Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 areas and transportation investments, amenities such as natural features or parks, and with reasonable access to necessary services, jobs, and educational opportunities. If public tools are provided to owners of unsubsidized affordable housing, leading to rent and income restrictions, the income level of existing tenants and what happens with units as families move out are particularly important. Many of these properties have high numbers of households with income sufficient to afford higher -rent housing. As identified in the Space Between report, as many as 40% of "naturally occurring" units affordable to households earning at or below 50% of AM are occupied by higher -income households.13 When these households move out is the ideal moment to expand opportunities for lower -income households to move into these naturally -occurring affordable units. Naturally occurring or unsubsidized affordable housing is not only a rental asset but also an owner - occupied option. Many owner -occupied single family homes, condominiums, and townhomes are affordable to households at less than 80% of AM because of their size, age, or location. While the affordability of these units is not the result of public intervention, public programs offer low- or no - interest loans for low- or moderate -income homeowners to maintain and rehabilitate their property. These tools allow these properties to stay in good condition and remain affordable to their owners. Similarly, various subsidies to provide down payment or other assistance that makes homeownership an option for eligible households are an important resource that keeps unsubsidized but affordable home ownership viable. Many cities and counties administer or fund these rehabilitation and homebuyer assistance programs. Council role • Provide technical assistance and tools to local governments for preserving naturally occurring affordable rental housing (see more about technical assistance in Part III). • Work with partners in housing finance, development, advocacy, and others to explore the potential for a right of first refusal or right of first offer by a specified state, county, or local entity or entities, local land banks, or non-profit development firms, for naturally occurring affordable housing that is for sale (see Appendix for definition of right of first refusal and offer). • Acknowledge contributions to programs that enable or maintain naturally occurring affordable housing, including both homeownership and rental options, through the Housing Performance Score process (see more about the Housing Performance Scores in Part III). Local role • Continue to use housing code enforcement, inspections processes, and use or contemplation of adoption of rental licensing as tools to maintain naturally occurring affordable housing. • Lead or participate in local rental property owner associations to inform property owners of opportunities to maintain the affordability of their naturally occurring affordable housing properties. • Communicate the value and importance of naturally occurring affordable housing, ensuring that property owners feel engaged and appreciated. 13 Minnesota Preservation Plus Initiative. 2013. The Space Between: Realities and Possibilities in Preserving Unsubsidized Affordable Rental Housing. 2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Part II: Outcomes (Stewardship) I Page 20