Since inception of LCA Local Housing Incentives Account in 1995, the Council has identified a purchase price ceiling or target maximum price for an owner-occupied home based upon what a family of four with an income at or below 80 percent of area median income (a standard prevalent in many homebuyer assistance programs including those at Minnesota Housing) can afford at prevailing interest rates. In 2008, the amount identified was $214,900. Goals negotiated with LCA-participating cities regarding affordable home ownership consider new ownership units priced below this amount as affordable.
In 2001, the Council added to its Local Housing Incentives Account Additional Metropolitan Housing Implementation Group (MHIG) Funding Criteria a preference for funding ownership programs, including units affordable at 60 percent of area median income. This, too, is now an affordability level identified each year for LCA implementation. In 2008, the amount identified was $158,000.
For affordable rental units, the Council uses the maximum monthly rents permitted in the Minneapolis-St. Paul metropolitan statistical area for the federal low-income housing tax credits to rental housing serving households at 50 percent of area median income (AMI). This affordability standard is the same as that used by Minnesota Housing and the other funding partners in the Metropolitan Housing Implementation Group funding process each year.
U.S. Department of Housing and Urban Development - area median income $83,900
To implement the Livable Communities Act in 2009, the Metropolitan Council will use as the upper limit of affordability for ownership purchase price and monthly rents, the following dollar amounts:
2009 HOMEOWNERSHIP |
|
|---|---|
Household Income Level: |
Affordable Home Price |
80% of area median income ($67,200) |
$233,000 |
60% of area median income ($48,540) |
$171,000 |
2009 RENTAL HOUSING |
|
|---|---|
Bedroom size: |
*Monthly gross rent including tenant-paid utilities, affordable at 50% of area median income |
Efficiency |
$ 733 |
1 bedroom |
$ 786 |
2 bedrooms |
$ 943 |
3 bedrooms |
$1,090 |
4 bedrooms |
$1,216 |
* The same rent figures are used for the federal low-income housing tax credit program in the seven-county metro area.
© 2009 Metropolitan Council. All Rights Reserved. · 390 Robert St. N., St. Paul, MN 55101 · Phone: 651-602-1000 · TTY: 651-291-0904