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From YouTube: February 23, 2021 Council Study Session
Description
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B
All
right
good
afternoon,
my
name
is
jeremiah
ellison
and
I'm
going
to
call
to
order
this
council
study
session
before
we
begin
I'd
like
to
note
that,
for
the
record
that
this
meeting
has
remote
participation
by
council
members
and
city
staff
as
authorized
under
the
minnesota
open
meeting
law,
section
13
13d027
due
to
the
declared
state
of
local
public
health
emergency,
I
will
also
note
that
this
meeting
will
be
recorded
and
posted
to
the
city's
website
and
youtube
channel.
This
meeting
is
public
and
subject
to
the
minnesota
open
meeting
law.
At
this
time.
C
D
F
G
B
We
will
now
proceed
to
our
study
session.
The
purpose
of
a
study
session
is
for
council
members
to
dig
into
policy
and
have
a
substantive
discussion.
No
formal
action
will
be
taken
today.
B
The
city
of
minneapolis
has
an
ongoing
contract
with
the
university
of
minnesota,
humphrey
schools
center
for
urban
and
regional
affairs
or
cura
to
research.
The
details
of
a
rent,
stabilization
law,
the
rep
stabilization
report
was
initiated
by
the
city
council
in
the
fall
of
2019,
and
there
was
a
budget
amendment
to
fund
it
in
late
2019.
B
During
the
adoption
of
the
2020
budget,
the
report
provides
a
foundation
for
policy
development
and
comes
at
a
time
when
the
city
council
is
considering
adding
charter
amendments
to
the
november
ballot
that,
if
the
report
provides
their
sorry,
I
have
a
typo
here.
Yeah,
if
adopted
by
voters,
would
allow
rent
stabilization
to
be
enacted
in
the
future,
and
so
I
just
want
to
reiterate
state
law
requires
we
pursue
this
policy
in
two
parts.
B
One
is
giving
the
city
permission
to
pursue
a
policy
and
that's
what
the
public
hearing
will
be
about
about
the
proposed
charter
amendments
on
wednesday
february
24th
at
1,
30
pm,
the
other
is
to
create
a
policy
once
we've
given
permission
once
we're
given
permission
by
voters,
and
that
is
what
we
will
dig
into
today
across
the
country.
Over
180
local
jurisdictions
have
adopted
rent
stabilization
policies,
along
with
the
states
of
oregon
and
california.
B
Achieving
positive
outcomes
and
mitigating
any
negative
outcomes
is
highly
dependent
on
program
design
and
complement
complementary
housing
policies.
In
recent
years,
the
city
council
has
adopted
a
number
of
policies
that
support
housing,
stability
for
renters,
including
the
section
8,
non-discriminatory
non-discrimination
policy,
a
retrofirst
policy,
a
fair
chance,
housing
ordinance
and
an
advanced
notice
of
sale,
a
building,
sale,
ordinance,
inclusionary,
affordable
housing
requirements
and
funding
for
legal
counsel
for
renters
facing
eviction.
B
We
have
a
really
dense
and
informative
presentation.
So
I'm
going
to
request
that
my
colleagues
hold
off
until
the
end
for
questions
and
now
I'm
going
to
pass
it
to
danielle
from
the
coordinator's
office
to
kick
us
off
with
some
introductions.
H
Thank
you,
council
member
allison.
My
name
is
danielle
shelton
balchack
and
I'm
the
director
of
strategic
initiatives
for
the
city
coordinator's
office
and
I'm
going
to
ask
that
our
guests
from
kira
introduce
themselves
first
and
I'll.
Ask
ed
to
start
us
off
and
then
we'll
go
to
introductions
for
the
staff
within
the
enterprise
who
have
helped
supported
kira
during
this
rfp
process.
A
A
A
Members
of
my
team
are
on
because
of
the
technical
difficulties.
Let
me
just
say
there
were
four
other
members
of
the
team:
tony
agame,
a
housing
researcher
at
the
center
for
urban
and
regional
affairs,
jeff
matson,
also
at
the
center
for
urban
and
regional
affairs,
peter
brown
and
patrick
alcorn,
and
that
is
that
makes
up
our
team.
H
Thank
you
ed.
Now,
I'm
going
to
move
to
the
staff
who's
been
a
part
of
this
work
with
kyra.
If
you
could
begin
to
introduce
yourselves,
please.
A
All
right,
thank
you
very
much.
Can
I
ask
if
there
will
be
if
the
powerpoint,
the
slide
deck
will
be
shown.
C
A
Okay,
all
right,
so
it's
it's
on
the
screen
now
and
you're,
looking
at
the
at
the
title
slide,
and
so,
if
you
will
click,
then
what
you
see
in
front
of
you
now
is
the
outline
of
the
of
the
talk,
and
essentially,
we
were
contracted
by
the
city
to
do
an
analysis
of
the
current
market
conditions
in
the
rental
housing
in
the
city
of
minneapolis
and
to
go
back
as
far
as
20
years,
using
whatever
data
we
could,
and
so
we
will
be
presenting
some
elements
from
that
today,
mostly
focusing
on
trends
and
rents
and
affordability.
A
The
first
is
a
description
of
the
various
program,
design
options
that
are
are
used
in
rent
stabilization
programs
around
the
country
and
which
a
set
of
policy
design
choices
that
you
will
have
to
make
going
forward,
and
then
I
will
summarize
the
research
on
the
impacts
of
rent
stabilization
programs
around
the
country
and
then
the
final
section
of
the
presentation
will
be
an
examination
of
the
potential
impacts
of
rent
stabilization
in
minneapolis.
D
D
A
Is
to
hypothesize
a
rent
cap
system
had
been
in
place
in
maniac,
but
that
might
have
done
to
the
to
rents
into
the
market.
So
this
will
be
a
retrospective
look
at
what
a
cap
or
a
set
of
caps
might
have
have
done
in
the
city.
We.
C
A
Also
look
at
building
level
economics.
This
is
from
the
perspective
of
owners
and
operators
of
rental
housing
to
examine
how
different
rent
caps
might
have
affected
average
annual
returns
and
the
internal
rate
of
return.
And
then
there
will
be
a
quick
summary
and
then
a
time
for
for
questions.
So
if
you
can
click
again
and.
D
A
After
that,
and
what
you
see
in
front
of
you
now
is
a.
D
A
Trends
in
minneapolis
over
the
last
20
years-
this
is
this
graph-
is
charts
the
average
year
over
year,
rent
growth
for
for
every
year
going
back
to
2000.,
and
I
think
what
you
see
in
this
graph
is
is
a
couple
of
things.
We
have
shaded
in
the
years
of
the
housing
crisis
from
about
2008
to
2012,
and
you
can
see
that
rents
dipped
in
that
year.
But
since
the
crash
have
increased
until.
A
To
to
point
out
on
this
graph
is
that,
prior
to
the
crash
and
and
through
most
of
the
crash
rents
for
different
sized
apartments
tended
to
track
with
each
other
very
closely
and
and
but
but
after
the
crash,
you
see
much
greater
divergence
in
in
the
pricing
and
the
increase
in
rents.
This
is
a
pattern
that
is
going
to
show
up
in
some
of
the
other
data
that
we
show
you,
but
I
just
wanted
to
point
it
out
right
now.
So
click.
A
The
next
slide
and
then
click
one
more
time,
and
so
what
you
see
is
a
a
table
in
front
of
you
with
some
numbers
circled.
These
are
simply
the
numbers
that
are
associated
with
the
graph
that
I
just
previously
showed
you,
basically
noting
that,
on
average
rents
increased
about
two
percent
a
year
during
the
pre-crash
years
of
2000-2007.
C
A
Stabilized
during
the
crash,
or
at
least
over
that
four-year
period
ended
up
averaging
less
than
a
half
of
a
percent
increase,
but
then
they
have
increased
significantly
since
the
the
crash
those
years
2013
to
2018.
A
So
the
other
thing
that
I
want
to
point
out
in
this
in
this
table
is
that
the
range
of
rent
increases
is
much
greater
since
the
crash
than
it
was
prior
to
or
during
the
crash.
So
we
have
maximum
increases
that
are
averaging
around
9.4
and
minimums
are
rents
that
are
falling
by
almost
3
percent,
and
let
me
describe
what
we
mean
by
minimum
and
maximum.
A
We
don't
literally
take
the
the
minimum
and
maximum
because
those
numbers
are
subject
to
tremendous
outliers.
So
what
we
have
used
instead
is
rents
at
the
10th
percentile
as
our
minimum
and
rents
at
the
90th
percentile
as
our
maximum,
and
this
eliminates
a
lot
of
the
volatility.
C
A
Data
and
is
a
good
prox
proxy
for
the
bottom
and
the
top
of
the
markets,
and
so
when
you'll
see
references
the
10th
and
90th
percentile
as
I
go
on,
and
I
just
wanted
to
explain
that
to
you
before
we
went
too
much
further.
