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4.E.5.

Consent Business

TO: Mayor and City Council

FROM: Samantha DiMaggio, Economic Development CoordinatorDATE: 06/21/2016

SUBJECT: Participation in the Local Housing Incentives Account Program Under the

Metropolitan Livable Communities Act,Res. No. 7742 (B,D)

Action Sought

Adopt Res. No. 7742, a Resolution Authorizing Participation in the Local Housing

Incentives Account Program Under the Metropolitan Livable Communities Act.

Background

In 2010 the City of Shakopee withdrew from the Metropolitan Council's Livable

Communities Act Local Housing Incentives Account Program due to the following

reasons:

1. The City of Shakopee has demonstrated through its supply and availability ofaffordable housing its commitment to providing its fair share of affordable housing

for the region. The City is concerned that the affordable housing ranges identified by

the Metropolitan Council will become mandates rather than statements of the

potential need for affordable housing. If that were to happen, the city is concerned

they would not be able to meet the requirements based on the current housing

activities.

2. Participation in the LCA may not align itself with the direction of the City's EDAC

regarding job creation and associated housing opportunities, and the work of the

EDAC related to these issues is not completed.

Participation in this program is voluntary. However, if the City were to participate in the

program, it would provide opportunity to complete for grants and loans to support project

that meet the city's housing goals, clean up polluted sites and support projects linking jobs

housing and transit.

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In the attached, Res. No.7742 staff identified the following affordable housing goals for

calendar years 2017-2020:

Affordable Housing Goal: 459-701 units. Affordable housing is defined as housing

that a low- or moderate-income household can occupy without spending more than30% of household income. Also incorporates the idea of quality (safe and decent

dwelling), choice of location, and an adequate supply.

Life-Cycle Housing Goal: 702-863 units. Life-cycle housing is defined by varied

housing options that meet peoples preferences and circumstances at all of lifes

providing a balance of single-family homes, apartments, condominiums, townhomes

and senior housing for independent living or with a range of assisted-living services.

The only requirement is that the City must complete an action plan within the next six

months. The action plan must describe what authority the City has for operating housing

programs and the activities of the organizations or entities that administer the programs

and/or describe arrangements the city may have with other public or nonprofit

organizations that provide housing related services to the city.

Recommendation

Staff is recommending participation in the program as it would provide opportunity tocomplete for grants and loans to support projects that meet the city's housing goals, clean

up polluted sites and support projects linking jobs, housing and transit.

Budget Impact

No financial impact to the City as this is a resolution allowing participation in a

government program.

Relationship to VisionThis supports Goal B, "Positively manage the challenges and opportunities presented by

growth, development, and change", and Goal D, " Maintain improve and create strong

partnerships with other public and private sector entities".

Requested Action

If the Council concurs, it should by motion, adopt Res. No. 7742,

a Resolution Authorizing Participation in the Local Housing Incentives Account Program

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Pub. www.metrocouncil.org

LIVABLE COMMUNITIES

PROGRAM FACTS

Investments in

community vitality

Thriving job centers stand on once-polluted land. Workers can find affordable housing in the communities where

they work. Residents can shop, get on a bus to go to work, and enjoy a local park all within walking distance from

home.

These opportunities are supportedby the 1995 Livable Communities Act (LCA), administeredby the MetropolitanCouncil.

Voluntary program, basedonincentivesThe LCAprovides funding for communities to invest in local economic revitalization, affordable housing

initiatives, and developmentor redevelopment that connects different land uses and transportation. The

program is a voluntary, incentive-based approach to help communities grow and redevelop, and toaddress

the regions affordable and lifecycle housing needs.

Programs helpreach local,regionalgoals

The Council makesgrant and loan awards through three accounts :

TaxBaseRevitalizationAccount(TBRA) Cleans up brownfields for redevelopment, job creation andaffordable housing.

LivableCommunitiesDemonstrationAccount(LCDA) Supports development and redevelopment that linkshousing, jobs and services while demonstrating efficient and cost-effective use of land and infrastructure.

LocalHousingIncentivesAccount(LHIA) Produces and preserves affordable housing choices forhouseholds with low to moderate incomes.

Transit Oriented Development (TOD)" #$%$&'()* +),)&-./)0% $1-20+ &345% 1$3&6 7-//2%)1 1$3&6 $0+

5345891):2)07' ;2* *%$%3-0*