Minneapolis Homes: Development Assistance RFP Community Planning - PowerPoint PPT Presentation

CITY OF MINNEAPOLIS Minneapolis Homes: Development Assistance RFP Community Planning and Economic Development February 2018 1

November 20, 2015 City Council Action • Create the Infill Housing Work Group to: • Identify strategies to market, sell, and develop government-owned lots in Minneapolis • Consider strategies to increase affordable housing, support minority contractors and developers, and build and keep wealth in the communities in which vacant lots are located. 2

February 10, 2017 City Council Action • Programmatic goals: • Preserve affordable homeownership opportunities throughout Minneapolis • Encourage new housing development on city-owned vacant lots • Improve equitable outcomes in construction contracting and homeownership 3

February 10, 2017 City Council Action • Established Development Assistance program: • Project gap assistance up to $70,000 for the difference between a project’s cost and its appraised value upon completion • Homebuyer down payment assistance of $5,000, due on sale, or $25,000 for Long Term Affordable properties. • Available city-wide, lots in Northeast and South must be long term affordable • Targeting households at or below 80% AMI, with flexibility to go up to 115% AMI in North Minneapolis • Established criteria for selection of proposals based on Equity, Efficiency/Capacity, Design, and Impact 4

Minneapolis Homes: Development Assistance RFP Criteria • Equity (38 pts) – demographics of households served and proposed to be served, utilization of Section 3 and Small and Underutilized Businesses, majority women or minority ownership or board positions, commitment to partnerships with workforce development programs • Design (22 pts) – implementing optional Enterprise Green Communities criteria, incorporating accessibility features through visitable design or universal design • Efficiency and Capacity (35 pts) – experience developing new construction homes, previous experience working on City-funded projects, documentation of financing or the ability to secure financing • Impact (13 pts) – proximity to other funded CPED projects, community-supported cluster investment strategies 5

February 10 Council Action Goals Goal 1: Preserve affordable homeownership opportunities throughout Minneapolis • New construction opportunities created by Minneapolis Homes are the most affordable new construction ownership opportunities in the City • Average sale price proposed in Round 2 Minneapolis Homes: $235,000 • Lots in Northeast and South restricted for Long Term Affordability to homebuyers at or below 80% AMI • In addition to assistance through Minneapolis Homes, homebuyers can access a range of $5,000 - $22,000 in down payment assistance through non-City sources 6

Green Homes North – who was served The Green Homes North program also had a 115% AMI household income limit $98,700 in 2016 Total Homes Sold as of December 31, 2017: 63 Average Household Income: Households of Color: Average Household Size: $50,933 (56% of AMI) 63% 3.3 Race and Ethnicity of Green Homes North Purchasers Asian (8) 6% 13% Black/African-American (22) 30% Hispanic (10) 35% White/Caucasian, non-Hispanic (19) 16% Refused/No Data (4)

February 10 Council Action Goals Goal 2: Encourage new housing development on city-owned vacant lots Homes Funded in 2017 Homes Proposed in 2018 Minneapolis Homes Development Assistance Program 21 Homes* 25 Homes** *Two homes originally proposed for funding did not require development assistance project gap funding. 8 ** Staff plans to do a second RFP later in 2018

February 10 Council Action Goals Goal 3: Improve equitable outcomes in construction contracting and homeownership • Four developers are minority owned and three non-profits have 51% or more of board member positions occupied by women or minorities • Two developers are partnering with workforce development groups • All units are Energy STAR certified and implementing additional green criteria was encouraged • Scored developers on having strong records of affirmative marketing to racial minorities, households below 50% AMI, and households with disabilities 9

Minneapolis Homes Development Assistance Timeline and Funding Date Action October 27, 2017 Release of Minneapolis Homes Development Assistance RFP December, 2017 Staff Recommendation Finalized February 14, 2018 Projected Housing Policy and Development Committee Approval March 2, 2018 Projected Mayoral Approval and Signature August 29, 2018 Projected Deadline for Developer Acquire Lots August 29, 2019 Projected Deadline to Complete and Sell Homes 10