A
Again
for
the
next
slide,
what
you
see,
then
in
front
of
you,
is
a
another
depiction
of
rent
trends
breaking.
I
I
A
Would
point
out
that
rents
in
these
two
types
of
buildings,
newer
and
older
buildings
tended
to
track
with
each
other
until
the
end
of
the
of
the
recession
until
the
end
of
the
crash,
and
you
see
much
more
variation
and,
in
fact,
higher
rents
in
the
older
buildings?
A
And
so
we
thought
it
might
be
useful
for
you
to
see
differences
between
newer
housing,
stock
and
older
housing
stock,
because
that
may
end
up
playing
a
role
in
decisions
you
make.
If
you
adopt
that
kind
of
program,
design,
all
right,
click
again
and
here
this
slide
should
be
titled,
affordability
and-
and
this
is
this-
shows
the
cumulative
rent,
change
and
household
income
change
for
the
median
renter
in
the
city
of
minneapolis
between
2006
and
2019..
A
And
so
you
see
two
lines
on
this
graph
again.
The
red
and
the
green
red
depicting
the
income
growth
over
this
period
and
the
greens
depicting
the
rent
growth,
and
so
you
see
at
the
median
right
there
at
the
middle
of
the
market,
the
renters
are
actually
seeing
a
greater
increase
in
their
income
than
they
are
seeing
in
rent,
and
so,
if
this
is
all
we
were
to
look
at,
we
would
conclude
that
there
seems
to
be
no
problems
with
the
minneapolis
rental
market.
A
But
when
you
actually-
and
let's
move
that
graph,
if
you
click
now
again
sorry
and
go
to
the
next
graph,
you
see
that
renter
graph
up
in
the
upper
right
and
then
in
the
center.
This
breaks
out
the
pattern
for
renters
in
the
bottom
quartile
of
incomes,
and
there
you
see
a
completely
different
story.
You
see
that
the
rents
for
this
group
have
increased
and
are
much
higher
than
the
increase
in
in
incomes
over
this
over
this
period
of
time
as
well,
starting
from
the
the
year
2006.
A
I
A
Click
again
for
the
next
slide
and
then
you'll
see
the
pattern
for
renters
in
the
top
quartile,
so
those
with
the
highest
incomes
and
you'll
see
that
their
incomes
have
increased
significantly
more
than
their
rent
has
since
this
since
the
beginning
of
this
time
period.
So
what
this
shows
is
that,
of
course,
there's
not
one
story
going
on
in
the
minneapolis
rental
market.
There
is
one
set
of
experiences
that
for
those
at
the
bottom
of
the
market
and
another
set
for
those
at
the
top
and
at
the
median
as
well,
click
for
the.
C
A
Than
than
rents
over
this
period
of
time
click
again,
so
this
takes
a
look
at
these
patterns
by
race
and
ethnicity,
and
and
so
this
describes
or
distinguishes
between
white
renters
and
bypoc
renters,
and
you
can
see
that,
for
most
of
this
period,
rent
was
outpacing
income
for
bypass
renters
until
you
get
to
2019
and
you
and
you
see
that
rent
that
incomes
have
overtaken
rents
in
terms
of
increases
for
buy
pockets
for
whites.
That
has
always
been
the
case
over
this
time
period.
A
Click
again,
please,
and
now
you
see
instead
of
the
pattern
for
bipoc.
You
see
the
pattern
for
black
renters
and
and
again
you
can
see
a
significantly
different
story
unfolding
where
their
incomes
really
cratered
during
the
crash
and
the
year
or
two
after
that,
and
although
they
are
recovering,
have
still
changed
at
a
level
much
below
the
rents
that
black
renters
have
experienced
in
the
city
over
this
period
of
time
as
well,
click.
I
I
A
Break
this
out,
so
in
this
graph
you
see
these
patterns
of
cost
burden
broken
out
by
income
level,
so
cost
burden
simply
is
defined
as
a
a
a
household
that
pays
more
than
30
percent
of
its
income
on
rent
and
what
you
see
in
this
graph
are
the
percentage
of
households
that
are
cost
burdened
according
to
three
income
categories.
At
the
top,
the
purple
line
are
households
at
less
than
30
percent
of
the
area,
median
income
for
the
minneapolis-st
paul
area.
A
So
that's
really
incomes
of
30,
000
or
less
the,
and
you
can
see
that
for
this
entire
period,
it's
pretty
stable
that
over
or
right
at
about
50
percent
of
those
households
have
been
cost
burdened
over
this
period
of
time.
A
The
green
line
in
the
middle
gives
you
the
pattern
for
households
with
incomes
between
30
and
60
of
the
area
median
income,
so
these
are
households
with
incomes
between
30
and
60
000
a
year,
and
you
can
see
that
the
experience
of
cost
burden
has
increased
in
the
post-crash
years
and
where
it
used
to
be
below
30.
It's
now
in
the.
I
A
30S
and
just
below
40
percent,
the
last
group,
the
yellow,
the
yellow
line.
There
is
households
with
incomes
greater
than
60
of
the
ami,
and
you
can
see
that
that
has
remained
fairly
stable
and
fairly
low
numbers,
certainly
less
than
10
percent.
For
for
this
time
period,
click
again,
please,
we
did
conduct
a
couple
of
focus
groups
with
with
tenants
simply
to
get
some
more
contextual
information
about
things
they
have
been
experiencing
in
the
in
the
housing
market.
If
you
could
click
again.
A
The
first
thing
that
I
wanted
to
note
was
that,
of
course,
they
don't
think
of
their
rent
increases
in
percentage
terms,
we
will
be
talking
about
percentage
increases.
Any
kind
of
rent
stabilization
program
will
sort
of
operate
on
the
basis
of
percentage
increases,
but
obviously
households
don't
think
that
way
right.
They
think
about
the
the
real
dollars
that
it
will
take
to
to
meet
rents
in
in
the
next
year.
A
If
you
could
click
again,
and
so
what
that
means
is
that
even
a
three
to
five
percent
increase,
something
that
we
perhaps
might
not
think
of
as
a
large
increase
for
larger
families
that
are
occupying
three
four
bedroom
units,
a
three
to
five
percent
increase
can
be
75,
100
125,
a.
A
Than
than
they
are
currently
paying
and
can
be
a
very
difficult
kind
of
increase
for
them
to
absorb,
even
though
it's
at
a
percentage
that
we
don't
consider
to
be
high
click
again,
please
we
heard
from
some
tenants
about
multiple
rent
increases
over
a
single
12
month
period.
A
This
was
not
a
universal,
obviously
a
universal
practice,
but
from
the
from
the
tenants
that
we
spoke
to
in
the
focus
groups,
this
was
this
is
an
experience
that
they
that
they
have
gone
through
over
the
last
five
or
six
years.
Click
again,
please,
I
think
almost
everyone
we
talked
to
in
the
focus
groups
made
the
point
that
that.
A
Are
are
are
shifting
more
and
more
to
the
use
of
fees
that
that
produce
costs
for
families
above
and
beyond,
rent
this
could
be,
for
example,
the
fee
to
pay
your
rent
online.
It
could
be
a
fee
to
use
the
laundry
room.
It
could
be
a
fee
for
any
other
type
of
service
that
the
landlord
might
provide,
and
so
tenants
were
very
concerned
about
that.
The
the.
D
A
A
C
A
They
had
additional
concerns
about
being
able
to
find
another
affordable
apartment
if
they
were
forced
out
of
their
unit.
We
heard
from
one
woman
who
said
that,
despite
the
significant
kinds
of
maintenance
and
repair
problems
with
her
units,
she
was
very
hesitant
to
leave
the
unit
because
she
didn't
feel
as
though
she
was
going
to
be
able
to
find
another
affordable
unit
in
the
city
and
in
the
neighborhoods
where
she
wanted
to
live.
So
these.
A
From
from
the
the
tenants
in
our
focus
groups
next
slide,
please,
so
I
want
to
shift
now
to
the
review
of
other
programs
now
that
we
have
a
sense
of
the
the
the
apartment,
the.
A
A
Have
in
front
of
you
is
a
diagram
that
shows
five
banners.
These
are,
I
think,
five
categories
of
design
options
that
the
that
you
would
need
to
consider
when
considering
a
rent
stabilization
program
and
I'm
going
to
go
through
each
of
them.
The
first
one
is,
of
course,
the
the
defining
element
of
a
rent
stabilization
program,
and
that
is
how
you
cap
rent
increases
from
one
year
to
the
next.
