Budget Amendment ID: FY2012-S3-62

LOC 62

Affordable Housing Study

Messrs. Hedlund, Ross, Tarr and Knapik moved that the proposed new text be amended by inserting after section xx the following new section:

SECTION XX: The Department of Housing and Community Development shall conduct a study comparing the benefits of using state subsidies for the construction of new affordable housing projects with the benefits associated with assisting municipalities in the purchase of foreclosed and vacant homes within the municipality’s boundaries. The comparison should be based upon the annual average amount of all subsidies issued by all state agencies, departments, offices and authorities for the construction of new affordable housing units between 2004 and 2009, and the number of affordable units created during that time period. For the purposes of this study, when compiling the number of affordable housing units created during this time period, the department may only include the number of units actually built, and may not include any market-rate units that are considered affordable for the purposes of a municipality’s Subsidized Housing Inventory index.  The study shall compare the average subsidy cost per new affordable housing unit constructed with the number of housing units that could be created if the annual average amount of all subsidies was instead used to help municipalities purchase foreclosed and vacant homes.

Section 2: The department shall issue its final report by August, 31, 2013.