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Leading on Housing

Minneapolis Mayor Jacob Frey campaigned on a promise to address the city’s affordable housing crisis. In May, he announced an ambitious plan to deliver on his campaign promise and yesterday, we saw his plan take shape in his first proposed budget for 2019.

We commend the Mayor for his leadership to dramatically increase funding for affordable housing. His proposed 2019 budget recognizes that we need many tools in our toolbox to combat the housing challenges that many of our city’s residents experience. Mayor Frey’s specific commitments include $40 million of City funds – combined with an additional $10 million of state and federal funds – directed toward affordable housing. This includes:

  • 21.6 million towards the Affordable Housing Trust Fund
  • 3.4 million towards Naturally Occurring Affordable Housing Preservation
  • 5 million towards affordable homeownership on City owned lots
  • 3.3 million towards Stable Homes, Stable Schools, a collaboration with Minneapolis Public Schools, Minneapolis Public Housing and Hennepin county to stabilize kids and their families

In his remarks, Mayor Frey said, “The reality is that we can’t put affordable housing investments off til tomorrow because tomorrow is too late.” We couldn’t agree more.

A Budget that Values Affordable Housing

 

Communities across the Twin Cities region are struggling with rising rents, tight vacancy rates and high home prices – putting the squeeze on individual households and putting at risk our collective regional competitiveness. The Family Housing Fund recognizes that a single tool or approach alone will not solve these complex problems. We work with leaders and communities, using every tool possible to make quality, affordable housing accessible in every community.

In his first budget address, Saint Paul Mayor Melvin Carter yesterday proposed a substantial investment in housing production, preservation and protection. We commend the Mayor for making housing the centerpiece of his budget. His proposal includes a new Housing Trust Fund supported by a $10 million initial investment followed by ongoing annual investments in future years to support homeowners and renters alike. Specific components include:

  • New housing units for households at 30–50 % AMI (or $28,300 – $47,150 for a family of four)
  • Preservation of existing federally-assisted subsidized housing and naturally occurring affordable housing (NOAH)
  • Expanded tenant protections to address the disparate impact of some tenant screening practices along with administrative tools to minimize tenant displacement in cases where housing quality is compromised

The July 2018 report Market Watch: Saint Paul, published by the Minnesota Housing Partnership, highlights trends impacting Saint Paul residents. The report noted that 59 percent of the almost 60,000 renter households in Saint Paul earn less than 60 percent AMI and yet their rents are steadily rising. These statistics were echoed in the stories that the Mayor heard from residents, who listed affordable housing as their highest budgetary priority for the city.

In his remarks last night, Mayor Carter explained that, “We have to think of the budget not as a numbers document, but as a values document.” His proposal for substantial housing investment shows that he hears his constituents and understands the real pain that many in the city are experiencing due to the lack of affordable housing. We stand ready to support him in making Saint Paul a city where all residents can thrive.

Housing Counts 2016 Data Released

Since 2002, the Family Housing Fund and HousingLink have published the Housing Counts data set to provide housing leaders and other stakeholders an accurate and consistent way of tracking affordable housing (rental and homeownership) production and preservation each year in the seven-county Twin Cities region, including Minneapolis, St. Paul, and suburban metropolitan communities.

Since its inception, Housing Counts has tracked investment in projects representing more than 30,000 units of affordable housing throughout the seven-county region. In 2016, a grand total of 2,898 units of housing were funded for new development or preservation.

View the Housing Counts 2016 Report Here

Notes on the data:

  • The list of projects identifies how many affordable units are planned/preserved at three levels of affordability—30 percent, 50 percent, and 60 percent of the area median income (AMI). This corresponds with affordability restrictions required by certain funding streams.
  • The data set counts units in the year their project financing first closes and includes only developments with public and/or private capital funding that includes affordability obligations.
  • The report tables divide the projects into three main categories: new production of rental units, new production of homeownership units, and preservation/stabilization of existing rental units.
  • Rental assistance to renters, financial assistance directly to home buyers, and shelter beds are not included in this data set.
  • Developments that are designed specifically to serve seniors are indicated with an asterisk in the reports.
  • Properties included on the preservation/stabilization list were especially at risk of being lost due to major deterioration, financial crisis, or conversion to market-rate rents. This list does not include essential routine capital improvements.
  • Demolition permit numbers are included to give some context to the production numbers in relation to the number of units lost in the region’s housing stock. However, the demolition number comes from demolition permit issues only; because of this, the actual number of units lost, the affordability level, and the condition of these lost units is unknown.

For more information, please contact Sarah Berke at Family Housing Fund or Dan Hylton at HousingLink.

February 25th, 2018|Data, Housing Policy, Report|

Minneapolis-St. Paul Region Will Lose $85.6 Million Under Proposed Cuts to HUD

On March 16, 2017 the White House released its FY18 budget blueprint. The document included steep cuts in funding for affordable housing programs, including $6.979 billion in cuts to the US Department of Housing and Urban Development (HUD). The table estimates the annual losses to the Minneapolis-St. Paul Region under this proposal, using estimates from Affordable Housing Online.

