The City Council has approved an additional $10M of financing for Minneapolis Homes programs on top of $14M approved in 2021. Collectively, Minneapolis Homes: Financing investments will create 190 affordable homeownership units in Minneapolis, 142 new constructions, 48 acquisitions and rehabilitations.
“Housing is a right, and affordable housing is a top priority to better serve the people of Minneapolis,” said Mayor Jacob Frey. “That’s why we continue to invest in the Minneapolis Homes program, working in partnership with community members and our partners at all levels of government to more justly create access to the wealth building opportunity of homeownership. This program is critical in ensuring we reduce racial disparities in Minneapolis homeownership – especially at a time when home prices have skyrocketed. I’m grateful to our City partners in the CPED department as well as our many community partners who continue to show up and do this good work for our residents.”
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 program is instrumental in returning vacant properties to reproductive uses that strengthen neighborhoods, provide affordable homeownership options, and increase the City’s tax base. It is a key part of the City’s strategy of eliminating disparities including the worst racial homeownership disparity in the nation.
Through Minneapolis Homes: Financing:
- 70% of homebuyers through Minneapolis Homes are Black, Indigenous, People of Color (BIPOC) and average income of households served is approximately $60,000.
- 60% 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, a City of Minneapolis perpetually affordable model co-created with community members in 2020, or a shared equity co-operative. 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
- 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.
- 28 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.
Program Highlights include:
- 3522 Morgan Ave N is one of several homes developed by eStoreMasters LLC, which is owned and operated by Adeyinka Badewa. Both of Mr. Badewa’s companies United Developers LLC and eStoreMasters LLC were founded in 2008 and have rehabilitated or constructed approximately 100 homes through partnerships with the City of Brooklyn Park, City of Minneapolis, and Land Bank Twin Cities. Mr. Badewa is “committed to marketing to all people, particularly people of color, disabled, and/or low-income households that experience disparities in homeownership rates.” 3522 Morgan Ave N is a three-bedroom, two-bath 1,688 square foot home that is listed for $334,900, home purchasers must have a household income below 80% of area median income, or approximately $90,000 a year.
- The Harrison Townhomes is a perpetually affordable housing project that Twin Cities Habitat for Humanity and City of Lakes Community Land Trust are partnering to construct. The 17-unit development will have affordable sale prices ranging from $100,000 to $200,000 and a majority will be sold to home purchasers with household incomes below 60% of area median income, or approximately $60,000 a year. Homes will be enrolled in the CIty of Lakes Community Land Trust home sale model, that retains affordability for each purchaser of a home in perpetuity.
Homes are available for purchase starting in 2022-24; the next application process will begin this winter.
Minneapolis Homes is an umbrella program that has products to access, create, and sustain affordable homeownership in Minneapolis. 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 and to sustain homeownership through home improvement and foreclosure prevention. Minneapolis Homes leverages financial resources these partners, including $2.3M from the State of Minnesota, $16.6M of federal resources including HOME, CDBG, and ARPA, $270K from Hennepin County, and $4.9M from City resources to make these projects occur, along with private capital from area banks and credit unions.