I'm unsure why there is an interest in rent control in Minneapolis. The issue
that seems more vital is availability. I have worked in construction and
invested in real estate in Minneapolis for over twenty years. If Minneapolis
passed a rent control system I am sure it would be much more progressive than
New York's because we are obviously a more enlightened and progressive part
of the country. Therefore I agree that we shouldn't look at New York for
comparison. Lets think about what would happen in Minneapolis instead.
The first issue is that the city would be controlling the income side of the
rental market in Minneapolis. That is such a scary thought to me that I'm not
sure what else to add.
If you need a second problem with rent controls in Minneapolis explain why a
developer or investor who has options on where they chose to invest would
chose a city that controls their potential return on investment. Granted our
investors are probably not as gready as New Yorker's, but eventually they
will figure this out and invest elsewhere.
A third problem is more philosophical. If you want to give someone cheaper
rent than the markets dictate, then to use rent control you accomplish your
goal by taking away someone else's income. What gives you the right to do
that? I know several investors that own a small amount of units and do all of
their own work to manage them. Who gives the city the right to force them to
subsidize someone else's feelings of concern for where the market is pricing
rents.
If rent control is truly an issue more important than a shortage of
affordable housing then perhaps the more justifiable solution would involve
being more direct. Why don't you propose that we tax everyone in Minneapolis,
not just landlords and take the additional funds to subsidize some peoples
rents? In fact perhaps we could look at taxing everyone a further amount and
use those funds to subsidize housing costs for retired folks whose retirement
income has not increased fast enough to keep up with the increases in real
estate taxes on their houses. I am sure if we keep going, and keep taxing, we
can find a way to take care of everyone and we can all be happy (except when
we file our tax returns).
I find it frustrating when one group sets themselves up as being more
socially concerned (we care for the poor) and then wants to dictate to
another group (the landlords who do nothing to earn their money) that that
group should finance their groups social concerns. If people need help, and
we as a community decide to help them, lets do so as a community and not by
placing the whole burden on one part of our community.
Bob Gustafson
13th
