Metropolitan Council Awards Affordable Housing Funds

$100,000 will help finance up to four homes in Washington County

ST. PAUL—May 24, 2006—The Metropolitan Council today approved a $100,000 grant to the City of Oakdale to help the Two Rivers Community Land Trust (CLT) provide affordable homes in Washington County. The city will administer the grant, which will help the land trust acquire, rehabilitate and sell up to four single-family homes in any of the east metro communities of Bayport, Cottage Grove, Newport, Oakdale, St. Paul Park and Stillwater.

Under the arrangement, the homes will be sold for their improved appraised value, minus the land value. The family owns the home but the land trust owns the land, which helps make the homes affordable to low- and moderate-income families with incomes at 60 to 80 percent of the area median income, or $47,100 to $62,800 for a family of four. The expected average selling price of the homes is $150,000.

“There’s no question, in a growing metropolitan area like ours, that the rising cost of land contributes to the challenge of keeping housing affordable for working families,” said Council Chair Peter Bell. “The land trust approach is innovative and relatively new and I’m pleased with CLT’s success to date. I believe further investment is warranted and worthwhile.”

The Metropolitan Council partnered with the Minnesota Housing Finance Agency and Family Housing Fund to allocate a total of nearly $5 million this funding round for homeownership housing throughout the state, with about $2 million of the total to be awarded in the metropolitan area.

“The collaboration of these three agencies and local units of government is a powerful tool in helping to meet the housing needs of working families throughout the state and region,” said Bell.

Projects proposed for funding are evaluated for their ability to provide workforce housing choices for low- and moderate-income families, preserve existing housing, increase home ownership among under-served populations, leverage additional resources and enlist community support.

The Metropolitan Council is the regional planning organization for the seven-county metro area. It runs the regional bus and light-rail system, collects and treats wastewater and coordinates water resources preservation, plans regional parks and administers funds that provide housing opportunities for low- and moderate-income individuals and families. The 17-member Council board is appointed by and serves at the pleasure of the Minnesota governor.

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