Phase II Proposal D - Reserve Some NRP Funds for Citywide Priorities of Affordable Housing and Commercial Corridors
1. Description of Proposal:
Neighborhoods, through their NRP plans, prioritize how a majority of Phase II program funds are spent. 25-40% of the program's Phase II funds are reserved for the citywide priorities of affordable housing** and commercial corridors**. A neighborhood/Policy Board process for distributing the reserved funds will be developed later this spring.
2. Who Plans and Sets Priorities?
Neighborhoods, through their NRP plans, decide how all their NRP funds are spent. The 25-40% of funds that will be reserved in a pool for affordable housing and commercial corridors will be distrib-uted differently. The specific neighborhood/ Policy Board process for distribution will be developed later this spring. Priority will be given to an individual neighborhood or groups of neighborhoods who want to supplement their NRP plan allocations that are directed to these citywide priorities with some of the reserved funds.
3. How are NRP funds distributed?
60-75% of Phase II program funds will be allocated to individual neighborhoods using a formula similar to that of Phase I. 25-40% of NRP funds will be allocated to a citywide pool for affordable housing and commercial corridor projects. A method for distributing these funds will be developed later this spring.
4. How is the Housing Requirement* addressed?
By reserving some NRP funds citywide for affordable housing, the Program will be making progress toward achieving the statutory Housing Requirement. In order to address any remaining Housing Requirement, this proposal can use the method from either Proposal A (education and promotion) or Proposal B (hold back funds until it is sure that the Housing Requirement will be met).
5. How are citywide priorities addressed?
25-40% of the program's Phase II funds are reserved for the citywide priorities of affordable housing and commercial corridors.
* The state legislation that created NRP requires that 52.5% of all NRP funds be spent on housing and housing-related activities.
* *NOTE on Commercial Corridors and Affordable Housing:
If the Policy Board chooses to implement Proposal D or E, it will have to define a process for allocating the NRP funds reserved for the priorities of "Commercial Corridors" and "Affordable Housing". This will include defining what "Commercial Corridors" and "Affordable Housing" are, i.e. what kinds of projects would be eligible for these funds?
In general terms, commercial corridors and affordable housing have been characterized as the following:
Commercial Corridors: In general, the City characterizes "Commercial Corridors" as those streets that are primarily commercial in character and traverse the City, serving to connect a number of neighborhoods. These streets, with their traditional store fronts and attention to the pedestrian as well as public transit, are unique to the City. These streets are an asset to Minneapolis and, in general, are in need of revitalization. Some examples include Lake Street, Franklin Avenue, Central Avenue, West Broadway, and Hennepin Avenue.
Affordable Housing: In general, the City characterizes "Affordable Housing" as housing which costs no more than 30% of household income for households earning below 50% of the metropolitan area median income (currently $31,800 per year for a family of 4). For example, affordable housing for a family of four earning $31,800 would cost no more than $795 per month. The kind of housing that is affordable is quite varied. It might be a single family unit standing alone in a neighborhood; a series of two-story town house units clustered on part of a block; a unit or two in a four-unit or eight-unit apartment building in a neighborhood. Affordable housing can be new construction, renovated existing housing, or existing housing that is converted to affordable.
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