02-11-2019 Council Packet - Laserfiche WebLink

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CMP Part 3C. Housing Plan City of Orono Community Management Plan 2020-2040 Part 3C, Page 16 2. Housing Bonds: Minnesota State Statute allows HRAs to issue housing bonds to provide affordable housing via the acquisition of an existing buildings, development of elderly or disability housing, or the acquisition of accumulated equity for low income preservation. 3. Tax Abatement: Cities may issue bonds to be used to support the construction of affordable housing, using a portion of the property tax received (tax abatement) from the development to finance these bonds. This removes this property from paying taxes for the services needed for this property, its residents and the community in general. The City may develop a tax abatement policy to determine if and when the level of affordable housing and the guaranteed length of affordability provide sufficient public benefit to justify the use of tax abatement. 4. Tax Increment Financing: Cities may create a housing district to create a tax increment financing (TIF) district. The TIF bonds issued on this district are to be used to support the construction of affordable housing, and property taxes received above the original tax value (increment) from the development are utilized to finance these bonds. The property tax revenue that otherwise would be available to pay for city services would be restricted and not available to pay for the services. The City may develop a TIF policy to determine if and when the level of affordable housing and the guaranteed length of affordability to provide a public benefit is great enough to justify the use of tax increment financing. 5. 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 267 units below 50% AMI based upon how well the proposed projects meet City objectives. 6.3.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 Orono. The City will consider applications that addresses the City’s need allocation of 267 154 units below 5080% AMI based upon how well the proposed projects meet City objectives. 7.4.Energy Assistance: Xcel energy and Wright-Hennepin 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 City encourages the resident is encouraged to check with their energy providerd periodically. These programs help make expenses related to housing more affordable for Orono residents. 8.5.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 City will consider supporting applications that provide a range of housing types, or for those that assist affordable housing goals. 9. Fee Waivers or Adjustments: State rules require that city fees correlate to the cost