Proposed Amended and Restated Unified Housing Policy of the City of Minneapolis
The City of Minneapolis is preparing language for an “Amended and Restated Unified Housing Policy of the City of Minneapolis.” A summary of the proposed substantive changes to the policy are as follows:
- Expressly stating affirmative fair housing marketing requirements and source of income nondiscrimination per City Ordinance.
- Clarification that the requirements of the Policy apply to not only to residential projects of 10 or more units that are financially assisted by the City, but also those projects that are developed on City-owned property. City-owned property in minority or poverty impacted areas would be exempt from this requirement.
- Clarification that unless stated otherwise by specific program requirements, all City-assisted new construction projects will be subject to a minimum of a 30-year affordability period.
- Change the affordability requirement for ownership projects. Currently, the Policy requirement that 20% of the units are affordable at 60% AMI applies to both rental and ownership projects. This requirement is not feasible for multifamily ownership projects. A requirement of 10% of the units at 80% AMI is proposed.
- Clarification that the City's policy goal of preservation includes the preservation of Naturally Occurring Affordable Housing.
The proposed new policy language can be found in its entirety here.
Public comments are being accepted through 4pm on Monday, December 11th. Comments should be submitted in writing or by email to:
City of Minneapolis - Community Planning and Economic Development
105 5th Ave S - 200
Minneapolis, MN 55401
AFFORDABLE HOUSING RESOLUTION OF THE CITY OF MINNEAPOLIS
Rescinding Previously Adopted City of Minneapolis Unified Housing Policies and Adopting a Restated Unified City of Minneapolis Housing Policy.
Whereas, the City of Minneapolis desires to clarify and streamline existing City housing policies by adopting a unified document that is a clear and coherent statement of the current housing policies of the City of Minneapolis without reference to previously amended and deleted language; and
Now, therefore, Be It Resolved by The City Council of The City of Minneapolis:
That the City of Minneapolis hereby rescinds all previous versions of the City of Minneapolis Unified Housing Policy and adopts the following Unified City of Minneapolis Housing Policy:
Unified City of Minneapolis Housing Policy
1. Consistency with The Minneapolis Plan and General Principles
Minneapolis housing policy shall be consistent with The Minneapolis Plan, goals 3.1 through 3.83.
2. Affordable Housing
The City of Minneapolis has launched an “Affordable Housing Initiative.” The City of Minneapolis shall have as a clearly stated goal, consistent with The Minneapolis Plan, to grow the population and to have no net loss of housing across all income levels. The City policy will be positive gain on affordable housing units.
Each year the City will create more units affordable at 30-60% of Area Median Income (AMI) through new construction/positive conversion than the number of habitable units affordable to 30-60% of AMI that are demolished as a result of City sponsored projects.
Funding for housing programs serving those above 60% of AMI shall continue and those programs will remain a vital part of the City’s housing policy.
Except for projects funded with the City’s Affordable Housing Trust Fund (AHTF), at least twenty percent (20%) of the units of each City-assisted housing project of ten or more units (whether rental or ownership) will be affordable to and occupied by households earning sixty percent (60%) or less of the Area Median Income (AMI). For projects with ten or more units that have been awarded funds from the AHTF, at least twenty percent (20%) of the units will be affordable to and occupied by households earning fifty percent (50%) or less of the AMI. The affordability period for City-assisted projects subject to these requirements is a period equal to the greater of (a) the term of the assistance, (b) the period of affordability required by the funding source or (c) fifteen (15) years. For the purposes of this provision, City-assisted shall mean financial assistance provided by the City in the form of tax increment financing, condemnation, land buy downs, issuance of bonds to finance the project, pass-through funding for purposes other than pollution remediation and other forms of direct subsidy. Pass-through funding for pollution remediation alone will not trigger the Affordable Housing Policy requirements. Any specific projects requesting exemptions to this requirement must seek City Council approval on the basis of alternative public purpose.
The City will have a coordinated housing and economic development strategy. New affordable housing will be targeted for designated growth areas and commercial and transit corridors that can benefit from and support increased housing density.
The City will focus on linking incentives to housing opportunities in proximity to jobs and transit.
No City funds or resources shall be used for operating subsidies and/or rental assistance for any units or projects initiated or created under this policy.
3. SRO Replacement
The City of Minneapolis prohibits the demolition/condemnation/elimination of SRO-type housing for any project receiving City assistance in the City of Minneapolis, as defined above, unless demolition/condemnation is unavoidable, in which case replacement of such units will be required as part of the project finance plan.
4. Senior Housing
The City has the following goals and objectives:
- Support development of affordable and mixed-income senior rental housing in all quadrants of Minneapolis. Senior rental housing may include independent rental, congregate, and/or assisted living projects;
- Seek opportunities for public and private partnerships;
- Seek new financing options outside of existing affordable housing resources;
- Identify appropriate sites for senior rental housing development based on market information, not solely on opportunity. Locate senior developments close to transit, retail and services;
- Ensure quality management and supportive services;
- Encourage high quality design and amenities.
4a. Senior Housing Initiative
The City of Minneapolis will experience a need for more senior housing options over the next generation. This initiative will help make Minneapolis a fully generational city by providing and focusing on senior housing needs and options so that, as our population ages, senior residents can maintain a household in the city and not be forced to find suitable living arrangements elsewhere. To achieve this, the Minneapolis City Council adopts this Senior Housing Initiative and incorporates it as part of the overall Unified Affordable Housing Policy.
The Senior Housing Initiative will enhance and create affordable housing options in each ward of the City of Minneapolis over the next 12 years. To accomplish this goal, the Council adopts the following goals and objectives which will be incorporated into the CPED Senior Housing Initiative:
- Partner with the development community to create one new senior housing project of at least 35 units in each ward of the city by 2025.
- Set aside 30% of the annual Affordable Housing Trust Fund budget for senior rental housing financing.
- Set aside 25% of the annual Housing Revenue Bond Allocation for senior housing.
- City Council will make it a goal to budget $1.5 million annually for an owner occupied rehab program of which $1 million will be set-aside for senior households.
- CPED will report out on the number of senior housing units created or enhanced as part of the annual Affordable Housing Initiative Report.
The City Council directs CPED to develop strategies and procedures to implement the Senior Housing Initiative.
5. Preservation/Stabilization of Federally Subsidized Low Income Housing
The preservation and stabilization of federally (HUD) subsidized rental housing that is in danger of converting to market-rate housing, having subsidies expire, or is deteriorating due to poor management, is a priority for the City. The highest priority is the preservation of subsidized housing for families with children (2+ bedroom units). Federally subsidized housing for singles (efficiency and 1 bedroom units) should only be preserved to the extent there are federal funds available, with the exception of special needs populations.
6. Homeless Housing
We must address the affordable housing crisis if we ever hope to alleviate homelessness in Hennepin County. The major problem underlying shelter use is the lack of affordable permanent and supportive housing. The metropolitan region is experiencing a severe shortage of affordable housing which is exacerbating homelessness in our community and there is a need for a metropolitan-wide response to issues of homelessness.
The City of Minneapolis will be an active partner in the City-County Homeless Task Force to address the housing needs of the homeless.
Last updated Nov 14, 2017