Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 households (note that this does not address the housing needs of any of the existing low- and moderate -income households who were paying more than 30% of their income on housing (that is, experiencing housing cost burden) at the end of 2010). Over the first two years of the decade the region added 2,272 new affordable units, meeting less than 5% of the decade -long need. At this pace, it will take the region more than four decades to meet only one decade's need for affordable housing without addressing either the need for affordable housing that existed in 2010 or the growing need that accompanies continued household growth. From 2011 to 2013, the "Super RFP"—the state's largest single source for financing housing for low- income households and which includes contributions from federal, state, and non-profit funding partners including Minnesota Housing, the Minnesota Department of Employment and Economic Development (DEED), the Minnesota Department of Health, the Family Housing Fund, the Greater Minnesota Housing Fund, and the Metropolitan Council —deployed all available resources to fund construction of less than 2,000 new affordable rental units in the metro area, far below the need. Many of these units received capital through the Low Income Housing Tax Credit (LIHTC) public -private partnerships. Nationwide, the LIHTC program has leveraged almost $100 billion in private investment capital since 1986 toward the development of more than 2.6 million affordable units. However, the long- term future of these significant LIHTC resources is at risk as the tax credit, one of the largest corporate tax expenditures, is vulnerable to elimination or substantial cuts under various proposals to lower corporate tax rates. (For more detailed descriptions of the Super RFP and the LIHTC program, please see the Appendix.) Affordable housing helps build communities The availability of housing affordable and appropriate to an individual's or household's needs can be problematic for households across an array of incomes. Generally speaking, housing is regarded as affordable when a household pays no more than 30% of monthly gross income on housing, whether a mortgage payment and related costs of ownership or rent and utilities. Quality housing affordable to low- and moderate -income households can be even more difficult to secure in certain locations due to a plethora of factors, not the least of which is a resistance in some communities to welcome and promote affordable housing development. Great strides have been made in improving the quality of affordable housing and reducing the stigma of affordable housing. More people are familiar with the idea that many working households, even those considered "professional," make incomes that qualify them for "affordable" housing. Despite this, additional education is needed. Many people still believe that housing affordable to low- and moderate - income households is undesirable in their community. Furthermore, the need remains greatest for households at the lowest income levels or who have other significant support needs, such as mental illness, chemical dependence, or disabilities. Having a variety of housing types, including housing affordable to very low-income households or those with special support needs, is not only a necessity, but part of a well-balanced, economically resilient community and an economically competitive region. 2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Part I: Introduction I Page 11