HomeMy WebLinkAboutOrdinance No. 2019-07 Establishing Affordable Housing Trust FundORDINANCE NO. 2019-07
AN ORDINANCE ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND
CHAPTER 2
THE CITY COUNCIL OF EDINA ORDAINS:
Section I. Chapter 2, of the Edina City Code is amended by adding Article X to provide
as follows:
Article X. AFFORDABLE HOUSING TRUST FUND
2-790. Definitions. The following definitions apply in this Article.
Persons of very lowincome 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.
Buy-in Fee mean the cash payment made by developers in lieu of providing affordable
housing units per the Edina Affordable Housing Policy.
2-791. Pursuant to the authority granted to the city under Minnesota Statutes
Section 462C. I 6, 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, and for
the acquisition, rehabilitation and preservation of existing multi-family residential rental
housing including Naturally Occurring Affordable Housing (NOAH).
2-792.The Affordable Housing Trust Fund shall be funded from multiple sources
including:
(a) Buy-in funds from Developers.
(b) Private cash donations from individuals and corporations designated for
the Affordable Housing Trust Fund.
(c) Payments in lieu of participation in current or future affordable housing programs.
(d) Matching funds from a federal or state affordable housing trust fund; or a state
program designated to fund an affordable housing trust fund.
(e) Principal and interest from Affordable Housing Trust Fund loan repayments and all
other income from Trust Fund activities.
(0
The sale of real and personal property.
(g) Local government appropriations, development fees and other funds as
designated from time to time by the city council.
(h) Tax Increment Finance (TIF) pooled funds.
2-793 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 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 foraffordable housing developments.
(c) Financing the acquisition, demolition, and disposition of property for affordable
housing projects.
(d) Financing the rehabilitation, remodeling, or new construction of affordable
housing.
(e) Funding to facilitate affordable homeownership opportunities including down
payment assistance, second mortgages, closing costs, etc.
(0
Interim financing of public costs for affordable housing projects in anticipation of a
permanent financing source (i.e. construction financing, bond sale, etc.)
(g)
Other uses as permitted by law and approved by the city council.
First Reading: March 5, 2019
Second Reading:
Published:
on, ity Clerk ames B. ovland, Mayor
2-794. 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.
2-795. 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.
2-796. This Ordinance shall take effect upon passage and publication.
Please publish in the Edina Sun Current on:
Send two affidavits of publication.
Bill to Edina City Cleric