HomeMy WebLinkAbout2544-18 - ADMIN Ordinance - City Council - 2018/10/15Ordinance No. 2544-18
An ordinance establishing an
affordable housing trust fund
The City of St. Louis Park does ordain:
Section 1. Definitions. The following definitions apply in this Ordinance.
Persons of extremely low income means families and individuals whose incomes do not
exceed 30 percent of area median income, as median income was most recently determined by
the United States Department of Housing and Urban development for the Minneapolis -St. Paul -
Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
Persons of very low income means families and individuals whose incomes do not exceed
50 percent of area median income, as median income was most recently determined by the
United States Department of Housing and Urban development for the Minneapolis -St. Paul -
Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
Persons of low income means families and individuals whose incomes do not exceed 80
percent of the area median income, as median income was most recently determined by the
United States Department of Housing and Urban development for the Minneapolis -St. Paul -
Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
Persons of moderate income means families and individuals whose incomes exceed 80
percent, but do not exceed 120 percent, of area median income, as median income was most
recently determined by the United States Department of Housing and Urban development for the
Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, as
adjusted for smaller and larger families.
Section 2. Pursuant to the authority granted to the city under Minnesota Statutes Section
462C.16, an affordable housing trust fund is established to provide loans and grants to for-profit
and non-profit housing developers for the acquisition and capital and soft costs necessary for the
creation of new affordable renter and owner -occupied housing, for the rehabilitation and
preservation of existing multi -family residential rental housing including Naturally Occurring
Affordable Housing (NOAH) and rental assistance and homeownership assistance to persons of
extremely low, very low, low and moderate income.
Section 3. The Affordable Housing Trust Fund shall be funded by an annual budgeted
allocation of funds from the city's Housing and Redevelopment Authority (HRA) levy as approved
by the city council. Other sources of funding may include, but are not limited to:
(a) Private cash donations from individuals and corporations designated for the
Affordable Housing Trust Fund.
Ordinance No. 2544-18
(b) Payments in lieu of participation in current or future affordable housing programs.
(c) Matching funds from a federal or state affordable housing trust fund; or a state
program designated to fund an affordable housing trust fund.
(d) Principal and interest from Affordable Housing Trust Fund loan repayments and all
other income from Trust Fund activities.
(e) The sale of real and personal property.
(f) Local government appropriations, development fees and other funds as
designated from time to time by the city council.
(g) Tax Increment Finance (TIF) pooled funds.
Section 4. The city may use money from the Affordable Housing Trust Fund to assist
proposed projects or programs to develop or preserve affordable housing for persons of
extremely low, very low, low and moderate income to include:
(a) Making loans at interest rates below or at market rates in order to strengthen the
financial feasibility of proposed projects.
(a) Guaranteeing of loans.
(b) Providing gap financing for affordable housing developments.
(c) Financing the acquisition, demolition, and disposition of property for affordable
housing projects.
(d) Financing construction of public improvements and utilities to aid proposed
affordable residential developments.
(e) Financing the rehabilitation, remodeling, or new construction of affordable
housing.
(f) Tenant and project based rental assistance.
(g) Funding for acquisition and rehab in conjunction with related to housing trust fund
projects.
(h) Funding to facilitate affordable homeownership opportunities including down
payment assistance, second mortgages, closing costs, etc.
(i) Administrative costs associated with affordable housing programs.
(j) Interim financing of public costs for affordable housing projects in anticipation of a
permanent financing source (i.e. construction financing, bond sale, etc.)
Ordinance No. 2544-18
(k) Other uses as permitted by law and approved by the city council.
Section S. The city shall determine the terms and conditions of repayment of loans and
grants from the Affordable Housing Trust Fund including the appropriate security and interest, if
any, should repayment be required. Interest on loans and grants shall be as established by the
city from time to time or at the time of approval of a specific project or program.
Section 6. The Affordable Housing Trust Fund shall report annually to the city on the use
of the Affordable Housing Trust Fund account including the number of loans and grants made,
the number and types of residential units assisted through the account, and the number of
households for whom rental assistance payments were provided. The city shall post the report
on its Web site.
Section 7. This Ordinance shall take effect after passage and publication.
First Reading
October 1, 2018
Second Reading
October 15, 2018
Date of Publication
October 25, 2018
Date Ordinance takes effect
November 9, 2018
Revi
Thomas K. Hafinelthig, City Manager
Attest:
Adopted by the City Council October 15, 2018
Soren Mattick, City Attorney