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CMP Part 3C. Housing Plan <br />housing types, cost ranges, and locations. <br />12. Participation in housing related organizations. The City will continue to recognize <br />and promote the work outside organizations do toward the betterment of housing <br />opportunities for Orono residents. <br />13. Rental licensing and inspections. The City employs a Rental Licensing program <br />intended to identify rental landlords and capture up to date contact information to <br />address concerns related to overcrowding, maintenance, and noise impacts. <br />14. Low interest rehab programs. The City will support a property owner's application <br />for low income rehab dollars for those projects that serve to retain existing housing <br />stock. <br />15. Minnesota Housing Consolidated Request for Proposals: The Minnesota Housing <br />Finance Agency provides a request for proposal (RFP) once annually where <br />affordable housing developers can apply for funding to construct affordable <br />housing. The City may consider supporting applications for new housing that <br />addresses the City's need allocation of 154 units below 80% AMI based upon how <br />well the proposed projects meet City objectives, however the City is not likely to <br />write down land cost, or reduce development related fees to support applications. <br />16. Tax Abatement: Cities may issue bonds to be used to support the construction of <br />affordable housing, using a portion of the property tax received (tax abatement) <br />from the development to finance these bonds. This removes this property from <br />paying taxes for the services needed for this property. While the City may develop <br />a tax abatement policy to determine if and when the level of affordable housing and <br />the guaranteed length of affordability provide sufficient public benefit to justify the <br />use of tax abatement, the City does not anticipate using Tax Abatement to meet any <br />housing goals at present. <br />17. Tax Increment Financing: Cities may create a housing district to create a tax <br />increment financing (TIF) district. The TIF bonds issued on this district are to be <br />used to support the construction of affordable housing, and property taxes received <br />above the original tax value (increment) from the development are utilized to <br />finance these bonds. The property tax revenue that otherwise would be available to <br />pay for city services would be restricted and not available to pay for the services. <br />The City may develop a TIF policy to determine if and when the level of affordable <br />housing and the guaranteed length of affordability to provide a public benefit is <br />great enough to justify the use of tax increment financing. <br />18. Housing Bonds: Minnesota State Statute allows HRAs to issue housing bonds to <br />provide affordable housing via the acquisition of an existing buildings, <br />development of elderly or disability housing, or the acquisition of accumulated <br />equity for low income preservation. The City does not anticipate using its HRA to <br />develop a new housing project in the next 10 years. <br />19.4(d) Tax Program: The 4(d) tax program provides a 40% tax credit to property <br />owners of affordable housing, to be leveraged with local government financial <br />assistance. The City does not anticipate providing financial assistance to private <br />development. <br />20. Fee Waivers or Adjustments: State rules require that city fees correlate to the cost <br />of providing the services. The city will closely monitor expenses as they relate to <br />project review to ensure fees closely match expenses. The City will not waive fees <br />in whole or part to support private sector development. <br />City of Orono Community Management Plan 2020-2040 Part 3C, Page 17 <br />