►
Description
Additional information at:
https://lims.minneapolismn.gov
B
Good
morning,
everyone,
my
name,
is
jeremiah
ellison,
I'm
the
chair
of
the
policy
and
government
oversight
committee
and
I'm
going
to
call
to
order
our
regular
meeting
for
tuesday
february
22nd.
I'd
like
to
note
for
the
record.
This
meeting
has
remote
participation
by
council
members
and
city
staff
as
authorized
under
the
minnesota
open
meeting
law,
section
13
d
.021
due
to
the
declared
state
of
local
public
health
emergency.
B
I
will
also
note
that
the
city
will
be
recording
and
posting
this
meeting
to
the
city's
website
and
youtube
channel
as
a
means
of
increasing
public
access
and
transparency.
This
meeting
is
public
and
subject
to
the
minnesota
open
meeting
law
at
this
time.
I'll
ask
the
clerk
to
call
the
role
to
verify
the
presence
of
a
quorum.
E
F
B
Let
the
record
reflect
we
have
a
quorum.
We
will
now
proceed
to
our
agenda,
a
copy
of
which
was
posted
for
public
access
to
the
city's
legislative
information
management
system,
also
known
as
limbs,
which
is
available
at
limbs.minneapolismn.gov.
B
The
agenda
has
26
items
I'll
note
from
my
colleagues.
I've
added
an
item
regarding
rent
stabilization
and
I've
invited
various
rent,
stabilization
experts,
including
staff
from
the
center
of
urban
and
regional
affairs,
to
speak
to
this
item.
But
first
we
will
have
our
first.
Our
first
item,
which
is
receiving
and
filing
public
comment
regarding
michael
friedman
and
robert
dube
finalist
for
the
appointment
to
the
ethical
practices
board
I'll
invite
the
city's
ethics
officer
susan
trammell,
to
introduce
them.
G
Good
morning,
chair
ellison
and
members
of
the
committee,
there
are
three
minneapolis
residents
who
serve
on
the
minneapolis
ethical
practices
board.
Those
members
are
appointed
by
an
appointing
committee
for
the
ethical
practices
board
and
that
appointing
committee
consists
of
the
chief
judge
of
hennepin
county,
currently
chief
judge
barnett,
the
dean
of
the
university
of
minnesota
law
school,
currently
dean
jenkins
and
the
dean
of
st
thomas
school
of
law,
currently
dean
fisher.
G
The
reason
that
they
are
currently
bringing
to
appointments
before
this
committee
for
a
public
hearing
is
because
we've
had
two
departures
during
the
last
during
their
terms.
So
these
are
midterm
appointments,
and
so
the
appointing
committee
is
recommending
the
appointment
of
mr
michael
friedman
for
a
term
to
expire
january,
2nd
of
2024
and
that's
a
midterm
vacancy
that
was
created
by
the
resignation
of
mr
clinton
collins
in
december
of
2021
when
he
moved
out
of
the
city.
G
G
Just
recently
happened
earlier
this
month.
The
ethics
code
requires
that
this
appointing
committee
forward
the
finalists
names
to
this
city,
council,
member
and
the
mayor
to
start
a
running
of
a
30-day
public
comment
period.
I
sent
a
letter
to
the
city
council
and
mayor
that
was
dated
january
31st
of
22
to
start
that
process.
In
addition,
it
was
posted
on
the
city,
clerk's
website
and
the
ethical
practices
board
website
that
we
are
taking
public
comments
through
march.
G
2Nd
comments
may
also
be
submitted
to
the
ethics
officer
at
minneapolismn.gov
and
any
comments
received
by
any
of
those
three
mechanisms
or
during
this
meeting
today,
will
be
forwarded
to
the
appointing
committee
for
consideration
once
the
public
hearing
has
closed.
We
would
ask
that
you
receive
and
file
this
item
and
both
mr
friedman
and
mr
dube
are
here
today
to
speak
to
you,
and
I
would
call
on
mr
friedman
first
to
introduce
himself.
E
E
I'm
not
going
to
detail
things
that
are
on
my
application
about
some
of
the
things
that
I
have
done.
You
will
see
that
for
15
years
I
was
the
executive
director
of
the
legal
rights
center,
a
minneapolis
non-profit.
That
goes
back
many
years
before
that.
Actually
I
was
on
the
staff
of
the
legal
rights
center
at
the
time,
but
not
its
director.
E
Currently,
I
am
serving
as
a
public
member
of
the
lawyers
professional
responsibility
board,
which
is
also
colloquially
seen
as
the
ethics
board
for
lawyers.
In
that
role,
I
am
responsible
there.
There
are
panel
hearings
in
which
determinations
are
made
regarding
reinstatements
or
probable,
cause
for
ethical
violations,
and
I
individually
get
assigned
appeals
from
complainants
to
respond
to
in
that
role.
I'm
also
the
which
is
not
on
my
application,
but
I
am
now
the
chair
of
their
equity,
equality
and
inclusion
subcommittee.
E
I
I
guess
the
other
thing
that
I
would
just
sort
of
say
in
general
is
that
you
know
I
find
if
there's
values
that
I
strongly
believe
in
is
that
law
needs
to
be
consistent
in
its
operation
and
it
needs
to
be
under
the
proper
authority
for
who
gets
to
you
know,
set
and
establish
the
law
such
as
you
folks
do
in
the
city.
E
On
the
other
hand,
where
law
often
falls
short
is
when
it's
not
communicated
effectively
and
honestly-
and
I
don't
know
that
much
about
what
the
ethical,
the
city
ethics
board,
what
its
day-to-day
work
will
be.
I
look
forward
to
learning
it,
but
fundamentally,
I
hope
to
be
someone
who
contributes
to
that
board
in
whatever
manner,
both
in
its
fairness
and
its
ability,
obviously
subject
to
its
own
rules
and
laws
to
communicate
as
effectively
as
it
can.
So.
That's
it
for
my
statement
and
I
would
take
any
questions.
B
Thank
you,
mr
friedman.
I
will
hold
off
on
on
questions
and
I'll.
Allow
miss
trammell
to
introduce
the
the
next
person,
but
thank
you
for
being
here
and,
and
thank
you
for
introducing
yourself
to
the
to
this
to
this
committee.
G
Thank
you,
chair
ellison,
robert
dube
is
the
next
applicant
and
I
must
confess
that
he
and
I
have
only
spoken
via
email
thus
far,
and
so,
if
I
have
mangled
his
name,
I
apologize
and
hope
that
he
will
correct
us.
Thank
you.
B
Robert,
if
you're
here,
you
might
have
to
press
star
six
to
unmute
yourself.
B
B
D
Excellent
well,
thank
you
so
much
and
thank
you,
mr
trammell.
My
name
is
robert
dube.
I
go
by
robbie
dube
and
no
worries
about
mangling
the
name.
It
is
inevitable.
I
want
to
thank
you
so
much
for
this
opportunity
to
present
before
you
and
to
be
considered
for
a
nomination
to
the
ethical
practices
board.
D
Unlike
my
fellow
number
nominee,
I
regret
to
inform
you
that
I
am
a
lawyer,
and
so
I
do
have
quite
a
lot
of
experience
with
the
ethical
rules
of
my
profession.
A
little
bit
of
background
on
myself.
I've
lived
in
minneapolis
from
2016
to
2019,
where,
after
that
I
graduated
law
school
and
from
the
university
of
minnesota
law.
School
briefly
went
to
hawaii
for
a
year
to
work
on
with
the
supreme
court
there,
where
I
help
them,
among
other
things,
revise
the
ethical
rules
of
practice
for
justices,
as
well
as
for
the
legal
community.
D
At
that
point,
I
returned
to
minnesota
and
minneapolis
and
have
lived
in
ward
3
with
my
wife
ever
since
I
was
interested
in
this
particular
board,
because
I
have
a
large
passion
for
ethics.
I
think
it's
one
of
the
most
important
areas
of
my
profession
is
ethical
responsibilities,
but
I
believe
also
for
city
officials
and
city
employees,
when
we
are
trusted
with
by
our
fellow
citizens
that
there
is
a
high
ethical
standard
that
comes
from
that
and
I'm
interested
in
helping
city
employees
understand
those
obligations
and
also
helping
to
enforce
them.
D
As
far
as
my
my
goals
or
understanding
of
the
board,
I've
had
the
time
to
speak
with
former
member
kyle
kroll
several
times
about
the
issues
and
developments
that
he
encountered
as
he
was
on
a
board
member.
I
understand
a
lot
of
what
the
ethical
practices
board's
focus
is
right
now
is
to
ensure
that
ethical
training
is
still
completed
as
we
are
in
this
public
health
emergency
and
to
make
sure
that
that
is
done
uniformly,
so
I'm
very
interested
in
helping
the
city
in
that
realm
and
helping
out
with
whatever
areas
I
can
so.
D
Thank
you
so
much
again
for
the
opportunity
and,
as
my
fellow
nominee
said,
if
there's
any
questions,
I'm
happy
to
answer
them.
B
Yeah,
thank
you
for
for
coming
here.
Thank
you
for
applying
and
and
thank
you
for
introducing
yourself
to
this
committee,
I'll
hold
off
on
questions
for
the
moment
and
I'll
see
if
there's
anything
else
from
miss
trammell.
G
Chair
ellison
members
of
the
committee,
I
have
nothing
to
add
other
than
that
we
must
open
the
public
hearing
and
then
upon.
