11-13-2002 Council Agenda - Laserfiche WebLink

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1 By restricting cities' ability to raise revenues necessary to finance infrastructure and 2 services required for new affordable housing, state fiscal policies- -such as levy limits, restraints 3 on Local impact fees, and the current property tax class -rate structure -- discourage cities from 4 making land readily available for development of affordable housing. 5 6 In the last biennium, state government largely depended on one -time housing 7 appropriation increases, including directing federal welfare reform and increased federal tax - 8 exempt bond funding to increase construction of low- income rental and entry -level owner - 9 occupied housing; enacted substantial apartment property tax relief; increased funding for 10 homeless prevention and services; and threatened to impose restrictions on local land use 11 authority in order to create conditions in which cities would make more affordable housing 12 available. 13 14 Response: The League recommends the following actions to aid cities in addressing 15 housing needs: 16 17 • Use every means, including memorializing resolutions, public forums, citizen action 18 committees, and press coverage, to alert members of the Minnesota congressional 19 delegation to the critical housing problems facing communities throughout the state. 20 • Enact new state and federal initiatives to increase housing production, including tax - 21 exempt bonding, tax credits, and increased flexibility for cities to use housing block 22 grants. 23 • Raise the level of permanent funding for affordable housing production by increasing 24 the base budget of the Minnesota Housing Finance Agency. 25 • Exempt or reduce the state sales tax on development of affordable new or rehabilitates 26 housing. 27 • Grant an exemption from the state mortgage and registry deed tax to public agencies 28 and developers who agree to produce affordable housing. 29 • Create a state affordable housing tax credit and an historic preservation tax credit to 30 preserve and rehabilitate housing. 31 • Continue funding to preserve federally subsidized housing threatened by mortgage 32 prepayments or conversion to market -rate rental property. 33 • Make permanent the policy of not deducting from the MFIP monthly grant either the 34 public housing or Section 8 support payments to individuals or families. 35 • Coordinate and share financial resources among numerous agencies that assist 36 homeless individuals and families to develop continuum of care plans and increase the 37 supply of permanent supportive and assisted housing, including single room occupancy 38 (SRO) units. 39 • Authorize cities to amend their comprehensive plans with a simple majority in order to 40 increase development of Life -cycle and affordable housing to meet local needs. 41 42 43 44 45 10