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From YouTube: April 18, 2018 Housing Policy & Development Committee
Description
Minneapolis Housing Policy & Development Committee Meeting
A
Good
afternoon,
I'll
call
to
order
our
regularly
scheduled
meeting
of
the
housing
policy
and
Development
Committee
I'm
cam
Gordon
I'm,
chair
of
the
committee
and
I'm
joined
by
councilmembers
Goodman
publicist
and
trader
more
a
quorum
of
the
committee,
and
we
can
conduct
our
business
there's
just
two
items
before
us
today.
Well,
the
first
is
a
consent
item
and
the
second
is
discussion
items.
So
I'll
move
the
consent
item
first
and
if
anybody
wants
to
discuss
it
on
the
committee,
we
can
do
that.
A
A
C
C
We
are
here
to
adopt
a
form,
participation,
agreement
and
declaration
of
restrictive
covenants
and
delegate
authority
to
authorize
and
execute
the
participation
agreements
to
the
city's
housing
of
director
of
housing
policy
and
development.
We
do
have
one
minor
to
to
the
program
documentation
which
has
been
distributed
to
you,
based
on
recent
feedback
that
we've
done
I'll
go
through
the
details
of
the
change
as
I
present
the
program
naturally-occurring.
C
A
portable
housing
generally
refers
to
unsubsidized
multifamily
rental
housing
projects
that
have
at
least
20%
of
the
units
with
rents,
affordable
to
households
with
incomes
at
or
below.
Sixty
percent
of
the
area
median
income
rents
and
these
NOAA
units
tend
to
average
between
six
hundred
and
twelve
hundred
dollars.
A
month.
The
city
of
Minneapolis
accounts
for
approximately
23%
of
the
naturally
occurring
affordable
housing
units
in
the
seven-county
metropolitan
area,
or
about
thirty
eight
thousand
units
preservation
of
naturally
occurring.
C
Affordable
housing
has
become
a
critical
issue,
given
the
growing
shortage
of
affordable
housing
in
the
metro
area
with
metro
area
rental
vacancy
rates
at
about
2.7
percent,
naturally
occurring
affordable,
housing
properties
have
become
progressively
attractive
to
local
and
national
speculators.
Intent
on
maximizing
cash
flow
through
increasingly
higher
rents
in
general,
naturally
occurring
affordable
housing
properties
tend
to
be
classy
properties,
which
is
a
designation
in
the
commercial
real
estate.
Community
Class
C
properties
are
typically
older,
offer
no
amenities
and
are
not
produced
in
the
marketplace.
C
Once
a
Class
C
property
is
improved
to
Class
B
or
torn
down
its
lost
forever.
A
report
from
the
Minnesota
Housing
Partnership
using
co-star
data
shows
that
the
average
rent
in
Class
C
buildings
is
49
percent
below
the
average
rent
for
Class
B
buildings.
In
other
words,
there
is
strong
pressure
to
improve
the
finishes
and
amenities
in
these
buildings
and
charged
Class
B
rents,
which
are
unaffordable
to
families
whose
incomes
are
at
or
below
60%.
Ami.
C
In
Minneapolis,
approximately
53
percent
of
residents
live
in
rental
housing
and
about
half
of
them
are
considered
to
be
rent
burden
or
cost
burdened,
meaning
they
spend
more
than
30%
of
their
income
on
rent,
despite
the
tens
of
millions
of
dollars
invested
in
affordable
housing
production
and
preservation
in
the
subsidized
market.
Today,
there
are
about
10,000
fewer
rental
house
units
affordable
to
households
with
incomes
at
or
below
50%
of
the
area
median
income
compared
to
2000.
This
is
largely
a
result
of
naturally
occurring
affordable
housing
properties,
transitioning
to
higher
rent
properties.
C
Currently,
subsidized
affordable
housing
can
apply
to
Minnesota
Housing
Finance
Agency
for
low
rent,
low
income,
rent
classification
status,
lurk
otherwise
known
as
4d
status.
This
tax
classic
classification
results
in
a
40%
reduction
in
property
taxes
on
restricted
units
to
qualify
for
the
preferred
tax
status.
The
property
must
be
subject
to
a
recorded
document
due
to
financial
assistance
from
a
unit
of
federal
state
or
local
government
that
restricts
at
least
20%
of
the
units
to
be
affordable
and
occupied
by
households
at
or
below.
60%
of
the
am
a
staff
proposes.
C
So
here
I'd
like
to
point
out
the
change
we
made.
