Agenda - Council - 10/24/1995 - Laserfiche WebLink

Home

Ramsey's percent of affordable housing is stated as 88%. Our target goal (homes under $115,000 in value) is between 69% and 87%. Since we already have more affordable units than the goal, it would seem at fin:st glance that we need not be concerned. However, we expect our number of affordable units for 1996 to drop to 72 - 75% due to new construction. Left alone, the market will trend toward more expensive homes than $1 I5,000; therefore, it is a very real likelihood that we wilt drop out of compliance in this area within the next 5 to 10 years. Various similar concerns will exist for the other targeted areas. For instance, our goal for mulfifamily housing is at 25%, up from the existing 3%. That means we should have about 850 more multifamily un]ts than we currently do. Needless to say, this legislation and resulting program raises serious issues. However, we will have the opportunity to discuss the housing goals each year. Also, there is a penalty for not participating in the program. That penalty currently is simply that we cannot participate in any Metro Council or Department of Economic Development grant programs unless we are a program participant. The law states that Council must select, each year by November 15, whether or not to be a program participant. Ramsey then has until December 10, 1995, to negotiate housing goals. Further, we have until June 30, 1995, to develop an action plan to set out how we will achieve the goals. The above narrative reads rather negatively. However, I am recommending adoption of the authorizing resolution. The reason is that failure of adoption has the negative consequences and closes the door on negotiation. Adoption of the resolution allows for further negotiation. If Council determines in the future that program disadvantages outweigh advantages, you have the choice of not accomplishing one of the target steps (I2/10/95 or 6/30/96 and perhaps future steps). The enclosed resolution should address concerns Council may have in entering the program. While it allows the process to continue, it does so tentatively. Council Action: Motion to adopt Resolution #95-10- electing to participate in the Local Housing Incentives Account Program Under the Metropolitan Livable Communities Act. Reviewed by: City Adminis~ator CC: 10/24/95. /jmt I I I I I I I I I I I I I I I, I I I I