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 1

CITY OF MINNEAPOLIS 1. Minneapolis Homes Development Assistance Program (MHDA) May 2019 2

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 ownership 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 3

MHDA Program Goals Goal 1: Preserve affordable homeownership opportunities throughout Minneapolis • 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 4

MHDA Program Goals Goal 2: Encourage new housing development on City-owned vacant lots Homes Funded Homes Funded Homes Funded in in 2017 in 2018 2019 Minneapolis Homes Development 21 Homes* 25 Homes 34 Homes Assistance Program Total Homes Funded 2017-2019 80 Homes** *Two homes originally proposed for funding did not require development assistance project gap funding. 5 **This number will increase with Round 4 RFP

MHDA Program Goals Goal 3: Improve equitable outcomes in construction contracting and homeownership 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 6

CITY OF MINNEAPOLIS 2. Passive Housing Funding Pilot May 2019 7

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 • Passive House Standard: 5 main principles • Continuous insulation • Airtightness • Thermal bridging • High performance windows • Mechanical heat recovery 8

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% 9

Qu Ques estion ons ? 10