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Livable Communities Act (LCA) Grant Programs

LCA grants have created over 31,000 living-wage jobs, built thousands of new affordable homes, and added millions of dollars to the local property tax base while leveraging billions in other public and private investment. They have invigorated metro-area cities by cleaning up contaminated buildings, making them available for new employers. One grant program has assisted with cleaning up over 1,700 acres of polluted land, an area the size of the City of Robbinsdale. Other LCA grants have funded developments using the latest techniques in stormwater management and other innovative design elements.

LCA grants have proven to be a flexible funding source for cities. Responding to longer development cycles seen since the recent market shift, on April 13, 2011 the Metropolitan Council approved lengthening grant terms from two to three years. Grants awarded in 2011 will require that project development has commenced – rather than completed – within the grant term, and grantees have the option of requesting an extension of up to two years after demonstrating sufficient progress.

The 2011 grants will double the number of grant-making cycles for the Tax Base Revitalization Account Cleanup Site Investigation grants, giving cities four opportunities to compete for grant dollars that will fund pre-development investigation. In the Livable Communities Demonstration Account, the Council has reintroduced eligibility for the kind of placemaking development that builds vitality and attracts private investment.

How does the program work?

Cities elect to participate in the program by agreeing to work towards providing their share of affordable housing needed by the metropolitan region. For 2011, 94 cities are participating in the Livable Communities program. Participant cities also agree to invest annually towards building or preserving affordable housing within their communities.

The Livable Communities Act defines eligible grantees as metropolitan counties, cities, and their economic development authorities, housing and redevelopment authorities and port authorities. Developers cannot be direct LCA grantees. Instead, developers partner with cities to identify projects and prepare grant applications.

All grants are awarded on a competitive basis. The Council collaborates with Minnesota Housing, Minnesota Department of Employment and Economic Development, the Minnesota Pollution Control Agency and others to review applications and select projects for award. The Livable Communities Demonstration Account utilizes a panel of 13 industry experts to review and recommend awards.

When funds are awarded, cities often subgrant the funds to developers. As work progresses, the city presents payment requests to the Council. Grant payments are made directly to the city.

 

Transit Oriented Development (TOD) NEW

The Livable Communities Act (LCA) Transit Oriented Development (TOD) program provides funding resources to help catalyze Transit Oriented Development in and around light rail transit, commuter rail and high-frequency bus transit stations. The program goal is to demonstrate how increasing density around transit stations can reduce dependence on automobile ownership, vehicular traffic and associated parking requirements that would otherwise be necessary to support a similar level of more traditional development, and encourage more transit ridership. More about the TOD program.

 

Tax Base Revitalization Account (TBRA)

Cleaning up polluted land for redevelopment and productive uses creates jobs and fuels the region's economic engine. The result: a cleaner environment, revitalized communities, more housing opportunities, and growth directed to central cities and older suburbs where costly infrastructure like roads and sewers is already in place. This program is conducted in coordination with the Minnesota Department of Employment and Economic Development. More about the TBRA grant program.

 

Livable Communities Demonstration Account (LCDA)

Connected development patterns that link housing, jobs and services help maximize the benefits of regional infrastructure. The LCDA Development program provides funding for assembling land and installing public infrastructure to help development and redevelopment projects achieve connected patterns.

The LCDA Pre-Development program provides funding for the final phases of planning for a future development project. More about the LCDA Development and Pre-Development programs.

Fact sheets about LCDA-funded projects

 

Local Housing Incentive Account (LHIA)

The goals of the Local Housing Incentive Account (LHIA) are to help create and preserve affordable rental and ownership housing throughout the region for low- and moderate-income households at all of life's stages, and to support residential reinvestment and redevelopment to achieve economically healthy and livable communities. This program is conducted in coordination with Minnesota Housing. More about the LHIA programs.

 

Land Acquisition for Affordable New Development (LAAND)

Land costs often present an impediment to building affordable housing. The LAAND program helps communities by providing loans to purchase land at current land prices to purchase land for future affordable housing development. For 2011, up to 5% of the loan amount is available as a grant to cover costs related to land acquisition and holding. The program is offered jointly by Minnesota Housing, the Metropolitan Council, and the Family Housing Fund. More about the LAAND programs.