Agenda - Council - 01/24/2017 - Laserfiche WebLink

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Housing & Economic Development 3-113 City Role in Affordable and Life Cycle Housing Metro Cities supports both affordable housing and housing that is appropriate for people at all stages of life. A variety of housing opportunities are important to the economic and social well-being of individual communities and the region. The region faces challenges in meeting the existing and future housing needs of low and moderate- income residents. Existing housing stock is aging, with roughly half older than 40 years old, according to the U.S. Census Bureau. Older housing stock can be more affordable, however, it requires more investments to remain viable. Private investors have purchased subsidized and unsubsidized rental units, made improvements and charged higher rents that have made previously affordable units too expensive for low and moderate-income residents. The Metropolitan Council has projected the metro region will add nearly 35,000 households between 2021 and 2030 that will need additional affordable housing and will require a subsidy of$5 billion to meet the needs of households earning up to 50 percent area median income. Cities should work with the private and nonprofit sectors, counties, state agencies and the Met Council to ensure the best use of existing tools and resources to produce new housing and preserve existing affordable housing. Cities can facilitate the production and preservation of affordable and life cycle housing by: • Applying for funding from available grant and loan programs; • Using city and county funds to support affordable housing; • Providing information on the Section 8 Housing Choice Voucher program to landlords; • Working with developers and local residents to blend affordable housing into new and existing neighborhoods, including locations with access to amenities and services; • Periodically examining local requirements, policies and review processes to determine their impacts on the construction of affordable housing; • Supporting housing design that is flexible for residents at multiple stages of life; • Periodically reviewing locally imposed development costs and policies; • Employing innovative strategies to advance affordable housing needs such as public private partnerships or creative packaging of regulatory relief and incentives; and • Using available regulatory mechanisms to shape housing communities. 3-C Inclusionary Housing While Metro Cities believes there are cost savings to be achieved through regulatory reform, density bonuses as determined by local communities and fee waivers, Metro Cities does not believe a mandatory inclusionary housing approach can achieve the desired levels of affordability solely through these steps. Several cities have established their own inclusionary housing policies, in some cases requiring the creation of affordable units if the housing development uses public financial assistance. The Metropolitan Council, in distributing the regional allocation of housing need, must recognize both the opportunities and financial limitations of cities. The Council should 2017 Legislative Policies 21