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St. Anthony 2040 Comprehensive Plan Chapter 5: Housing 58 Affordability tools This section explains each of the affordability tools from FIGURE 5-11 in greater detail. Affordability Category Housing Affordability Tool Local funding for Affordable Housing Development Authorities (local HRA, CDA, or EDA) The Hennepin and Ramsey County HRAs can and do levy funds for affordable housing maintenance and production within St. Anthony. Activating the city’s HRA would allow St. Anthony to have more discretion over funding of affordable housing projects and programs and would allow the city to consider appropriate levies to support specific affordable housing needs, such as specific developments and/or housing maintenance programs. Housing Bonds HRAs have the ability to issue bonds that help to develop and administer affordable housing developments or programs. Cities may make or purchase loans using the proceeds of the bond sales for activities such as new construction, acquisition and rehabilitation, or refinancing bond debt. There are specific affordable unit thresholds that must be met in bond-financed projects. Bond-supported projects would typically support affordable housing for the 50% and 80% AMI bands. Tax Abatement Tax abatement is a financing tool that reduces taxes or tax increases for owners of specific properties. Local governments offer the tax reduction to provide a financial incentive for a public benefit, such as creation of housing affordable to low and moderate-income households. Tax Increment Financing The City may create a tax increment financing (TIF) district. The City has discretion over TIF allocations and will consider using TIF for housing projects that include affordable housing. By legislative definition, TIF used for affordable rental housing projects must meet affordability to those at 60% of AMI or less. The affordability threshold is 115% of AMI for owner-occupied housing projects.