Minneapolis Homes: Development Assistance (MHDA) RFP & Passive - - PowerPoint PPT Presentation

CITY OF MINNEAPOLIS

Minneapolis Homes:

Development Assistance (MHDA) RFP & Passive Housing Funding Pilot

Housing Policy and Development Committee

May 2019

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CITY OF MINNEAPOLIS

• 1. Minneapolis Homes Development

Assistance Program (MHDA)

May 2019

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MHDA RFP Criteria

• Equity – demographics of households served and

proposed to be served, utilization of Section 3 and Small and Underutilized Businesses, majority women or minority

• wnership or board positions, commitment to

partnerships with workforce development programs

• Efficiency and Capacity – experience developing new

construction homes, previous experience working on City- funded projects, documentation of financing or the ability to secure financing

• Design – implementing optional Enterprise Green

Communities criteria, incorporating accessibility features through universal design, providing 5 or more bedrooms

• Impact – proximity to other funded CPED projects,

community-supported cluster investment strategies

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MHDA Program Goals

• Most affordable new construction ownership opportunities in

the City

• Increase in Affordability Assistance ensures homes remain

attainable to target buyers

• Lots in Northeast and South reserved for Long Term Affordability

to homebuyers at or below 80% AMI

• Average household served:
• $56,353 (approx. 60% of Area Median Income)
• 68% households of color or indigenous households
• 3.3 people

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Goal 1: Preserve affordable homeownership opportunities throughout Minneapolis

Minneapolis Homes Development Assistance Program

Homes Funded in 2017 Homes Funded in 2018 Homes Funded in 2019 21 Homes* 25 Homes 34 Homes Total Homes Funded 2017-2019 80 Homes**

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MHDA Program Goals

Goal 2: Encourage new housing development on City-owned vacant lots

*Two homes originally proposed for funding did not require development assistance project gap funding. **This number will increase with Round 4 RFP

MHDA Program Goals

Goal 3: Improve equitable outcomes in construction contracting and homeownership

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9 Developers Participated in MHDA Round 3:

• 4 are non-profit developers
• 2 are led by people of color or women
• 2 are partnering with workforce development groups
• 5 are for-profit developers
• 4 developers are owned by people of color
• 1 developer is women owned
• Staff scored developers on demographics of households

served, proposed to be served, marketing and outreach plan, utilization of Section 3 and Small and Underutilized Businesses

CITY OF MINNEAPOLIS

• 2. Passive Housing Funding Pilot

May 2019

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Passive Housing Funding Pilot

• Developed through Partnership with Office of Sustainability and

CPED

• Provides up to 10% of total development cost as additional

project gap funding

• Encourages homes developed as either Passive Homes or

Department of Energy Zero Energy Ready Homes

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• Passive House Standard: 5 main

principles

• Continuous insulation
• Airtightness
• Thermal bridging
• High performance windows
• Mechanical heat recovery

Passive Housing Funding Pilot

• Benefits of Passive House
• High air quality levels
• Even temperature distribution
• Low noise levels
• Reduces heating and cooling

costs and energy use by up to 80%

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