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City Council Staff Report <br />6/2/2025 — Discussion Item — Affordable Housing <br />Page 2 <br />2025 Rental Flossing <br />Bedrooms <br />30% AM I <br />Ei 9 AMI 60% AMI <br />80% AMI <br />Efficiency <br />$694 <br />$1,158 <br />$1.389 <br />$1,852 <br />1 Bedroom <br />$744 <br />$1,241 <br />$1.4-89 <br />$1,985 <br />2 Bedrooms <br />$894 <br />$1,490 <br />$1,798 <br />$2,384 <br />3 Bedrooms <br />$1,032 <br />$1,721 <br />$2,065 <br />$2,753 <br />4 Bedroom <br />$1,152 <br />$1,920 <br />$2,304 <br />$3,072 <br />Figure 1: Rental rates at differentAMI levels, per Metropolitan Council. <br />2025 Florae Ownership <br />Family Income Level <br />Affordable Home Price <br />80%AM1 ($104.200) <br />$306,500 <br />60 AMI (79,440) <br />$225,300 <br />50% AM ($66,200) <br />$183r7D0 <br />30%AMI ($39,700) <br />$98,000 <br />Figure 2: Home prices at different <br />AMI levels, per Metropolitan Council. <br />Programs in Minnesota <br />Counties, states, and non -governmental organizations offer a variety of programs that focus on <br />affordable housing. Staff have compiled information on some that have a focus on the <br />development of affordable housing in the Twin Cities. <br />State of Minnesota <br />• The Low -Income Housing Tax Credit (LIHTC) is a program through the state's housing <br />finance agency that connects federal tax credits to owners of qualified affordable rental <br />housing projects. These credits offer a 10-year reduction in tax liability and are sold to <br />investors in exchange for capital to build eligible affordable rental housing units through <br />new construction, rehabilitation, or acquisition with rehabilitation. <br />• The State Housing Tax Credit (SHTC) program awards funds that can be used to <br />support new construction, acquisition, rehabilitation, and redevelopment of sites for <br />housing. Eligible Minnesota taxpayers can contribute to the contribution fund and, in <br />return, receive a state Tax Credit Certificate (TCC). Contributions provide funding for <br />loans for eligible housing projects in communities throughout the state. The loans <br />provided through the program are funded entirely by taxpayer contributions. Loans can <br />be provided directly to a city or a developer. <br />• The Local Affordable Housing Aid program started in 2024, and distributes funds directly <br />to eligible cities and counties. Projects that these funds can be spent on include <br />emergency rental assistance, support of nonprofit affordable housing organizations, and <br />support of development or redevelopment projects that create a set amount of affordable <br />housing units for select AMI levels. A city can also donate the funds to a local housing <br />trust fund to be spent on projects such as those listed previously. <br />The Mounds View Vision <br />A Thriving Desirable Community <br />