We
we
made
the
change
of
requiring
the
energy
audits
to
encouraging
the
energy
audits,
because
staff
was
not
able
to
finalize
the
details
of
the
subsidy
package
for
the
energy
efficiency
work
due
to
an
extremely
tight
timeframe
of
the
40
application
turnaround.
We
did
not
want
to
force
potential
participants
to
commit
to
something
that
wasn't
clearly
defined.
However,
we
do
believe
this
type
of
work
can
be
beneficial
to
both
owners
and
tenants.
C
D
You
mr.
chair
I
know
well,
first
of
all,
I
want
to
thank
councilmember
Goodman
for
all
of
her
leadership
on
this
issue
and
I
just
had
a
couple
questions
about
specific
to
the
background
of
the
program
at
the
state.
Could
you
just
give
us
a
little
more
detail
on
the
cycle
that
you
just
described
and
the
opportunity
to
use
this
first
year
as
a
you
know,
as
our
kind
of
like
our
pilot
year
and
learning
some
of
the
things
that
you
just
talked
about
around
energy
efficiency
or
maybe
other
details
and
then
going
forward?
E
Yes,
so
this
alert
for
d-class
classification
is
available
to
existing
renters
and
the
State
Housing
Finance
Agency
has
a
deadline
of
March
31st
every
year
for
them
to
get
their
applications
and
because
we've
been
still
working
on
this
program,
we
weren't
able
to
meet
that
deadline
this
year,
there's
a
statutory
deadline.
It's
a
it's
a.
E
Have
the
ability
to
test
the
results
of
this
pilot
period?
We've
got
to
thank
our
friends
at
Minnesota
housing
for
working
with
us
to
take
a
few
applications
here
on
a
late
cycle,
so
that
we
can
test
the
pilot
for
2019
and
then
starting
next
year.
We
would
just
use
the
regular
March
31st
deadline
and
then
we
wouldn't
be
bound
by
restricting
the
number
of
units
necessarily
or
the
number
of
applications,
necessarily
that
the
city
could.
D
E
Tear
guard
and
council
president
bender,
there
is
only
only
such
to
the
extent
that
the
council
would
desire
to
set
element
to
that
participation.
It
would
be
only
bound
by
the
number
of
properties
that
are
eligible
under
the
statute,
meaning
that
they'd
have
to
have
rents
and
incomes
at
or
below
60%
of
ami.
D
F
F
You
first
of
all,
I
want
to
thank
staff
for
bringing
forward
the
pilot
program.
I
had
initially
intended
to
bring
this
forward
with
advance
notice,
because
I
felt
like
it
was
a
good
kind
of
give-and-take
carrot-and-stick
as
we
move
advance
notice
forward,
but
as
it
became
obvious
that
Minnesota
Housing
had
a
deadline
and
our
advance
notice
is
not
quite
ready
to
go.
Although
it's
close,
councilmember,
Schrader
and
I
are
working
on
it.
F
Together,
staff
took
the
leap
off
and
said:
let's
go
ahead
and
try
to
do
a
pilot
and
I
very
much
appreciate
that
I
want
to
tell
you
all
a
story
of
why
I
think
this
is
important
and
I
have
a
seventh
Ward
resident,
who
is
the
third-generation
owner
of
a
12
unit
building
in
the
Lowry
Hill
neighborhood?
It
was
his
grandfather's
building.
It
was
given
to
him
by
his
father
and
now
he
lives
in
the
building
and
he
rents
11
other
units,
and
he
was
telling
me
at
a
event.
F
I
was
at
about
his
visit
with
the
city
assessor
and
that
the
Assessor
came
to
his
building
and
said
how
many
units
do
you
have,
and
he
told
them,
and
then
he
said,
and
what
do
you
charge
for
the
units
and
his
rents
are
very
low.
In
fact,
they
would
meet
the
like
rat
requirement
and
the
Assessor
essentially
said
to
him.
Well,
you
should
raise
the
rents,
because
the
value
of
your
building
is
based
on
what
your
highest
and
best
use
rent
can
be.
F
So
even
though
you're
charging
$600,
you
could
charge
$1500
and
I'm
going
to
value
your
building,
though
you're
charging
$1,500,
thus
dramatically
increasing
his
taxes,
forcing
him
put
to
potentially
and
likely
increase
his
rent,
and
that
got
me
thinking.
You
should
probably
do
something
about
that.
