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5 <br />work in low-wage jobs for all areas within five miles of the community’s geographic center. <br />Using this five-mile radius rather than jurisdictional boundaries balances the need to have a <br />reasonably “local” measure with the fact that labor markets cross jurisdictional boundaries. <br />Exhibit 3 provides a map of low-wage job/worker balance for sewered communities. <br />Specific Steps in the Methodology <br />The allocation process has three main steps, shown below in Figure B-1. In Part 1, we forecast the <br />proportion of 2021-2030 net household growth that will require additionalaffordable housing, resulting <br />in a regional Need of 37,900 new affordable housing units. In Part 2, we allocate that regional Need to <br />each community in the region with sewer service, making adjustments that allocate relatively more <br />additional affordable housing where the housing will expand housing choices the most. In Part 3, we <br />distribute each community’s adjusted allocation into three “bands ofaffordability.” <br />Figure B-1. Overview of Allocation Process <br />PART 1 <br />Household Growthin <br />Regional <br />Determine <br />Need <br />Sewered Communities <br />regional Need <br />Pre- <br />Household Growth in a <br />Adjusted <br />Given Community <br />Allocation <br />PART 2 <br />Determine <br />Adjustments to expand housing choice: <br />total <br />Existing affordable housing stock (67%) <br />allocation <br />Balance of low-wage jobs and workers (33%) <br />for each <br />community <br />Units affordable at or below 30% of AMI <br />Units affordable at 31% to 50% of AMI <br />TotalAllocation <br />Units affordable at 51% to 80% of AMI <br />PART 3 <br />Break total allocation into bands of affordability <br />5 <br />Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics (LEHD) Origin-Destination <br />Employment Statistics (LODES), 2011. “Low-wage jobs” are those paying $3,333 or less per month (equivalent to <br />$40,000 or less per year). “Residents who work in low-wage jobs” are people whose primary job is a low-wage <br />job. We also examined ratios based on areas within five miles of the community’s populationcenter; results were <br />very similar. <br />Page - 17|METROPOLITAN COUNCIL <br /> <br />