Community Planning & Economic Development 2019 Budget As - - PowerPoint PPT Presentation

Community Planning & Economic Development 2019 Budget

As recommended by Mayor Frey on August 15, 2018

September 24, 2018

City of Minneapolis

Department Overview

Who we are and what we do

City of Minneapolis

2019 Change Items

Affordable Housing Trust Fund (AHTF)

The recommendation is an expansion of a well-established program that will double the historical AHTF target budget of $10,000,000 per year to $21,000,000 in 2019 (inclusive of the Family Housing Initiative), utilizing non-general funds. AHTF resources will be used to blend with other financial tools and to leverage other funding sources to increase the number of affordable housing units produced and preserved.

2019 2020 2021 2022 2023 2024 Revenue Expense 14,581 236 236 236 236 236 Net Impact 14,581 236 236 236 236 236

Above Figures Shown in 000s of dollars

FTE 2 2 2 2 2 2

Housing Stabilization Program

The recommendation is a new pilot initiative that will initially impact an estimated 15 units of stabilized rental housing. Any property acquired will be resold and program income generated could be used to support future projects. This program will promote tenant stability, affordable, sustainable homeownership and reduced racial disparities in housing.

2019 2020 2021 2022 2023 2024 Revenue Expense 1,500 Net Impact 1,500

Above Figures Shown in 000s of dollars

FTE

Affordable Missing Middle

The recommendation is a new pilot initiative that will facilitate up to three pilot projects that result in an estimated 6-12 affordable housing units on City-owned property. Missing middle housing is the primary type of development that can result in naturally occurring affordable housing (NOAH) and an increase in this development type is needed to meet population growth goals of the City.

2019 2020 2021 2022 2023 2024 Revenue Expense 500 Net Impact 500

Above Figures Shown in 000s of dollars

FTE

Naturally Occurring Affordable Housing (NOAH) Preservation

NOAH properties generally refer to unsubsidized multifamily, Class C rental housing projects that have at least 20% of the units with rents affordable to households with incomes at or below 60% of the Area Median Income (AMI). This recommendation expands access to affordable housing throughout the City, and is a continuation of one-time budget support of existing programs.

2019 2020 2021 2022 2023 2024 Revenue Expense 3,300 Net Impact 3,300

Above Figures Shown in 000s of dollars

FTE

4d Expansion

The 4d Pilot initiative utilizes the State Low Income Rental Classification tax status to preserve NOAH properties that have at least 20% of the units with rents affordable to households with incomes at or below 60% of the Area Median Income (AMI). Funds will be used to provide minimal financial assistance to property owners (payment of application fee to Minnesota Housing and $100/unit not to exceed $1,000 per building), as well as support data analysis on program

• utcomes and equity impacts and

marketing materials.

2019 2020 2021 2022 2023 2024 Revenue Expense 250 250 250 250 250 250 Net Impact 250 250 250 250 250 250

Above Figures Shown in 000s of dollars

FTE

Minneapolis Homes

Minneapolis Homes provides financial assistance to create homeownership housing opportunities, facilitate development of CPED-owned properties and provide long term affordability of

• wnership housing.

The recommendation promotes inclusive and equitable development by expanding the existing program from $750,000 to $5M. This will facilitate development of approximately 80 of the approximately 400 vacant CPED-owned development properties through a request for proposals process in partnership and collaboration with key funders, including including Minnesota Housing, Hennepin County and the Met Council. 2019 2020 2021 2022 2023 2024 Revenue Expense 4,293 243 243 243 243 243 Net Impact 4,293 243 243 243 243 243

Above Figures Shown in 000s of dollars

FTE 2 2 2 2 2 2

Homeownership Opportunity Minneapolis (HOM)

The HOM program expansion increases access to affordable and sustainable homeownership and reduces racial disparities in homeownership rates. This expansion is needed for entry cost assistance to increase from $7,500 to $10,000 for households with incomes at or below 80% AMI to purchase homes. The program is targeted to households participating in financial capacity building programs.

2019 2020 2021 2022 2023 2024 Revenue Expense 196 196 196 196 196 196 Net Impact 196 196 196 196 196 196

Above Figures Shown in 000s of dollars

FTE

Homeowner Rehab Program

The recommendation is for $750,000 in one-time CDBG program income to support the Homeowner Rehab

• Program. The City no longer
• utsources this work; it is

administered by CPED staff. The one-time funding will allow the City to secure additional resources from Minnesota Housing. This leverage will more than double the households served through our program in the coming year from 38 households in 2017 to approximately 80 in 2019.

2019 2020 2021 2022 2023 2024 Revenue Expense 750 Net Impact 750

Above Figures Shown in 000s of dollars

FTE

Homeownership Counseling and Outreach

The program provides administrative support to the Minnesota Homeownership Center (HOC) and its network of homebuyer educators proving service to Minneapolis homeowners and prospective homebuyers. Funds will be used to increase the capacity of homebuyer education programs in the City of Minneapolis to mitigate racial and economic disparities by stabilizing households in homeownership.

2019 2020 2021 2022 2023 2024 Revenue Expense 50 Net Impact 50

Above Figures Shown in 000s of dollars

FTE

Stable Homes, Stable Schools

This recommendation will provide funding for 21 vouchers to be made available to each of the 15 schools that face the worst problems with homelessness, supporting up to 320 families per year. The program will be administered by MPHA and will not require any additional City administrative or FTE capacity, equipment, supplies or IT support.