A
I
A
For
example,
a
three
percent
or
a
five
percent
increase,
is
what
is
allowed
each
year,
but
more
often
than
that
localities
peg
their
rent
caps
to
the
consumer
price
index,
which
is
of
course,
a
a
measure
of
inflation,
and
sometimes
they
will
simply
make
their
rent
cap
equal
to
the
the
consumer
price
index,
but
equally
prevalent
out
there
is
to
to
have
to
have
the
rent
cap
pegged
at
some
percentage
of
the
consumer
price
index
either.
A
75
percent
of
the
consumer
price
index,
the
city
of
berkeley,
goes
as
low
as
65
percent
or
in
excess
of
the
consumer
price
index.
You
have
many
cities
and
a
couple
of
states
that
allow
the
consumer
price
index
plus
three
percent
or
the
consumer
price
index,
plus
another
five
percent
as
the
cap
for
what
is
allowed
as
a
rent
increase
year
to
year.
A
More
more
rare
in
this
is
is
for
a
city
to
use
a
nominal
amount,
an
actual
dollar
amount.
This
is
not
why
widely
used
in
cities
across
the
country,
it
is
sometimes
used
under
certain
circumstances,
but
but
this
is
not
a
widespread
practice
and
then
the
final
thing
that
I
would
note
here
is
that
sometimes
independent
of
the
allowable
increase
each
year,
some
programs
set
maximum
increases,
so
the
the
the
need
for
a
maximum
increase
will
become
more
apparent
to
you
as
we
discuss
the
second
banner.
A
So,
let's,
let's
talk
about
those
for
a
second
fairly
frequent
frequently
used,
are
our
pass-throughs
for
maintenance
costs
or
capital
improvement
costs
or
utilities
or
property
taxes.
So
you
would
have
a
program
that
would
allow
a
landlord
to
amortize
the
costs
of
capital.
A
Improvements
or
precipitous
increases
in
property
taxes
or
utilities,
and
to
to
pass
that
along
to
the
to
the
tenants,
and
this
would
be
in
addition
to
the
allowable
cap,
that
that
is
part
of
the
program.
Another.
A
Under
those
circumstances,
some
landlords
may
begin
to
complain
that
they
are
not
really
able
to
get
any
kind
of
fair
return
on
their
investment
and-
and
so
many
programs
allow
for
this
kind
of
appeal
to
be
made
by
landlords
under
under
special
circumstances.
I.
A
Of
this
is
in
california,
sometimes
it
is
difficult
to
get
insurance
for
certain
types
of
earthquake
hazards
or
other
natural
events,
and,
and
so
sometimes,
fair
or
reasonable
returns
can
be
petitioned
by
landlords
if
they
have
incurred
costs
that
they
have
not
been
able
to
ensure
those
types
of
things.
A
A
There
are
limits
that
can
be
put
on
bank
increases
and,
and
there
are
limits
to
all
of
these
exceptions-
and
so
this
gets
back
to
my
previous
point
about
maximum
increases.
Many
places
will
allow
these
exceptions
to
the
cap,
but
only
up
to
a
certain
amount.
So,
for
example,
I'm
thinking
of
the
city
of
oakland
california,
which
has
a
rent
cap
at
the
cpi,
but
they
do
allow
for
maintenance
and
capital
improvement
pass-throughs.
They
do
allow
for
fair
and
reasonable
return.
They
do
allow
for
bank
increases.
A
What
they
will
say,
though,
is
that,
when
a
landlord
cashes
in
on
some
of
these
exceptions,
there
is
an
absolute
maximum
to
the
amount
that
they
can
increase
the
rent
one
year
to
the
next
and
in
in
oakland
that
maximum
is
10.
So
you
have
exceptions,
but
those
exceptions
can
never
take
you
more
than
10
percent
above
what
was
charged
the
year
before
the
third
program.
Design
area
are
exemptions
and,
as
I
mentioned,
I
think
earlier
in
the
presentation.
I
D
A
In
a
fixed
way
or
or
in
a
rolling
manner,
and
by
that
I
mean
in
some
places
so
I'll,
give
you
the
example
again
of
oakland
california,
all
properties
built
after
1983,
which
is
when
they
instituted
their
program.
A
All
of
those
buildings
are
exempt,
so
their
their
new
construction
exemption
is
fixed
at
a
date
and
that's
contrasted
with
the
state
of
california
and
the
state
of
oregon,
which
provides
an
exemption
on
a
rolling
basis,
which
is
that
anything
built
within
the
last
15
years
is
exempt,
and
so
what
this
means
is
that
the
exemption
changes
from
year
to
year-
and
you
don't
have
an
ever
growing
number
of
units
becoming
exempt
as
the
years
go
by
it
is
it
is
dependent
on
on
rates
of
construction.
A
Another
common
exemption
is
for
small
buildings.
This
this
varies
from
from
program
to
program,
but
frequently
it'll
be
duplexes
or
triplexes.
Sometimes,
four
plexes,
as
well
owner
occupation
in
a
duplex
or
a
triplex,
can.
C
A
A
Banner
is
entitled
d
control
and
the
the
issue
here
is:
what's
called
vacancy
d
control,
many
programs
allow
for
landlords
to
increase
rent
back
up
to
the
market
if
a
unit
becomes
vacated
through
a
tenant,
leaving
either
voluntarily
or
by
being
evicted.
So
the
idea
between
behind
vacancy
control
is
that
the.
A
A
Other
places
have
partial
vacancy
d
control
or
what's
called
a
vacancy
bonus,
and
there
the
landlord
is
allowed
to
increase
the
rent
above
the
cap.
But
it's
not
unlimited
as
it
is
in
full
vacancy
control.
You
might
go
from
an
allowable
three
percent
up
to
an
eight
percent,
or
perhaps
ten
percent,
but
nothing
above
that.
A
The
final
area
for
program
design
option
is
compliance
and
education.
There
is
an
infrastructure
question
that
you're
going
to
have
to
think
about
in
the
design
of
a
program
about
whether
compliance
is
going
to
be
driven
by
tenants
who
have
to
essentially
monitor
the
program
themselves
and
then
file
suit
to
enforce
the
provisions
of
the
law.
This
is
what
occurs
in
the
state
of
oregon
or
whether
you
want
to
institute
something
that
requires
landlords
to
petition
whenever
they
make
a
move.
A
A
Intensive,
I
think
you
know
most
landlords
want
to
abide
by
these
laws.
Most
tenants
certainly
want
their
landlords
to
abide
by
their
laws,
and
so
a
good
public
information
campaign
and
capacity
is
is
probably
something
to
think
about
as
well.
A
Models
for
you
to
look
at
and
then
finally,
in
order
to
support
this
infrastructure
and
the
and
whatever
staffing
is
necessary.
A
Oftentimes
fees
are
applied
on
a
per
unit
basis
to
landlords
and
and
most
programs
allow
landlords
to
pass
along
a
portion
of
that
cost
to
to
the
tenants.
So
again,
I'm
thinking
of
the
city
of
oakland,
california,
which
assesses
a
fee
of
101
dollars
per
unit
to
all
landlords
who
have
buildings
that
are
covered
by
their
law
and
if
a
landlord
pays
that
fee
on
time,
which
is
by
the
first
of
january
every
every
year,
they.
C
A
That
is
something
that
is
fairly
widely
accepted
by
both
landlords
and
tenants
in
this
situation.
So
those
are
the
program,
design
options
that
you
will
face.
Click
please
for
the
next
slide
and
then
click
again.
A
So
I
want
to
quickly
go
through
some
of
the
impacts
that
we
have
seen
in
in
previous
studies
of
rent
stabilization
programs
and.
A
C
A
But
but
regardless
of
individual
differences,
most
of
the
studies
show
that
rent
stabilization
programs
are
effective
in
preventing
the
largest
rent
increase,
what
some
people
sometimes
call
rent,
gouging
and
and
that
most
of
the
studies
do
show
that
that
is
effectively
prevented
in
in
rent
stabilization
programs,
no
matter
how
they
are
designed
next
number
three
here
is
that,
overall
and
in
the
long
run,
most
of
these
programs
do
produce
lower
rents
than
would
have
existed
without
a
without
a
program
in
place.
A
D
C
A
Four,
there
is
little
evidence
in
the
research
that
we
looked
at,
that
rent
stabilization
programs
have
a
negative
impact
on
the
production
of
new
housing,
and
that
is
because
I
will
say
in
large
part
because
most
of
these
programs
exempt
new
construction,
so
it
these
programs
do
not
really
pose
much
of
a
disincentive
to
to
new
development
over
a
15
20
year
period,
which
is
usually
the
usual
time
frame
for
even
the
most
limited
exemptions.
A
Click
number
five.
There
are
very
few
negative
impacts
on
major
quality
or
capital
improvement
components
of
the
of
the
of
the
building
stock.
Some
researchers
have
shown
more
negative
impacts
on
what
you
might
call
the
more
minor
or
aesthetic
elements.
