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Local Housing Incentives Account <br />A city has until November 15 of each year to decide to participate or not. If a city docs <br />elect to participate, it is eligible to receive grants and loans for pollution clean-up and <br />demonstration projects, as well as matching funds from the local housing incentives <br />account The Met Council may give consideration to a city’s participation in the local <br />housing incentives program when making discretionary funding decisions. The following <br />is an outline of the process once a city opts to participate: <br />(1) January 15,1996. City negotiates affordable and life cycle housing goals <br />(2) July 1,1996. City develops an action plan, <br />(3) July 1 of each year. County calculates municipality market value base amount and <br />funds available for the local housing incentives account <br />(4) Met Council notifies city of its affordable and life-cycle housing opportunities amount <br />The amount is the lesser of the following: <br />• Four percent of the residential homestead value x loc^ tax rate; <br />• Residential homestead value in excess of the market value base amount (2 times <br />average) x local tax rate. <br />(5) City uses local funds and available Met Council funds to meet its goals. <br />(6) If a city has not met its goal and not spent 85 percent of its affordable and life cycle <br />housing opportunities amount in the previous year by 1998, it may: <br />Distribute the funds to the Met Council to put in the local initiatives account; <br />Distribute the funds to the city or county HRA to create housing opportunities; <br />City may join together with adjacent cities to provide housing opportunities. <br />Cities must match the Met Council funds dollar-by-doUar. The Met Council must give <br />priority to cities that: <br />Receive less from fiscal disparities than it contributes by more than $200 per <br />household; <br />Demonstrate that the project will link jobs to housing; <br />Provide matching funds from sources other than the affordable and life-cycle <br />opportunities amount. <br />If a city elects not to participate for some years, but then elects to participate, the <br />municipality must establish what it agrees to spend on affordable and life-cycle housing, or <br />agree to disttibute to the local housing incentives account. <br />1995 Policy Narrative