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CC Work Session <br />Meeting Date: <br />Primary Strategic Plan Initiative: <br />2. 1. <br />05/12/2026 <br />Identify and implement operational efficiencies, cost savings and additional <br />funding sources. <br />Information <br />Title: <br />Review Draft Local Affordable Housing Aid (LAHA) Policy <br />Purpose/Background: <br />The City Council discussed this at its February 10, 2026, meeting and provided direction to staff to prepare a <br />policy that meets the needs of Ramsey residents. The attached draft contains the direction of the Council to <br />support owner -occupied homes with more information on how staff will administer the program. Please provide <br />consensus that the draft reflects the direction of the Council for adoption at a future meeting. <br />Additionally, staff would like direction on how much money to allocate to each component (exterior improvement <br />and interior improvements) for the first year. Staff would like to be reserved the first year in order to gauge <br />interest and work out the kinks with running a new program. Within a short time after adoption of the policy <br />(anticipated early this summer), staff would like to make the interior improvement money available as these <br />improvements are likely urgent in nature. The exterior improvement portion would follow the application process <br />listed in the policy starting in early 2027. <br />Proposed Initial Allocations <br />2026 Interior Improvements - $40,000 <br />2026 Exterior Improvements - $0 (applications to begin in February 2027) <br />2027 Interior Improvements - $100,000 <br />2027 Exterior Improvements - $100,000 <br />It should also be noted that some other administrative items may need to be brought forward in relation to this <br />program that staff is still exploring. <br />Background Information (From 2/10/2026 Work Session) <br />In 2023, a law was enacted that established metropolitan area sales tax with revenue only to be used for <br />affordable housing purposes. This program is called Local Affordable Housing Aid (LAHA). The law included a <br />provision that cities over 10,000 in population receive their share directly, based upon a foiiiiula of each city's <br />portion of cost -burdened households. The direct allocation allows cities local control over what housing -related <br />assistance it feels its residents need. Generally speaking, the money can be used for things such as building new <br />affordable housing (entire buildings or a percentage of the units); preservation/renovation of existing affordable <br />housing, and emergency rental assistance. There is a companion program that is statewide (SAHA) that Ramsey <br />is not eligible for. <br />The amount of money varies from year-to-year. In 2024, Ramsey received $118,897.15 and in 2025, <br />$317,780.38 (current balance total = $435,677.53). The 2026 and future allocations will likely be similar to the <br />2025 amount (2024, the first year, was a partial year). Funds must be used by their fourth year, meaning that the <br />2024 allocation must be committed by the end of 2027 and spent by the end of 2028. Some exceptions can be <br />made for projects in the works. <br />Projects can be for both rental and ownership housing and the determining factor of who is eligible is based on <br />Area Median Income (AMI). It should be noted that AMI is based off of household size. For 2025, the AMI for a <br />