Peeling
paint
the
the
kind
of
more
superficial
types
of
presentation
elements
of
of
of
buildings.
C
A
Oftentimes
owners
may
find
it
in
their
best
interest
to
tear
down
their
existing
building
and
build
a
new
one,
and
especially,
if
there's
an
exemption
for
new
construction,
so
that
they
can
essentially
avoid
the
the
rent
restrictions
and
then
there
are
other
forms
of
market
withdrawals,
conversion
to
other
uses
or
owner
occupation
of
units
as
well.
So
there
is
evidence
that
this
can
happen
in
subsequent
years.
After
a
red
stabilization
program
is
initiated,
click.
A
I
A
A
Tenant
protections
just
cause,
although
I
know
that
that's
that's
already
been
been.
A
In
the
city
but
in
other
words,
additional
tenant
protections
to
to
head.
C
A
Maybe
thinking
about
preservation,
policies
for
a
condo
conversion
or
preservation
of
other
noaa
units
out
there
click
please
all
right.
So,
let's
switch
then
to
the
final
element
of
of
our
report
and
presentation
anyway
for
today
at
trying
to
model
what
the
potential
impacts
of
rent
stabilization
might.
A
In
minneapolis
over
the
last
20
years,
what
we're
going
to
do
is
show
you
the
potential
impacts
of
four
different
rent
caps,
all
right,
so
the
one
you
see
on
the
screen
in
front
of
you
right
now
is
a
a
hypothetical
cap
that
is
set
at
75
of
the
cpi
and
the
line
you
see.
There
shows
what
kinds
of
rent
increases
it
would
have
allowed
over
this
19-year
period
right.
So
click,
please!
A
This
next
line
is
the
second
kind
of
cap.
We
will
look
at
and
that's
a
cap
that
is
set
right
at
the
cpi,
so
you
have
many
cities
that
have
made
this
choice
over
the
years
and
you
can
see
the
rent
increases.
A
It
would
have
allowed
click
again,
please,
the
the
blue
line
right
here
is
the
third
cap
that
we
have
modeled,
and
that
is
the
cpi
plus
three
percent
and
then
click
one
more
time,
and
then
the
green
line
is
the
most
lenient
of
the
caps
that
we
considered,
which
is
the
cpi
plus
seven
percent.
This
is
really
quite
a
lenient.
It's
we
haven't
come
across
one
that
was
more
lenient
than
that.
This
is
the
cap
that
is
used
by
the
state
of
oregon
and
in
the
interviews
we
did
with
officials
at
oregon.
A
A
A
This
slide
characterizes
the
rent
increases
in
minneapolis
over
the
last
19
years
in
these
different
categories.
So
the
the
the.
C
A
A
The
very
lightest
blue
are
apartment,
building,
apartment
units
that
increased
between
zero
and
three
percent
and
then
three
point
five.
Three.
C
A
Percent
five
to
ten
and
then
greater
than
ten
percent,
as
the
color
blue
gets
darker.
What
I
want
to
point
out
is,
if
you
take
a
look
at
the
year,
2000
and
2001
in
2000,
you
can
see
that
almost
all
of
the
rents
in
minneapolis
at
that
period
of
time
increased
between
three
and
five
percent
right.
It's
it's!
It's
almost
up
to
a
100
the
next
year,
almost
all
of
the
rents
were
between
zero
and
three
percent,
and
then
in
2003.
A
In
fact,
you
can
see
almost
99
of
the
rents
were
in
that
area.
What
this
means
is
that
this
is
all
about
thresholds
right.
A
What
it
means
is
that
most
rents
in
minneapolis
in
this
time
period
were
right
around
this
three
percent
threshold
and
a
minor
change
in
the
market
would
change
would
make
a
dramatic
change
according
to
the
number
of
units
in
each
of
these
categories,
and
I
just
wanted
to
show
you
that
just
to
plant
that,
in
your
mind
before
we
go
to
the
next
slide-
and
the
other
thing
that
I
want
to
point
out
here-
is
that
you
don't
see
any
of
the
larger
rent
increases
until
the
post-recession
area
era.
A
There,
where
you
see
many
more
rent,
increases
in
the
five
to
ten
percent
category
and
then
in
the
greater
than
ten
percent
category.
This.
D
A
To
the
next
slide,
so
all
of
that
is
to
prepare
you
for
this
slide,
and
this
slide
really
shows
you
the
percentage
of
units
in
the
minneapolis
rental
market
that
would
have
been
affected
by
a
rent
cap
at
each
of
these
levels.
So,
let's
take
if
you
could
look
at
the
olive
green
line,
for
example,
so
you
see
and
that's
a
rent
cap
that
is
set
right
at
the
cpi.
A
100
of
the
cpi,
if
that
had
been
in
place
in
minneapolis
in
2001,
over
95
percent
of
the
rental
units
would
have
been
affected
by
that
rent
cap
and
that
would
have
been
the
same
the
next
year
in
2002
over
95,
but
the
following
year,
2003
with
the
same
rent
cap
in
place.
A
Almost
none
of
the
rental
units
in
the
city
of
minneapolis
would
have
had
their
rents
limited
by
or
their
rent
increases
limited
by
the
cap
and
again
what
this
shows
you
is
that
most
of
the
rents
in
the
city
were
right
at
or
about
at
that
cpi
level
and
a
small
change
in
the
cpi
would
mean
a
a
a
very
large
difference
in
terms
of
the
number
of
units
that
are
affected.
So
that's
why
you
see
such
huge
volatility
in
the
green
and
the
red
lines
here.
A
The
other
thing
that
I
will
point
out
is
that
these
more
lenient
caps,
the
cpi
plus
three
percent
and
the
cpi
plus
seven
percent-
they
go
through
most
of
this
time
period
affecting
very
few
if
any
units
until
the
post
recession
years
of
2013
through
through
19.
and
there
you
see
that
a
cap
at
three
percent
over
the
cpi
would
have
affected
as
many
as
thirty
percent
of
the
units
in
2015
and
16..
So
all
right.
So
that's
that
slide
click
please
to
the
next
all
right.
A
Way
if
the
last
slide
gave
you
information
about
how
many
units
would
be
affected,
this
slide
is
meant
to
tell
you
how
much
each
of
those
units
would
have
been
affected.
A
Okay,
so
if
you
could,
if
I
could
draw
your
attention
to
the
the
number
the
5.3
number,
which
is
in
the
column
under
the
10th
percentile
and
in
the
row
that
is
labeled
100
of
cpi,
what
this
means
is
that,
if
the,
if
the
rent
cap
in
minneapolis
had
been
at
100
of
the
cpi,
that
units
that
had
been
in
experiencing
the
most
modest
rent
increases,
the
rent
increases
at
the
10th
percentile.
So
this
is
the
low
end
of
the
market
in
terms
of
rent
increases.
A
Let
me
repeat
that,
then,
for
the
next
unit
or
for
the
next
number
to
the
right,
the
13.8
for
units
that
had
been
experiencing
the
median
increases
in
rents
in
minneapolis
over
this
period
of
time.
If
there
had
been
a
rent
cap
in
place
at
100
of
the
cpi,
those
units
would
have
had
a
rent
in
2019
that
was
13.8
percent
less
than
what
they
actually
had
without
a
cap.
A
So
if
that's
understandable,
there's
just
two
other
things
I
want
to
point
out
about
this
graph.
One
is
that
the
real
impacts
come
with
those
units
that,
in
the
in
minneapolis
over
these
years,
have
been
seeing
increases
at
the
90th
percentile
right.
These
are
the
really
aggressive
landlords
who
have
been
increasing
more
so
than
90
of
the
rest
of
the
market,
and
there
you
see
that
rents.
If
there
had
been
a
cap
at
the
cpi,
rents
would
be
25
less
than
what
they
are.
A
A
More
sizable
impact
for
the
more
aggressive
landlords,
okay,
click
for
the
next
slide,
please.
This
is
the
same
kind
of
analysis,
but
instead
looks
at
the
average
annual
reduction
in
rent
over
the
19-year
period.
So,
instead
of
looking
at
rents
just
in
the
in
2019,
this
essentially
averages
the
rent
savings
over
the
entire
19
years
that
we
or
the
20
years
that
we
that
we
study-
and
so
it's
you.
You
just
see
the
same
patterns
here.
A
The
zeros
are
in
the
same
place
the
numbers
increase
in
the
same
direction
and
the
same
amount,
but
what
this
means
the.
C
A
Way
to
understand
this
number,
if
we
use
the
339
number,
if
there
had
been
a
rent
cap
at
the
cpi
units
that
had
been
increasing
in
rent
at
the
10th
percentile,
the
least
aggressive
rent
increases
over
the
19
years.
There
would
have
been
an
average
annual
reduction
in
rents
of
339
dollars,
and
so
then
you
can
see
what
those
numbers
are
for
all
of
these
other
scenarios.