2019 2020 2021 2022 2023 2024 Revenue Expense 3,350 Net Impact 3,350

Above Figures Shown in 000s of dollars

FTE

Tenant Stability: Tenant Legal Services

This program provides free legal services to low income renters who cannot afford traditional legal services and are living in housing in need of repairs to meet City code standards. Low income renter households in need of this service are disproportionately women and people of color.

2019 2020 2021 2022 2023 2024 Revenue Expense 175 Net Impact 175

Above Figures Shown in 000s of dollars

FTE

Tenant Hotline

The Tenant Hotline focuses its service towards low income renters who cannot afford traditional legal services and are more seriously affected by wrongly withheld security deposits, the prospect of eviction and serious repair issues. Low income renter households in need of this service are disproportionately women and people of color. Somali and Spanish speaking tenant advocates work with these immigrant communities in their native languages.

2019 2020 2021 2022 2023 2024 Revenue Expense 125 Net Impact 125

Above Figures Shown in 000s of dollars

FTE

Eviction Representation Pilot

This is new program that will be administered through a contract or contracts with non-profit legal service providers. It is estimated that this funding will support legal services for 100-125 low income renter households facing eviction, while meeting the City’s goals of preventing displacement and resolving health and safety problems in homes.

2019 2020 2021 2022 2023 2024 Revenue Expense 150 Net Impact 150

Above Figures Shown in 000s of dollars

FTE

Relocate Small Business Support Team

This recommendation ties to the City goal of City that Works and aligns Small Business Support team’s mission and services to be impactful to the growing and diverse business community. The relocation of the team is expected to build off the continuous improvement work that has already been initiated to streamline and simplify processes for the business community.

2019 2020 2021 2022 2023 2024 Revenue 343 343 343 343 343 343 Expense 343 343 343 343 343 343 Net Impact

Above Figures Shown in 000s of dollars

FTE 3 3 3 3 3 3

Great Streets and B-TAP (Business Technical Assistance Program)

Great Streets Gap loans address the real estate funding needs in economically challenged neighborhood commercial districts with higher proportions of residents

• f color and the B-TAP program

serves a high proportion of low income and minority entrepreneurs. CPED seeks one-time funding of Community Development Block Grant (CDBG) program income to allow existing activities to continue.

2019 2020 2021 2022 2023 2024 Revenue Expense 547 Net Impact 547

Above Figures Shown in 000s of dollars

FTE

African American Museum and Center for Racial Healing

The idea for the African American Museum and Center for Racial Healing comes from the community (#futureofe38th). It will be located in the historic heart of the African American community in Minneapolis and could be a home for Mapping Prejudice work. The museum will serve to remind the public of the important role African Americans play in our city and also remind visitors that healing still needs to take place between the City and its African American residents.

2019 2020 2021 2022 2023 2024 Revenue Expense 25 Net Impact 25

Above Figures Shown in 000s of dollars

FTE

MSP TechHire

MSP TechHire is an existing initiative that aligns to the goals and priorities of diversifying the tech workforce. These goals and priorities focus on connecting community residents to work and career opportunities through intense and accelerated training in tech skills. This recommendation reflects the increased need and demand for more tuition support dollars in 2019.

2019 2020 2021 2022 2023 2024 Revenue Expense 100 Net Impact 100

Above Figures Shown in 000s of dollars

FTE

Cedar Riverside Opportunity Center

The Cedar Riverside Opportunity Center is a key driver toward economic inclusion of community residents, both adults and youth. In each of the past two budgeting processes, 2017 and 2018, the center has received

• ne-time funding for program.

2019 2020 2021 2022 2023 2024 Revenue Expense 100 Net Impact 100

Above Figures Shown in 000s of dollars

FTE

800 West Broadway (North Workforce Ctr)

This recommendation supports programming at 800 West Broadway - North Minneapolis Workforce Center that aligns to 2019 goals and priorities of connecting community residents to work and career

• pportunities.

The work of the Center fits within our Place-based strategy

• approach. This Center along

with the Cedar Riverside Opportunity Center, represents specific place-based approaches that address joblessness through collaboration and partnership.

2019 2020 2021 2022 2023 2024 Revenue Expense 75 Net Impact 75

Above Figures Shown in 000s of dollars

FTE

Regulatory Reform

Funding provided under this recommendation will support one additional city planner. This FTE will focus on regulatory reform; implementing the new comprehensive plan and overhauling land use and development regulations and processes. The recommendation envisions

• ngoing regulatory reform that will

extend beyond implementation of the comprehensive plan and could also include evaluation of heritage preservation regulations and guidelines.

2019 2020 2021 2022 2023 2024 Revenue Expense 101 101 101 101 101 101 Net Impact 101 101 101 101 101 101

Above Figures Shown in 000s of dollars

FTE 1 1 1 1 1 1

Discontinue CPED Participation in 01900 Fund

This recommendation moves the expenditure related to two (2) FTEs, and the revenues generated by the work they perform from the Regulatory Services Special Revenue Fund to General Fund. This will increase revenues and expenditures in the General Fund by $300,000, and decrease revenues and expenditures in the Regulatory Services Special Revenue Fund by the same amount.

2019 2020 2021 2022 2023 2024 Revenue

300 300 300 300 300 300

Expense

300 300 300 300 300 300

Net Impact

Above Figures Shown in 000s of dollars

FTE

2 2 2 2 2 2

2019 2020 2021 2022 2023 2024 Revenue

• 300
• 300
• 300
• 300
• 300
• 300

Expense

• 300
• 300
• 300
• 300
• 300
• 300

Net Impact

Above Figures Shown in 000s of dollars

FTE

• 2
• 2
• 2
• 2
• 2
• 2

General Fund Regulatory Services Special Revenue Fund