Agenda - Council - 07/27/2010 - Laserfiche WebLink

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Consent # ~j , ~ y ADOPT RESOLUTION ELECTING TO CONTINUE PARTICIPATION IN THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT By: Amber Miller, Planning Manager Background: The Minnesota Legislature created the Livable Communities Act (LCA) in 1995. The LCA is a voluntary, incentive-based approach to help the Twin Cities metropolitan area address affordable and lifecycle housing needs while providing funds to communities to assist them in carrying out their development plans. LCA funds have leveraged millions of additional dollazs in private and public investment that has provided new jobs, housing choices, and business growth. The original LCA program was funded through 2010. Initially ninety seven (97) communities, including Ramsey, signed on to participate in the program. The Metropolitan Council is now in the process of renewing the program for 2011-2020 for those communities interested in participating. The Council will negotiate with each municipality to establish affordable and life-cycle housing goals that are consistent with, and promote the policies of the Council. This program was brought forwazd to City Council at the June 8, 2010 Work Session and the consensus was to continue on with the program. Observations: Funds are distributed by the Metropolitan Council through three LCA accounts: Tax Base Revitalization Account (TBRA), Livable Communities Demonstration Account (LCDA), and Local Housing Incentive Account (LHIA). The TBRA funds projects which clean up polluted land for redevelopment and productive use; it has a goal ofjob creation. This program is conducted in coordination with the Minnesota Department of Trade and Economic Development. In the past the City has received $295,342 for the former St. Paul Terminals site. The goals of the LHIA are to help create and preserve affordable rental and ownership housing throughout the region for low- and moderate-income households at all of life's stages, and to support residential reinvestment and redevelopment to achieve economically healthy and livable communities. In the past we received $135,000 for Ramsey Townhomes (1999, ACCAP) to assist in building affordable housing. The LCDA provides funding for development and redevelopment projects that achieve connected development patterns that link housing,jobs and services and use regional infrastructure efficiently. In the past, the City has received $3,373,756 in LCDA grants funds for projects in Town Center. Such projects include the construction of Sunwood Drive ($800,000), the Amphitheatre ($373,756) and the Pazking Ramp ($2,210,000). In total, the City has received $3,804,098 through the LCA program. If the Council chooses to not adopt the resolution and not continue in the program it would not be eligible for any LCA funds. The next step in the process is to submit an Action Plan by the end of the year for meeting the goals. The Action Plan can be as simple as copying the Residential portion of the Comprehensive Plan in Chapter 15 and submitting it. Affordable Housing Affordable housing is defined as additionaUnew housing opportunities created in a community that are affordable to households with an income at 60% or less of the azea median income. The LCA goals are expressed as a range where the minimum is a number equal to the portion of the community's share of the total regional need for affordable housing units that can be expected to be funded based on the resources available in the region to create new affordable housing opportunities. The maximum is the community's shaze of the total regional need for new affordable housing units as identified by the Metropolitan Council and acknowledged by the community in its 2030 Comprehensive Plan update. The proposed LCA Affordable Housing Goals for 2011-2020 for the City is 434 to 669. Six hundred sixty nine is what we have shown in the Comprehensive Plan.