A
Next,
please.
This
is
another
way
of
looking
at
the
data
showing
each
rent
cap
in
a
different
color.
The
what
you
see
in
black
the
black
line.
A
There
are
actual
median
rents
in
minneapolis
over
this
period
of
time,
and
you
can
see
that
had
rent
caps
been
in
place
at
75
of
the
cpi
or
100
of
the
cpi,
there
would
have
been
an
effect
from
the
beginning,
it's
a
fairly
small
effect,
but
that
the
effect
sort
of
grows
over
time
and
becomes
really
significant
when
rents
began
to
spike
in
2014
and.
C
A
The
other
thing
you'll
note
is
that
those
more
lenient
rent
caps,
the
cpi
plus
three
and
the
cpi,
plus
seven-
have
essentially
no
impact
until
the
post
crash
years,
and
then
you
can
see
that
they
bring
down
the
rents
slightly
next
slide.
Please
all
right.
So
now
we
switch
to
building
economic
impacts
next
slide
or
click.
Again.
A
We
did
30
interviews
with
for-profit
and
non-profit
developers,
with
building
owners
with
investors,
lenders
and,
and
they
had
very
strong
opinions
about
rent
control,
as
I'm
sure
comes
as
no
surprise.
Click
please.
The
first
thing
they
wanted.
I
A
Please
they
thought
that
perhaps
in
the
short
term,
there's
going
to
be
something
of
a
lesser
impact
on
actual
rents,
tenants
and
landlords,
because
they
felt
that
you
know
most
of
their
rents
were
below
the
kind
of
possible
caps
that
the
city
may
may
be
thinking
about
applying.
But
they
were.
A
They
also
noted
that,
even
if
the
rent
cap
would
not
affect
them,
they
felt
that
they
would
be
incentivized
to
raise
rents
even
before
the
program
began
and
they
they
said
that
as
a
way
of
hedging
against
what
they
feared
might
be
a
loss
of
income
in
the
future
and
and
so,
and
they
said
that,
despite
the
fact
that
they
had
said
in
the
in
the
previous
breath
that
most
of
these
rent
caps
wouldn't
affect
them,
but
they
reserve
the
right
to
to
to
sort
of
preemptively
act
in
this
way.
A
They
also
mentioned
and
worried
about
what
they
felt
might
be
the
compliance
costs.
I
think
we
covered
that
when
we
talked
about
the
fees,
the
per
unit
fees,
they
were
unsure
about
what
those
would
be
and
felt
that
this
is
probably
something
that
they
would
be
passing
along
to
to
tenants
in
one
way
or
another,
including
through
other
fees
that
might
not
even
be
covered
by
a
rent
stabilization
program.
A
That
they
would
exit
the
minneapolis
market
that
they
would
no
longer
consider
building
in
in
minneapolis,
some
suggested
that
they
may
think
about
getting
rid
of
their
selling
off
their
minneapolis
portfolio
that
they
simply
didn't
want
to
deal
with
this
kind
of
regulatory
situation.
Many
of
them.
A
Said
to
us
that
they
already
felt
that
there
were
plenty
of
regulations
in
the
local
market
and
they're
not
interested
in
seeing
any
additional
ones.
Click.
A
Rental
units
into
condominiums
was
a
definite
possibility,
something
that
they
would
consider
as
a
way
of
of
avoiding
limited
revenues
in
the
future
and
making
good
on
their
investments
as
soon
as
possible
click
again,
and
then
they
they
spoke
also
about
the
fact
that
they
would
be
incentivized
to
reinvest
less
in
the
properties
and
that
this
would
unavoidably
lead
to
a
decline
in
inequality.
A
Click
again,
please-
and
I
mentioned.
A
Click
again,
please.
So
now
we
get
to
the
final
element,
which
is
how
we
tried
to
model
building
economics.
There
are
typically
five
metrics
that
investors
or
property
owners
use
to
judge
the
the
effectiveness.
A
Investment,
the
first
is
an
average
annual
return.
Well,
you
see
the
five
listed
on
this.
A
I
don't
need
to
sort
of
read
through
them
all,
but
this
is
what
this
is:
what
property
owners
really
look
at
when,
when
thinking
about
the
profitability
of
an
investment,
I'm
going
to
focus
today
on
the
first
and
the
last
of
these,
the
ones
that
are
in
bold
here,
the
average
annual
return
and
the
internal
rate
of
return,
and
I'm
going
to
focus
on
those,
because
those
are
the
ones
that
our
informants
said
were
really
the
most
important,
and
so
what
we
tried
to
do
was
to
model
those
over
the
last
19
years
and
to
see
how
they
might
have
been
affected
by
different
rent
caps.
A
So
click
again,
please
all
right!
So
let
me
walk
you
through
this
graph
in
terms
of
annual
average
returns
most
of
the
well,
in
fact,
all
of
the
developers
and
owners
that
we
talked
to
said
that
a
minimum
of
seven
to
ten
percent
is
what
they
look
for
in
terms
of
annual
average
annual
returns.
A
This
is
the
minimum
of
what
they
look.
For
you
know,
a
a
great
investment
would
give
you
double
digit
figures,
but
they
look
for
a
minimum
of
seven
to
ten
percent.
Well,
it
turns
out
that
and
they
and
they
look
for
this
over
a
ten
year
period.
So
we
modeled
this
over
a
ten-year
period
and
it
turns
out
for
the
years
2009
to
2018
the
average
annual
return
for
older
units
in
the
city
of
minneapolis
was
right
there
at
7.2
percent,
so
the
the
minneapolis
market
was
giving
investors
really
sort
of.
A
You
know
the
minimum
of
what
they
were
looking
for
click
again,
please.
This
is
also
true.
If
you
look
at
the
median
of
these
average
annual
returns.
So
no
matter
what
figure
you
look
at
the
the
average
of
the
median
the
market
was,
was
performing
at
what
investors
thought
were
minimally
necessary
click.
A
This
shows
you
what
the
average
annual
returns
were
for
those
landlords
who
were
increasing
rents
at
the
90th
percentile,
so
rather
than
increasing
it
at
the
median
or
the
average,
which
is
what
those
first
two
figures
were.
These
are
those
really
aggressive
landlords,
and
it
turns
out
that
when
you
increase
the
rent
that
much,
you
can
really
increase
your
average
annual
returns.
That
12.6
is
quite.
A
Than
the
the
7.1,
the
7.2
that
were
being
experienced
at
the
the
median
and
the
average
click.
H
A
I'm
assuming
that
the
slide
you're
looking
at
shows
a
figure
that
I
think
is
0.9
percent,
and
I
want
to
tell
you
that
that's
wrong,
that
that
was
a
typo
that
I
didn't
catch
in
the
in
the
version
of
the
slides
that
I
sent
to
the
city
clerk
yesterday.
I
apologize
for
that.
That's
wrong!
That
figure
should
be
7.5
percent.
A
So
if
we
had
had
a
a
a
rent
cap
in
place
in
minneapolis
over
these
last
10
years
at
75
percent
of
the
cpi,
this
would
have
allowed
average
annual
returns
of
7.5
percent.
So
that's
essentially
matching
what
the
market
already
produced
in
minneapolis
click
again,
please.
A
If
we
had
had
in
place
a
rent,
stabilization
cap
of
the
cpi
plus
three
percent,
this
would
have
allowed
average
end
returns
of
12,
and
you
can
see
that
that
essentially
matches
the
high
end
of
the
minneapolis
market
over
this
period
of
time
and
then
one
more
click
please
on
this
slide,
and
this
shows
you
what
the
most
lenient
cap
would
have
allowed.
It
would
have
allowed
average
annual
returns
of
18.6.
A
Now
that
doesn't
mean
that
landlords
would
have
gotten
that
this
is
probably
more
than
really
what
the
market
would
have
allowed
at
this
point,
but
you
can
see
that
this
lenient
cap
would
have
allowed
for
very
high
average
annual
returns.
So
I
think
what
we
take
away
from
this
slide
is
that
these
these
different
caps
that
we're
using
as
examples
would
have
allowed
the
market
to
operate
at
the
building
level
in
ways
that
are
comparable
to
to
the
way
that
it
did
actually
operate
over
these
last
10
years.
A
D
A
These
are
the
same
figures
for
internal
rate
of
return,
and
I
think
what
you
see
is
essentially
the
same
patterns,
which
is
that
rent
caps
at
75
percent
of
cpi
or
at
the
cpi
would
have
allowed
internal
rates
of
return
that
essentially
matched
if
not
slightly
exceeded
what
happened
right
at
the
average
or
the
median
of
the
minneapolis
market
for
these
types
of
units,
whereas
a
cap
at
the
cpi,
plus
3,
would
have
matched
the
high
end
of
the
market
and
then
a
capital
cpi,
plus
7,
would
have
allowed
internal
rates
of
return
much
higher
than
was
seen
in
the
minneapolis
market.
