Agenda - Council - 06/28/2016 - Laserfiche WebLink

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Looking ahead, the Council forecasts that between 2020 and 2030, our region will add 37,400 low- and moderate -income households who will need new affordable houoing.,»Even if we are successful at addressing today's housing cost burden, the challenges will continue to increase with the region\u ongoing population growth. SC@nCe financial resources toaddress housing challenges The funding available for existing housing programs and related services is inadequate to address the region's growing housing challenges. Future budget estimates for the U.S. Department of Housing and Urban Development (HUD) paint a bleak picture. Federal funding for core HUD housing programs such as Section 8, the HOME Investment Partnerships Program, the Community Development Block Grant (CDBG), and the Public Housing Program is waning. Although the Minnesota Legislature has tried to soften the loss of federal funding, the need for housing resources continues to grow. Moreover, the Low Income Housing Tax Credit Program (LIHTC)—the primary funding source nationwide for new construction and rehabilitation of affordable multifamily housing—isatarget for reform that could seriously diminish its reach and impact. Figure 13: Budget for the U.S. Department ofHousing and Urban Development In billions of nominal dollars $70 $60 gm $40 $30 $20 $10 V Source, L/s, Office of Mana0emnntand » ;0 to � The Consolidated Request for Proposals (also known aathe Super RFP) is the utate'slargest single source for financing housing for low-income households. It includes contributions from federal, state, and nonprofit funding partners including Minnesota Housing, the Metropolitan Council, Department of Employment and Economic Development (DEED), Family Housing Fund. and Greater Minnesota Housing Fund. From 2011 to 2014. the Super RFP deployed all available resources to fund construction of less than 5,000 new affordable rental units in the seven -county region, far below the need. Many of these units received capital through LIHTC public -private partnerships. Nationwide, the LIHTC program has leveraged almost $100 billion in private investment capital since 1980 toward the development of more than 2.0 nni||i0n affordable units. However, the long-term future of these significant L|HTC resources is at risk aothe tax credit, one of the largest corporate tax expenditures, iSvulnerable t0 elimination or substantial cuts under various proposals to lower corporate tax rates. (For more detailed descriptions of the Super RFP and the L|HTC program, see the Glossary inthe Appendiceo] ONE� Housing for mGrowing, 7hrivinqgegion