Agenda - Council Work Session - 02/27/2018

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Housing & Economic Development • Exemptions from, or reductions to sales, use and transaction taxes applied to the development and production of affordable housing; • Consideration of providing state tax credits to leverage cross -subsidized affordable units in a market rate development project. This incentive could be used in conjunction with city, regional, or other state incentives; • Consideration of the use of state bond proceeds and other appropriations for land banking, land trusts, and rehabilitation and construction of affordable housing; • Programs that help avoid foreclosures, improve homeownership rates and reduce racial disparities through homeownership assistance programs and counseling services, including pre -purchasing counseling to improve financial wellness and inform homeowners and potential homeowners of their rights, options and costs associated with owning a home; • An affordable housing tax credit to help spur construction and secure additional private investment; and • Maintain existing municipal authority to establish a housing improvement area (HIA). If the Legislature grants multi -jurisdictional entities the authority to create HIAs, creation of an HIA must require municipal approval. 3-H Federal Role in Affordable and Workforce Housing Federal funding plays a critical role in aiding states and local governments in their efforts to maintain and increase affordable and workforce housing. Providing working families access to housing is an important piece to the economic vitality of the region. Metro Cities encourages the federal government to maintain and increase current levels of funding for affordable and workforce housing. Federal investment in affordable and workforce housing will maintain and increase the supply of affordable and life cycle housing as well as make housing more affordable through rental assistance programs such as the Section 8 housing choice voucher program. In July 2015, the U.S. Department of Housing and Urban Development (HUD) released a final rule on affirmatively furthering fair housing (AFFH) with an aim to provide communities that receive HUD funding with clear guidelines to meet their obligation under the Fair Housing Act of 1968 to promote and reduce barriers to fair housing and equal opportunity. Metro Cities strongly encourages the following: • Preserving and increasing funding for the Community Development Block Grant Program (CDBG) and the federal HOME program that are catalysts for creating affordable housing; • Preserving and increasing resources and incentives to sustain existing public housing 2018 Legislative Policies 25