Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 • Need for housing units affordable to households earning 30-50% of area median income • Need for housing units affordable to households earning 50-80% of area median income The three bands of Need provide nuance and flexibility for local planning for homeownership and rental housing across a range of incomes and housing types. This distinction also provides an opportunity to more accurately reflect the population trends driving the Need. For example, a large portion of the growth in households making between 50% and 80% of the AMI will be baby boomers whose incomes decline with retirement. While these households fall below the "low-income" threshold, many will own their homes outright and not require the production of new affordable units. The three allocation bands allow the Need for units affordable between 50% and 80% of AMI to be reduced accordingly while leaving the Need for units affordable at less than 50% of AMI relatively unchanged. Adjustment factors In addition to allocating a Need that is distinguished by levels of affordability, the Council will make certain adjustments that will place relatively more new affordable housing where it can help low-income families the most. Rather than allocate a Need number to communities that is simply the same share of their total forecasted growth as the overall Need for the region, three specific key adjustment factors are used to better reflect unique characteristics of each city that impact the Need: • Ratio of low -wage jobs to low -wage workers: The ratio of low -wage jobs in the community to low -wage workers who live in a community indicates whether a community imports low -wage workers to fill its low -wage jobs and could therefore use more new affordable housing for those workers. • Proximity to transit: Placing new affordable housing in proximity to high -frequency transit (defined for this purpose as areas within one-half mile of a transit station or high -frequency bus route), whether bus or rail, helps lower -income households decrease their transportation costs and spread their resources farther. • Existing affordable housing: Placing new affordable housing in communities where existing affordable housing is scarce expands choice for low-income households. Adjustment factors Need is increased for communities that have: Ratio of low -wage jobs to low - wage workers Proximity to transit Existing affordable housing Need is reduced for communities that have: More low -wage jobs than low - wage workers living in the community More low -wage workers living in the community than low -wage jobs Proximity to transit options such as Light Rail Transit, Bus Rapid Transit, and high -frequency bus service Lesser share of existing affordable housing than the region Greater share of existing affordable housing than the region 2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Part III: Council Policies and Roles I Page 51