Closure
of
the
public
hearing
asks
that
the
matter
be
received
and
filed.
B
Thank
you
very
much
so
yeah.
At
this
point,
I
will
open
the
public
hearing.
We
have
two
speakers
signed
up
to
speak
today,
but
the
two
speakers
are
the
appointees,
and
so,
if
they
they're
welcome
to
add
something
if
they
want
to,
but
if
not
that's
totally,
okay,
too,
we
will
be
taking
speakers
in
the
order
in
which
they
are
registered.
Each
speaker
will
be
given
two
minutes
to
address
the
committee.
B
We
have
a
timer
to
help
speakers
monitor
the
use
of
their
time
and
you
will
hear
a
buzzer
when
your
time
is
up
when
you
are
called
on
to
speak
press
star
6
to
unmute
your
phone.
Please
wait
for
a
moment,
a
record
message
that
says:
you're
unmuted
before
you
begin
speaking,
and
so
first
I'll
see
if,
if
the,
if
the
speakers
have
any
two
minutes
worth
of
anything
to
add
since
they
they
did
register,
but
if
not
that's
totally,
that's
that's!
Okay,
as
well.
E
B
Thank
you
and
yeah.
Thank
you
both
I'll
see
if
the
clerks,
if
anyone
else
has,
I
know,
no
one
else
is
registered,
but
has
anyone
else
is
anyone
else
here
to
speak
on
this
item.
B
It
doesn't
appear
that
anyone
else
has
hopped
onto
the
call
to
speak
on
this
item.
So
not
seeing
any
additional
speakers,
I
will
close
the
public
hearing
and
direct
the
clerk
to
file
that
report.
B
So
there
are
24
items
on
the
consent
agenda
before
that.
I
just
want
to
reiterate
again
thank
you
to
ms
trammell
for
helping
us
facilitate
this
project
process
and
again,
thank
you
to
robert
dube
and
michael
friedman
for
being
here
today
for
giving
some
words
and
and
a
brief
introduction
to
this
committee
and
look
forward
to
your
service
and
appreciate
it.
B
There
are
24
items
on
the
consent
agenda
and
I
will
read
them
for
the
record
item
number
two
in
our
agenda
is
a
collective
bargaining
agreement
with
the
foreman
unit
item
number
three
is
a
collective
bargaining
agreement
with
the
city,
minneapolis
city
supervisors.
Association.
B
B
Item
number:
eight
is
a
contract
with
more
con
construction
for
target
center
kitchen
219
project
item
number:
nine
is
contract
amendments
with
government.governmentjobs.com.
B
Inc
for
the
city's
hr
applicant
tracking
system
item
number
10
is
a
lawsuit
legal
settlement.
Thomas
maxwell
versus
the
city
of
minneapolis
items
10
through
20
are
legal
settlements
related
to
workers.
Compensation
claims
items
22
through
25
are
referrals
for
ordinances
from
the
city
council
to
staff.
These
are
ordinances
from
the
last
city
council
term
that
have
been
reintroduced
at
council
and
referred
to
the
policy
and
government
oversight
committee.
B
Each
of
these
ordinances
is
being
referred
to
staff
to
continue
work
on
the
subject
matter
of
these
ordinances,
and
with
that
I
will
ask
if
my
colleagues
have
any
comment
or
wish
to
pull
any
items
for
discussion.
B
I'm
not
seeing
anyone.
I
did
just
put
myself
in
queue.
Okay,
I
see
we
have
one
of
my
colleagues
at
hopkinq,
but
I
just
put
myself
in
queue
just
to
note
that
for
the
public
that
we
continue
to
see
these
workers
compensation
claims-
and
you
know
to
reiterate
my
talking
points
from
from
the
last
meeting,
which
is
that.
B
Talking
about
these
items
can
be
incredibly
difficult
if
you
do
not
have
a
legal
background,
but
I
know
that
many
in
the
community
are
concerned
about
this
item
about
the
amount
of
money
that
continues
to
come
forward.
I
know
many
of
my
colleagues
are
concerned
at
this
point.
I
am
convinced
that
that
these
items
are
to
save
the
city
money,
and
so
I
will
continue
to
support
them,
but
I
want
to
note
my
concern
and
affirmative
concern
that
I
have
that.
I
see
for
my
colleagues
so
I'll.
H
Thank
you
so
much
chair
ellison.
I
just
wanted
to
not
necessarily
pull
out,
but
I
think
I'll
just
be
following
more
on
the
information
on
items:
22,
23,
24
and
25.
Just
because
I
was
trying
to
look
over
the
items
online
and
there
doesn't
seem
to
be
much
information
so
just
wanted
to
let
you
know
that
I'll
just
be
following
these
items
as
they
progress
and
since
they're
going
to
city
staff.
B
Thank
you,
councilmember
chavez.
Are
there
any
other
comments
or
questions
from
my
colleagues.
B
So
I
will
now
seeing
none.
I
will
move
approval
of
items
2
through
25
and
I
will
ask
the
clerk
to
call
the
role.
I
J
F
B
All
right
those
items
carry
and
and
are
approved
so
item
number
26
is
a
is
a
staffing
purchasing
and
joint
purchase
report.
B
B
And
and
then
lastly,
we
have
item
number
27
so
in
which
is
a
which
is
a
presentation
on
rent
stabilization
research
done
by
the
university
of
minnesota's
center
for
urban
and
regional
affairs,
and
so
I'll
just
introduce
this
item
quickly.
B
A
will
follow
the
presentation
and
just
quickly
some
background
on
the
researchers
that
we'll
be
hearing
from
edward
goetz
is
the
director
of
cura
and
a
faculty
member
at
the
humphrey
school
of
public
affairs,
ed
specializes
in
housing
and
local
community
development
planning
and
policy.
His
research
focuses
on
issues
of
race
and
poverty
and
how
they
affect
housing,
policy,
planning
and
development.
B
Before
coming
to
the
university
of
minnesota
in
1988,
he
worked
at
the
mayor's
office
of
housing
and
economic
development.
In
san
francisco
and
for
several
non-profit
community
developers,
in
los
angeles
and
san
francisco,
he
has
served
on
the
board
of
directors
of
nonprofit
housing
agencies
in
the
twin
cities
and
on
several
regional
commissions
related
to
affordable
housing
and
development.
B
Dr
brittany,
lewis,
northside
resident
is
a
well-respected
community
is
sorry.
Dr
brittany
lewis
is
a
well-respected
community
engaged
qualitative
scholar
thought
leader
and
author,
and
a
professor
known
for
bringing
those
most
often
locked
out
of
the
local
decision
making
process
to
the
action
research
table
for
close
to
10
years.
Dr
lewis
is
the
founder
and
ceo
of
research
in
action,
an
urban
research
consulting
firm
and
is
currently
a
senior
research
associate
at
the
center
of
urban
and
regional
affairs.
B
At
the
university
of
minnesota,
dr
lewis
is
the
principal
investigator
of
the
recently
published
report:
titled
the
diversity
of
gentrification,
multiple
forms
of
gentrification
in
minneapolis
and
st
paul.
Dr
lewis's
research
was
used
in
a
minnesota
supreme
court
to
expand
rights
for
tenants
facing
evictions
and
then
lastly,
we
have
tony
damiano
who
received
his
phd
in
public
affairs
from
the
humphrey
school
of
public
affairs
at
the
university
of
minnesota
in
2021
and
is
a
postdoctoral
fellow
he
specializes
in
quantitative
and
spatial
methods.
B
His
research
interests
include
housing
policy,
neighborhood
change
and
structural
racism
and
inequality,
and
so
with
that,
I
will
welcome
the
research
team
to
have
the
floor
and
begin
their
presentation.
I
Thank
you,
council,
member,
alison
and
the
rest
of
the
council
members.
Thank
you
very
much.
I
I
would,
I
guess
like
to
go
through
a
series
of
slides
that
would
summarize
the
research
that
we
did
on
rent
stabilization
and
its
application
in
in
minneapolis,
and
so
let's,
let's
begin
there
next
slide
please.
I
So
the
first
element
of
our
analysis
was
to
examine
rent
trends
in
the
city
of
minneapolis
over
the
last
20
years,
and
what
you
see
in
front
of
you
is
simply
a
a
trend
in
the
changes
in
rent
from
about
2001
through
2018
or
19.
I
When
we
did
our
our
study,
you
see
two
different
lines
there
and
that's
because
we
looked
at
older
buildings
separately
from
newer
buildings,
you
can
see
that
they
track
each
other,
pretty
well
until
the
post-recession
area
era
of
2015
and
more
recently,
where
you
see
that
the
rents
in
the
older
buildings
somewhat
consistently
higher
the
change
in
rents
rather
consistently
higher
than
the
changes
that
you
were
seeing
in
the
newer
housing
stock
and
that's
a
that's
a
theme
that
we'll
come
back
to
in
our
findings,
something
that
we
saw
throughout
our
analysis.
I
This
simply
summarizes
some
of
the
the
data
that
you
saw
before,
which
was
to
to
note
that
the
average
year
to
year
growth
in
rents
has
been
quite
modest
over
that
period
of
time
from
2000
to
2018..
I
There
was
a
period
during
the
crash
when
rents
barely
increased
at
all.
