Agenda - Council - 02/08/2021 - Laserfiche WebLink

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LE-10. Resources for Affordable Housing Issue: Cities, along with local housing officials, are concerned about the need for proactive commitment at the state level to aid cities to meet demand for affordable housing that is sensitive to local conditions, emerging trends, and changing demographics. This includes meeting the needs of lowest -income households as well as an aging population and ensuring a wide range of lifecycle housing options that allow seniors of all incomes to stay in their community, addressing racial disparity gaps in housing, and responding to emerging trends, such as the need to preserve federally subsidized housing and naturally occurring (unsubsidized) affordable housing. The League also recognizes that federal, state and local governments all have a role to play in meeting affordable housing needs, overcoming barriers to housing stability such as high market prices, eviction, and foreclosure, and responding to problems caused by vacant homes and the increase in rental properties that are the result of foreclosure. A comprehensive report issued in 2018 by the then Governor's Task Force on Housing delineated 30 specific recommendations to help achieve six goals, including: commit to homes as a priority; preserve the homes we have; build more homes; increase home stability; link homes and services; and support and strengthen homeownership. The Task Force's recommendations were based upon input from various statewide stakeholders, local governments and residents and renters impacted by the lack of affordable housing in this State. These recommendations provide an important list of housing goals that should continue to be considered as cities work towards 76 addressing affordable housing issues in their communities. Response: The Legislature should: a) Support the affordable housing priorities of the Minnesota Housing Finance Agency (MHFA), which include making resources and methods available to maintain and improve existing affordable homes, including publicly subsidized deeply affordable, and housing stock that is aging such as naturally occurring (unsubsidized) affordable housing. b) Provide stable and long term funding, including but not limited to dedicated funding sources, for Minnesota Housing and other affordable housing programs, including those that encourage innovation and recognize regional markets, provides flexibility for cities to create partnerships and leverage resources with private and public entities, such as: capital investment funding for affordable and public housing, funding for supportive services and programs that address homelessness and reduce barriers to stable housing and homeownership, a tax credit contribution fund or a state low-income housing tax credit to help rebuild the state's partnership with local governments in the development of homeownership, and multi -family rental assistance and housing renovation programs. c) Consider establishing a program to address immediate needs throughout the year to provide a match for new or existing city -supported affordable housing projects. This could include matching funds, issued on a timeline that is consistent with local budgeting processes, for local revenues allocated to a local affordable housing trust fund.