Laserfiche WebLink
Information Item <br />Community Development Committee <br />Meeting date: February 4, 2013 <br />ADVISORY INFORMATION <br />Date: <br />Subject: <br />District(s), Member(s): <br />Policy/Legal Reference: <br />Staff Prepared/Presented: <br />Division/ Department: <br />January 8, 2013 <br />Livable Communities Act - Ownership and Rent Affordability Limits <br />2013 <br />All <br />Livable Communities Act, Minnesota Statute 473.25 <br />Libby Starling, 651-602-1135 <br />Community Development / Livable Communities <br />Proposed Action <br />None. Information only. <br />Background <br />The Council's definition of "affordable housing" represents the upper limit of monthly rents and <br />home -purchase prices for housing referred to in Framework policy as affordable to low- and <br />moderate -income families. These income limits for determining affordability have been a part of <br />the foundation for goals negotiations and monitoring of goals progress with Livable Communities <br />Act (LCA) participating cities since 1995, and have been the basis for counting all new affordable <br />units in the housing stock, i.e., all new publicly -assisted and market rate units affordable to low - <br />and -moderate income households. <br />For units constructed in 2011 and beyond, the Council is using a consistent income limit of what <br />a family of four with an income at or below 60 percent of area median income (AMI) can afford <br />to pay in monthly housing costs for either rental housing or mortgage costs (including principal, <br />interest, property taxes and home insurance). <br />This level is also consistent with the preference adopted in 2001 by the Local Housing Incentives <br />Account Additional Metropolitan Housing Implementation Group (MHIG) Funding Criteria for <br />funding homeownership units affordable at 60 percent of area median income. <br />Through 2010, the Council had identified a purchase price ceiling or target maximum price for <br />owner -occupied homes based on what a family of four with an income at or below 80 percent of <br />AMI could afford at prevailing interest rates. For affordable rental units, the Council had <br />previously used the maximum monthly rents affordable for households at 50 percent of AMI. <br />For 2013, HUD is calculating in area median income for a family of four of 2013 of $82,300, <br />down slightly from 2011 and 2012's area median incomes of $83,900 and $82,700 respectively. <br />METROPOLITAN <br />COUNCIL <br />