Agenda - Council Work Session - 02/10/2026

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2. 2. CC Work Session Meeting Date: Primary Strategic Plan Initiative: 02/10/2026 Identify and implement operational efficiencies, cost savings and additional funding sources. Information Title: Local Affordable Housing Aid (LAHA) Policy Discussion and Direction Purpose/Background: In 2023, a law was enacted that established metropolitan area sales tax with revenue only to be used for affordable housing purposes. This program is called Local Affordable Housing Aid (LAHA). The law included a provision that cities over 10,000 in population receive their share directly, based upon a formula of each city's portion of cost -burdened households. The direct allocation allows cities local control over what housing -related assistance it feels its residents need. Generally speaking, the money can be used for things such as building new affordable housing (entire buildings or a percentage of the units); preservation/renovation of existing affordable housing, and emergency rental assistance. There is a companion program that is statewide (SAHA) that Ramsey is not eligible for. The amount of money varies from year-to-year. In 2024, Ramsey received $118,897.15 and in 2025, $317,780.38 (current balance total = $435,677.53). The 2026 and future allocations will likely be similar to the 2025 amount (2024, the first year, was a partial year). Funds must be used by their fourth year, meaning that the 2024 allocation must be committed by the end of 2027 and spent by the end of 2028. Some exceptions can be made for projects in the works. Projects can be for both rental and ownership housing and the determining factor of who is eligible is based on Area Median Income (AMI). It should be noted that AMI is based off of household size. For 2025, the AMI for a family of four in Ramsey is $132,400. The ownership projects need to benefit people with household incomes of less than 115% AMI, with preference given to household incomes less than 80% AMI. Rental projects (construction or emergency renal assistance) are limited only to those incomes below 80% AMI. The money can be used in the form of a loan or a grant. There can be a cost -share component. Any money that is repaid from a loan or a claw -back provision will need to be re -used for affordable housing. Staff met to discuss what we are seeing in the field based on code enforcement complaints, business interactions, and other anecdotal information as to what might be beneficial to the community. Staff also met with Anoka County Housing staff to discuss various program options. The following are some ideas that staff feels will be beneficial while not majorly impacting staff time. Single -Family Home Exterior Improvements Large -cost projects like new windows, new siding, new roofs, (potentially) repaving driveways, utility connections, and large tree removal can be cost -prohibitive for families at and below 115% AMI. These types of improvements to a home can have positive effects on the surrounding neighborhood. These items can usually be planned for several months, and the city can offer an application window scheduled around when staff has more time. Cost range estimate: $10,000 to $50,000 per house. Single -Family or Town home Interior Improvements Having a furnace, water heater, or air conditioner replaced can be an urgent and costly issue. Cost range estimate: $1,500 to $10,000 per home.