Welcome to the list Mr. Cramer. I hope you continue to post out here on
affordable housing issues. However, Mr. Graham's post was one of many
questioning the progress Mpls has made on affordable housing. Let me
summarize some of the recent discussions:
1) Some believe our leaders are stuffing money in non-profits and developers
pockets more than helping affordable housing.
I don't know many of PPL's projects, but I know one: the Armadillo flats
(1). According to the MCDA website, you were GRANTED $1,036,400 by MCDA and
loaned $898,500 via MHFA ARIF program. According to MHFA, a ARIF loan has a
zero percent interest rate for 30 years (2). If I am reading this right,
you have received $1,934,900 from the government and have to pay back
$898,500 in 30 years. For this public investment, you rehabbed 38
apartments ($50,918/apartment) and are holding 8 of them as "affordable."
If we attribute the public subsidy only to the affordable units, the
government paid $241,862 per unit (1,934,900/8). Is my analysis wrong?
That seems like a lot of money for a few units. It make us all wonder what
is going on.
2) The belief that non-profits (with this public money) aren't providing
more affordable housing than the market.
The MHFA ARIF public subsidy you received limited the rents you can charge.
The limitations are set at 30% of 50% of the metro area median income (2).
This means the 8 affordable units in Armidillo Flats are limited as follows.
I added the rents I charge (with zero government subsidy) right next to it
for comparison sake.
PPL Bill Cullen
0 BR $554 $469
1 BR $713 $599
2 BR $862 $699 to $739
3 BR $996 $950 *
4 BR $1,112 $1,190 *
My building is one block from Armidillo Flats. However, My Whittier
building does not have 3 & 4 bedroom units. So for those units, I quoted my
building in East St. Paul, (the only one I have with 3 and 4 bedroom units).
Why is PPL not COMMITTING to MUCH lower rents than the market already
provides?
3) The concern that public subsidies are building affordable housing in poor
neighborhoods (which don't need more).
You stated that PPL has "housing projects under construction or planned in
East Phillips, Jordan, Regina, Kingfield, Hawthorne, Summit University and
the East-Side in St. Paul, and the City of New Hope."
Many you listed are poor neighborhoods. What neighborhoods do most of PPL
units exist in? Where are your AFFORDABLE units? Existing and new.
4) The concern that non-profits housing entities live off public subsidies.
You stated that funding for the ventura village project "is being provided
by the City of Minneapolis, the Minnesota Housing Finance Agency, Hennepin
County, the Department of Housing and Urban Development, the Federal Home
Loan Bank, the National Equity Fund, Twin Cities United Way, and the Otto
Brememr Foundation."
Your funding line up makes me believe this is true.
5) Vacancy rates are up and homelessness is up. What will building more
housing accomplish?
The Star Tribune reported on 8-Oct-03 that the vacancy rate for apartments
priced between $500 and $599 is 6.2%. A balanced market is considered 5.0%.
Don't we have an oversupply of housing?
I currently work with many charities that have shifted their focus to
providing social services to tenants and working with private landlords.
Why does PPL appear focused on building?
I apologize up front if this is too confrontational. I am seriously trying
to summarize the discussions I have read over the past few months. I welcome
input from the non-profits and look forward to learning.
Regards, Bill Cullen
Whittier Landlord
(1)
http://www.mcda.org/development_projects/housing/Neighborhood/armadillo.htm
(2) http://www.mhfa.state.mn.us/managers/ARIF%20Guide.pdf
REMINDERS:
1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED]
before continuing it on the list.
2. Don't feed the troll! Ignore obvious flame-bait.
For state and national discussions see: http://e-democracy.org/discuss.html
For external forums, see: http://e-democracy.org/mninteract
________________________________
Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy
Post messages to: mailto:[EMAIL PROTECTED]
Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
