09/23/1995 Council Packet - Laserfiche WebLink

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MEMORANDUM TO: Randy Schumacher FROM: Mary Ray Wyland DATE: September 13, 1995 SUBJECT: Livable Communities Act - Metro Council Following our meeting of September 7th with Tom Caswell, Mark Filipi and Jim Uttley of the Metropolitan Council and of September 9th with Brian Wessel and Mary LaForest, you asked that I prepare some information on the Livable Communities Act including steps to meet the requirements of the Act and what is the benefit to the City for participation in the program. The first step in the program would be the adoption of a resolution electing to participate. This resolution must be submitted to the Met Council by November 15, 1995. We have four Council meetings between now and 11/15 with the last meeting on November 13. A model resolution is attached for your information. This resolution outlines key points of the Act, summarizes the funding sources, indicates that a community is not eligible unless they opt to participate, stipulates that a community must negotiate housing goals with the Met Council by mid-December 1995 and prepare an action plan to achieve these goals by June 30, 1996. I have attached a copy of some "Principles" the City may want to adopt as a portion of our Housing Goals Agreement. As mentioned, the actual goals are to be negotiated with Met Council staff sometime prior to mid-December The purpose of the Act is to provide affordable housing throughout the metropolitan area. "Affordable" housing is defined as 80% of median for ownership (a $115,000 home in 1994) and 50% of median for rental ($500 per month in 1994). In return for this agreement, three funds are available for community use via grants and/or loans to assist in the provision of affordable and life -cycle housing. These funds include a Tax Base Revitalization Account ($6.5 million), the Livable Communities Demonstration Account ($4.6 million) and the Local Housing Incentives Account ($1 million). The Tax Base Revitalization Account is earmarked for cleaning polluted sites and providing increased economic development and jobs for area residents. The Livable Communities Demonstration Account can be accessed for more compact, efficient development close to transit with a variety of housing and employment opportunities. And the Local Housing Incentives Account is provided to create affordable and life -cycle housing. All three funding sources have potential benefit to the Town Center Project. The City may be able to access funds to provide "afffordable life -cycle" housing, enhance economic development,