homelessness Prevention: Implementing programs and services aimed at preventing and <br />addressing homelessness, ensuring a safety net for vulnerable populations.