11-26-1984 Council Packet - Laserfiche WebLink

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III HOUSING IN THE METROPOLITAN AREA HOUSING PROBLEM DEFINITION Housing is a metropolitan problem of major proportiono. According to demographic data compiled by the Metropolitan Council, there is an estimated need for about 120,000 new housing units in the metropolitan area by 1995. A significant portion of these units (68,OOO) are needed for persons who cannot afford market rate housing. There are strong indications that under existing conditions, the total need for housing or the need of the lower income segment will not be met. In addition, there is an equally important problem of maintaining and re -using the existing housing stock effectively. Otherwise, more new housing will have to be produced to make up for unnecessary losses and there will be an under utilization of public service investments. The Federal and State Governments appear to be reducing their financial commitments to provide housing for low and moderate income persons and this will intensify the housing shortage problem for those unable to purchase or rent at market rates. It is also apparent that local units of government do not have the financial capability to assume the shortfall in Federal and State provided subsidies. The i.ousing shortage problem for persons unable to afford market rate housing can only be sc •red if all levels of governr*,ent and the private sector work together and if each contribute,; a `'air share to the solution. Each level of Zovernment sho,41d contribute its fair share to help solve the problem and each level's contributions should be of the kind it is best suited to make. The Federal and State Levels should continue to provide most of the direct subsidies for low and moderate income persons. The Federal and State Governments also have the responsibility to improve the overall investment climate and to provide a tax climate in which the private sector can produce rental units that are affordable to low and moderate income households. The State should also grant:: Local units of government the authority and f•1exiJ>iiity to Conduct the kind of housing programs that best meeV5.their diverse needs. The Metropolitan Council should develop a realistic comprehensive housing plan for the Metropolitan Area that provides specific guidance to the public and private sectors so that both can make rational decisions relative to future housing needs; a plan which delineates the responsibilities of all the "actors" in a complex housing delivery system. Local units of Government also have a strong role to play. Even though local land use controls constitute a small portion of the total cost of hourin6, local units should 1t set requirements which go beyond wl,at is necessary for the 3'-