F
Is
it
possible
to
do
something
about
that,
and
that
is
how
I
started
pursuing
this
idea
of
seeing
if
it
was
possible
to
qualify
Noah
owners
for
4d
tax
exemptions
just
for
the
units
that
they're
holding
affordable
at
60%,
so
not
for
the
units
that
they're
charging
for
market
rate
and
that's
kind
of
how
I
got
involved
in
the
issue.
This
is
one
piece
of
a
very
large
puzzle
in
the
affordable
housing
continuum.
It
is
not
the
be-all
and
end-all,
but
it
is.
F
It
is
a
recognition
that
Noah
owners
are
really
important
in
the
scheme
of
things
and
that
they,
many
of
them
voluntarily
hold
their
rents
down
and
they
don't
need
to,
and
so
I
think
that
this
is
a
small
step.
I
am
hoping,
as
councilmember
bender
alluded
to,
that
we
can
expand
this
broadly,
but
I'm
hoping
right
now
we
can
get
300
properties
signed
up.
F
We
have
my
constituent,
we're
in
touch
with
him
and
I
believe
that
there
is
someone
in
Whittier
that
staff
is
also
in
touch
with
and
we'll
be
doing
a
press
release
later
in
the
day
to
see
if
we
can
recruit
others
through
associations
and
the
general
public
to
see
if
we
can
get
up
to
the
300
that
we
would
need
for
a
pilot
I
also
very
much
appreciate
the
approach
staff
has
taken
with
regard
to
the
energy
efficiency
pieces
of
it.
For
me,
I
really
feel
it
needs
to
be
considered
an
ascent
and
incentive.
F
If
you
do
this,
then
you'll
get
that
suggesting
to
a
property
owner.
That's
never
had
to
deal
with
the
city
before
that.
We're
going
to
come
in
and
do
an
audit
doesn't
sound
like
the
carrot
that
we're
trying
to
provide,
even
though
once
explained
it
could
be
seen
that
way,
and
so
I
do
think
that
for
right
now
and
the
pilot,
this
should
be
an
option
and
I
appreciate
the
way
that
it's
been
approached.
So
with
that
I'm
happy
to
move
approval
and
and
I'm
sure
others
want
to
speak
as
well.
B
Thank
You
mr.
chair
and
a
huge
thank
you
to
staff
for
pulling
these
40
properties
together
in
a
very
short
timeframe
and
getting
them
into
married
Tanger,
thaw
and
others.
I
think
that
was
really
critical
and
it
wouldn't
have
happened
otherwise.
So
thank
you
for
working
your
tail
off
for
a
couple
of
weeks.
There
you
know
in
the
city
of
Minneapolis
we
presently
have
52
percent
of
the
population
as
renters
over
half
about
half
of
those
renters
are
cost
burdened
about
three-quarters
of
low-income
renters
are
also
cost
burden.
B
We
know
this
very
well,
so
I
won't
go
into
depth
and
it,
but
at
the
same
time,
I've
been
hearing
from
quite
a
few
property
owners
who
acknowledge
what
councilmember
Goodman
just
pointed
out,
which
is
that
the
the
maintenance
cost
and
the
prices
are
rising,
and
if
they
don't
increase
the
rents
to
accommodate,
then
they
will
ultimately
be
losing
money,
and
so
this
for
deprived
this.
Forty
pilot
program
really
attacks
that
item
head-on,
so
I'm
very
pleased
to
see
it
moving
forward.
B
I
want
to
I
want
to
especially
thank
Angie
skill
demand,
Andrea
Brennan
from
CPD
Lu
Colin
camp
from
sustainability,
Patrick
Hanlon
and
Esther
Robards,
who
have
all
put
in
a
great
deal
of
work
to
pull
this
together.
I
want
to
thank
Peter
AB
knit
for
my
office
and
councilmember
Goodman.
You've
been
you've,
been
carrying
it
for
quite
some
time,
and
you've
been
advocating
for
innovative
ways
to
pull
this
this
piece
together
and
it
it
does
make
a
huge
difference.
B
I
also
want
to
thank
on
Minnesota,
Housing
and
Commissioner
Mary
ting
Earth,
all
who
have
been
at
really
exceptional
partners
to
work
with
and
have
been
very
accommodating
in
every
sense
of
the
word.
So
thank
you
hopefully
for
the
the
the
anticipated
support
on
this
item
and
thank
you
all
committee
members
for
your
work.
I,
look
forward
to
working
with
staff
and
property
owners
and
council
to
reviewing
the
results
of
this
initial
pilot
program,
and
hopefully
we
can
improve
it
even
more
next
year.