I
Of
course,
affordability
is
a
ratio
between
a
household's
income
and
the
rent
they
are
paying,
and
so
the
graph
you
see
in
front
of
you
now
is
for
renters
who
have
the
median
income
in
the
city
of
minneapolis,
and
we
find
that
over
the
last
12
years
that
for
the
most
part,
their
increases
in
income
have
outpaced
the
increases
in
rent
and
so
generally
speaking,
this
is
a
good
sign
for
the
housing
market
and
good
sign
for
renters
who
are
seeing
their
incomes
increase
faster
than
their
rents,
and
this
is
again
at
the
median
next
slide
please.
I
But
if
you
look
at
the
and
you
break
out
the
market,
you
you
can
see
that
for
the
highest
income
renters.
I
This
is
this
is
even
more
the
case,
that
is,
that
their
incomes
are
rising
significantly
more
quickly
than
than
their
rents
are,
and
so
again
this
is
a
very
good
situation
for
renters
at
the
top
of
the
market.
Next
slide,
please.
I
But
when
you
look
at
the
bottom
of
the
market,
you
see
a
completely
different
story.
If
you
look
at
the
bottom
25
of
the
income
distribution
among
renters
in
the
city
of
minneapolis
over
this
period
of
time,
you
see
that
their
rents
have
increased
significantly
more
quickly
and
at
a
higher
rate
than
their
incomes.
In
fact,
the
incomes
for
most
of
this
period
of
time
had
fallen
below
their
2006
level
and
didn't
really
come
back
to
that
level
until
about
2019
all
the
while
the
rents
that
this
group
of
residents
were
paying
was
increasing.
I
So
what
we
see
is
that
when
you
look
at
different
parts
of
the
rental
market
in
minneapolis,
you
see
very
different
realities
and
and
so
for
the
lowest
income
renters
in
the
city.
I
This
slide
here
is
simply
another
way
of
looking
at
the
data
that
I
just
showed
you
basically
showing
you
that,
over
this
period
of
time,
from
2006
to
2019
rents
for
the
most
affluent
renters
in
minneapolis
increased
by
17,
but
their
incomes
increased
by
54.
I
And
then
you
look
at
the
bottom
quartile
you
see
that
the
rents
for
this
group
have
increased
44
over
this
time
period,
whereas
their
incomes
have
only
increased
2.9
percent.
So
it's
simply
another
visualization
of
the
data
that
I
had
first
shown
you
in
the
in
the
graph
next
slide.
Please.
I
We
also
looked
at
the
breakdown
between
our
renters
of
different
racial
and
ethnic
backgrounds,
and
so
what
you
see
in
front
of
you
is
the
is
the
the
graphs
for
white
renters,
whose
incomes
have
consistently
outpaced
the
growth
in
in
their
rents
for
bypac
renters.
However,
for
most
of
this
period
of
time,
their
rents
were
increasing
at
a
rate
faster
than
their
incomes.
I
This
actually
changed
around
2018
2019,
where
the
the
income
increases.
Finally
caught
up
to
the
rent
increases
for
all
bypack
renters,
but
next
slide.
Please,
when
you
look
only
at
black
renters
in
minneapolis
again
you
see
a
different
story,
and,
and
what
you
see
is
that
rent
increases
have
been
higher
than
income
increases
for
black
renters
for
the
entire
period
and
by
a
pretty
significant
margin.
I
In
fact,
the
income
for
black
renters,
still
at
the
end
of
our
study
period
in
2019,
was
still
below
the
level
that
it
had
been
at
the
beginning
of
our
study
in
2006.,
whereas
their
rents
had
had
increased
above
that,
above
that
rate,
so
again
by
breaking
down
the
data,
you
can
see
more
precisely
where
renters
are
struggling
and
which
renters
are
struggling
the
most
in
the
city
of
minneapolis
next
slide.
I
Please
another
way
of
looking
at
affordability
is
to
look
at
the
percentage
of
households
that
are
cost
burdened
and
the
the
definition
of
cost
burdened
is
a
household
that
is
paying
more
than
30
of
its
income
on
rent,
and
so
you
see
three
lines
on
this
graph.
The
the
line
at
the
top
is
households
who
make
less
than
30
percent
of
the
area,
median
income
and
the
area
median
income.
At
the
time
we
did.
I
If
you
look
at
the
bottom,
the
yellow
line
is
households
in
minneapolis
that
were
making
greater
than
60
of
the
area
median
income,
so
these
are
households
with
incomes
above
60
000
roughly,
and
you
can
see
that
fewer
than
10
of
these
households
were
cost
burdened
and
that
was
fairly
consistent
across
the
period
of
our
study.
I
The
the
group
in
the
middle
is
is
households
that
are
making
between
30
and
60,
and
you
can
see
that
over
time
an
increasing
percentage
of
those
families
are
becoming
cost
burdened
in
the
in
the
marketplace,
and
so
that's
where
some
changes
have
been
taking
place
in
the
minneapolis
rental
market.
It's
with
those
families
who
are
making
between
30
and
60
000,
although
of
course,
we
should
also
note
that
the
top
line
shows
a
consistent
amount
of
burden
for
the
the
lowest
income
households
next
slide.
Please.
I
And
so
from
our
analysis
of
affordability,
we
shift
now
to
discussions
about
different
ways
that
rent
stabilization
programs
are
are
are
shaped
in
in
cities
across
the
country
and
and
we
identified
five
important
design
decisions
that
that
face
policymakers,
trying
to
create
a
program
of
rent
stabilization
and
the
first
one
is
the
choice
of
the
cap.
That
is
how
it
is
that
you
will
limit
rent
increases
and-
and
you
can
see
that
there
there
are
various
ways
of
doing
that.
I
I
I
Another
option
is
to
add
a
percentage
or
two
above
the
rate
of
inflation
and
then
in
some
cases,
actual
nominal
amounts
are.
Are
allowed
as
rent
increases?
This
is
really
a
rare
occurrence
and
and
was
more
frequent
in
in
earlier
years,
but
so
that's
the
first
choice
that
policymakers
have
next
slide.
Please,
the
the
next
decision
that
policymakers
must
make
is
under
what
circumstances
exceptions
are
made
to
the
cap.
I
Whatever
the
cap
is,
and
and
typically
there
are
a
couple
of
different
exceptions
that
are
made
generally.
Exceptions
are
made
for
ci
capital
improvements,
major
capital
improvements.
Sometimes
they
are
made
for
property
taxes
in
in
some
places
they
have
been
made
for
fuel
costs.
I
Other
jurisdictions
create
what
is
called
a
fair
or
reasonable
return
clause,
which
is
many
times
designed
to
cover
all
of
those
types
of
exceptions,
including
property
taxes
or
capital
improvements,
and
it
simply
is
a
is
a
petition
process
whereby
landlords
can
ask
for
an
exception
to
the
cap,
based
on
their
circumstances
and
based
on
their
cost
and
income
situation,
and
so
so
most
programs
really
incorporate
this
fair
or
reasonable
return.
I
This
is
a
standard
that
most
courts
would
require
of
a
of
a
program.
I
The
other
things
that
you
see
on
the
slide
there
is
a
reference
to
banked
increases,
sometimes
landlords
give
preferential
treatments
to
long-term
tenants
whom
they
don't
want
to
lose
or
or
or
what
have
you
and
the
question
is:
will
you
allow
them
to
bank
those
increases
and
then
withdraw
them
at
the
point
in
time
when
a
vacancy
occurs
or
a
turnover
occurs,
and
that
again
is
a
decision
that
policymakers
make
next
slide
please?
I
The
third
program
design
area
is,
is
a
determination
about
what
part
if
any
part
of
the
housing
stock
may
be
exempt
from
rent
stabilization,
and
I
think
the
most
common
form
of
an
exemption
is
an
exemption
on
new
construction
oftentimes.
I
Another
form
of
exemption
that
some
jurisdictions
have
is
exemptions
for
owner
occupied
small
buildings,
so
usually
two
to
four
unit
buildings,
either
a
flat
exemption
for
those
small
buildings
or
a
an
exemption
that
is
tied
to
whether
one
of
those
units
is
owner
occupied.
So
again,
this
is
a
set
of
decisions
that
policy
makers
will
make
when
they
create
a
rent.
Stabilization
program
next
slide.
Please
and
then
another
issue
that
many
many
cities
consider
is
whether
to
decontrol
units
upon
the
vacancy
of
that
unit.
That
is
when
there
is
a
turnover
of
tenants.
I
The
question
is:
is
the
landlord
allowed
to
increase
the
rents
up
to
market
rate?
That
would
be
a
full
vacancy
decontrol,
or
are
they
allowed
to
go
beyond
the
cap
to
some
degree?
So,
for
example,
some
cities
have
a
system
in
place
where,
if
a
tenant
leaves
a
unit
and
that
tenant
has
lived
in
that
unit
for
fewer
than
10
years,
then
the
landlord
has
the
opportunity
to
increase
the
rents
by
a
full
10
percent.
I
That
would
be
what
is
known
as
a
partial
d
control,
but
of
course,
other
cities
have
no
d
control
at
all.
That
is
that
the
rent
limits
continue
to
apply
whether
or
not
there
is
a
vacancy
and
turnover
to
the
unit.
Next
slide,
please
and
then
the
final
area.
It
has
to
do
with
how
a
city
will
fashion
compliance
and
and
public
education.
That
is,
will
there
be
a
rent
board
created
that
will
review
petitions
or
adjudicate
disputes
between
tenants
or
landlords?
