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City Council Staff Report 10/6/2025 – Discussion Item – Affordable Housing Page 5 The Mounds View Vision A Thriving Desirable Community Considerations: Staff have prepared a draft policy for the city council to review. Below is a summary, along with areas noted that the council should further review and discuss. • Section 2 – Applicability o Should the number of units that triggers the policy be increased or decreased? o Previous discussion was to have the policy focused on new and existing ‘multifamily development,’ is this still the intent of the council? o The draft applies to rental development only. Does the council want this policy to apply to rental + owner-occupied development, or just rental development? • Section 3 – Affordability o Proposed 10% of units affordable at 30% AMI, and 10% of units affordable at 50% AMI. o If council wants policy to also be applicable to owner-occupied development, could set affordability requirement at “10% of units at 80% AMI.”; this can be added as Section 3(b). • Section 4 – Length o Proposed length of time is 25 years. • Section 5 – Standards for Affordable Dwelling Units o Other cities allow renters/tenants to remain in an affordable unit if their income increases, up to a certain AMI (120-140% AMI is typical). • Section 6 – Incentives o The proposed incentives are based on what can be permitted under the city’s Planned Unit Development (PUD) process – this would grant incentives to non- PUD developments. o The council can consider other incentives, such as deferment of fees, or waiving of park land dedication fees (park land dedication fees would only apply for subdivisions). o Are there other incentives the council is interested in, or incentives the council does not want to include? • Section 7 – Alternatives o A fee in lieu can be used as a way for the city to grow a fund that could be used to invest in and finance affordable housing projects in the future; the council should discuss what would be an appropriate fee, and the specifics of creating such a fund. • Section 8 – Affordable Housing Plan o The city should require a plan (think of a development agreement) that outlines how development will meet the requirements of the city. • Section 9 – Agreements o This section would outline recording of the affordable housing plan. • Section 10 – Definitions In addition to the details in the policy itself, the council should also discuss with staff how to implement this policy, and monitoring/enforcement.