Minnea eapol olis Ho Homes es Vision on Aligning Homeownership - - PowerPoint PPT Presentation

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Minnea eapol olis Ho Homes es Vision on Aligning Homeownership - - PowerPoint PPT Presentation

Dec 08, 2023 30 likes •163 views

CITY OF MINNEAPOLIS Minnea eapol olis Ho Homes es Vision on Aligning Homeownership Products with Minneapolis 2040 7/9/2020 Outline 1. Racial Disparities in Homeownership 2. Recommendation highlights - Reserve all residential city-owned

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CITY OF MINNEAPOLIS

Minnea eapol

  • lis Ho

Homes es Vision

  • n

7/9/2020

Aligning Homeownership Products with Minneapolis 2040

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SLIDE 2

Outline

  • 1. Racial Disparities in Homeownership
  • 2. Recommendation highlights
  • Reserve all residential city-owned land for affordable

housing

  • Serve households below 80% AMI with all homebuyer

programs

  • Strengthen commitment for perpetual affordable

housing

  • Improve access for resident-led and BIPOCI developers
  • 3. Timeline and outcomes

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What is Minneapolis Homes?

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Umbrella name for City of Minneapolis-sponsored scattered site housing products. Homebuyer Support

  • Homebuyer education and homebuyer capacity building
  • Down Payment Assistance
  • Home Ownership Opportunity

Minneapolis (HOM)

  • Grow North

Property

  • Minneapolis Homes BUILD/REHAB

Financing

  • Housing Production
  • Minneapolis Homes Development Assistance (MHDA)
  • Home Ownership Works (HOW)
  • Missing Middle Pilot
  • Minneapolis Homes BUILD Homebuyer Incentive
  • Home Improvement Loans
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City Policies

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Goals and Values

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Eliminating Racial Disparities in Ownership

  • Eliminating racial disparities in ownership…
  • is an important component in reducing

involuntary displacement

  • means serving 12,948 BIPOC households

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57% 19% 21% 27% 32% 37% 38% 8,287 renters 36% 423 renters 30% 2,281 renters 25% 935 renters 20% 1,022 renters

WHITE BLACK INDIGENOUS HISPANIC TWO OR MORE ASIAN

OWNERSHIP DISPARITY BY RACIAL GROUP IN MINNEAPOLIS, 2014-18

Ownership % Renter %

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Community engagement themes

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  • Leverage City land for broader goals
  • Serve lower income households
  • Disrupt displacement trends
  • Simplify program access
  • Encourage community-led development
  • Prioritize perpetual affordable housing
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Minneapolis Homes recommendations

Homebuyer Education

  • Continue support of homeownership counseling and

homeownership capacity building

  • Focus on culturally-specific outreach
  • Improve options for homebuyer education for 2-4 unit properties

Down payment assistance

  • Eliminate 81-115% area median income (AMI) tier
  • Continue funding 80% AMI and below
  • Discontinue Grow North pilot due to limited resources

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Minneapolis Homes recommendations

Property

  • Reserve all City-owned

residential land for affordable housing serving households below 80% AMI

  • Additionally reserve land in

Northeast, South, downtown for perpetual affordable housing

  • Stop accepting offers for

unfunded property effective August 31, 2020

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Minneapolis Homes recommendations

Financing

  • Eliminate 81-115% AMI bracket across all programs and

provide sufficient subsidy to create affordable ownership units that serve three income tiers: 80%, 60%, 40%

  • Diversify units created for a city-wide strategy
  • Financing privately-owned properties
  • Acquisition and/or rehabilitation of existing units
  • Occupied units that stabilize existing occupants eligible
  • 1-20 unit development

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Minneapolis Homes recommendations

Financing

  • Consolidate programs into Minneapolis Homes: Financing
  • Accessible application process
  • Allow full subsidy through program and encourage leverage
  • More options for perpetual affordable housing (PAH)
  • Create a city-sponsored PAH model using a 2% fixed rate formula
  • Continue support of City of Lakes Community Land Trust; open to new

models

Timeline

  • Select PAH administrators Q3 2020
  • Notice of Funding Availability for development proposals Q4 2020
  • Construction 2021
  • Property sales 2022

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Development options

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Homeownership Project North Minneapolis (Near North and Camden Communities) Recapture (-15% discount) City-owned property Perpetual Affordable (+20% discount) City-owned or privately-owned property City-owned land or financing (less than 20 units) City of Lakes Community Land Trust model New model approved by City City 2% fixed rate model Inclusionary Zoning (more than 20 units) All of Minneapolis

Eligible activities: Acquisition, Rehabilitation, New Construction, Stabilization Homebuyer or community-led projects can access through qualified developer partnerships. Perpetual affordable projects possible through partnerships with approved models.

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Policy and guidelines evaluation in 2024

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Expected outcomes by 2023:

  • Perpetual affordable housing rate

doubles to 60% of financed units

  • BIPOCI household service rate

continues at 70% and average household income served is 60% AMI

  • Community-led and/or BIPOCI-led

developers represents 50% of projects

  • Racial disparity rate in homeownership

is reduced by at least 3%

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Questions and Feedback

Roxanne Young Kimball Roxanne.Kimball@minneapolismn.gov Minneapolis Homes team mplshomes@minneapolismn.gov

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