The City Council recently approved $14M of financing for Minneapolis Homes programs. Minneapolis Homes: Financing investments will create 104 affordable homeownership units in Minneapolis, 62 new construction, 42 acquisition and rehabilitation.
After a year of engagement, including 24 community meetings, the City adopted program changes in 2020. These changes make homes more deeply affordable and create more units in multi-unit projects than single family homes. The average home sale price in Minneapolis is $404,491. In contrast, homes financed through the program have affordable sale prices ranging from $170,000 to $275,000 and are some of the most affordable new construction homes available in the Minneapolis market.
Through Minneapolis Homes: Financing:
- 70% of homes created will be perpetually affordable (designed to ensure affordability forever in most market conditions) through a shared equity homeownership model, such as City of Lakes Community Land Trust or a City of Minneapolis perpetually affordable model co-created with community members in 2020. In exchange for the home purchase discount, homes are enrolled in an equity sharing home sale model that strives to make homeownership accessible in perpetuity for each purchaser, learn more in this report.
- 70% of homebuyers through Minneapolis Homes are Black, Indigenous, People of Color (BIPOC) and average income of households served is approximately $60,000.
- Current or former residents dating back to 2007 of certain neighborhoods in the Near North, Powderhorn, Northeast, Phillips, and Camden communities that were most impacted by redlining and the more recent 2008-2012 foreclosure crisis will have a preference for purchase of half of the homes created through a newly adopted preference policy that seeks to disrupt displacement trends.
- 20 of the homes financed will be built to a net zero or passive housing standard, meaning that the homes will use innovative design to tackle climate change by reducing global warming.
Paragon Designs recently completed the first container home in Minneapolis, which was designed to Department of Energy Zero Energy Ready Home standard, through investments from the Minneapolis Homes program.
Homes are available for purchase starting in 2022; the next application process will begin in fall 2021.
Minneapolis Homes is an umbrella program that has products to access, create, and sustain affordable homeownership in Minneapolis. Funding sources leveraged include federal HOME, CDBG, and American Rescue Plan, state Minnesota Housing, local City of Minneapolis funds, along with private capital from area banks. Affordable homeownership units created through the Minneapolis Homes: Financing program are complemented by investments to improve homebuyer access through homebuyer education and down payment assistance through Homeownership Opportunity Minneapolis and to sustain homeownership through home improvement funding offered by the Owner Occupied Rehab team.