Any level of cuts to local housing programs would have a significant negative impact on the tens of thousands of Twin Cities residents that depend on and benefit from them.

May 19th, 2017|Data, Housing Policy|

Increasing Owner/Manager Participation in the Housing Choice Voucher Program

The Family Housing Fund is committed to working with housing authorities, local government, and private partners to create meaningful access to housing for families region wide.

The Family Housing Fund shares the Minneapolis City Councilmembers’ goal of improving access to housing for families with Housing Choice Vouchers. Prohibiting discrimination by source of income is a fundamental value that we hold. The proposed ordinance will advance that value.

However, the proposed ordinance alone is not enough to expand and protect access to privately owned rental housing for families that hold Housing Choice Vouchers.

The purpose of the Quadel study, which was commissioned by the Family Housing Fund in partnership with Minneapolis Public Housing Authority (MPHA), was to offer local-market informed recommendations to improve mobility for families. In the spirit of continuous improvement, the study shows that there are administrative changes that should be considered to make the Housing Choice Voucher Program work better for families and improve the partnership with rental housing owners and managers.

MPHA has shown decisive leadership in providing information and access to complete the study and in accepting the findings. They have made a commitment to implement administrative changes. The Family Housing Fund’s goal is to support them in that work, and we encourage others to do the same.

 

Family Housing Fund Policy Position

The concept for rent certificates for low-income families was first pitched in the 1930s by the National Association of Realtors out of concern that subsidized public housing buildings would threaten the private real estate market (Desmond, 2016). Since then, the market has changed significantly—the demand for affordable housing substantially out paces the limited government resources to build housing. Today, the public-private partnership that was suggested during the Great Depression has grown to be a major federal housing program and the primary tool to provide low-income families with choice in where they live.

The federal Housing Choice Voucher (HCV) program supports about 35,000 households in Minnesota (Minnesota Housing, March 2015), ensuring that they are not one of the nearly 600,000 households that are housing cost burdened and facing related health and employment challenges (Minnesota Compass). The benefits of the HCV program to families and the market, however, are limited by the way program implementation has evolved over the last several decades.

In the past year, the Family Housing Fund (FHFund) has undertaken two bodies of work to optimize the HCV program locally, as a way to get more owners/managers to participate. First, the Owners/Managers Creating Opportunity (OMCO) project explored why some local owners/managers engage with the HCV program and others do not. The primary takeaway from the project was a need to enhance the partnership between public housing authorities (PHAs) and the property owners/managers. Secondly, the FHFund retained Quadel Consulting and Training on behalf of the Minneapolis Public Housing Authority (MPHA) to assess their HCV program administration and identify strategies to maximize resident choice. This assessment also identified a need to develop more collaborative relationships.

The focus in both of these reports on improving the public-private partnership is not a coincidence, and it is not a need isolated to Minneapolis or even the Twin Cities region. As all PHAs consider how to support family success by getting more owners/managers to participate in the HCV program, thus expanding access to housing choice, fitting the rental assistance program into a property owners’/managers’ business must be a central strategy.

To achieve this, the first order of business for the affordable housing network is to embrace their role in the HCV collaboration and make administrative changes that reflect the value of what property owners/manager bring to the partnership: a home. In his first month of leadership at MPHA, Executive Director Greg Russ has committed to advancing some of the recommendations from the assessment prepared by Quadel, and outlining a plan for future changes. This is a critical first step.

Recognizing low-income families’ housing choice challenges, Minneapolis Councilmembers Glidden, Warsame, and Goodman have proposed an amendment to the City’s Civil Rights Ordinance that will prohibit discrimination based on source of income. This is an important value that the FHFund and affordable housing network hold: a family should be able to rent a home regardless of whether they pay rent through government assistance or income from a job.

The Councilmembers’ and affordable housing network’s goal is to have more property owners/managers participate in the HCV program in order to expand low income families’ housing choices. And any steps that PHAs and the City take to improve access to affordable housing must include an intentional evaluative component to understand if the intervention is creating the desired change or if a course correction is necessary. However, the ordinance alone will not meet its goal because it does not help families and PHAs overcome the practical, administrative issues with the HCV program. The OMCO and Quadel reports offer a clear conclusion that improving the public-private partnership will move the system closer to this goal.

A mandate not to discriminate, without significant administrative changes first, is unlikely to establish housing choice for low-income families. PHAs, with the support of their cities, must make changes to the way they administer the HCV program, stimulating its fit and connection to the business of real estate. Once these changes are implemented, the community can codify its value of nondiscrimination by source of income.

Choice & Mobility Study

View the Executive Summary of Expanding Access to Housing Choice In Minneapolis (Quadel Consulting and Training)

View Expanding Access to Housing Choice In Minneapolis (Quadel Consulting and Training)

View the MPHA Response to the Choice & Mobility Study 

Owners/Managers Creating Opportunity

View the Owners/Managers Creating Opportunity Report

Statement updated 3/21/17 12:57