CR 95-184 Resolution Local Housing Incentives
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October 11, 1995
Council Rpt #95-184
RESOLUTION ELECTING TO P ARTICIP A TE IN THE LOCAL HOUSING
INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE
COMMUNITIES ACT
Proposed Action
Staff recommends approval of the following motion: Adopt resolution number 95-184 electing
to participate in the Local Housing Incentives Account Program under the Metropolitan Livable
Communities Act.
With this motion, staffwill continue to meet with the Metropolitan Council to negotiate the City's
local housing goals.
Overview
The Metropolitan Livable Communities Act was enacted in June 1995 and is the Legislature's
attempt to address various issues facing the seven-county metropolitan area, The Act establishes
a Metropolitan Livable Communities Fund which consists of three accounts: the Tax Base
Revitalization Account; the Livable Communities Demonstration Account; and the Local Housing
Incentives Account. The goal is to provide incentives to expand housing opportunities for low
e and moderate income families and funds for the clean-up of polluted land.
Cities have the option whether to participate in the Local Housing Incentive Program,
adminlst:~red by the Metropolitan Council. Participating allows the City competitive access to
the three funding sources. If the City elects not to participate, it is not eligible for funding
through the three LCA accounts or the DTED polluted sites fund.
To participate, the City must pass a resolution by November 15, 1995, adopt housing agreements
and goals by December 14, 1995 and develop an action plan by June 30, 1996. The City will also
be required to spend a certain amount on affordable housing each year, beginning in 1997.
Primarv Issues to Consider
o What is the incentive to participate?
o What is required of the City to participate?
o How does Hopkins statistics compare to the surrounding communities?
SUPDortini! Information
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Metro Livabilities Act
Council Rpt. 95-184
Page 2
Analvsis of the Issues
o What is the incentive to participate?
If the City elects to participate in the Local Housing Incentives Account Program, the City can
then apply for funds through the following three accounts:
o Local Housing Incentives Account - $1 million available in 1996; $1. 5 in 1997
o Tax Base Revitalization Account - $6.5 million available annually
o Livable Communities Demonstration Account - $4.6 million in 1996; $4.1 in 1997
The funds will be allocated based on a competitive application process.
If the City elects not to participate there is no access to these funds or other regional investments
made by the Met Council. Additionally, a report card will be sent to the Legislature which will
indicate which will indicate each cities participation and progress in the program.
o What is required of the City to participate?
To participate, the City must agree to the following:
o Pass a resolution agreeing to participate by November 15, 1995
o Adopt housing agreements and goals by December 14, 1995
o Develop an action plan by June 30, 1995.
o Spend a certain amount on affordable housing each year, beginning in 1997 (ALHOA
amount).
The ALHOA amount is calculated based on a complex formula and is the amount which the City
must spend on affordable housing initiatives each year. Beginning in 1997, the City of Hopkins
would be required to spend an estimated $14,766 in order to be eligible for participation in the
program. Due to the City's active involvement in such programs as the housing rehabilitation
loan/grant program, this requirement would not be difficult to meet each year.
o How does Hopkins statistics compare to the surrounding communities?
The following is a chart which shows the City of Hopkins current percentages of affordable and
life-cycle housing and the average number of units per acre. The chart also indicates the Met
Council's benchmarks or goals for affordability, life-cycle housing and density, based on our
location within the Metropolitan area.
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Metro Livabilities Act
Council Rpt. 95-184
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I CITY INDEX II BENCHMARK II GOAL I
Affordability
Ownership 81% 60-77%
Rental 45% 37-41 %
Life-Cycle
Type (Non-singlc family 72% 37-41 %
detached)
Owner/renter Mix 31/69% (64-67) /
(33-36)%
Density
Single-Family Dctachcd 3.2/acre 1.8-2.9/acre
Multifamily I8/acre 14-I5/acre
The chart indicates that 81 % of the City's single family homes are considered affordable, while the
benchmark for cities in our area would be 60-77% of the housing stock being affordable to
moderate income homebuyers. Because the City of Hopkins exceeds the benchmarks in all areas,
our goals, which will be negotiated with the Met Council, would likely be to not fall below the
benchmarks.
Alternatives
The Council has the following alternatives regarding this issue:
o Adopt Resolution 95-93 as recommended by staff
o Elect not to participate in the Local Housing Incentives Account Program,
o Continue this item for more information.
Additionally, the City may elect to participate but can withdraw from the program at any time.
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 95-93
RESOLUTION ELECTING TO PARTICIPATE IN
THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM
UNDER THE METROPOLlT AN LlV ABLE COMMUNITIES ACT
WHEREAS, the Metropolitan Livable Communities Act (1995 Minnesota Laws
Chapter 255] establishes a Metropolitan Livable Communities Fund, which is intended
to address housing and other development issues facing the metropolitan area
defined by Minnesota Statutes section 473.121; and
WHEREAS, the Metropolitan livable Communities Fund, comprising the Tax Base
Revitalization Account, the Livable Communities Demonstration Account, and the
Local Housing Incentives Account, is intended to provide certain funding and other
assistance to metropolitan area municipalities; and
WHEREAS, a metropolitan area municipality is not eligible to receive grants or
loans under the Metropolitan Livable Communities Fund or eligible to receive certain
polluted sites cleanup funding from the Minnesota Department of Trade and
Economic Development unless the municipality is part1cipating in the Local Housing
Incentives Account Program under Minnesota Statues section 473.254; and
WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan
Council to negotiate with each municipality to establish affordable and life-cycle
housing goals for that municipality that are consistent with and promote the policies of
the Metropolitan Council as provided in the adopted Metropolitan Development
Guide; and
WHEREAS, by June 30, 1996, each municipality must identify to the Metropolitan
Council the actions the municipality plans to take to meet the established housing
goals; and
WHEREAS, the Metropolitan Council must adopt. by resolution after a public
hearing, the negotiated affordable and life-cycle housing goals for each
municipality by January 15, 1996; and
WHEREAS. a metropolitan area municipality that elects to participate In the
Local Housing Incentives Account Program must do so by November 15 of each
year; and
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RESOLUTION NO: 95-93
Page 2
WHEREAS. for calendar year 1996, a metropolitan area municipality can
participate under Minnesota Statues section 473.254 only if: (a) the municipality elec1s
to participate in the Local Housing Incentives Account Program by November 15,
1995; (b) the Metropolitan Council and the municipality successfully negotiate
affordabte and life-cycle housing goals for the municipality; and, (c) by January 15.
1996, the Metropolitan Council adopts. by resolution, the negotiated affordable and
life-cycle housing goals for each municipality.
NOW, THEREFORE. BE IT RESOLVED that the City of Hopkins hereby elects to
participate in the Local Housing Incentives Program under the Metropolitan Livable
Communities Act during calendar year 1996.
Adopted this
day of
.1995.
Charles D. Redepenning. Mayor
A nEST:
James A. Genellie, City Clerk