4d Affordable Housing Incentive Program 2018-2019 Results Dean - - PowerPoint PPT Presentation

CITY OF MINNEAPOLIS

4d Affordable Housing Incentive Program

Dean Porter-Nelson, AICP Housing Stability Specialist, Minneapolis CPED

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2018-2019 Results

Overview

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• 4d Program Background
• 4d 2018-2019 Results
• 4d Energy Efficiency and Solar Results

4d Program Requirements

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• 10 year affordability declaration stating:
• >20% of units remain affordable to households making 60% of Area

Median Income (AMI)

• Rent increases on tenants limited to <6% annually. Larger increases up to

60% AMI cap permitted at unit turnover only.

• Eligibility guidelines
• Tier 1 or 2 rental license & no outstanding orders or revocations
• 2+ units in building or on the tax parcel
• Benefits for property owners
• 10 year eligibility for State’s “LIRC” program, reducing property tax

liability by 40%, applicable to affordable units only

• Targeted energy efficiency, solar funding
• $100/unit grant & assistance with admin. Costs
• Ongoing compliance
• Report rents & tenant incomes to City
• Submit LIRC/4d renewal paperwork Minnesota Housing status

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4d 2018 – 2019 Results

Number & size of 4d units (2018 – 2019)

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• 770 total units enrolled to date
• Mix of unit sizes including 214 units with 2+ bedrooms

Unit Type 2018 2019 Total % of total Studio 49 61 110 14% 1 BR 127 319 446 58% 2 BR 33 122 155 20% 3 BR 45 45 6% 4 BR 11 11 1% 5 BR 1 1 0% 6 BR 2 2 0% Total # of Units 209 561 770 Total # of Bedrooms 242 820 1,062

Location of Units by Ward (2018-19)

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• At least 1

property in each City Council Ward

• Wards 4, 5, 10

had highest unit totals

Number of Units by Neighborhood (2018-19)

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• 38 neighborhoods

(46% of all neighborhoods) had at least 1 property

• Whittier, Folwell,

Marcy Holmes, Eliot Park had over 60 units

• 2-4 unit eligibility

helped spread affordable units across multiple neighborhoods

Median rents, 4d units (2019)

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Unit Size Current median rent 60% AMI rent % below max Studio $750 $991 24.3% 1 BR $845 $1,062 20.4% 2 BR $950 $1,273 25.4% 3 BR $1,250 $1,471 15.0% 4 BR $1,400 $1,641 14.7% 5 BR $1,275 $1,811 29.6% 6 BR N/A N/A N/A

• Typical 4d unit is 15-25% below 60% AMI rents
• Tenants protected by 6% cap on rent increases

4d application statistics (2019)

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• Applications for 996 units
• 56% were enrolled in the 4d program for 10 years
• 41% of units not enrolled due to property owner withdrawing
• r not completing enrollment paperwork
• Vast majority of completed applications (97% of units) met

housing quality minimum requirements Application Status Total Units % of total

Property enrolled in the program

561 56%

Property owner withdrew/did not complete enrollment

406 41%

Application denied – Tier 3 license or

• pen housing violations

29 3% Total 996

4d property owner statistics (2018-2019)

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• 51 unique property owners
• 8 in 2018: 26 units average per owner
• 43 in 2019: 13 units average per owner
• 129 buildings total
• 17 enrolled in 2018, 12 units average size
• 112 enrolled in 2019, 5 units average size.
• 74 2-4 unit properties with 168 units total (30% of 2019

unit count)

• 38 5+ unit properties with 393 units total (70% of 2019

unit count)

4d Energy Efficiency & Solar

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4d Energy Efficiency 2018 2019 # projects proposed/complete 3 13 Cumulative investment anticipated $106,817 $267,701 City cost share invested $66,111 $221,241 Annual energy savings (Million BTUs) 854 1,260 4d Solar Energy 2018 2019 # projects proposed 2 Cumulative investment anticipated $219,835 City solar cost share $28,584 kWh anticipated production NA 66.5 Annual energy savings (Million BTUs) NA 278

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Dean Porter-Nelson Housing Stability Specialist City of Minneapolis - CPED dean.porter-nelson@minneapolismn.gov (612) 673-5237

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Questions?

Beth Barron, owner - 2715 Humboldt Ave S is able to keep rents low thanks to reduced taxes and 90% cost share on a new boiler, water heater, and wall insulation