Everyone should know what "affordable housing" means in Minneapolis.
A single person, making $32,220 qualifies for "affordable housing." A developer may charge that person $805 rent for a studio apartment, including utilities. A five person family making $49,680 qualifies for "affordable housing." A developer may charge that family $1,035 rent for a 2 BR apartment, including utilities. All of the "affordable housing" calculations are based on AMI (Area Median Income.) The AMIs used in Minneapolis are as follows: 1 person $53,700 2 persons $61,400 3 persons $69,000 4 persons $76,700 5 persons $82,800 If persons make 60% of these figures (60% of AMI) they qualify. Here are the "affordable rents" that developers may charge persons at 60% AMI, including utilities: Studio $805 1 BR $863 2 BR $1,035 3 BR $1,196 4 BR $1,335 5 BR $1,472 Now you know what's "affordable." A development like The Village at St. Anthony ($95 million) needed only 30 "affordable units" to qualify for taxpayer guaranteed financing. Steve Minn's development is receiving $23.7 million in housing revenue bonds from the City and County, plus $3.2 million in tax increment financing - for 221 units. I couldn't tell from Neal St. Anthony's article how many units are "affordable." In addition to the $26.9 million, Minn will receive another $3 million by selling "tax credits" to rich guys. Now were up to $29.9 million for 221 units - $135,294 per unit. An MCDA official (Hemmerlin) in charge of this deal said "they also brought nearly $2 million in cash into the project." Could we see copies of the cancelled checks Mr. Hemmerlin? Assuming this is true (which I doubt), the project cost goes up to $31.9 million for 221 units - $144,344 per unit. Does anyone really think this is affordable housing? Steve Minn ends up with a $30 million asset. How does that help people who cannot pay $500 per month for apartments that are available now? Vicky Heller North Oaks and Cedar-Riverside _______________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:mpls@;mnforum.org Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