A
One
more
click,
oh,
it
looks
like
it's
gonna,
be
more
than
one
more
quick,
but.
C
A
Is
the
this
is
the
summary
that
the
sort
of
points
I
want
to
leave
you
with,
which
is
that
there
are
various
policy
design
choices
that
are
are
necessary
for
you
to
make
going
forward?
If,
indeed
you
you
move
forward
with
this
idea
and
to
think
also
about
complementary
policies
that
need
to
be
in
place,
click.
I
A
A
Market
that
aren't
seen
elsewhere
that
really
show
some
significant
hardships
for
certain
portions
of
the
of
the
rental
market
in
minneapolis
click
again.
The
third.
C
A
A
There
is
a
consistency
in
the
story
that
we
saw,
and
I
hope
that
that
came
through
in
the
in
the
graphs
and
the
and
the
story
that
that
I
I
gave
so
you
have
my
contact
information
there.
Our
our
final
report,
we
hope
to
have
to
you
in
a
in
a.
C
A
It
will
have
this
and
an
additional
and
more
in-depth
and
details
on
all
of
these
topics
and
with.
C
B
Thank
you
so
much
ed
and
we
yeah.
We
might
have
council
members
jumping
in
with
some
questions,
so,
if
you're
able
to
stick
around
for
a
little
bit,
that'd
be
that'd,
be
great,
of
course,
with
that.
I
want
to
open
it
up
for
discussion
and
see
if
there
are
any
questions
from
my
colleagues.
G
Thank
you
very
much,
and
this
is
great
information
and
I'll
probably
have
to
study
it
a
lot
longer
to
really
reap
all
the
benefits
of
it.
I
was
a
little
bit
curious,
and
maybe
this
is
something
even
to
look
at
as
you're
sharing
information
in
the
final
report.
That's
coming
up
a
little
bit
more.
If
we
studied
different
ramifications
of
different
program
options
that
were
outlined,
I
was
unclear
if
there
had
ever
been
any
city,
for
example
that
included
new
construction.
G
I
know
that
exempting
it
for
a
few
years
and
some
of
your
models
were
20,
it
looked
like
most
haven't
included
new
construction.
Are
you
aware
many
that
do.
A
So
that's
I'm
not
offhand
aware
of
any
that
that
do
incorporate
new
construction.
I
think
that
it's
it's.
This
is
more
or
less
a
consensus
element
of
some
of
these
of
these
programs.
G
So
then,
I'm
a
little
curious
about
what
happens
if
it's
a
12-year,
what
are
they,
what
happens
with
the
buildings
and
the
rents
around
year,
10
or
11,
or
that
this
is
there
some
change
that
they
go
through?
You
know
I
could
see
somebody
if
they
could
escalating
the
rents
building
up
to
year,
20
so
that
they
could
make
sure
that
they
were
in
a
good
shape
once
it
takes
effect.
Do
we
have
any
data
on
that,
or
is
that
just
me
being
paranoid
right.
A
I
think
it
goes
beyond
paranoia.
I
think
that
there
are
some
studies
that
show,
I
think,
there's
one
study
in
california.
That
shows
that,
although
rent
stabilization
programs
will
will
keep
rents
lower
on
controlled
units
that,
in
some
cases,
the
rents
in
the
uncontrolled
units
will
increase
higher
than
expected
increased
and.
C
A
I
think
that's
exactly
the
kind
of
dynamic
you
were
you
were
talking
about,
which
is
that
they
may
two
things
may
be
happening.
They
may
be
trying
to
anticipate
the
end
of
their
new
construction
exemption
or
they
may
be
trying
to
sort
of
balance.
What
they
feel
are
losses
in
the
other
part
of
their
portfolio.
G
And
I'm
also
curious
about
the
smaller
buildings,
the
single-family
homes
in
particular
that
may
be
exempted.
We
have
a
different
variety.
I
think
I
guess
of
duplexes
and
single-family
homes
that
are
rental
property
in
the
city,
a
lot
of
them
there's,
maybe
they're
owned
by
an
individual
or
or
they
may
live
in
it.
They
notice
owner
occupancy
was
one
exemption
too,
or
they
may
have
bought
an
extra
house
or
maybe
two
in
the
area
and
they're
being
basically
good
landlords
and
they're
very
attentive.
G
Then
we
also
have
parts
of
our
city
where
there's
one
or
two
landlords
that
have
been
buying
up
massive
and
maybe
that's
exaggerating,
but
a
large
number
of
duplexes
and
single
family
homes
and
they're
managing
them
more
as
if
it
was
a
large
apartment
building
with
multi-units,
and
I'm
just
wondering
if
you're
aware
of
any
other
areas
that
have
figured
out
a
way
to
distinguish
those
two
and
maybe
treat
them
a
little
bit
differently.
A
Right-
and
so
I
don't
know
if
patrick
is
on
the
line
from
my
team,
who
might
have
a
better
answer
to
that-
I
do
know
that
this
is
an
option
that
you,
you
know
that
you
have
to
to
think
about
distinguishing
between
different
types
of
single-family
ownership
and
a
single-family
rental,
and
distinguishing
perhaps
between
llc
ownership
or
non-local
ownership.
A
That
gets
that
introduces.
You
know
a
certain
burden,
administrative
burden
of
collecting
that
information
and.
A
Option,
that's
that's
open
to
you.
I
don't
know
of
any
any
research
that
takes
a
look
at
the
impact
of
such
a
distinction.
You
know,
though,
I
don't
know
that
that's
widely
done
it's
most
frequently
the
case
that
single
families
are
simply
exempt.
B
Okay,
gordon
councilmember
johnson.
F
Thank
you,
councilmember
ellison,
and
thank
you,
professor.
I
appreciate
the
presentation
very
helpful
and
interesting
information
that
has
been
provided.
I
had
a
question
for
you
on
one
of
the
slides.
It
said
that
there
was
not
really
from
the
studies.
You
have
looked
at
an
impact
on
affordability,
but
then
I
think
it
was
either
a
slide
or
two
later
or
a
few
slides
later.
It
said
one
of
the
impacts
is
a
loss
of
rental
units.
F
Overall
in
the
market,
I
was
just
trying
to
reconcile
those
if
you're,
seeing
a
decrease
in
supply.
How
do
you
square
that,
with
not
seeing
impact
in
terms
of
affordability
or
impact
on
rents.
A
Thank
you,
councilmember
johnson,
I
so
yeah,
slides,
16
and
17
are
the
ones
you
were
talking
about.
I
I
think
what
we.
What
I
wanted
to
indicate
was
that
there
are.
There
are
many
different
outcomes,
most
of
the
most
of
the
programs,
for
example
in
new
jersey,
where
vacancy
decontrol
is
a
common
element.
A
The
long
run
very
much.
A
Where
there
are
limits
on
vacancy
control,
you
will
see
lower
rents
than
would
have
existed
otherwise,
and
so
there
are
impacts,
and-
and
this
happens
simultaneously
with
the
the
phenomenon
of
new
units
or
of
units
being
taken
off
the
market.
Now
units
that
are
taken
off
the
market
are
usually
the
units
that
would
be
subject
to
a
rent
control
ordinance,
but
that
doesn't
mean
that
other
and
new
units
aren't
being
built
in
their
stead
right.
A
So
one
of
the
ways
that
units
are
taken
off
of
the
market
is
through
demolition
and
then
reconstruction
and
so
figuring
that
the
new
construction
would
be
exempt,
but
regardless
there
is
new
construction
occurring
in
most
of
these
markets
anyway.
So
I
don't
know
that
I
meant
a
net
reduction
of
rental
units.
What
I
meant
was
a
taking
off
of
the
market.
D
F
It
does
yeah
that's
helpful
and
I
think-
and
maybe
this
is
more
just
a
follow-up
when
you
send
the
report,
it
would
be
helpful
if
there
is
any
data
around
kind
of
the
size
or
scope
of
that
in
thinking
about
this,
of
what
that
kind
of
impact
would
be,
and
then
I'm
curious.
I
know
it
wasn't
really
mentioned
in
the
impacts,
but
when
I
was
doing
research
and
reading
more
about
rent
control
and
reading
some
different
studies,
are
there
any
other
impacts
as
well?
A
F
A
We
do
see
greater
stability
for
tenants
in
in
rent
controlled
units.
That
is,
that
is
absolutely
a
a
pattern
that
you
see.
A
Interestingly,
economists
think
that's
a
problem
with
the
programs,
because
they
they
think
that
it
keeps
people
in
units
longer
than
they
would
otherwise
have
stayed
in
the
units
and
so
that
it's
an
artificial.
