Agenda - Council - 12/14/2010 - Laserfiche WebLink

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E. Housing Financial Resources Providing an adequate amount of funding to assist in the implementation of the HRA Master Housing Plan is an ongoing issue. The following are several options that the HRA can access either through their own power or with the support of and marketing of existing programs to assist in the maintenance of the housing stock, development of affordable housing and encouragement of green building and energy efficient home building and renovation. The HRA evaluates the use of the tools to support the housing goals and to enable the success of the implementation strategies. HRA Financing Tools 1. HRA Levy Funds - Per Minnesota Statutes 469.033, Subdivision 6, an HRA has the authority to levy a special tax upon all taxable property within the City boundaries specifically to fund the purposes of the housing plan within that City. The maximum HRA levy is equal to .0144 percent of taxable market value. The HRA levy is spread across all property owners including commercial and industrial properties. Any HRA levy funds must be expended only for the purposes of sections 469.001 — 469.047 and only through the authority of the HRA Board and with signature of the authorize representative. The HRA levy must be requested annually and approved by a majority vote of the City Council. 2. Tax Increment Financing - The HRA has the authority, with the City support, to provide TIF assistance to achieve its housing and redevelopment plans. TIF uses the increase in property taxes resulting from new development to finance qualified public improvement costs related to that development. It is this increase or difference between the current property tax on a parcel of land and the estimated property tax after development that is the tax increment. When TIF is used for a housing project, state law requires that a certain percentage of the units be made affordable for the life of the TIF district (typically 20 -25 years). The HRA will consider the support and use of TIF for projects that meet the objectives of the Housing Master Plan and are consistent with the City of Ramsey TIF policies. However, each project will be reviewed individually and only on its ability to meet the statutory requirements 3. Anoka County HRA Funds — The County Housing & Redevelopment Authority levies a special tax upon all taxable property within communities that participate in their program. The City of Ramsey is a participant in the Anoka HRA's programs and has approximately $700,000 available funds to be used for housing & redevelopment authority purposes. Of the $700,000, $300,000 is earmarked for the ACCAP rental housing project at the request of the City. In addition, approximately $200,000 per year is available to the City of Ramsey for HRA eligible projects. The City can access these funds through a request to the County regarding the potential use of funds. The County is generally supportive of requests from local communities that participate in their levy as long as the use is an HRA eligible project. Non -HRA Funded Financial Resources Available to Ramsey Residents 1. Housing Improvement Programs: