EDA Packet 12.19.17 - Laserfiche WebLink

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Housing Assistance In an effort to support residents that may require housing assistance the City will utilize, as appropriate, al public housing programs available. These include programs sponsored by the following: • Minnesota Housing Finance Agency • Washington County CDA • Twin Cities Habitat for Humanity • Private foundation funding sources for affordable housing Barriers to Housing Development The private market on its own will not likely provide the number of affordable units, either owner -occupied or rental, needed in Hugo. There are barriers to the development of affordable housing, some of which are within the City's control and some of which are not. Many of these barriers increase the cost of development and dissuade developers from undertaking affordable housing development projects. Barriers to affordable housing beyond the City's control include: • Steady increase in land prices. • Construction costs (materials, labor, etc.) continue to increase, making it more difficult to provide affordable and market -rate units through new construction. • The cost of developing property for rental units exceeds rents that could be supported in the City • The physical limitations of the City's vacant land that is encumbered by wetlands, poor configuration, HUGO 2040 COMPREHENSIVE PLAN UPDATE poor access and/or poor soil conditions that require construction that is more expensive and tends to spread the development costs over fewer housing units. Local reliance on and the structure of the current property tax system, which taxes rental property at a rate higher than homesteaded property. • The 1986 federal income tax reforms, which eliminated a number of tax incentives that had encouraged investment in rental housing. There are barriers to the development of affordable housing that the City can influence and that significantly impact the cost of development. Included among these barriers are the amount of land guided and zoned for various types and densities of residential use, development fees, public improvement standards such as required street width and utility construction specifications, and development regulations such as park dedication fees. All of these impact development costs. Fair Housing Fair housing is the assurance that adequate housing opportunities are available to all citizens of Hugo. The City's role is to ensure that landlords, renters, real estate agents, and builders are aware of state and federal regulations prohibiting discrimination in housing for any member of society based on such personal preferences as religion, sexual orientation, gender, physical disability, or race. HOUSING 9A