Agenda - Council - 04/14/2015 - Laserfiche WebLink

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need new affordable housing. "' (For more information on the calculations, see Appendix B.) The Need measures future affordability demand and does not incorporate existing unmet demand for affordable housing. It is determined every 10 years as a precursor to the decennial comprehensive plan updates. Over the last three years, resources distributed through the Consolidated Request for Proposals have supported the seven -county development of: • 2012: 763 new multifamily rental affordable housing units • 2013: 422 new multifamily rental affordable housing units • 2014: 1,182 new multifamily rental affordable housing units (including units funded with the Housing Infrastructure Bonds that Minnesota Housing received in 2014) Multifamily rental units funded through the Consolidated Request for Proposals are generally affordable to households earning 50% of AMI with some units reserved for households earning 30% of AMI. While not all new affordable rental units in the region receive funding through the Consolidated Request for Proposals, these numbers provide some sense of scale—fewer than 2,500 new affordable rental units over three years. Looking at projects selected to receive funding in 2014, overall per-unit total development costs varied from $110,000 for single -room occupancy facilities such as the proposed Catholic Charities Higher Ground St. Paul to $259,000 for family townhomes such as the proposed Morgan Square Townhomes in Lakeville. Excluding single -room occupancy facilities and recognizing the range of pro formas, the average subsidy—including tax credit equity and public grants—is $185,000 per affordable unit. This suggests that meeting the 2021-2030 need for housing units affordable to households earning 50% of AMI and below would require over $5 billion in subsidy over the decade or over $500 million a year. Part III: Council Policies and Roles, page 80: Overview of allocation methodology Appendix B provides a detailed methodology to the Allocation of Affordable Housing Need for 2021- 2030. This updated methodology has three main steps: • Part I forecasts the proportion of 2021-2030 net growth in households that will need affordable housing, resulting in a regional Need of 37,900 new affordable housing units: o 18,900 housing units for households earning at or below 30% of AMI o 9,450 housing units for households earning from 31% to 50% of AMI o 9,550 housing units for households earning from 51% to 80% of AMI (assuming a 5% vacancy rate). • Part II allocates that regional Need to each community in the region with sewer service in alignment with the Council's policy of limiting growth in areas without sewer service. Additional adjustment factors allocate relatively more new affordable housing where the housing will help expand housing choices the most. • Part III distributes each community's adjusted allocation into the three bands of affordability. Each community's share of existing affordable housing within each band of affordability affects how much of its Need is distributed into each band. • Adjustment factors In addition to allocating a Nccd that is distinguishcd by Icvcls of affordability, the Council will makc certain adjustments that will place relatively more new affordable housing where the housing will help low income families the most. Page - 4 I METROPOLITAN COUNCIL