Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 located in communities that have demonstrated a willingness to waive local restrictions which otherwise would increase costs of construction; and (3) include units affordable to households with incomes at or below 80% of area median income. Special priority is to be given to proposals where at least 15% of the owner -occupied units are affordable to households at or below 60% of the area annual median income and at least 10% of the rental units are affordable to households at or below 30% of area annual median income. The account also states that the Council "may work with municipalities and developers to provide incentives to inclusionary housing developments such as waiver of service availability charges and other regulatory incentives that would result in identifiable cost avoidance or reductions for an inclusionary housing development." Inclusionary Zoning Programs that originated in the early 1970s aiming to stimulate the production of affordable housing. Generally, these programs require that a minimum percentage of new housing units be set aside for low income households. Inclusionary zoning can be mandatory or voluntary. The goals of such programs are usually to help integrate people of multiple income levels into new developments and to avoid over -concentration of low and moderate income populations. Income Limits Maximum Household income by county or Metropolitan Statistical Area , adjusted for Household size and expressed as a percentage of the Area Median Income for the purpose of establishing an upper limit for eligibility for a specific housing program. Income Limits for federal, state and local rental housing programs typically are established at 30%, 50%, 60% or 80% of AM I. HUD publishes Income Limits each year for 30% of area median income , Very Low Income (50%), and Low -Income (80%), for households with 1 through 8 people. Investment Guarantee A provision designed to protect investors from incurring losses as a result of an investment opportunity that carries a high degree of risk. Investment guarantees are relatively common in real estate and construction projects. Livable Communities Act The 1995 Livable Communities Act (LCA) funds community investment that revitalizes economies, creates affordable housing, and links different land uses and transportation. The LCA's voluntary, incentive -based approach leverages partnerships and shared resources to help communities achieve their regional and local goals. Under the LCA, the Council makes grant and loan awards from three accounts: • Tax Base Revitalization Account (TBRA) — Cleans up brownfields for redevelopment, job creation and affordable housing. • Livable Communities Demonstration Account (LCDA) — Supports development and redevelopment that links housing, jobs and services while demonstrating efficient and cost- effective use of land and infrastructure. • Local Housing Incentives Account (LHIA) — Produces and preserves affordable housing choices for households with low to moderate incomes. A portion of the funds in the first two accounts are targeted for transit -oriented development (TOD) projects. To compete for LCA funding, communities must negotiate long-term affordable and lifecycle housing goals with the Council and develop a Housing Action Plan to accomplish these goals. In 2014, 94 participating communities are eligible to compete for funding from all three LCA accounts. 2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Appendices I Page 88