11-19-2018 Planning Commission Packet

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CMP Part 3C. Housing Plan the guaranteed length of affordability to provide a public benefit is great enough to justify the use of tax increment financing. • Minnesota Housing Consolidated Request for Proposals:The Minnesota Housing Finance Agency provides a request for proposal (RFP) once annually where affordable housing developers can apply for funding to construct affordable housing. The City may consider supporting applications for new housing that addresses the City's need allocation of 244 units below 50%AMI based upon how well the proposed projects meet City objectives. • Community Development Block Grants (CDBG): The U.S. Department of Housing and Urban Development(HUD)provides CDBG funds to communities with over 45,000 residents for the use of providing and maintaining affordable housing.Hennepin County HRA administers these CDBG funds for the City of OornoOrono. The City will consider applications that addresses the City's need allocation of 21'l 267 units below 50%AMI based upon how well the proposed projects meet City objectives. • Neighborhood Stabilization Program (NSP) Grants: The NSP was established by HUD for the focus of this program is the purchase, rehabilitation and resale of foreclosed and abandoned properties. The NSP grants are administered by the Hennepin County HRA. • Energy Assistance: Xcel Local-energy and Wright-Hennepin companies offer programs intended to encourage energy efficiency and responsible use of energy resources. Xcel energy promotes a bill payment assistance program. These programs and rebates rapidly change and the resident is encouraged to check with their energy provided periodically. • Livable Communities Grants: Administered by the Metropolitan Council, the Livable Communities Demonstration Account (LCDA) funds innovative (re)development projects that efficiently link housing,jobs,services and transit in an effort to create inspiring and lasting Livable Communities. Grants are available to fund basic public infrastructure and site assembly. ▪ The housing rehabilitation funding is provided through the Hennepin County housing supporting applications for new housing that addresses the City's need allocation of units below 50%AMI based upon how well the proposed projects meet City objectives. • Fee Waivers or Adjustments: State rules require that city fees correlate to the cost of providing the services. The city will closely monitor expenses as they relate to project review to ensure fees closely match expenses. • Zoning and Subdivision Policies: The City frequently grants variances and adjusts its zoning and subdivision regulations through a planned unit development (PUD). The City currently provides zoning incentives such as increased density and potential staging plan flexibility for projects which achieve the city's housing goals. • 4(d)Tax Program:The 4(d)tax program provides a 40%tax credit to property owners of affordable housing developers, to be leveraged with local government financial assistance. This program is administered through the Minnesota Housing Finance Agency. • Land Trusts: A land trust achieves affordable home ownership by owning the land on which a house is located, allowing the resident to seek financing only on the house. The resident enters into a long-term lease for the home. The advantage of a land trust is that the largest contributor to housing prices in Orono is the land, and the land trust removes that cost from the purchasing equation. Tthe trust can control the future sale of the property to ensure that affordability can be maintained and have the ability to scatter the land trust sites throughout the community. The disadvantage of a land trust is that it will take significant financial resources to purchase the land rights and those resources are never recovered during the period that the property remains City of Orono Community Management Plan 2020-2040 Part 3C,Page 17