I
How
you
approach
the
the
issue
of
how
rents
are,
are
and
managed
over
time,
whether
and
to
what
degree
there
will
be
public
information
made
available
to
tenants
and
landlords
about
their
rights
and
obligations,
and
then
how
that
will
be
paid
for
most
programs
will
apply
a
fee,
a
per
unit
fee
that
ends
up
paying
for
the
implementation
of
a
rent,
stabilization
program
and
in
most
cases
those
fees
cover
the
entire
cost
of
the
implementation
of
the
program,
and
so
those
are
the
five
program
design
areas
that
we
were
able
to
identify.
I
I
think
the
the
the
city
council
will
have
a
series
of
decisions
to
make
related
to
to
all
of
those.
So
next
slide,
please,
the
the
next
part
of
our
report
was
to
review
all
of
the
studies
that
we
could
find
on
the
actual
operation
of
rent,
stabilization
programs
across
the
country
and
and
so
in
this
part
of
the
of
the
report.
I
We
summarize
what
the
research
has
shown
about
those
programs-
and
I
think
the
first
thing
to
note
is
that
the
the
findings
that
you
see
from
one
city
to
the
next
are
very
highly
dependent
on
those
five
decisions
that
we
talked
about
just
previously
right
about.
I
think
the
the
the
impact
on
rents
will
depend
on
what
the
rent
cap
is.
It
will
depend
on
whether
there's
vacancy
d
control
or
not,
it
will
depend
on
what
percentage
of
the
housing
stock
has
been
exempted,
etc.
I
I
The
second
thing
that
we
find
in
the
research
is
that
rent
stabilization
programs
across
the
country
are
quite
effective
and
and
really
most
effective
in
preventing
large
rent
increases,
some
programs
sort
of
tout
themselves
as
anti-rent
gouging
laws.
So,
for
example,
this
the
the
state
of
oregon
created
a
statewide
rent
stabilization
program.
I
The
rent
cap
in
oregon
is
the
consumer
price
index,
plus
an
additional
7,
so
for
many
of
the
last
10
years
that
would
have
allowed
rent
increases
of
up
to
10
percent
and
a
program
like
that
will
really
only
have
an
effect
in
preventing
the
very
largest
rent
increases
and
rent
gouging.
But
this
is
something
that
all
programs
would
have
in
common.
They
do
prevent
the
very
largest
rent
increases
next
slide.
I
The
third
thing
that
we
saw,
though,
is
that,
generally
speaking,
rent
stabilized
cities
have
lower
rents
than
comparison
cities
and
where
rent
stabilization
applies
to
only
a
percentage
of
the
housing
stock.
I
It's
typically
true
that
that
percentage
has
lower
rents
than
the
uncontrolled
markets,
so
this
is
a
kind
of
a
common
sense
finding
that
is
pretty
consistent
across
all
of
the
studies
that,
if
you
do
control
rents,
you
will
end
up
producing
lower
rents
overall
than
would
have
existed
otherwise.
Next
slide,
please
number
four.
I
We
found
really
no
evidence
that
rent
stabilization
programs,
slow
or
impede
new
housing
starts
at
all.
Now,
that's
generally
the
case,
or
let
me
put
it
this
way.
We
also
could
not
find
any
research
on
a
program
that
did
not
exempt
new
construction.
So
all
of
the
research
that's
been
done
is
done
on
cities
where
new
construction
is
exempted
and
in
all
of
that
research
there
is
really
no
evidence
that
new
construction
slowed
down
or
declined
at
any
at
any
rate.
I
Next
slide,
please,
the
research
is
more
mixed
on
on
quality.
There
is
some
research
that
shows
that
there
is
some
impact
on
on
the
quality
of
the
housing
stock,
but
that
this
impact
is
generally
on
smaller
items,
more
aesthetic
elements
of
the
housing
stock,
rather
than
the
major
components
of
the
housing
stock.
So,
generally,
that's
that's!
I
Rehabs
are
are
covered
under
exemptions
or
exceptions
to
the
cap
or
or
covered
under
the
reasonable
return
clauses
that
most
programs
have,
and
so
so
the
research
tends
to
show
that
the
major
systems
of
the
rental
stock
remain
up
to
date
and
and
maintained,
but
that
you
can
find
a
decline
in
in
the
smaller
components
of
housing
quality.
I
Next
slide,
please.
The
research
is
fairly
consistent
in
also
showing
that
rent
stabilization
can
result
in
the
loss
of
rental
units
in
the
local
housing
market,
and
this
is
generally
the
case
for
any
of
three
reasons.
The
first
is
that
you
do
see
evidence
that
landlords
will
convert
their
rental
buildings
into
condominiums
into
homeownership,
so
that
they
are
then
exempted
from
the
provisions
of
the
law.
You
see
that,
in
a
a
a
good
amount
of
research
shows
that
that
happens.
I
The
second
thing
that
can
happen
is
that
landlords
or
property
owners
will
tear
down
buildings
and
then
replace
them
by
new
construction,
and
if
there
is
a
new
construction
exemption
in
that
city,
then
those
new
units
are
not
under
the
control
of
the
rent
regulations
and
then
the
other
method
of
withdrawing
from
the
market
is
through
owner
occupation.
I
In
those
cities
where
owner-occupied
units
are
exempted,
you
see
higher
rates
of
of
owners
moving
into
units
and
and
thereby
withdrawing
those
units,
or
sometimes
the
entire
building
from
regulations.
So
so
it's
fairly
consistent.
You
do
see
this
kind
of
of
activity
in
cities
with
rent
stabilization
next
slide,
and
so
what
that
means
is
that
most
of
the
research
shows
that
there
is
probably
a
need
for
complementary
policies,
policies
that
either
preserve
or
limit
condominium
conversion
or
that
preserve
what
we
call
naturally
occurring
affordable
housing
or
that
put
limits
on
demolition.
I
The
literature
and
the
research
also
shows
that
in
cities
where
vacancy
decontrol
is
in
effect,
that
tenant
protections
are
often
in
place
so
eviction
controls
are
often
part
of
rent
stabilization
programs
around
the
country,
and
that
is
because,
of
course,
with
vacancy
d
control,
there
is
an
incentive
for
landlords
to
induce
turnover
in
the
market,
and
so
so
these
protections
are
put
in
place
to
respond
to
that
next
slide,
please
so
from
there
we
did
an
analysis
of
what
the
potential
impacts
of
different
rent
caps
could
be.
I
I
I
We
also
looked
at
a
rent
cap
that
had
the
cpi
plus
an
additional
three
percent.
Next
slide.
Please
and
then
the
last
scenario
we
looked
at
was
the
kind
of
oregon
scenario,
which
is
a
an
anti-gouging
approach
of
the
inflation
rate,
plus
seven
percent.
So
those
are
the
four
scenarios
we
we
looked
at
next
slide.
Please
and-
and
so
here
is
a
a
visualization
of
what
of
what
rent
increases
were
like
in
minneapolis.
This
is
kind
of
hard
to
read.
I
I
So,
looking
at
the
entire
graph,
you
can
see
that
the
really
higher
rent
increases,
the
rent
increases
that
are
darker
blue,
which
indicate
rent
increases
between
five
and
ten
percent
or
more
than
ten
percent
really
became
more
common
after
the
the
crash
was
over
and
after
the
crisis,
and
you
see
that
in
these
years
of
2015,
16,
17
and
18
that
anywhere
from
25
to
35
of
the
rental
stock
was
seeing
increases
of
more
than
5
and
sometimes
over
10
next
slide.
I
So
what
that
means
is
that
for
many
years
those
hypothetical
rent
caps
were
are
going
to
have
very
small
impacts,
and
so
what
you
see
here
is
what
the
median
rent
in
the
city
of
minneapolis
would
have
been
under
these
different
rent
caps.
I
The
other
thing
to
note
in
this
graph
is
that
the
the
the
the
two
most
lenient
caps,
that
is,
the
cpi
plus
three
percent
and
the
cpi
plus
seven
percent-
have
essentially
no
impact
until
the
post-recession
years,
where
they
would
have
prevented
the
highest
increases
from
occurring,
and
then
you
can
see
that
they
would
have
brought
down
the
median
rent
slightly
from
the
from
the
actual
level.
I
Another
way
of
looking
at
the
impact
of
these
different
rents
is
to
look
at
what
the
rents
would
have,
how
different
they
would
have
been
by
percentage.
So
there's
a
lot
of
numbers
on
this
on
this
graph.
Let's
look
at
that
number
17.3
percent,
which
is
on
the
first
row
in
the
middle
common
in
the
middle
column.
I
So
you
can
see
at
the
at
the
median.
The
rent
increases
or
the
the
rent
caps
of
75
and
100
would
have
had
a
double-digit
impact
over
19
years
on
the
median
rents,
but
would
have
had
almost
no
impact
if
those
red
caps
had
been
cpi,
plus
3
or
cpi,
plus
7.
So
you
can
see
the
different
rates
of
impact
next
slide.
I
This
is
simply
the
same
information,
but
in
terms
of
dollars,
rather
than
percent.
So
basically
the
re,
the
median
rent
in
minneapolis
would
have
been
eight
hundred
and
eighty
five
dollars
less
than
it
currently
is.
If
the
city
had
had
a
media
had
had
a
rent
cap
of
75
percent
of
the
cpi,
you
can
take
a
look
at
those
numbers
as
well.
Next
slide,
we
did
interviews
with
30
industry.
People
next
slide,
please,
and
actually,
if
you
could
press
forward
three
or
four
more
times,
one
more
one.