Thank
you,
excellent.
G
G
There
are
reasons
that
these
buildings
cannot
get
market
rents,
and
so,
while
in
the
pilot
life
I'm
hopeful
we'll
get
those
300
filled
up,
but
I
would
also
like
to
still
really
look
at
the
criteria
of.
Are
we
looking
at
how
close
they
are
to
transit
two
of
these
other
amenities?
That
would
make
them
more
desirable
properties,
and
can
we
make
sure
that
the
the
best
properties
are
is
where
we're
devoting
our
resources
to
Thanks?
G
D
You
mr.
chair
I
just
want
to
say
so
clearly
how
much
I
think
this
is
a
critical
part
of
our
affordable
housing
strategy
in
the
city
and
I
mean
I.
We
have
something
like
20,000
units
in
the
city
that
are
available
right
now
in
the
market
at
around
60%,
ami
or
lower,
and
my
opinion
is
that
we
should
be
doing
literally
everything
we
can
to
preserve
them
that
that's
by
far
the
best
use
of
our
resources.
Right
now,
I've
been
talking
with
colleagues
from
around
the
country.
D
Who
are
you
know,
10
or
even
20
years
kind
of
beyond,
where
we
are
in
their
housing
markets
and
if
they
could
go
back
in
time
and
preserve
the
affordable
units
in
their
market.
They
would
do
that,
and
you
know
when
I
asked
them
any
advice
they
have
for
a
city
like
ours,
that's
what
they
say
to
do
as
a
very
clear
highest
priority,
and
that's
not
to
minimize
the
value
of
us.
D
You
know
building
new,
affordable
housing
units
and
the
other,
and
you
know
that
that
the
approaches
that
we're
taking
to
finance
the
purchase
of
NOAA
buildings
but
I
think
adding
this
in
is
another
tool
right
now,
in
a
time
again,
where
I
feel
it's
so
critical
that
we're
being
as
aggressive
as
possible
to
preserve
affordable
units.
There's
a
lot
of
potential
in
this
strategy.
I
know
when,
when
I
learned
about
this
I
I
mean
there's
so
many
apartment
buildings
in
the
10th
Ward.
D
That
I
think
would
both
qualify
for
this
program
and
who
would
be
interested
in
this
kind
of
program
and
I
would
wholeheartedly
support
expanding
it
in
the
future.
So
I'm
excited
to
see
how
this
phase
goes.
I
think
this
is
a
great
approach
this
year
and
then
and
then
looking
forward.
I'm
really
just
excited
about
the
possibilities.
A
E
A
A
A
I
think
this
is
something
that's
come
up
in
the
Clean
Energy
Partnership
and
we
actually
raised
our
franchise
fee
so
that
we
could
help
create
programs
just
like
this
I
think
and
bring
this
benefit
and
I
think
that
everybody
who's
involved
in
this
recognizes
that
a
lot
of
the
smaller
apartment
buildings
are
those
that
could
really
benefit
from
these
efficiency
improvements
and
actually
then
lower
the
cost
of
the
people
who
live
there
and
probably
raise
the
the
property
value
in
some
way.
A
The
investment
anyway
protect
that
for
a
longer
term,
so
I'm
hoping
that
that
part
of
the
program
will
catch
on
I
appreciate
that
some
people
have
fear
whenever
they
see
a
requirement
and
some
kind
of
audit
that's
coming
in.
But
hopefully
we
can
make
this
offering
in
this
gift
of
an
energy
audit
to
these
property
owners.
A
Something
they'll
take
advantage
of
they'll
appreciate
and
then
they'll
realize
they
can
get
connected
to
actually
these
free
improvements,
maybe
a
furnace
water
heaters,
insulation
windows,
things
that
could
really
improve
the
building's
so
I
just
wanted
to
pitch
that
a
little
bit.
Well,
we
had
everybody's
attention
here
and
hopefully
that
something
people
will
ask
about
as
they
get
more
involved
in
the
program
and
see
the
benefits.
A
So
with
that,
then
I
think
we
can
vote
on
this
all
right,
all
those
that
are
in
favor
of
passage
of
this
resolution
and
authorizing
our
affordable
for
D
pilot
initiative.
Please
say
aye
all
right,
all
those
opposed
say.
No,
that
motion
carries
and
I
see
no
further
business
before
us
today,
so
this
meeting
is
adjourned.
Thank
you.
Everyone.