Agenda - Planning Commission - 04/20/2015 - Special

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Figure19: Allocation methodology overview Part III: Part IPart II: Break down Forecast the number of Develop the total communities' total new affordable units allocation for each allocations into "bands needed in the regioncommunity of affordability" Rather than allocate a Need number to communities that is simply the same share of their total forecasted growth as the overall Need for the region, two specific key adjustment factors will beare used to better reflect unique characteristics of each city that impact the Need: Ratio of low-wage jobs to low-wage workers: The ratio of low-wage jobs in the community to low-wage workers who live in a community indicates whether a community imports low-wage workers to fill its low-wage jobs and could therefore use more newadditional affordable housing for those workers. Existing affordable housing: Placing newadditional affordable housing in communities where existing affordable housing is scarce expands choice for low-income households. The existing affordable housing stock has twice the impact on a community’s allocation than its ratio of low-wage jobs to low-wage workers because the existing housing stock is a more stable and place- based indicator; workers are more likely to move than is housing stock. Table 6: Adjustment factors to the Allocation of Affordable Housing Need Adjustment factors Needis increased for Need is reduced for communities that have: communities that have: Ratio of low-wage jobs to low-Relatively more low-wage jobs Relatively more low-wage wage workersthan low-wage workers living in workers living in the community the communitythan low-wage jobs Existing affordable housingLesser share of existing Greater share of existing affordable housing than the affordable housing than the region overallaverage sewered region overallaverage sewered communitycommunity The threshold for housing affordability and the adjustment factors for determining the Need provide a framework for determining a community’s share of the Need. This framework will be the basis for a detailed methodology for determining the Need that the Council will develop in partnership with affordable housing stakeholders as a part of the implementation of this plan. Council actions: Use the above-defined framework to define a detailed methodology for determining the Allocation of Affordable Housing Need for 2021-2030. Amend the Housing Policy Plan, including a full public comment process, to incorporate the final methodology prior to the distribution of Systems Statements to local governments in late 2015. Distribute the local Allocation of Affordable Housing Need to each jurisdiction with System Statements infall 2015. Page - 5|METROPOLITAN COUNCIL