In its 2012 report on rent affordability, the National Low-Income Housing Coalition outlined the gaps between average household wages and the cost of renting an apartment. Released in March, the Out of Reach report revealed that Minnesota had the least affordable rent for minimum wage workers out of all the surrounding 12 Midwest states.
Partly in response to the low supply of affordable housing options and high rent burdens for people living in poverty, Minnesota’s supportive housing providers often seek to construct or rehabilitate housing structures to expand the supply of housing units. In the last couple of years, we have seen the completion of several new housing developments that focused on homeless populations:
Center City Housing Corporation (Duluth) has constructed and opened Silver Creek Corner (40 single resident occupancy units in Rochester) and River Crest Housing (40 units in St. Cloud);- Plymouth Church Neighborhood Foundation opened Nicollet Square (42 studio apartments for homeless youth in Minneapolis); and
- The Duluth Supportive Housing for Veterans project was supported by MACV-Duluth and Duluth Veterans’ Place (11 units of permanent supportive housing).
Better Buildings and Solid Plans
The construction and rehabilitation of supportive housing developments often rely on state bonds. While progress is being made, the recent recession has increased homelessness and demand for affordable housing. Needless to say, the supply of affordable housing has been a key priority at the State Capitol this year for homeless and housing advocates.
Because Minnesota’s 2012-2013 budget was decided in last year’s special summer session, the 2012 legislative session focuses mainly on bonding proposals. Advocates hoped to see affordable housing bonds included in the proposals to help finance new affordable and supportive housing projects, and to preserve existing sites.
Last year, several housing, homelessness, and other organizations started working together to promote affordable housing for all Minnesotans. The Homes for All campaign has advocated for $40 million in affordable housing bonds–$30 million for affordable and supportive housing infrastructure, and $10 million for public housing preservation. They’ve been working hard to get their message out, and a new documentary from TPT (with an interview from Minneapolis mayor R.T. Rybak) describes and gives concrete examples of existing affordable housing projects.
Our Chance to Improve Affordable Housing
The response at the State Capitol has been positive, though mixed. Bills were introduced in the House and Senate with bipartisan support that would provide $40 million in affordable housing bonds, though they have not yet been passed. While Governor Dayton’s capital budget recommendations included $32 million in housing infrastructure bonds, the House omnibus bonding bill proposed only $15 million. Fortunately, the Senate’s bonding bill released last Wednesday includes $36 million for affordable housing.
If you haven’t had the opportunity yet, please call your State Representative or Senator today and ask them to support the Senate’s bonding proposal of $36 million for housing infrastructure. The bonds will not only contribute to local efforts to end homelessness, but will create jobs! You can find your Representative and Senator by calling 651-296-2146 or by clicking here.
Affordable, public, and supportive housing—however you want to classify or think about it—really does benefit everyone in the community. From people in deep poverty facing homelessness to lower and middle class workers, communities need to ensure that affordable housing is available for families and individuals when they need it. Affordable housing stock and rental properties are being strained by the increase in foreclosures, extremely low vacancies, stagnant wages, and other factors—this is our chance to improve affordable housing infrastructure across the state.
If you want to keep up-to-date on the housing bond proposals, please sign up to receive Hearth Connection’s Legislative update newsletter. You can also follow the conversation on Twitter with the hashtag #bond4housing.
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