I
More
and
one
more,
thank
you
actually
one
more
after
that.
These
are
the
findings
that
we've
got
from
our
interviews
with
developers
and
owners
and
investors.
They
they
worried
about
potential
impacts
in
the
both
the
short
and
the
long
term.
I
They
they
suggested
that
perhaps
there
would
be
fewer
impacts
on
tenants
and
landlords
immediately,
but
that
there
might
be
impacts
in
the
long
term
on
property
values,
on
the
city's
tax
base,
on
the
rate
of
reinvestment
and
on
housing
supply.
They
were
concerned
about
those
items.
They
also
noted
that,
even
if
the
rent
cap
would
not
affect
them,
and
many
of
them
indicated
that
it
wouldn't
affect
their
business
because
they
raised
rents
at
low
rates,
they
would
be
incentivized
to
raise
their
rents.
Even
before
a
stabilization
program
began.
I
I
I
But
in
the
end
they
they
said.
You
know
it
really
does
depend
on
what
the
city
adopts
as
a
as
a
program,
and
you
can
see,
of
course,
that
many
of
their
worries
are
those
items
that
were
addressed
in
the
research
that
that
we
reviewed
next
slide.
Please,
beyond
those
interviews,
we
actually
analyzed
and
modeled
what
at
the
building
level,
the
kind
of
profit
model
for
for
most
building
owners,
and
we
looked
at
five
different
measures.
I
The
first
and
the
last
one
are
bolded,
because
those
are
the
only
two
I'm
going
to
summarize
for
you
today,
but
all
five
of
them
are
in
the
report,
but
the
first
and
the
last.
This
average
annual
return
and
internal
rate
of
return,
we
were
told,
are
the
most
important
to
to
property
owners
and
developers.
I
So
next
slide.
So
basically,
the
average
annual
return
in
minneapolis
for
older
properties
was
about
7.2
percent.
I
Over
the
years
of
our
study
from
2009
to
2018,
that
is
within
the
acceptable
range
for
property
owners,
we
were
told
that
from
six
to
10
percent
is
what
is
what
owners
look
for,
and
so
at
the
average
of
the
rental
market
in
minneapolis?
That's
what
they
were
seeing
next
slide.
I
The
median
was
essentially
the
same.
That
is
that
owners
at
the
median
were
experiencing
average
annual
returns
right
where
they
expected
to
in
the
minneapolis
market
next
slide
at
the
high
end
of
the
market.
That
is
those
landlords
who
were
more
aggressively
increasing
rents.
Over
this
period
of
time
they
were
seeing
average
annual
returns
in
excess
of
12.
So
those
are
very
high
rates
of
of
return
and
that's
what
you
were
getting
at
the
at
the
high
end
of
the
market
in
minneapolis
next
slide.
I
If
the
city
had
had
a
rent
stabilization
that
was
pegged
exactly
to
the
inflation
rate
that
would
have
allowed
average
annual
returns
of
eight
percent
so
again
in
excess
of
what
was
being
experienced
on
at
the
at
the
at
the
median.
I
see
that
there
is
a
question
on
this
slide
from
council
member
johnson.
Should
we
take
that
right
now.
B
Yeah
I
was
just
gonna,
I
was
just
gonna
interrupt
to
say,
councilmember
johnson.
K
Go
ahead.
Thank
you,
mr
chair
and
I'll.
Be
quick.
I'm
just
curious
what
the
thought
is
behind
why
we
would
see
a
larger
percent
of
a
return
if
we're
capping
at
cpi.
Is
that
because
the
behavior
modifies
of
landlords
where,
because
of
the
cap,
they
then
raise
more
aggressively
when
they
can
or
like
what
would?
Why
would
that
be.
I
Yeah,
that's
a
great
question.
That's
a
great
question
that
I
should
have
sort
of
described
yeah.
We
were
assuming
at
cpi
that
landlords
would
increase
at
the
very
top
of
the
limit.
So
what
that
so
we
were
modeling
eight.
I
We
were
modeling
the
the
maximum
allowable
increase
in
all
of
these
scenarios,
which
is
compared
to
what
was
actually
done
by
landlords
at
the
average
in
the
median.
So
that's
why
you
would
see
an
increase
is.
Does
that
explain.
K
It
yeah
it
does
so.
It
sounds
like
we
might
expect
some
modification
of
behavior
that
pushes
up
rents
in
the
average,
but
then
you're
regulating
more
on
those
outliers
or
the
upper
quartile.
Essentially,
is
that
accurate
to
say.
I
Yeah
in
this
case,
in
this
case,
yes,
it
would
have
limited
those
outliers
at
the
high
end
again
whether
we
expect
that
behavior
modification
and
and
increases
at
the
top.
I
that's
not
what
we're
saying
here.
What
we're
saying
here
is
that
that's
what
we
modeled!
That
was
our
assumption,
so
without
without
sort
of
making
a
judgment
about
whether
all
landlords
would,
in
fact.
K
Do
that?
Thank
you
that's
very
helpful,
and
I
appreciate
you
pausing
the
presentation
to
answer
that
clarifying
question.
Thank
you
sure
sure.
Thank.
I
So
so
the
next
slide,
then
the
the
the
final
model
that
we
ran
was,
of
course,
the
most
lenient
of
all
this
cpi,
plus
seven
percent,
and
that
would
have
allowed
average
annual
returns
of
almost
19,
which
in
fact
the
market
in
minneapolis
didn't
even
achieve
so.
A
a
a
rent
cap
at
that
level
probably
would
have
allowed
rent
increases
that
were
in
excess,
really
of
even
what
the
high
end
of
the
market
was
regularly
doing
at
that
point.
I
I
And
again,
what
you
see
is
over
time
in
minneapolis
right
at
the
average
or
the
median.
That's
what
owners
were
getting.
They
were
getting
about
16
internal
rates
of
return
in
the
market,
the
most
aggressive
owners
in
minneapolis,
those
who
were
increasing
at
the
top
of
the
market
or
the
the
highest
rates
we're
actually
receiving
internal
rates
of
return
of
22
percent.
I
And
then
the
final
four
bars
there
in
that
chart
are
the
hypotheticals.
What
would
have
been
achieved
with
a
rent
cap
at
75
percent
of
the
cpi,
and
you
can
see
that
it
would
have
essentially
mirrored
what
was
happening
at
the
median
of
the
market.
I
A
rent
increase,
a
rent
cap
right
at
the
cpi
would
have
allowed
internal
rates
of
returns
slightly
larger,
and
then
you
see
the
the
final
two
would
have
allowed
rent
internal
rates
of
return
at
the
very
high
end
of
the
market.
So
next
slide
please.
I
So.
Finally,
in
summary-
and
I
apologize
for
how
long
this
has
taken-
you
know,
I
think
the
the
lessons
to
take
is
that
you
have
some
important
policy
design
choices
in
front
of
you,
that
they
do
have
impacts
on
outcomes
and
that
that
rent
stabilization
will
probably
also
require
you
to
think
about
complementary
policies
related
to
tenant
eviction,
controls
or
condo
control,
condo
conversion
controls
or
demolition
controls
of
some
sort.
I
Next,
our
analysis
showed
that
the
affordability
issues
and
the
rent
increase
issues
were
not
market
wide,
but
they
were
concentrated
for
those
at
the
bottom
of
the
market
and
they
were
concentrated
among
african-american
renters
in
the
market.
So
this
so
the
problems
that
were
seen
by
renters
again
were
not
uniformly
experienced
across
the
market,
but
were
seen
in
those
particular
areas.
Next,.
I
And
and
then
our
analysis
and
our
modeling
showed
that
the
scale
and
the
scope
of
the
impacts
of
any
rent
stabilization
program
will
depend
both
on
the
market
and
on
the
choice
of
the
caps
and
and
policy
choices
that
that
you
make
and
then
finally,
next
there
is
really
a
consistency
in
the
story
that
we
saw
from
the
rent
data
from
the
population
data
and
the
economics
modeling
that
we
that
we
did,
and
so
I
think
we
offer
this
to
you
as
guidance.
I
While
you
make
your
decisions
and
that's
the
end
of
my
presentation
and
we'd
be
glad
to
to
take
additional
questions
at
this
point.
B
Well,
thank
you
so
much
for
this
presentation.
I
know
you've
given
it
to
the
council
before,
but
we've
got
a
majority
of
new
council
members
this
term
and
I
felt
like
it
felt
like
a
a
good
opportunity
to
reintroduce
folks
to
this
conversation
also
since
you've.
Given
this
presentation,
we've
had
the
passage
of
question
three
which
we
did.
B
You
know,
which
means
that
we
can
pursue
some
some
policy,
whereas
before
this
kind
of
existed
in
the
in
the
in
the
realm
of
hypothetical
much
more
than
it
does
now.
So
thank
you
so
much
for
being
here
and
with
that
I
will.
I
will
take
any
questions
from
colleagues
and
I'll,
give
my
colleagues
a
moment
to
put
themselves
in
queue
and
actually,
while
we
wait
for
folks
to
put
themselves
in
queue,
I
I
wanted
to
ask
when
it
comes
to
the
the
statewide
policy
in
oregon.
B
Correct
me.
If
I'm
wrong,
that's
a
that's
a
statewide
policy
and
it's
intended
to
sort
of
be
the
floor
right.
So
individual
cities
can
actually
pass
stricter
policies
if
they
like.
That
was
my
understanding,
but
I
wanted
to
see
if
you
guys
kind
of
knew
the
new
knew
about
that
policy
right.
