was RE: [Mpls] Stone Arch Apartments
~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Interesting discussion on affordable, or more specifically,
publicly-subsidized housing in Minneapolis.

Bill Cullen (and Lee Eklund) state, in part, regarding the City policy of
continued construction of significant numbers of publicly subsidized housing
in Mpls.:

> Finally...  Mr Eklund adds:
> Should the citizens see a change in policy is needed, the ballot
> box awaits
> this fall.
>
> My response:
> Given the political climate, no candidate is willing to speak against
> "affordable housing."  Until we educate the people and our
> leaders, we will
> continue to get solutions that (I believe) miss the target.
>
> Regards, Bill Cullen.
> Whittier Landlord.
>

[MH]  Not so fast Bill.  I've discussed this topic here on more than one
occasion... before I was a declared candidate for the City Council.

In general, I think there is an over emphasis on the need for
publicly-subsidized 'affordable housing' in Mpls.-- especially when such
housing targets those above 50% MMI, AND when the subsidy influences
property taxes in the City (i.e. where property tax streams are deferred
from the general fund due to the tax-increment financing subsidy).  As Bill
has pointed out time and again, most publicly-subsidized 'affordable
housing' being constructed in Mpls. isn't targeted at the truly needy- those
at or below 30% of MMI.  And, as this publicly subsidized housing is built,
private rental vacancy rates remain relatively high-- both in the city and
in surrounding suburbs.  What we have is an exaggerated housing shortage.
The real problem is NOT necessarily a shortage of housing, but rather, a
shortage of money in peoples pockets. [see my previous post on this subject,
and the Minneapolis Federal Reserve study, "The Affordable Housing Shortage:
Considering the Problem, Causes and Solutions," by Ron Feldman, wherein the
authors conclude that 'policymakers should recognize that government
financing of new housing units is unlikely to be a cost-effective response
to low household income,' both referenced at:
http://www.mail-archive.com/[email protected]/msg15549.html ]

Many city residents are struggling to meet ever increasing property
taxes/rental payments, said increases due in some part, to the demand for
property-tax subsidies associated with constructing more 'affordable
housing.'  We are robbing Peter to pay Paul, while the poorest city
residents still can't afford to live in the new publicly-subsidized
'affordable housing.'  Hence the value of some NRP housing loan/rehab
programs (esp. Phase II) that target the lower income segments of our
population-- both owner occupied and rental units.  After all, one of the
most efficient ways to maintain affordable housing in the city is to
maintain our older housing stock-- especially the singles, doubles and
fourplexes, etc.

The siting of this new 'affordable housing' within our city raises
additional concerns.  Much of this multi-unit housing is being located in
economically distressed neighborhoods of the central city and on the north
side.  It's my contention that these neighborhoods need more market-rate
housing-- housing that attracts families with the discretionary income
needed to support local businesses and schools, while also facilitating new
business and job growth in the immediate community.  What we need is more
displaced housing (singles and doubles), units that target the lower income
segments (<30% MMI), located throughout the city and suburbs- also an
approach much more consistent with the Holman Decree which ordered dispersal
of public housing throughout the region.

Much more information on these and other related topics coming soon.

Michael Hohmann
Linden Hills
independent candidate for 13th Ward City Council
www.mahohmannbizplans.com
...where planning for the future pays off.



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