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AGENDA RECOMMENDATION |
Consent Calendar 6.M.
City Council Regular Meeting
- Meeting Date:
- 08/12/2024
Agenda Item:
Set August 26, 2024, as date of Public Hearing on an Ordinance establishing a Housing Trust Fund.
Recommendation/Action(s):
Motion setting date of hearing.
Summary:
In 2017, the Minnesota Legislature defined a Local Housing Trust Funds (LHTF) in law providing clarity to assist local jurisdictions with housing investments. LHTFs are established by a local government dedicating public revenue to housing. They are a consistent, flexible resource for housing within local jurisdictions. Trust funds help communities leverage public and private resources and jump start projects that draw investment and jobs. LHTFs enable prioritizing developments that maximize benefit to the community.
To incentivize LHTFs, in 2021, the Minnesota Legislature authorized a state match fund of $1 million, providing a one-to-one match on the first $150,000 of new revenue invested in housing trust funds by cities and counties, and a one-to-two match on the next $150,000 of available funds. MN Housing anticipates releasing an RFP for these matching funds this fall for communities with established LHTFs.
Furthering support for LHTFs, the Minnesota Legislature created the Statewide Affordable Housing Aid (SAHA) program in 2023 to help local governments develop and preserve affordable housing within their jurisdictions, to keep families from losing housing, and to help those experiencing homelessness find housing. The City of Mankato was certified and received $288,957 and Blue Earth County was certified and received $165,141 on December 26, 2023, for 2023 funding. Additionally, they have been certified to receive this amount in 2024.
SAHA legislation requires affordable housing for households that have incomes which do not exceed 115% of the greater state or area median income for homeownership projects and 80% of the greater state or area median income for renter housing projects. Area Median Income is determined by the US Department of Housing and Urban Development.
The City identified the need to establish a LHTF during the development of the Affordable Housing Action Plan. The City may begin the trust using SAHA funding received and can leverage other EDA general funds to seek state matching dollars to expand the LHTF.
An ordinance to establish an LHTF was drafted in consultation with the Minnesota Housing Partnership and is attached. This ordinance sets the purpose and intent of the LHTF to encourage the creation of affordable housing for renters and homeowners, promote the preservation of affordable housing resources, prevent and end homelessness, and provide rental assistance. Other ordinance components include a description of funding sources, a determination of funding use, and the distribution of funds.
The requested action is a motion to set September 9, 2024, as the date of public hearing on an ordinance establishing a Housing Trust Fund.
To incentivize LHTFs, in 2021, the Minnesota Legislature authorized a state match fund of $1 million, providing a one-to-one match on the first $150,000 of new revenue invested in housing trust funds by cities and counties, and a one-to-two match on the next $150,000 of available funds. MN Housing anticipates releasing an RFP for these matching funds this fall for communities with established LHTFs.
Furthering support for LHTFs, the Minnesota Legislature created the Statewide Affordable Housing Aid (SAHA) program in 2023 to help local governments develop and preserve affordable housing within their jurisdictions, to keep families from losing housing, and to help those experiencing homelessness find housing. The City of Mankato was certified and received $288,957 and Blue Earth County was certified and received $165,141 on December 26, 2023, for 2023 funding. Additionally, they have been certified to receive this amount in 2024.
SAHA legislation requires affordable housing for households that have incomes which do not exceed 115% of the greater state or area median income for homeownership projects and 80% of the greater state or area median income for renter housing projects. Area Median Income is determined by the US Department of Housing and Urban Development.
The City identified the need to establish a LHTF during the development of the Affordable Housing Action Plan. The City may begin the trust using SAHA funding received and can leverage other EDA general funds to seek state matching dollars to expand the LHTF.
An ordinance to establish an LHTF was drafted in consultation with the Minnesota Housing Partnership and is attached. This ordinance sets the purpose and intent of the LHTF to encourage the creation of affordable housing for renters and homeowners, promote the preservation of affordable housing resources, prevent and end homelessness, and provide rental assistance. Other ordinance components include a description of funding sources, a determination of funding use, and the distribution of funds.
The requested action is a motion to set September 9, 2024, as the date of public hearing on an ordinance establishing a Housing Trust Fund.