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City Council Staff Report <br />10/6/2025 – Discussion Item – Affordable Housing <br />Page 2 <br /> <br /> <br /> <br />The Mounds View Vision <br />A Thriving Desirable Community <br /> Figure 1: Rental rates at different AMI levels, per Metropolitan Council. <br /> <br />Figure 2: Home prices at different AMI levels, per Metropolitan Council. <br />An inclusionary zoning program can be ‘mandatory’ or ‘voluntary.’ A mandatory program would <br />require a developer to include affordable units if a certain threshold or requirement is met. This <br />could be based on the number of units (example: affordable units are required if a development <br />contains 100 or more units), or if certain tools from the city are used (example: affordable units <br />are required if the development is part of a TIF district). Voluntary programs have incentives that <br />encourage developers to include affordable units as part of a new development. Voluntary <br />programs may also allow developers to pay a fee in lieu of providing affordable units; the city can <br />then use the fees as part of other affordable housing projects. <br /> <br />Staff looked at inclusionary zoning programs in three Twin Cities area communities in detail – <br />Bloomington, Richfield, and St. Louis Park. Bloomington adopted an affordable housing <br />ordinance, while Richfield and St. Louis Park adopted policies. Some of the highlights from each <br />are summarized below: <br />• Bloomington <br />o Threshold <br /> Any residential development that creates 20 or more units in total. <br />• Includes assisted living, multifamily, single-family, etc. <br />o Affordability Level <br /> Rental units <br />• 9% of units are at rents affordable at 60% AMI. <br /> For-sale units <br />• 9% of units are affordable at 115% AMI. <br />o Length <br /> Minimum 20 years.