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Item No: 08A <br />Meeting Date: March 23, 2026 <br />Type of Business: Council Business <br />Administrator Review: NA <br /> <br />City of Mounds View Staff Report <br />To: Honorable Mayor and Mounds View City Council <br />From: Evan Monson, AICP, Stantec, City Planner <br />Item Title/Subject: Affordable Housing <br />Request: Proposed amendments to Title XI, Chapter 119 of the City Code <br /> <br /> <br />Introduction: <br />The City Council previously discussed the topic of affordable housing as a part of the strategic <br />planning process in Summer 2025, which led to the creation of an affordable housing policy being <br />drafted and discussed at multiple work sessions in 2025. <br /> <br />Discussion centered on how the city can use ‘inclusionary zoning’ as a tool to require a percentage <br />of new rental housing units within market-rate developments to be affordable to low- and middle- <br />income households (based on area median income or ‘AMI’). This policy would apply to rental <br />housing in developments with ten (10) or more units. Owner-occupied housing, and rental <br />developments with less than ten (10) units would be exempt from the policy. Staff prepared a <br />policy for the city to use moving forward, which was reviewed and approved by the Council at the <br />December work session meeting. <br /> <br />Discussion: <br />The City Council reviewed possible amendments to Chapter 119 (Rental Dwellings) of the city <br />code at the February work session; it was the consensus at this meeting to incorporate the <br />affordable housing policy into Chapter 119 of the city code at this time. <br /> <br />To incorporate the policy into Chapter 119, amendments are proposed to existing Section 119.002 <br />(Definitions), as well as creating Sections 119.008 through 119.016 (proposed as the Affordable <br />Housing Policy sections). A draft ordinance that included the policy was reviewed by the City <br />Council at the March work session meeting. <br /> <br />The other proposed amendments included in the draft ordinance, as prepared by the City <br />Attorney, include new protections for tenants in rental housing. This includes required notices to <br />tenants and the city upon a change in ownership of a rental property with three (3) or more units, <br />when an owner is required to provide relocation assistance to a tenant, when a tenant can submit <br />a complaint, and penalties and administrative citations for violations of Chapter 119. These <br />amendments include changes to existing Section 119.002, as well as creating new Sections <br />119.030 through 119.034. <br /> <br />