City Council Ordinance 854 (Affordable Housing)ORDINANCE 854
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
AN ORDINANCE AMENDING THE MONTICELLO CITY CODE TITLE III, ADMINISTRATION,
ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND FOR THE CITY OF MONTICELLO
THE CITY COUNCIL OF THE CITY OF MONTICELLO HEREBY ORDAINS:
SECTION 1. Title III: ADMINISTRATION is hereby amended to add the underlined language as a
new Chapter 38 as follows:
CHAPTER 38: AFFORDABLE HOUSING TRUST FUND
§ 38.01 DEFINITIONS.
For the purpose of this chapter, the following definitions shall apply:
AFFORDABLE HOUSING. Housing developments where a unit or units have a monthly housing
payment of not more than 30% of the gross household income of persons of very low, low, or
moderate income, including rent, utilities, loan principal and interest, property taxes and
insurance, and homeowner association or common interest community (condo association)
dues. For development of 2 units or more, at least 20% of units must meet this same
requirement.
PERSONS OF VERY LOW INCOME. Families and individuals whose incomes do not exceed 50%
of area median income, as median income was most recently determined by the United States
Department of Housing and Urban Development for the Minneapolis-St.Paul-Bloomington,
Minnesota -Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families.
PERSONS OF LOW INCOME. Families and individuals whose incomes do not exceed 80 percent
of the area median income, as median income was most recently determined by the United
States Department of Housing and Urban Development for the Minneapolis -St. Paul -
Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, as adjusted for smaller and
larger families.
PERSONS OF MODERATE INCOME. Families and individuals whose incomes exceed 80 percent,
but do not exceed 115% of area median income, as median income was most recently
determined by the United States Department of Housing and Urban Development for the
Minneapolis -St. Paul -Bloomington, Minnesota -Wisconsin Metropolitan Statistical Area, as
adjusted for smaller and larger families.
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§ 38.02 ESTABLISHMENT OF AFFORDABLE HOUSING TRUST FUND.
Pursuant to the authority granted to the city under Minnesota Statutes, Section 462C.16, an
affordable housing trust fund is established to support the development, rehabilitation, and
financing of affordable housing and provide down payment assistance, rental assistance and
home buyer counseling services to persons of very low, low and moderate income.
38.03 ADMINISTRATION OF THE AFFORDABLE HOUSING TRUST FUND.
The Monticello City of Monticello Economic Development Authority shall administer the
affordable housing trust fund consistent with the requirements of this chapter. Applications for
funding for proposed projects or programs must be submitted to the Executive Director of the
City of Monticello Economic Development Authority in accordance with applicable program or
project requirements.
§ 38.04 FUNDING FOR AFFORDABLE HOUSING TRUST FUND.
The Affordable Housing Trust Fund shall be funded by funding directed to the City from the
Statewide Local Housing Aid fund as approved by the City Council. Other sources of funding
may include, but are not limited to:
(A) Private donations designated for the Affordable Housing Trust Fund;
(B) Bond proceeds;
(C) Grants and loans from a federal or state sources designated to fund an affordable
housing trust fund;
(D) Local government appropriations, including development fees and other funds as
designated by the City Council;
(E) Land sale proceeds;
(F) Investment earnings from the Affordable Housing Trust Fund; and
(G) City of Monticello Economic Development Authority levies in accordance with
Minnesota Statutes, Chapter 469.
§ 38.05 FUNDING USES.
The City of Monticello Economic Development Authority (the "EDA") may disburse money from
the Affordable Housing Trust Fund to assist applicants through projects or programs as
designated by the EDA for the purpose of developing and rehabilitating housing affordable for
persons of very low, low and moderate income, including but not limited to:
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(A) Making loans at interest rates below or at market rates in order to strengthen the
financial feasibility of proposed projects;
(B) Interest rate buy -down for private loan financing;
(C) Providing gap financing for affordable housing developments;
(D) Financing the acquisition, demolition, and disposition of property for affordable
housing projects;
(E) Financing construction of public improvements and utilities to aid proposed
affordable residential developments;
(F) Financing the rehabilitation, remodeling, or new construction of affordable housing;
(G) Tenant and project based rental assistance;
(H) Funding to facilitate affordable homeownership opportunities including down
payment assistance and home buyer counseling services;
(1) Administrative costs associated with affordable housing programs, not to exceed
10% of the balance of the Affordable Housing Trust Fund;
(J) Interim financing of public costs for affordable housing projects in anticipation of a
permanent financing source (i.e. construction financing, bond sale, etc.); and
(K) Other uses as permitted by law and approved by the City Council.
38.06 TERMS AND CONDITIONS OF FUNDING.
The EDA shall determine appropriate terms and conditions for each loan or grant from the
Affordable Housing Trust Fund, including the appropriate security and interest, if any, should
repayment be required.
§ 38.07 ANNUAL REPORTING.
The EDA shall report annually to the City on the administration of the City's Affordable Housing
Trust Fund account, including the number of loans and grants made, any associated matching
funds from federal or state sources, the number and types of residential units assisted through
the account, and the number of households for whom rental assistance payments and
homebuyer counseling services were provided. The city shall post the report on its website.
SECTION 2. This ordinance shall be effective immediately upon its passage and
publication.
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ADOPTED by the City Council of the City of Monticello, Minnesota this 28th day of July, 2025.
ATTEST:
-1&k6 �14 "
J nnifer S ei er, City Clerk
VOTING IN FAVOR: Christianson, Gabler, Hilgart, Hinz, and Martie
VOTING IN OPPOSITION: None
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