Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 The Livable Communities Act Enacted in 1995, the Livable Communities Act aims to stimulate housing and economic development in the seven -county metro area. The Act authorizes the Council to: • Levy funds to create affordable housing; • Promote redevelopment through environmental clean-up efforts; • Develop neighborhoods that are pedestrian and transit friendly; and • Invest in innovative strategies to lower construction costs and reward communities that actively try to meet "fair share" affordable housing goals. Four distinct accounts exist in the Metropolitan Livable Communities Fund: • Tax Base Revitalization Account (TBRA) funds the cleanup of polluted land. • Livable Communities Demonstration Account (LCDA) funds development and redevelopment projects that connect housing, jobs and services and that maximize the development potential of existing or planned infrastructure. • Local Housing Incentives Account (LHIA) funds the expansion and preservation of affordable housing for rental and ownership to help municipalities meet their negotiated Goal. • Inclusionary Housing Account, used only during 1999 and 2000 when it was funded by a one- time legislative appropriation, defines an "inclusionary development" as a new construction project, involving owner -occupied or rental housing (or a combination of both), with a variety of prices and designs which serve families with a range of incomes and housing needs. From 2011 to 2013, the three active Livable Communities Act accounts funded the construction and rehabilitation of 9,422 total housing units, of which 4,338 are affordable at 60% of area median income. In addition, the Council has also created special pools of funding within the Livable Communities Demonstration Account and the Tax Base Revitalization Account to support transit -oriented development. The Livable Communities Act not only provides access to funding opportunities within the Council but also aims to elevate engagement and awareness of affordable housing need among participant cities. As a result, participation in the Livable Communities Act also requires local matching funds, known as the affordable and life -cycle housing opportunities amount (ALHOA). The amount of the match is determined by the municipality's share of the property tax levy that supports both the Livable Communities Demonstration Account and the Local Housing Initiatives Account. Cities must certify that they have spent at least 85% of their ALHOA toward the creation of affordable and life -cycle housing opportunities to be eligible for Livable Communities Act funding. A review of what local expenditures may count toward ALHOA and how it is certified will help the Council ensure that the purpose and intent of the match is being met. Council actions to expand the role that the Livable Communities Act resources play in housing • Explore how to fund the Inclusionary Housing Account which has been unfunded since 2000. • Work with our partners and stakeholders to identify indicators used to measure how projects, supported with Livable Communities Act resources, advance equity, including helping residents of Areas of Concentrated Poverty and Racially Concentrated Areas of Poverty, lower -income households, or people with disabilities. • Work with local partners to update eligible activities for the ALHOA and identify the best method for certifying its use. 2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Part III: Council Policies and Roles I Page 55