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STAFF REPORT <br />DATE: 11/19/2024 <br /> CONSENT <br /> <br /> <br />TO: City Council <br />FROM: Jason Stopa, Community Development Director <br />AGENDA ITEM: Approve Local Affordable Housing Aid Agreement with Washington County <br />Community Development Agency (CDA) <br />REVIEWED BY: Nicole Miller, City Administrator <br /> <br />BACKGROUND: <br />In the 2023 state legislative session, the Local Affordable Housing Aid (LAHA) program was created to <br />help build and preserve affordable housing. It is funded by a metro area sales tax, beginning on October 1, <br />2023. The funds are distributed to counties and to cities with populations over 10,000. The amount of <br />LAHA is grossly based on the proportion of cost-burdened households (those who pay more than 30% of <br />their income on housing) living in the county/city. Below is a link to the Department of Revenue’s <br />website, which has additional information and the certified amounts for 2024. Lake Elmo’s amount is <br />$48,810.97. <br /> <br />https://www.revenue.state.mn.us/local-affordable-housing-aid <br /> <br />ANALYSIS: <br />The purpose of this Agreement is to authorize the County to undertake essential community development <br />and housing assistance activities pursuant to the LAHA Program. Current programs include the GROW <br />Fund, NOAH GROW Subfund, and the First-Generation Homebuyer Grant program. The program <br />policies are attached. <br /> <br />Prior CDA Programs: <br />Economic Development: <br />Open to Business – 14 businesses located in Lake Elmo and 12 entrepreneurs reside in Lake <br />Elmo (may overlap) over past 3 years. <br /> <br />Predevelopment Finance Fund – 2 grants, for master plan for 180 acres on Ideal Ave <br />($8,800.00) and for a wetland delineation study ($3,628.80) in 2019 and 2021, respectively. <br /> <br /> Homeownership: <br />Homeownership Advisory/Counseling Services – 3 homebuyers, 3 foreclosure prevention, and 4 <br />HECM (reverse mortgage) counseling clients over past 3 years. <br /> <br /> Home Improvement Loan Program – 1 homeowner currently on wait list. <br /> <br /> Septic Repair/Replacement – 8 loans and 4 grants over past 3 years, totaling $221,500. <br /> <br /> <br />