Minneapolis Homes: Recommended Properties 11

Build Wealth MN, Inc. CONCEPT SUMMARY: • 4 Bedroom, 3 Bath • 2,400 square feet • 2 car garage Estimated Sale Price: $230,000 • 1130 James Ave N • 1216 James Ave N 12

City of Lakes Community Land Trust (CLCLT) CONCEPT SUMMARY: • 3 Bedroom, 1.5 Bath • 1,400 square feet • 2 car garage • 3825 Bloomington Ave S Estimated Sale Price: $245,000 • 3029 Clinton Ave S CONCEPT SUMMARY: • 2 Bedroom, 1 Bath • 900 square feet • 2 car garage Estimated Sale Price: $235,000 • 1126 6 th St NE • 4108 Standish Ave 13

Construction Basics CONCEPT SUMMARY: • 3 Bedroom, 3 Bath • 1,536 square feet • 2 car garage Estimated Sale Price: $204,896 • 2021 James Ave N 14

eStore Masters (United Developers) CONCEPT SUMMARY: • 3 Bedroom, 3 Bath • 1,686 square feet • 2 car garage Estimated Sale Price: $235,000 • 4800 Colfax Ave N 15

Greater Metropolitan Housing Corporation (GMHC) CONCEPT SUMMARY: • 3 Bedroom, 2.5 Bath • 1,728 square feet • 2 car garage Estimated Sale Price: $240,000 • 2700 Sheridan Ave N CONCEPT SUMMARY: • 3 Bedroom, 2.5 Bath • 1,768 square feet • 2 car garage Estimated Sale Price: $240,000 • 3009 Queen Ave N • 3450 Humboldt Ave N 16

Ibiza LLC CONCEPT SUMMARY: • 4 Bedroom, 3 Bath • 2,300 square feet • 2 car garage Estimated Sale Price: $220,000-$235,000 • 2615 Thomas Ave N • 2014 Sheridan Ave N • 3241 Russell Ave N 17

Magnolia Homes CONCEPT SUMMARY: • 3 Bedroom, 2.5 Bath • 1,742 square feet • 2 car garage Estimated Sale Price: $270,000 • 914 42 nd Ave N 18

PRG, Inc. CONCEPT SUMMARY: • 3 Bedroom, 1.5 Bath • 1,856 square feet • 2 car garage Estimated Sale Price: $195,00 (North) • 2534 James Ave N $250,000 (South) • 2912 16 th Ave S CONCEPT SUMMARY: • 3 Bedroom, 1.5 Bath • 1,856 square feet • 2 car garage Estimated Sale Price: $195,00 (North) • 2514 James Ave N $250,000 (South) • 2412 17 th Ave S 19

Sm+RT Homes CONCEPT SUMMARY: • 3 Bedroom, 2.5 Bath • 1,456 square feet • 2 car garage Estimated Sale Price: $215,000 • 2018 Sheridan Ave N • 2027 Russell Ave N 20

Twin Cities Habitat for Humanity CONCEPT SUMMARY: • 4 Bedroom, 2 Bath • 1,545 square feet • 2 car garage Estimated Sale Price: $205,000 • 2640 Russell Ave N CONCEPT SUMMARY: • 4 Bedroom, 2 Bath • 1,643 square feet • 2 car garage Estimated Sale Price: $175,000 • 2707 Russell Ave N 21

Twin Cities Habitat for Humanity CONCEPT SUMMARY: • 5 Bedroom, 2 Bath • 1,733 square feet • 2 car garage Estimated Sale Price: $200,000 • 3000 Russell Ave N CONCEPT SUMMARY: • 4 Bedroom, 2 Bath • 1,884 square feet • 2 car garage Estimated Sale Price: $195,000 • 2907 Knox Ave N 22