I
Actually,
oregon
is
one
of
the
states
that
preempts
the
ability
of
local
governments
to
enact
their
own
and
so
advocates.
There
went
the
state
route
and
you
know
we
spoke
to
them.
While
we
were
doing
our
study
and
and
they
felt
that
getting
in
what
they,
what
they
realized
was
in
essence,
only
an
anti-gouging
law
was
about
the
best
that
they
could
that
they
could
accomplish
in
that
political
environment.
B
All
right,
we'll
move.
I
know
I
see
council
member
elliot
payne,
who
is
not
a
member
of
the
committee,
but
we
welcomed
all
council
members
to
come
and
join
us.
So
thank
you
for
joining
the
committee
today,
councilmember
payne
and
please
take
it
away
with
your
question.
L
Thank
you,
mr
chair,
and
thank
you
for
this
presentation.
I
just
was
curious
during
your
interviews.
Did
you
have
an
opportunity
to
speak
about
the
financing
for
new
construction
because
you
know
I'm
trying
to
do
my
policy
homework.
I've
had
some
conversations
with
some
developers
and
they've
talked
about
some
of
their
concerns
about
being
able
to
find
financing
for
their
projects
based
on
you
know
and
part
of
the
challenges.
L
There's
not
a
policy
for
people
to
react
to
so
I
was
just
curious
if,
as
you
did
your
analysis,
you
were
able
to
get
down
to
that
level
of
financing,
and
if
there
was
some
sentiment
there,
that
could
help
enlighten
us.
I
Yes,
I
I
think
that
we,
we
certainly
did
hear
concerns
we,
we
not
only
talk
to
developers
but
also
to
to
to
bankers
and
to
lenders
and
so
they're
again
our
conversations
took
place
in
the
absence
of
any
formal
policy
proposal,
so
they
didn't
know
what
they
would
be
facing,
but
they
did
express
concerns
about
being
able
to
get
financing
under
a
rent.
I
Stabilization
policy,
but
again
it
depended,
is
basically
what
they
what
they
said
on
on
on
the
various
decisions
that
are
in
front
of
the
council.
B
All
right,
we've
got
a
question
from
council
member
costume.
J
Hello,
thank
you
so
much
thanks
for
doing
this
presentation
and
it's
nice
to
see
you
again.
I
know
we
had
a
chance
to
connect
already
before
and
now,
knowing
you
know,
having
our
conversation
and
getting
this
information
a
little
bit
more
deeply
again,
I
do
have
a
series
of
questions
so
bear
with
me.
J
So
the
cure
report
indicates
that
run.
Regulation
policies
are
effective
in
maintaining
below
market
rent
levels
and
moder
moderating
price
appreciation.
Looking
at
a
broader
scope,
can
you
outline
how
this
contributes
to
the
greater
goal
of
creating
housing
stability,
which
I
know
you
and
I
talked
a
little
bit
about
too,
with
just
the
broader
scope
of
housing,
stability.
I
Right
and
so
one
of
the
other
things-
and
that
I
didn't
talk
about-
is
that
one
of
the
more
consistent
findings
in
in
studies
of
rent
stabilization
is
that
tenants
stay
in
controlled
units
for
a
longer
period
of
time.
I
So,
if
you're
talking
about
stabilization
of
the
market
in
terms
of
stabilization
of
households
and
units,
that
is
a
that
is
a
consistent
outcome
of
rent
stabilization
programs,
land
tenants
do
stay
in
units.
It.
J
Yeah,
I
guess
just,
but
you
know
when
we
think
about
yes,
housing's
ability
beyond
you
know.
What
is
it
that
this
you
know
helps
create
in
that
goal,
and
I
think
I
mean
you've
answered
one
option
right
where
you
said
people
tend
to
stay
longer
in
their
homes
if
they
are
in
a
rent-stabilized
unit.
Is
that
what
I
heard
you
say.
J
I
We
so
on
on
several
of
the
slides
that,
where
we
showed
impact
of
of
caps
over
time,
we
were
assuming
that
one
of
two
things
occurred
either
that
a
tenant
either
that
there
was
vacancy
control,
which
is
that
they're
that
the
caps
applied,
even
if
there
was
turnover
or
that
there
was
no
turnover
in
the
market
right.
So
we
didn't
incorporate
possible
effects
of
vacancy
d
control.
I
We
looked
at
the
older
portion
of
the
housing
market,
so
we
in
our
study
really
assumed
a
new
construction
exemption,
and
so
that's
inconsistent
with
what
saint
paul
passed.
So
in
that
respect,
that's
different,
I'm
trying
to
think
of
and
then
of
course
you
saw
that
we
modeled
rent
caps
at
various
levels,
whereas
they
have
instituted
a
flat
three
percent.
I
But
you
also
see
that
in
many
of
our
slides
that
the
majority
of
years
over
this
period
of
time,
the
rate
of
inflation
was
was
well
below
three
percent
and
most
of
the
rent
increases
were
at
or
below
three
percent.
As
well,
so
that
is
that's
slightly
inconsistent
with
the
saint
paul,
but
not,
but
not
totally,
and-
and
I
would
argue
probably
it's
mostly
accommodating
of
the
three
percent
limit
that
they
have
in
place-
you
can
see
how
it
would
have
an
impact.
Let's
put
it
that
way,.
J
I
guess
there's
kind
of
piggybacks
on
this,
but
because
you
mentioned
that
there's
little
evidence
that
production
of
new
housing
shows
as
a
result
of
or
slows
down
as
a
result
of
regulation
policies,
but
to
clarify
this
in
the
studies
that
you
did
prior
to,
because
this
was
done
prior
to
st
paul's.
You
know
rent
stabilization
policy,
it's
because
there
was
no
existing
rental
regulation
policies
at
the
time
of
the
study.
Is
that
correct.
I
Yeah
there
was
no
research
on
on
a
program
that
that
did
not
exempt
new
construction
and,
and-
and
so
we
we
simply-
there
is
no
previous
research
on
that
question.
I
Right:
okay,
it
does,
it
doesn't
exist
where
yeah,
I
can't
say
I
mean
there-
are
close
to
200
places
across
the
country
that
have
rent
stabilization.
If
it
does
exist,
there
have
been
no
studies
on
it.
Let's
put
that.
J
Okay,
thank
you
so
to
gain
industry
perspective
for
the
cure
report.
You
interviewed
30
people
involved
in
minneapolis
apartments
and
it
sounded
like
this
process
included
a
10
question
questionnaire
and
a
one
to
two
hour
interview
per
person.
I'm
just
curious
to
know.
Why
do
you
choose
that
method
to
reflect
industry
perspective,
and
do
you
believe
that
this
method
sufficiently
investigates
all
industry
perspectives
and
then
evaluates
the
concerns
brought
up
by
the
industry
perspectives.
I
Well,
we
think
that's
a
pretty
we
chose
we
chose
to
go
deep
in
conversations.
We
thought
that
we
have
a
a
pretty
wide
representation
of
people.
We
interviewed
non-profit
a
couple
of
non-profit
developers,
mostly
for-profit
developers,
we
included
large
building
large
owners
and
small
owners
by
their.
You
know
size
of
the
of
the
stock
that
they
have.
We
interviewed
financial
folks
investors,
so
we
think
we
got
a
good
cross-section
and
we
chose
that
method
over
a
broader
kind
of
survey.
J
Thank
you
that's
helpful
and
then
I'm
just
curious.
You
know
when
you
compared
the
concerns
brought
up
via
the
industry
perspective,
questionnaires
and
the
inter
and
in
the
interviews
to
the
realities
of
similar
parties
in
cities
where
rent
regulation
policy
has
been
adopted.
J
B
We
can,
we
can
see
and
hear
you
now
you
didn't
look
frozen
for
us
for
a
second.
There
did.
Did
you
did
you
want
councilmember
koski
to
repeat
her
last
question?
I'm
going.
J
I
What
we
did
was
twofold:
we
we
considered
that
if
they
had
that
concern,
it
was
valid
in
the
sense
that
they
may
act
on
that
concern
right
and-
and
so
this
is
the
way
they
feel
and
fear.
I
Now,
there's
another
sense
of
validity,
which
is
are
there
concerns
mirrored
in
what
we
see
in
other
cities
and
again
in
that
sense,
that's
where
I
would
come
back
to
the
it
depends
issue
right,
so
concerns
about
about
their
adequate
return
or
their
ability
to
maintain
properties
would
depend
on
whether
there
is
a
capital,
improvement,
pass-through
or
a
fair
and
reasonable
return
mechanism
and
what
the
cap
will
be,
etc
so
and
and
there
was
really
no
way
for
and
then
finally
we
did
do.
I
J
I
Sure
so
the
the
reason
why
people
and
cities
pursue
a
an
exemption
for
new
construction
is
because
they
they
fear
that
not
having
such
an
exemption
may
reduce
the
rate
of
new
construction
right
that
that
developers
will
decline
to
build
additional
housing
if
they
object
to
it
being
controlled
by
rats.
I
So
that's
the
that's
why
it
is
adopted
in
most
places.
It's
that
fear
the
most
common
form
is
we
see
I
I
I
it's
really
sort
of
equally
prevalent,
whether
there's
a
rolling
date
that
is,
we've
seen
some
ordinances
that
exempt
new
construction.
For
five
years
we
see
there.