A
Curb
to
to
mobility,
but
others
would
look
at
that
and
say
it's
evidence
that
people
are
able
to
remain
in
units
longer
avoid
displacement
due
to
rent
pressures
etc.
So
that
is
definitely
a
a
pattern
you
see
in.
D
A
Didn't
that
we
didn't
put
into
our
summary
that's
correct,
but
it
is,
it
will
be
in
our
report.
B
Thank
you,
councilmember
johnson,
councilmember,
paul
masano.
E
Thank
you,
council
member
ellison,
I'm
curious
earlier
in
your
earlier
in
your
presentation.
C
A
Right
so
I
I
was
referring.
Thank
you
councilmember
paul,
I
was
thinking
of
you,
know,
restrictions
on
condominium
conversions,
some
kind
of
restrictions
on
on
on
demolition
to
to
essentially
address
the
possibility.
I
A
That
some
property
owners
will
tear
down
operational
rental
housing
in
order
to
replace
it
with
new
construction.
A
C
A
There
are
some
jurisdictions
that
put
requirements
on
owner
on
owners
moving
into
rental
units
or
owners,
families
moving
into
rental
units.
This
is
sometimes
allowed
in
rent
stabilization
and
it's
a
way
of
de-controlling
a.
A
So
so
some
cities
have
have
created
guidelines
and
regulations
related
to
that
tenant
protections.
The
city.
A
On
just
cause,
I'm
not
sure
what
other
forms
of
tenant
protections
might
be
considered
when
vacancy
control
is
in
effect,
and
then
I
know
that
the
city
already
has
preservation
policies
in
place
related
to
noaa.
So
I
I
wasn't
necessarily
thinking
about
things
that
the
city
hadn't
done.
This
was
more
of
a
generic
set
of
of
lessons
to
come
out
of
the
the.
A
And
I
think
that
one
of
the
things
the
city
should
think
about
is
the
is
is
whether
what
you've
got
in
place
might
be
sufficient
to
deter
some
of
the
counter
incentives
that
arrest
stabilization
program
might
produce.
E
Thank
you.
I
have
a
couple
other
quick
questions.
If
I
may
council
member
ellison,
otherwise
I
can
come
back
to
it
later.
Please
please
proceed
earlier,
slides.
You
annotate
them
by
saying
that
acs
and
costar
are
your
source
data,
but
then
like
slides,
29
to
37.
What
what
data
are
you
using?
Is
that
these
30
developer
interviews
that
you
did
or
some
other
source.
E
A
That
comes
from
a
model
where
we
put
in
where
we
worked
with
hypothetical
rents
and
then
hypothetical
rent
increases
and
and
and
and
rates
of
return.
These
were
based
on
the
30
interviews
that
we
did
and
and
was
constructed
by
our
team
member
who
has
done
a
lot
of
consulting
in
on
development
and.
A
Using
his
kind
of
proprietary
pro
forma
type
of
modeling,
so
that's
that's
correct.
That
was
the
source
of
those
models.
A
Peter,
if
peter
is
on
the
call
he'll
be
able
to
answer
that,
if
he's
not
on
the
call,
I'm
up
a
creek
without
a
paddle,
because
these
are
these
are
pedo
or
peter's
models
and
we
we
are
going
to
put
the
the
entire
model
specification
into
the
appendix
of
the
report.
So
the
the
answer
to
your
question
will
be
in
the
report,
but
I'm
afraid
I
can't
give
it
to
you
right
now.
E
B
Phone
numbers
on
the
call-
and
I
don't
know
if
any
of
them
are
the
cure
team
members,
but
I
just
wanted
to
note
that,
and
so,
if
folks
wanted
to
unmute
themselves
and
jump
in
there,
they're
welcome
to
from
the
cure
team
we've
got
myself.
I
put
myself
in
queue.
B
I
was
gonna,
make
a
a
comment
about
the
co-star
data
and
say
that
that
that
cap,
that
doesn't
capture
you
know
a
lot
of
the
single-family
homes
that
are
rented
in
north
minneapolis,
for
example,
and
and-
and
I
also
know
that
that
that
the
the
increase
in
property
values
in
on
the
north
side
have
been
more
so
percentage
wise
than
any
of
any
other
parts
of
the
city
and
so
wanted
to
know.
B
If
you
had
any,
even
though
you
you
weren't
able
to
have
the
data
for
those
single
family
homes
that
are
primarily
rental,
if
you
had
any,
you
know
reasonable
conclusions
like
one
could
make
about
property
values
that
have
maybe
increased
30
percent
in
the
last
couple
of
years
and
what
the
rents
might
look
like
in
a
single
family
home.
That's
being
rented,
and
I
only
ask
that,
because
you
know
in
north
minneapolis
that
is,
we
have
a
proliferation
of
single-family
homes
that
are
rented.
A
A
Absolutely
right
the
co-star
data:
this
is
a
hole
in
there
in
their
data
and
it's
it's
kind.
A
Data
black
hole
as
well,
we
simply
don't
have
information
on
of
a
systematic
nature
on
what's
going
on
in
single-family
rentals
in
the
in
the
city,
I
will
say
that
many
of
the
focus
group
participants
that
we
spoke
with
were
renting
single-family
homes
and,
and
they
were
the
ones
complaining
of
significant
rental
increases,
but
also
of
egregious
sort
of
lack
of
of
of
repair
responsiveness.
A
A
Calling
a
number
with
an
atlanta
prefix,
no
one
ever
answering
the
local
number
etc
so.
A
Of
the
of
the
market,
but
we
just
don't.
C
A
B
No,
that's
that's
helpful
and
I
think-
and
I
think
councilmember
cunningham
is
putting
in
the
chat
here
that
you're
likely
referring
to
haven
brook
which,
which
has
over
175
units
in
in
ward
4
alone,
just
for
folks
at
home
to
to
to
put
that
in
perspective.
I
Thanks,
mr
chair,
I
was
also
going
to
just
note
and
ask
a
bit
about
the
smaller
unit
sizes.
So
thanks
for
asking
about
that,
I
have
kind
of
two
questions
then
left.
The
first
is
about
enforcement
of
policies,
and
professor
getzei
wondered
if
you
have
information
about
implementation
in
other
cities
or
states,
and
how
is
enforcement
done
by
government
entities
or
is
it
handled
through
the
courts
through
private
actions
between
tenant
and
landlord?
Typically,.
A
Sure
sure
so,
yes,
I
can
give
you
some
insight
on
that
and
there
are
really
all
sorts
of
models.
A
C
A
Everything
from
that
point
forward
is
dependent
upon
the
tenant,
a
knowing
about
the
law
and
their
rights
b.
A
D
C
C
A
People
who
meet
on
a
monthly
basis
to
hear
petitions
from
renters
and
sometimes
from
landlords
about
about
disputes
and
and
they
are
resolved
by
the
by
the
rent
board
or
by
a
hearing
officer
and
and.
A
Much
more
hands-on
and
public
sector
kind
of
approach
to
to
monitoring
and
implementing
the
law.
Most
of
these
rent
boards
are
charged
with
reporting
back
to
the
city
council
on
an
annual
basis
about
about
the
state
of
the
market
and
about
their
actions
over
the
previous
over
the
previous
years.
A
Rent
boards
are
typically
appointed
by
the
mayor
and
approved
by
the
council,
or
some
some
combination
of
that,
and
and
that
there
is
usually
then
a
staff
associated
with
supporting
the
the
rent
board
or
the
hearings
officers.
There
are
housing.
A
A
A
I
Thank
you.
That's
super
helpful.
I
have
one
other
question:
if
it's
okay,
which
is
a
little
bit
more
information
about
the
two
kinds
of
exemptions
that
you
talked
about,
the
first
was
newer
construction
and
the
second
was
smaller
buildings
with
fewer
units,
and
I
wondered
if
you
could
talk
a
bit
about
the
policy
rationale
for
each
of
those
two
types
of
exemptions
or
why?
Why
would
a
policy
consider
those
types
of
exemptions.
A
Sure
so
there
might
be
a
couple
of
rationales
for
the
first
one,
the
new
construction
exemption,
the
first
one.
The
first
rationale
might
be
a
concern
about.
A
Might
happen
to
new
developments
in
the
city
right,
so
in
fact,
some
places
may
indeed
be
concerned
that
a
rent
stabilization
program
that
is
universal,
produces
a
disincentive
for
new
development
and
and
may
then
end
up
limiting
the
supply
of
housing
going
forward.
So
one
way,
one
obvious
way
around.
C
A
C
A
New
construction
at
the
top
end
of
the
market,
the
luxury
end
of
the
market,
and
that
your
concerns
as
a
policy-making
body
are
not
so
much
about
the
rent
burdens
of
those
who
can
afford
luxury
housing.
But
in
fact
those
who
will
be
occupying
other
portions
of
the
housing
stock.
