Minneapolis' affordable housing crisis is neither new nor surprising. As noted in the draft comprehensive plan, the city has lost more than 15,000 housing units that were affordable to households earning 50 percent of the area median income (AMI) since 2000, displacing individuals and families from their homes and communities. This not only harms those who are displaced, but spills over to their neighborhoods and to the city as a whole.
Minneapolis' housing market is at a critical juncture. Without significant, proactive investments and policies, the city will continue to lose affordability, risking the economic and racial diversity we cherish. I was pleased to see significant affordable housing investments in Mayor Jacob Frey's proposed 2019 budget, particularly efforts to preserve the city's affordable-housing stock, like the proposed $3.4 million for the preservation of naturally occurring affordable housing. Minneapolis cannot continue to lose housing that is already affordable — it is impossible to rebuild those unsubsidized homes at affordable rents.
I support the wide range of investments Frey has proposed, and appreciate both his and the City Council's attention to the production and preservation of affordable housing, and protections for renters. However, our city's housing needs will continue beyond the many one-time investments proposed for this budget cycle, and we must plan accordingly. A shrinking affordable-housing stock, projected population growth and growing numbers of households struggling to afford homes all underscore the need for dedicated funding streams to increase the resources available to support the preservation and production of affordable housing. Last year, Minneapolis developed a long-term financing plan for its parks. Now it's time to do the same for housing.
Tim Thompson, Minneapolis
• • •
The magnitude of the affordable-housing crisis requires a variety of solutions — from strategies to producing more housing to preserving the affordable housing we already have. Our policy solutions must consider the full continuum of housing, from preventing and ending homelessness to creating affordable homeownership opportunities.
In Minneapolis, there are nearly 500 vacant lots owned by either the city or by Hennepin County, while the inventory of homes selling for less than $250,000 has decreased by more than 50 percent since 2014. This limited entry-level stock means that many families who are otherwise prepared for homeownership continue to occupy rental units in public housing, low-income housing tax credit projects and naturally occurring affordable housing. Statewide, according to Minnesota Housing, there are 27,000 households that are income-qualified for homeownership but currently occupy rental units affordable to low-income residents. There are 64,000 households of color that similarly could afford homeownership yet continue to rent.
Assisting just some of these families as they transition into homeownership yields two important benefits. First, it frees up some of our most affordable rental units for our lowest-income neighbors. Second, it allows us to narrow the racial homeownership gap, which is the second-largest in the nation.
Make Homes Happen, a Minneapolis grass-roots coalition, is working to establish a local, dedicated, long-term source of funding that would support affordable-housing activities along the continuum, so we can ensure that the units meant to serve the lowest-income households do so.