03/02/2023 EDAC Combined Packet - Laserfiche WebLink

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ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Mike Grochala, Community Development Director EDAC MEETING DATE: March 2, 2023 TOPIC: Housing Maintenance Assistance Program BACKGROUND The EDAC discussed establishing a housing maintenance program to assist low-moderate income households at the January 2023 meeting. As discussed the City has $230,000 loan repayment that can be used for affordable housing programs. Staff has generated some additional information to consider with the establishment of the program. Based on the discussion only owner occupied housing that met area affordability guidelines would be eligible for participation in the proposed program. Metropolitan Council’s 2040 Housing Policy plan defines affordable housing as housing that is affordable to low-and moderate-income families. Affordability limits are established annually. The 2023 figures are not available until May. The ownership affordability limit is based on a household income of 80% of the area median income. In 2022 the area median income (AMI) for a family of four was $118,200. For owner- occupied housing, the income limit includes principal, interest, property taxes and home insurance. 2022 Home Ownership Family Income Level Affordable Home Price 80% AMI ($89,400) $355,600 60% AMI ($70,380) $276,100 50% AMI ($58,650) $227,100 30% AMI ($35,200) $129,100 Due to increasing interest rates these numbers are expected to drop in 2023. Existing Programs Anoka County Home Rehabilitation Loan Program. The Homeowner Rehabilitation Loan Programs provides deferred payment loan financing to income-eligible homeowners to address health and safety concerns in the home. It does not cover cosmetic updates or deferred maintenance. Anoka County offers two loan programs to Anoka County property owners. Loan program income limits are based on gross household