A
C
A
Rationale
for
a
new
construction
exemption
is
that
it
sort
of
more
perfectly
targets
the
the
the
kind
of
impact
that
that
you're
concerned
with
in
terms
of
the
impact
or
or
the
rationale
for
small
buildings.
A
A
Or
that
they
they
make
sense
or
that
there's
or
that
I
even
am
aware
of
the
of
the
economics
of
it,
but
I've
seen
two
types
of
of
rationales.
The
first
is
that
smaller
buildings
have
a
fundamentally
kind
of
different
economic
model
than
do
larger
apartment
buildings.
You.
A
A
C
D
Thank
you
so
much
chair
ellison
and
professor
getz
for
this
presentation
and
all
of
your
team
at
cura.
It's
fascinating.
I
I
was
really.
I
was
really
struck
by
the
disparity
in.
D
In
the
racial
disparity
in
rental
increases
the
percentages
as
well
as
the.
D
Numbers
of
people
impacted
and,
and
then
in
many
ways
it
seems
like
at
the
lower
end
of
the
rental
pendulum
as
it
were,
that
it
seems
to
be
more
of
an
income
problem.
D
Between
five
and
seven
percent
caps,
if
incomes
don't
continue
to
increase,
we
will
still
be
faced
with
the
same
problem.
So
I'm
just
curious.
Are
there
any
recommendations
around
income-
and
I
mean
it
seems
like
we
have
to
have
more
approaches
than
just
this
tool
in
order
to
really
resolve
issues
for
people
at
the
lower
spectrums
of
the
the
the
rental
landscape?
D
A
C
A
Point
out
and
and
probably
with
reference
to
slide
number
nine
that.
C
A
I
would
argue:
it's
both
an
income
and
a
rent
issue
for
those
at
the
bottom
of
the
market.
When
you
look
at
the
bottom,
quartile.
C
A
C
A
Bottom
quartile
also
experienced
rent
increases
of
44
over
this
period
of
time.
So
I
would,
I
would
argue
with
you
that,
yes,
it
is
in
part,
an
income
issue,
and
that
would
you
know
suggest
that
you.
A
A
And
here
and
two
you're
sorry
your
question:
no,
we
did
not
sort
of
investigate,
rent
or
rather
income
types
of
programs.
D
Thank
you
yeah
and
that
that's
a
that's
a
huge
conundrum,
and
I
mean
you
know:
we've
tried
to
address
it
through
fifteen
dollars,
minimum
wage,
but
still
having
very,
very
significant
challenges
in
that
regard.
I
you
know
just
in
a
little
bit
of
insight
into
your
explanations
around
the
exemptions
as
a
as
a
very
small
property
owner
who
is
a
owner
occupied
unit.
D
I
I
do
believe
that
the
the
how
you
framed
it
the
financial
economic
model
is,
is
really
the
challenge
I
mean
it's,
you
know
the
the
cost
of
of
raising
the
rent
versus
you
know.
The
cost
of
finding
a
new
tenant
is
not
always
cost
effective
and
and-
and
I
think
consequently,
it
helps
to
keep
the
the
the
rents
low
and
so
doesn't
necessarily
I
mean.
D
As
your
study
indicated,
I
mean
the
average
rent
increases
in
the
twin
cities
are
basically
average
or
or
maybe
even
a
little
below
average
at
some
at
certain
levels,
and
so
that
exemption
around
smaller
developments
makes
sense
to
me,
the
new
construction
exemption
could
probably
use
a
little
further
investigation,
but
it
may
make
sense
to
to
to
do
that
as
well.
So
that
we
don't
limit
the
amount
of
housing
production
in
the
future.
B
Thank
you
so
much
council.
Vice
president,
I
put
myself
in
queue
basically
to
just
close
us
out,
but
I
see
that
councilmember
paul
masano
has
another
question.
So
I'm
gonna
go
ahead
and
give
you
the
floor.
E
Thank
you,
council,
member
ellison,
just
a
a
real,
quick
question.
These
are
all
really
good
points.
There
was
a
west
coast
study.
I
don't
remember
from
where
that
review.
That
was
trying
to
say
that
buildings
with
rent
control
would
be
left
like
unattended,
meaning
without
improvements,
and
it
overall
decreased
the
amount
of
investment
right
in
the
surrounding
community
and
I'm
curious.
E
A
E
A
To
answer
that
question
is,
with
reference
to
the
building
economics
model
that
we
we
created
most
of
the
owners.
We
interviewed
said
that
if,
if
there
is
a
limit
on
their
on
their
rental
income
that
their
first,
their
first
step
would
be
to
figure
out
what
parts
of
building
operations
they're
going
to
cut
back
on,
because
that
will
happen
before
they
cut
back
on
their
on
their
return
and
so
the
the
the
the
item
that
they
all
sort
of
landed
upon
was
the
the
kind
of
minor
maintenance.
A
A
There
is
some
evidence
in,
and
not
all
studies
look
at
this
question,
but
the
ones
that
do
also
you
know
tend
to
provide
different
kinds
of
findings,
but
the
most
prevalent
finding
is
that
you
do
see
some
decline
in
in
maintenance,
but
not
to
the
point
of
large,
problematic
capital
improvement
issues,
and
you
know
I
think
it's
in.
B
So
much
councilman,
I
had
a
few
questions
just
to
just
to
kind
of
close
this
out.
One
was
that
you
know
we.
B
You
know
what
I
know
that
whenever
a
council
member
has
in
the
past
has
pursued
a
new
sort
of
housing
policy,
especially
if
it's
focused
on
you
know,
trying
to
help
folks
stay
stable
in
their
in
in
their
homes
in
some
way
or
get
easier
access
to
housing
that
we,
that
the
interview,
questions
and
responses
that
we'll
get
from
from
builders
will
often
really
reflect
what
we
saw
in
in
your
interviews.
B
Is
there
any
information
about
like
what
about
builders
sort
of
making
good
on
those
promises?
You
know.
B
I
know
you
said
that
that
at
least
so
far
with
regards
to
rent
control,
that
it
hasn't
necessarily
resulted
in
the
slowing
down
of
construction
and
those
types
of
things,
but
but
but
in
any
of
your
interviews
had
any
of
the
landlords,
maybe
or
or
or
or
or
developers,
actually
make
good
on
on
on
leaving
a
city,
or
you
know,
based
on
some
of
the
housing
policy
that
had
been
passed
there.
A
Right,
you
know
the
the
the
folks
we
interviewed
were
all
local
operators,
and
so
these
were
owners
and
developers
and
lenders
here
in
minneapolis
that
do
business
in
in
minneapolis.
So
so
you
know
they
and
you're
right.
I
mean
these.
The
the
responses
we
got
are
the
responses
that
you're
going
to
get
from
the
industry
right
that
does
not,
and
but
we
have
no
idea
really
about
about
what
they
would,
what
they
would
do.
A
Some
of
the
some
of
their
responses
were
sometimes
contradicted
each
other
and
and
on
some
of
them
there
was
no
real
consensus.
They.
D
Were
and.
A
And
part
of
that
had
to
do
with,
as
I
mentioned
at
the
end
of
that
particular
point-
that
they
didn't,
you
know
they.
They
were
giving
generalized
responses
without
knowing
what
kind
of
rent
stabilization
program
they
would
face
right.
You
know
what
what
would
be
the
cap.
Would
there
be
an
exemption
for
new
construction?
Would
there
be
vacancy
control?
They
had
no,
and
you
know.
C
A
Have
obviously
none
of
those
details,
and
so
I
think
most
of
them
were
responding
in
a
worst-case
scenario:
type
of
of
manner.
B
Oh
well,
I
think
that's,
I
think,
that's
helpful.
You
know
with
that.
I
really
want
to
thank
you.
I
know
this
has
been
a
you
know,
minor
minor
marathon
here
between
the
presentation
and
answering
questions,
and
I
know
that
we
had
some
technical
hurdles
that
we
had
to
get
over,
and
I
really
appreciate
you
and
your
team
sort
of
bearing
with
us
and
figuring
that
out
and
and
and
and
running,
getting
all
the
way
through
the
presentation.
B
I
also
really
want
to
thank
staff
who
who,
in
the
coordinator's
office,
who
have
really
worked
with
with
cura
and
have
made
this
this
study
possible
and
and
and
work
to
get
us
to
get
us
where
we
are
right
now
with
having
such
great
information,
and
so
I
really
want
to
thank
our
city
staff
for
putting
this
together,
obviously,
the
clerk's
office
for
for
always
making
sure
that
we
have
a
good
platform
to
to
deliver
this
information
to
to
the
people
and
to
the
residents
with
that
and
with
no
further
discussion
from
my
colleagues,
I
will
say
that
this
this
meeting
stands
adjourned.