Long Term Affordable Housing Policy Study
The City of Minneapolis is conducting a study to inform the expansion of capacity for long term affordability ownership housing (LTA).
LTA housing is currently defined by the City Council as housing that is affordable for a minimum 30-year period to households below 80% of area median income ($80,000 in 2019 for a family of four). LTA models typically fund the difference between what a homebuyer can afford as monthly payments on a first mortgage and a home’s sale price. LTA models typically include an equity sharing provision to ensure that when the first homebuyer sells the home, it is affordable for the next homebuyer. Current LTA models in the City of Minneapolis include Twin Cities Habitat for Humanity and City of Lakes Community Land Trust (CLCLT).
January 3, 2017: an Infill Housing Working Group of neighborhood leaders, housing developers, non-profit organizations, City staff, and funders established a recommendation to expand the City of Minneapolis focus on long term affordability ownership housing.
February 17, 2017: the City launched a Request for Qualifications process for LTA providers.
- August 4, 2017: CLCLT approved as LTA provider
- February 23, 2018: Habitat approved as LTA provider
August 2, 2017: the City conducted a review of how other government agencies ensure long term affordability and presented its findings to stakeholders.
Study Content and Timeline
Grounded Solutions Network was selected through a request for proposals process in May 2019. Key elements to be included in the study are:
- Literature review about trends for housing affordability
- Market study to clarify options for ensuring affordability in the Minneapolis housing market
- Community engagement to gain input about options to build LTA capacity in Minneapolis
- Drafting a recommendation for the City Council to consider for expanding LTA capacity in Minneapolis
|June 2019||Kickoff work and begin market study|
|Site Visit #1: July 17 and 18, 2019||Community meetings to share information about market context, clarify options available to sustain affordable ownership housing through LTA models, and gain community input and feedback|
|July – August 2019||Research LTA models and narrow options for consideration|
|Site Visit #2: October 2019 (dates TBD)||Community meetings to share information about resale formulas and gain community input and feedback|
|October – November 2019||Finalize recommendation|
|Site Visit #3: December 2019 (dates TBD)||Presentation to City Council|
Last updated Aug 20, 2019