Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 Multigenerational Living A family household that contains at least two adult generations or a grandparent and at least one other generation. According to the Pew Research Center, approximately 16.7% of the US population, approximately 51 million people, lives in a multigenerational household. Naturally Occurring Affordable Housing Simply put, naturally occurring affordable housing is housing that hasn't been publicly subsidized, or if it has where income and rent restrictions tied to the public finance have already been satisfied per original terms. The rent prices that the housing can demand in the `non -subsidized private market' given the properties' quality, size, or amenities is low enough such that the tenants of these properties, whose income might otherwise qualify them to be a participant in publicly funded housing programs, can reasonably afford them, and is high enough to compel private consumers to avail themselves of the housing in a limited market of housing affordable and practical to household needs. Such housing presents unique challenges and opportunities to stakeholders in the housing community, including funders, bankers, building owners and management firms, advocacy groups, city officials, and others. This unique housing stock is significant; as estimated in the "Space Between' report, unsubsidized rentals in the Twin Cities metro area comprise at least 57% of units affordable to households at or below 50% of Area Median Income (HUD's definition of "Very Low Income"), or approximately 120,000 housing units. Furthermore, much of this stock was built in the 1960s, 1970s, and 1980s, when construction quality varied considerably. Many of these properties are now facing not just routine maintenance and repair but the need for replacement of major systems such as roofing and electrical, mechanical and plumbing systems. Notices of Funding Availability (NOFAs) These public advertisements that funding is being made available for a specified purpose are similar, but typically less intensive, than a Request for Proposals (RFP). At minimum, a NOFA will contain information on eligible applicants for the funding, eligible uses for the funding, the timeline for selection or award, and any special priorities, preferences, or requirements that will be used to evaluate applications to receive funds under the NOFA. Permanent Loan or Financing Long-term (maturity period of 15 to 30 years) mortgage loan obtained after completion of construction, usually to repay a shorter -term construction loan. Predevelopment Loan A loan provided to a developer to cover early, pre -construction costs such as conducting a market study, feasibility, or housing needs study; obtaining site control (that is, entering into a purchase agreement); conducting environmental studies; identifying financing resources; preliminary cost analysis and design; obtaining government approvals to proceed, soliciting and reviewing construction bids. Predevelopment loans are considered to be risky due to the high probability of project fall -out. As such, it is a niche product often only offered from mission -oriented financial intermediaries. Like any loan, it can be interest bearing or non -interest bearing, repayable or forgivable, or with deferred payment. In certain instances predevelopment funds may be provided in the form of a grant. Project -Based Rent Assistance Rental assistance from any source that is allocated to the property or a specific number of units in the property and is available to each income eligible tenant of the property or an assisted unit. 2040 HOUSING POLICY PLAN 1 METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Appendices 1 Page 93