09-13-1995 Council Agenda - Laserfiche WebLink

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g. ..t * *DRAFT ** LOCAL HOUSING INCENTIVES ACCOUNT GUIDELINES AND CRITERIA Program Summary: The Metropolitan Livable Communities Act (Minn. Statutes Chapter 473.25) created the Local Housing Incentives Account (LHIA) which authorizes the Metropolitan Council to make grants to eligible municipalities to meet negotiated affordable and life -cycle housing goals that are consistent with and promote the policies of the Metropolitan Council.. Purpose: The LHIA provides incentives for municipalities to create and/or maintain affordable and life -cycle housing opportunities. Source and Amount of Available Funds: For 1996, $1,000,000 from the proceeds of solid waste bonds issued by the Council; for 1997 and each subsequent year, $500,000 from the Livable Communities Demon- stration Account; for 1998 and each subsequent year, $1,000,000 from the Council's general levy. Beginning in 1998, the LHIA may receive funds from cities that have not met their negotiated housing goals and/or have not spent 85 percent of their Affordable and Life -cycle Housing Opportunities Amount (ALHOA). The Council is working cooperatively to link the LHIA funds to those of other housing funders, e.g., the Minne- sota Housing Finance Agency, the Family Housing Fund and others; the potential pool for 1996 is $5.1 million. Grant Terms and Amounts: To be determined. Eligible Applicants: Any municipality in the seven - county region that (1) elects to participate in the LHIA program, i.e., negotiates affordable and life -cycle goals with the Council; (2) has its negotiated housing goals adopted by the Council; (3) identifies to the Council the actions it plans to take to meet the established hous- ing goals. Location of Eligible Projects: LHIA funds may be used for affordable and life -cycle housing projects in eligible, participating communities. Eligible Uses of Grant Funds: For certain costs associated with projects that help municipalities meet their housing goals, including, but not limited to acquisition, rehabilitation and construction of permanent afford- able and life -cycle housing. Projects proposing homeownership opportunities for families with low and moderate incomes are strongly encouraged. The LHIA funds must be matched on a dollar- for - dollar basis by the municipality receiving the funds. Project Selection Criteria: The funds in the account must be distributed annually by the Council to munici- palities that have not met their affordable and life -cycle housing goals and are actively funding projects de- Page 118