I
There
was
an
example
of
a
ordinance
that
exempted
new
construction
for
the
period
of
the
original
loan,
the
original
construction
loan
that
amortization
period,
but
most
common,
you
see
a
period
of
time,
10
to
15
years
or
so,
and
then,
finally,
you
see
some
which
peg
the
exemption
to
a
date
and
say
that
anything
built
before
x
year
will
be
exempt.
I
The
the
opposition
to
that
is
that,
with
every
subsequent
year
a
smaller
percentage
of
a
city's
housing
stock
is
covered
under
the
rent
stabilization
and
you
end
up
with
a
fairly
small
percentage
over
time,
because
that's
simply
the
oldest
housing
stock.
So.
J
I
When
I
mentioned
earlier
that
most
of
the
research
shows
that
rent
control
laws
actually
work
in
keeping
rents
down,
there's
one
exception
to
that,
and
that
is
a
comparative
study
of
new
jersey
cities
over
the
last
30
years,
most
all
of
which
have
had
vacancy
d
control
in
place
and
the
studies
there
show
that
cities
that
have
rent
stabilization
tend
not
to
have
lower
rents
than
cities
that
don't
have
rent
stabilization,
and
that
is
because,
over
time,
given
natural
turnover
in
the
housing
market,
landlords
are
able
to
increase
rents
back
to
market,
to
the
extent
that
you
can
see
no
real
distinction
between
rent
stabilization
cities
and
others.
I
The
other
concern
about
vacancy
decontrol
is
that
it
does
produce
an
incentive
for
turnover
and
and
and
may
cause
higher
rates
of
turnover
and
certainly
it'll
cause,
there's
research
that
shows
that
it
it
produces
higher
rates
of
turnover
in
parts
of
the
market
that
are
appreciate,
neighborhoods
that
are
appreciating
more
swiftly.
I
B
F
Thank
you,
chair
ellison,
and
thank
you
ed
as
well.
As
I
know,
tony
damiano
is
also
on
this
call
with
us.
So
just
want
to
say
thank
you
for
joining
us
this
tuesday
also
similar
to
councilman
burkovsky.
I
have
a
series
of
questions
as
well,
so
the
first
one
is
regarding
around
condo
conversion.
F
Can
you
speak
a
little
bit
more
to
this,
because
I
I
hear
well,
opponents
of
rent
control
use
that
as
a
reason
as
to
why
we
don't
need
a
policy,
but
knowing
that
our
local
market
continues
to
increase
its
corporate
ownership
of
rentals,
and
we
see
this
particularly
in
council,
member
ellison's,
ward
and
council
member
vitals
war
were
fours
and
fives.
F
I
Well,
that's
an
interesting
question.
I
think
that
the
the
research
to
date
so
clearly
condo
conversion
does
result
in
ownership
of
of
what
were
previously
rental
units.
It
all
comes
down
to
the
the
the
price
points
that
are
charged
and
whether
that
conversion
is
accompanied
by
improvements
in
the
market,
and
it's
not
a
question
that
we
pursued.
You
know
it's
not
a
hypothetical
that
we
pursued
in
our
research.
I
I
It's
typically
regarded
as
a
a
problem
in
that
you're
taking
units
out
of
the
rental
stock
and
with
the
assumption
that
you
are
simultaneously
losing
some
affordability
when
condo
conversion
takes
place,
which
is
why
so
many
cities
that
have
a
rent
stabilization
program
consider
some
kind
of
set
of
controls
on
on
condominium
conversions,
which
could
include
limiting
the
number
or
providing
stipulations
or
requiring
owners
to
pay.
Relocation
costs
they're
a
whole
different
set
of
responses
that
local
governments
pursue.
F
F
You
know
questions
about
the
impacts
of
rent
control
on
housing
quality,
specifically
it
having
a
negative
impact
on
improvements,
but
the
study
notes
that
you
know,
despite
the
highest
rent,
increases
that
you
all
named
the
44
over
the
study
period,
rental
units
in
black
and
brown
and
poc
majority
communities
report
the
highest
number
of
co-violations,
and
I
also
want
to
know
that
not
only
some,
you
know
folks
in
the
community
have
to
have
shared
this,
but
this
is
also
widely
documented
in
in
local
media.
F
Around
the
growth
of
corporate
landlords
leads
to
higher
rents
in
lower
quality
homes.
So
can
you
share
some
insights
on
that
relationship
does?
Does
the
study
essentially
illustrate
that
rental
increases
do
not
necessarily
relate
to
capital
improvements.
I
Right,
so
we
didn't
look
at
that
individual
relationship.
I
think
our
our
data
show.
Our
study
shows
two
different
things:
that
in
one
part
of
the
market
there
were
rent
increases
and
and
but
but
we
don't
know
what
owners
did
with
those
rent
increases.
I
I
So,
for
example,
when
I
talked
earlier
about
capital
improvement,
pass-throughs
or
reasonable
return
provisions,
some
cities
will
make
those
contingent
upon
demonstrating
that
the
unit
has
met
building
code
and
and
housing
code
requirements,
so
in
other
words,
making
rent
increases
to
some
extent
contingent
upon
quality
maintenance.
So
that's
you
that
we
see
in
the
in
the
literature,
but
you
know
to
your
direct
question
about
whether
we
demonstrated
that
that's,
that
was
beyond
the
data
that
we
that
we
had.
F
Awesome-
and
I
do
want
to
lay
out
the
context
I
know
you
know-
there's
been
lots
of
conversations
from
fellow
council
members
about
looking,
and
even
you
name
this
in
the
presentation
around.
You
know
how
the
rent
control
is
being
enacted
or
pursued
and
or
has
been
pursued
in
other
cities.
You
know,
like
new
york,
you
know,
council,
member
and
chair
ellison
race
oregon.
F
You
know,
I
think,
for
the
context
is
really
beneficial
and
valuable
that
we
look
at
minneapolis,
which
continues
to
have
the
most
disastrous
rates
of
racial
inequities
in
in
the
entire
country
and
knowing
that
we
have
particularity
around
how
we're
not
meeting
the
needs
of
housing
for
our
residents,
especially
our
black
and
brown
residents,
and
and
taking
those
factors
into
consideration
like
the
data
that
we're
seeing
is
going
to
be
utilized
to
to
meet
those
needs
for
our
residents
here
in
minneapolis.
F
So
definitely
contextualizing,
like
you
know,
the
data
that
you
all
have
done
was
looking
also
what
what
could
this
be
for
minneapolis,
but
nevertheless,
one
of
the
follow-up
questions
that
I
had
about
this
is.
The
study
also
notes
that
you
know.
Rent
increases
been
that
has
been
capped
at
70
75
of
cpi
or
at
the
cpi.
Landlords
would
still
be
able
to
achieve.
You
know
acceptable
returns
at
seven
point:
five
percent
eight
percent
respectively.
F
I
Sure,
as
part
of
the
team
that
we
assembled
to
do
our
research
we
employed,
we,
we
worked
with
a
a
real
estate,
academics.
So
someone
who
studies
developers
real
estate.
He
teaches
the
course
at
the
university
on
private
sector,
private
sector
development,
and
we
asked
him
to
use
his
financing
models
that
to
to
essentially
model
what
would
happen
to
a
unit
in
the
in
the
middle
of
the
market
in
in
minneapolis
over
this
period
of
time.
I
So
we
so
he
gave
he.
He
took
the
starting
rent
at
2006
and
created
a
model
that
was
consistent
with
what
he
knows
that
developers,
owners
and
investors
use
to
kind
of
calculate
to
see
whether
an
investment
is
is
worth
making
or
not,
and
and
charting.
These
annual
rates
of
return
and
internal
rates
of
return.
I
F
Thank
you
for
that
ed.
Just
a
couple
more
this
next
question,
because
the
study
definitely
talks
about
you
know
how
a
rent
control
policy
could
be
beneficial
to
the
you
know.
Bottom
quartile
of
renters,
and
I
know
that,
there's
an
idea
out
there
that
rent
control
should
be
tied
to
income
and
and
while
the
study
shows
that
low
income
tenants,
you
know,
need
rent
control
most
urgently.
F
The
study
also
shows
that
increasingly
more
tenants
earning
above
30
ami
are
becoming
rent
burden
or
the
housing
available
to
them
is
being
cost
burden
and
will
also,
you
know,
benefit
from
rent
control.
You
know,
personally,
I
don't
believe
we
should
be
tired
of
control
to
income
levels.
But
that
being
said,
can
you
point
to
a
city
or
a
state
that
has
done
a
effective
job
of
means,
testing,
rent
control
based
on
income.
I
Sure
I
I
I
can
confidently
say
that
in
the
readings
that
we
did
and
that
I've
continued
to
do
on
this
means
testing
is
is
discouraged
by
by
all
observers
across
the
board,
and
the
reason
is
is
because
of
the
obvious
incentive
it
provides
to
landlords
to
rent
to
higher
income
people
so
that
their
units
will
be
exempt
from
from
controls.
And
so
so
you
don't
see
a
lot
of
means
testing.
I
I
could
not
point
you
to
a
city
that
that
incorporates
that
the
closest
that
it
comes
is
something
called
luxury
d
control.
So
there
are,
there
have
been
in
the
past
examples
of
cities
that
will
create
a
rent
stabilization
program
and
they
will
essentially
establish
a
rent
or
in
and
or
income
level
that
they
consider
luxury
and
above
and
that,
when
rents
sort
of
naturally
get
to
that
level,
they
are
then
those
units
are
de-controlled.
