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

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As many of these properties are in desirable locations, it will also be particularly critical to develop strategies for preserving unouboidized affordable housing located in or near current orfuture transit areas and transportation inveotrnento, amenities such as natural features orparks, and with reasonable access tonecessary services, jobs,and educational opportunities. If public t00|S are provided to owners of unSubSdized affordable housing, leading to rent and income restrictions, the income level of existing tenants and what happens with units as households move out are particularly important. Many of these properties have high numbers of households with income sufficient to afford higher -rent housing. As identified in The Space Between, as many as 40% of unsubsidized units affordable to households earningatorbe|ovv5OY6ofAW1|are000upiedbyhigher-inoornehouoeho|do.m The ideal moment to expand opportunities for lower -income households to move into these unsubsidized affordable units is when these higher -income households move out. On the one hand, improving the match of lower -income households to lower -rent units addresses the lack 0faffordable housing options for lower -income households. Onthe other hand, it may also reduce opportunities for naturally -occurring mixed -income developments. Nonetheless, irnprovingthea|ignrnentof|ovv-and moderate -income households to rental units they can afford will reduce the housing cost burden many households face. Unouboidizedaffordable housing ionot only arental asset but also anowner-occupied option. Many owner -occupied single-family homes, condominiums, and tovvnhorneoare affordable to households at less than 80% of AM I because of their size, age, or location. While the affordability of these units is not the result of public intervention, public low- or no -interest |08nS help |0vv- or moderate -income h0rne0vvnerS maintain and rehabilitate their property. These tools allow these properties to stay in good condition and remain affordable to their owners. Similarly, various subsidies to provide down -payment orother assistance that makes homeownership an option for eligible households are an important resource that keeps unouboidized but affordable homeownership viable. Many cities and counties administer or fund these rehabilitation and homebuyer assistance programs. The region's approximately 14,000 units of manufactured housing offer an affordable alternative to low-income households. Manufactured housing offers some households their only realistic opportunity t0become homeowners. |nMinnesota, manufactured homes are classified as private property rather than real property, so that purchasers of manufactured homes often cannot access traditional mortgage financing and pay higher rates more akin to a car loan. Manufactured housing has dramatically improved in quality over the past several decades, becoming more durable and safe in inclement weather. Nearly all manufactured homes in the region are located in manufactured housing parks where homeowners lease a pad from the park owner toconnect toutilities and asolid foundation. CoUDCilr0le * Provide technical assistance and tools to local governments for preserving unsubsiclized affordable rental housing (see more inPart ||U. * Work with partners in housing finance, development, advocacy, and other areas to explore HOUSING POLICY PLAN "TWo:omwcomq*