PL PACKET 09191995 - Laserfiche WebLink

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CHAPTER 5 HOUSING 106 • HOUSING AFFORDABLE TO LOW—MODERATE INCOME PERSONS There are two basic sources of housing for low and moderate income persons; lower priced, generally older private housing; and housing which is subsidized by the government to reduce its cost to the consumer. The largest area of need for affordable housing continues to be for families and persons with specialized needs such as the elderly and handicapped. PRIVATE HOUSING Households considered to have low and moderate incomes vary with family size. For a household of four, it would be an annual income less than $20,350 (1988 dollars). As of 1980, 13.8% of New Brighton's housing stock was in the price range affordable to low.and moderate income persons. This includes all units renting for under $400 per month and homes valued under $47,000 in 1988 dollars. The City of New Brighton, in partnership with the private sector, has put together a proposal for the construction of a new apartment building for low and moderate income persons. The project location is the southwest corner of 10th Street NW and 3rd Avenue NW. Construction of the 85 unit housing project is expected to be completed by the summer of 1989. SUBSIDIZED HOUSING Subsidized housing is virtually the only way that a community can expand its supply of low and moderate income housing. Given market conditions, it is generally not possible to provide such housing.without some type of government subsidy to reduce its cost to the low income consumer. The Metropolitan Council has adopted a Subsidized Housing Allocation Plan directed at providing low and moderate income housing opportunities throughout the Metropolitan area. According to this plan, all communities within the metropolitan Urban Service Area have a responsibility to provide subsidized housing. Communities are given priority ranking and numerical goals according to their level of services and facilities. The Allocation Plan designates New Brighton as a second priority community for the allocation of subsidized housing. This is the second highest priority ranking and represents the moderate level of existing services and facilities found in suburban communities such as New Brighton that can support low and moderate income housing projects. Under the Metropolitan Council HRA Section 8 rent subsidy program there were 53 subsidized units in New Brighton in 1988. This is down from the all time high of 78 subsidized units in 1979. However, the fall in the number of Section 8 subsidy units does not reflect a diminished need for subsidized housing. The Section 8 Rent Subsidy Program