08/01/2024 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: October 11, 2023 TOPIC: Local Affordable Housing Aid (LAHA) BACKGROUND In 2023 the Minnesota Legislature approved a new metro-wide sales and use tax for affordable housing. The purpose of the aid is to help metropolitan local governments develop and preserve affordable housing within their jurisdictions. The annual appropriation comes from a sales and use tax imposed within Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties. Cities with a population of over 10,000 within these counties are eligible to receive aid. As discussed previously with the EDAC, the City of Lino Lakes will begin receiving funds in 2024. The City has three years from the receipt of the local affordable housing aid to spend it on a qualifying project. Any unspent funds must be transferred back to Minnesota Housing Finance Agency. Funds are considered spent on a qualifying project if they are transferred to a local housing trust fund. Ehlers and Associates provided an overview of the program to the EDAC in October of 2023. A copy of their memorandum is included for committee review. The EDAC previously supported the idea of establishing a local housing trust fund for purposes of administering the housing aid. This would allow the City additional time to establish a program and expend funding. Staff has prepared a draft ordinance for discussion purposes. The provision includes a range of both funding sources that could go into the fund as well as potential uses of the funds. Legislatively this gives the City the most flexibility as we evaluate potential program options. EDAC CONSIDERATION Staff is requesting EDAC comments on the proposed ordinance and any additional information necessary to advance the proposal. ATTACHMENTS 1. Ehlers Memo, October 2023 2. Draft Housing Trust Fund Ordinance