I
Other
cities
have
incorporated
that
at
the
beginning,
but
recent
reforms
to
the
new
york
rent
stabilization
eliminated
luxury
d
control,
because
the
city
was
losing
too
many
units
from
the
rent
stabilization
pool
through
that
luxury,
decontrol
and
and
units
were
being
de-controlled,
regardless
of
how
many
roommates
were
there
and
how
they
were
sharing
the
rent
and
etc.
So
so
that's
my
answer
to
that
sort
of
question.
F
Thank
you
for
that
that
answer.
I
just
wanted
to
also
voice
my
concern
about
creating
another
system,
like
I
think,
of
public
housing,
most
immediately
where
you
know
we
have
8
000
residents
on
the
waiting
list
with
the
goal
of
achieving
housing
stability
and
knowing
that
the
way
in
which
we
approach
public
housing
is
based
off
of
means
testing,
that's
tied
to
income.
So
thank
you
for
providing
some
more
understanding
around
that.
F
My
last
couple
of
questions
is:
we've
somewhat
touched
on
about,
of
course,
the
concern
around
new
construction,
and
especially
looking
at
st
paul.
I'm
glad
that
you
highlight
it,
you
know
fear
is
kind
of
the
main
component,
because
that
is
when
I
think
of
places
like
new
york,
for
instance,
where
you
know
these
new
exemptions
are
there,
but
housing
is
still
being
built
left
and
right.
F
So
thank
you
for
naming
that
one
question
that
I
did
have
in
regards
to
you
know
how
this
this
policy
could
be
tied
to
single-family
homes.
I'm
thinking
of
you
know
north
minneapolis
in
particular,
where
we
see
a
lot
of
those
single-family
homes
that
are,
you
know
converted
into
renters.
So
would
love
to
get
your
insights
if
I
know
tony
wanna
bring
tony's
in
the
conversation,
because
I
was
like
we
have
a
whole
team
here,
but
what
would
be
the
impact
of
a
policy
that
did
not
include
single-family
homes.
I
Sure
so
I
think
it's
worth
noting.
I
guess
to
to
start
that
the
city
of
san
francisco
used
to
exempt
small
buildings
two
to
four,
including
single-family
homes.
I
They
ended
that
exemption
in
part
because
of
the
realization
that
more
and
more
of
that
market
is
not
what
you
would
consider
mom
and
pop
owners,
but
investors
and
you
can
get
some
very
large
investment
firms
owning
small
rental
buildings,
including
single
families,
and
it
just
makes
to
the
city
of
san
francisco,
made
less
and
less
sense
to
exempt
those
from
from
rent
stabilization.
I
In
the
minneapolis
case,
we
are
seeing
more
investor
ownership
of
single-family
homes,
and
there
is
a
geographic
concentration
to
it.
It
tends
to
happen
in
the
lower
ends
of
the
market,
and
so
that
you
know
to
the
extent
that
our
earlier
slides
showed
the
the
most
troublesome
parts
of
the
of
the
rental
market
were
at
the
at
the
low
end
and
among
african
americans
to
the
extent
that
this
phenomenon
is
occurring
on
the
north
side
and
occurring
at
the
low
end
of
the
market.
I
F
Thank
you
for
that,
and,
and
just
a
couple
of
things
you
know
this
has
been
a
comprehensive
overview.
As
you
know,
chair
ellison
noted,
there's,
eight
of
us
that
are
new.
Some
of
us
have
gotten
a
chance
to
like
look
this
over,
for
you
know
the
year
that
this
information
has
been
out
here.
The
study
some
of
us
may
not
have
been
so
just
want
to
say
thank
you
as
a
policy
maker.
F
You
know,
I
feel
as
though
you've
given
a
comprehensive
view
of
the
various
factors
we
need
to
consider
as
we
create
an
ordinance
around
rent
control,
but
I
do
want
to
get
clarity
just
on
a
few
more
things
from
you.
All's
perspective,
you
know,
as
the
researchers
do
you
feel
like
you
know,
you
aligned
a
balanced
table
of
differing
perspectives
and
stakeholder
representatives
when
carrying
out
this
research.
F
I
Frankly,
we
assumed
much
of
the
tenant
perspective
that
is
sort
of,
and
so
we
didn't
involve
a
lot
of
tenants
in
our
in
our
study.
We
did
two
focus
groups
to
get
some
some
ideas
from
from
tenants
about
what
they
were
experiencing.
I
And,
and
so
we,
but
but
we-
you
know,
we,
I
I
we
did
what
I
think
were
extensive
interviews
with
industry
folks,
because
we
felt
that
getting
their
perspective
across
a
range
of
roles
was
was
important
and
and
knowing
what
their
perspectives
were
was
going
to
be
important
for
for
policymakers
and
then
beyond
that,
we
really
sort
of
tried
to
stick
as
closely
to
the
numbers
as
as
possible
right
what
the
data
showed
us
and
what
our,
what
our
models
showed
us
given
what
we
know
about
the
rental
market
in
minneapolis
over
the
past
20
years.
F
Thank
you
and
in
your
role
as
researchers
as
someone
who
has
graduate
school
experience
too,
would
you
say
you
approach
this
with
a
professional
and
nonpartisan?
You
know
exploration
of
all
aspects
you
know
of
what
needs
to
be
done
for
a
policy
to
be
created
or
looking
at
existing
models.
You
took
that
from
a
nonpartisan
professional
standpoints,.
I
Yes,
I
would,
I
would
strongly
say
that,
yes,
I
mean
we
tried
to.
We
tried
to
bring
that
ethic
into
into
that
work,
especially,
we
were
not
asked
by
the
city
council
for
our
opinion
and-
and
we
understood
that
what
the
city
council
wanted
from
the
study
through
the
rfp
was
a
an
understanding
of
the
market
and
the
potential
impacts
of
different
approaches,
and
that
is
what
we,
what
we
tried
to
provide
and.
F
Yeah-
and
I
know
you
named
the
individual
who
helped
compile
your
data
modules
around
using
the
proprietary
tool,
but
you
did
involve
economists
in
your
research
to
provide
an
analysis
of
the
fiscal
ins
impacts
of
rent
control
as
well.
F
And
did
you
also
in
this
study
utilize
information
from
other
cities
that
have
birth
control
policies?
You
name,
we
talked
a
little
bit
about
new
york.
Also
san
francisco,
you
looked
at
other
places
correct.
That's.
I
Correct
our
our
review
of
the
impacts
was
based
on
empirical
studies
in
of
other
cities.
There's
a
lot
of
writing
on
rent
stabilization
from
a
sort
of
economic
theory
standpoint.
I
We
did
not
privilege
that
that
literature
we
instead
focused
on
what
has
actually
been
demonstrated
as
having
happened
versus
what
some
economists
may
expect
happen,
because
there's
disagreement
and
sonic
and
oftentimes
the
assumptions
they're
using
in
that
theoretical
literature,
don't
incorporate
the
really
specific
elements
of
different
rent,
stabilization
programs,
and
so
we
felt
it
was
much
more
useful
to
focus
on
actual
empirical
evidence
and
we
gathered
all
of
it
that
we
could
find
and
that
included
research
on
cities
in
new
jersey,
new
york,
california,.
F
Awesome
and
again,
thank
you
for
taking
the
time
for
just
excuse
me
providing
of
those
clarifying
responses.
You
know
that
said.
I've
shared
these
comments
earlier
this
month
and
I
will
reiterate
them
again
in
this
space
that
based
off
of
the
thorough
and
comprehensive
data
and
research
the
city
commissioned
you
all
to
you
know,
compile
a
year
ago
and
to
present
today
it's
clear
to
me.
I
know
that
there's
a
discussion
and
a
proposal
of
using
a
work
group
to
further
out
this
policy
creation.
F
But
it's
clear
to
me
that
the
logical
next
step
it's
towards
moving
and
creating
a
rent
control
policy.
You
know
renters
are
waiting
for
us
to
act.
Voters
made
their
voices
heard
you
know
in
november,
and
today's
presentation
for
me
confirmed
that
we
should
be
ready
to
legislate
on
this
very
matter,
and
I
look
forward
to
working
with
all
of
my
colleagues
as
well.
F
As
you
know,
the
researchers
and
all
the
stakeholders
in
impacted
and
that
will
have
to
be
involved
in
creating
a
policy
to
make
sure
that
we're
bringing
in
this
comprehensive
data
to
form
a
universal
rent
control
policy
that
minneapolis
renters
need.
So,
thank
you
all
for
presenting
today
and
that's
the
end
of
my
comments.
B
Thank
you,
councilmember,
I'm
not
seeing
anyone
else
in
the
queue.
This
has
been
a
really
good
presentation
and
I'm
glad
that
my
colleagues
had
a
lot
of
questions
as
we
went
along
here.
I'm
sure
this
isn't
the
last
time
that
we'll
be
bugging
you
or
your
team
ed
with
questions,
but
I
really
appreciate
you
all
coming
here
today
and
giving
us
this
presentation
again.
So
thank
you
and
I,
and
with
that
I
think
we
can
wrap
the
presentation.
B
Thank
you
right.
So
I
will
see
no
further
discussion.
I
will
direct
the
clerk
to
receive
and
file
that
report.
B
And
with
that,
we've
concluded
all
business
to
come
before
the
committee
today
and
hearing
no
objection,
I
will
declare
this
meeting
adjourned.
Thank
you.
Everyone.