Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 that comprise mixed -income developments differ from community to community, and can depend, in part, on the local housing market and marketability of the units themselves. One of the challenges in developing mixed -income housing is determining a mix of incomes that can be sustained over time. In practice, there is no single formula, or standard definition, of mixed -income housing. Communities and developers around the county must evaluate local market conditions, and develop locally supported concepts and characteristics of the mixed -income development. Mixed -Use Development Development projects may be classified as "mixed -use" if they provide more than one use or purpose within a shared building or development area. Mixed -use projects may include any combination of housing, office, retail, medical, recreational, commercial or industrial components. These projects might vary in scale from a single building occupied by a retail shop on the ground floor with an upstairs apartment to a comprehensive "urban village" development with multiple buildings containing separate but compatible uses such as a retail center, office building and medical clinic located adjacent to a multi -family housing complex. A single owner and business operator might occupy a mixed -use building, or multiple housing and commercial tenants could lease space within a mixed -use development project. Mixed -use projects often involve the redevelopment of buildings and blocks located in aging inner-city commercial districts. However, new construction of mixed -use development is occurring in urban and suburban communities as well. Moderate Income Person or Household with gross household income between 80 and 120% of area median income adjusted for household size. Mortgage Insurance An insurance policy that compensates lenders or investors for losses due to default of a mortgage loan. It is provided publicly the Federal Housing Administration (FHA) and by a network of corporate insurers through what is called private mortgage insurance. Mortgage insurance can apply to both single and multifamily properties, and is often a condition of the financing. In single family lending, for example, a borrower typically needs to put a down payment of 20% or more to avoid having to pay for mortgage insurance. Mortgage Revenue Bond (MRB) Programs The ability to sell mortgage revenue bonds helps raise capital used as a funding source for home mortgages. Mortgage revenue bonds help low- and middle -income first-time home buyers by offering long-term mortgages at below -market rates. A state can issue mortgage revenue bonds (a form of tax- free municipal bond) to investors, then use the capital proceeds to invest in that state's MRB home loan program. In order to qualify, prospective home buyers must earn below stated threshold levels for annual income, and must otherwise financially qualify for a mortgage from a conventional lender. Many mortgages that were funded by MRBs first originated through the Federal Housing Administration (FHA), Freddie Mac and Fannie Mae. Multifamily Housing Generally, the term referring to any residential structure of five or more attached units. Multifamily Housing Revenue Bonds Bonds issued to finance construction or rehabilitation of multifamily housing projects where a specified proportion of the units will be rented to moderate and low income families. 2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Appendices I Page 92