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City Council Staff Report <br /> 8/4/2025—Discussion Item—Affordable Housing <br /> Page 2 <br /> 2025 Rental Housing <br /> #Bedrooms 3G%AMI SO%AM1 6096AMI 80%AMI <br /> Efficiency $694 $1,159 $1.389 $1,952 <br /> 1 Bedroom 744 $1,241 $1,489 $1,985 <br /> 2 Bedrooms $894 $1,490 $1,799 $2,384 <br /> 3 Bedrooms $1,D32 $1,721 $2,065 $2,753 <br /> 4 Bedroom $1,152 $1,920 $2,304 $3,072 <br /> Figure 1:Rental rates at differentAMI levels,per Metropolitan Council. <br /> 2025 Home Ownership <br /> Family Income Level Affordable Home Price <br /> 80%AM1( 104,200) $306,500 <br /> 60%AMI ( 79,440) $225,300 <br /> 50%AMI ($66,200) $183r7D0 <br /> 30 AMI($39,700) $98,000 <br /> Figure 2:Home prices at different 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 />