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Related Housing Issues <br /> January 28,2002 <br /> • Page 2 of 2 <br /> MHFA to provide below-market interest rate home mortgage loans for low and moderate <br /> income first time home buyers (1-person income-$41,900, 3-person income $53,850). The <br /> program allows mortgage for new and existing properties. In 2001, Sherburne County <br /> provided a total of 15 loans and utilized 120% of its allocated programming amount. Two <br /> Elk River homes participated in the program in 2001. <br /> A third piece of information comes as a referral from HRA Commissioner Jean Lieser, and <br /> her contact with the St. Cloud HRA. Westwood Village is a development of the St. Cloud <br /> HRA that is designed to provide a variety of housing options. <br /> Of particular interest,in 2001 the St. Cloud HRA took a proactive approach to its economic <br /> development and affordable housing strategy by adopting the attached formula for a <br /> "Threshold Minimum Average Wage" for economic development assisted activities. The <br /> threshold is based upon the standard definition for local incomes and rents (3-bedroom <br /> apartment) established by the US Department of Housing and Urban Development (HUD). <br /> The base level hourly wage was established as $12.25. The base level is subject to change <br /> annually based on updated data from HUD. The staff at the St. Cloud HRA stated that for <br /> 2002 a slight increase to $12.67 would be proposed. <br /> Based on the formula adopted by St. Cloud, the City of Elk River would have the following <br /> result: <br /> • Hourly Wage: $18.27 <br /> Annual Wage: $38,000 <br /> allocated to shelter costs: 30.00% <br /> Annual Shelter costs $11,400 <br /> Monthly Shelter Costs $ 950 <br /> Formula: Using the 2001 Fair Market Rent (FMR) for a three-bedroom <br /> apartment in Sherburne County. <br /> Currently, the City of Elk River economic development financing programs (tax increment <br /> financing&tax rebate financing) do not carry a minimum average wage threshold with the <br /> exception of the Micro Loan programs requiring a wage between $8-10/hour. <br /> Lastly, the attached Star Tribune article features how the City of Chaska has developed <br /> "workforce housing"units through zoning and design policy changes. <br />