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hi FORMATION '
<br /> PAGE D4•STAR TRIBUNE SUNDAY,FEBRUARY 24.2002
<br /> BUSINESS FORUM
<br /> FEEDBACK:To submit a Forum commentary or a letter to the editor,call 612-673-9071 or fax Business Forum Editor John Oslund at 612-673-7122,or a-ruail him at oslund @startribune.com.
<br /> T,imited housing for the vast majority of workers means limited growth opportunity for our region.
<br /> Our communities hold the keys to the availabilty of new and rehabilitated housing.
<br /> Keys to more affordable housing
<br /> •
<br /> By Doug Strandness terpretation at the beginning nicipalities will see further in-
<br /> ong a moral imperative,
<br /> I
<br /> x
<br /> and another later on.Such last- vestment in quality housing if
<br /> affordable housing in-
<br /> creasingly ,� minute changes can drive up they keep the benefits of prop
<br /> affordable abl is an housing - ` a 4hf4, " construction costs significant- erty tax reform from being
<br /> e ' ��k lY consumed by local tax in-
<br /> ic issue that threatens , Furthermore, interpreta- creases or excessive hikes in
<br /> p
<br /> our region's vitality and � r y � i tions have varied widely from apartment assessedvalues.
<br /> growth. The numbers ',3 y
<br /> don't lie. Minnesota needs �� �`� ���; i community to community.
<br /> •k 3 < Significant legislation was
<br /> more affordable housing. K", assed last session that should Overcoming stereotypes
<br /> According to a recent Fam- ' ' � passed
<br /> ensure that municipalities Finally, we must continue
<br /> ily Housing Fund report — ," Y�
<br /> "Workforce Housing: The Key
<br /> .. 3 ,t ,: M. interpret building codes in a to debunk outdated percep-
<br /> to Ongoing Regional Prosperi- 1,�=, � fr r �� 3 Al � ;_` uniform manner. It's time for tions of rental housing. While
<br /> �, — i� housing local government to cooperate some renegade landlords and
<br /> the Twin Cities metro . : . .
<br /> area loses out on$128 million a ��� � y1:6' remain with the new law and remove tenants do give apartments a afford- this barrier to affordable hous- bad name,the vast majority of
<br /> year in consumer spending u s: 1 h
<br /> able. ing. rental housing in Minnesota is
<br /> and $137 million in annual ,, a g
<br /> business income because it We also Building and permit fees well maintained and of the
<br /> ' ,
<br /> lacks housing for households must make must be fair.Fees area ro ri- highest quality.
<br /> %'f ' r certain that ate as long as they serve to pe- Highr-d sity, smart-
<br /> that earn $15,000 to $50,000 - ;,...'1 land-use plans imburse government for pro- growth development projects
<br /> annually. �' �.��
<br /> ' Who are these wage earn- �Mt succeed. Rental viding a service (for example, are integrating low middle
<br /> z g zsf � 3 X' housing develop- sewer and water). Too often, and higher-income housing
<br /> ers? They are retail workers, N==� ers want to develop. however,local government im- units. Unless you viewed the
<br /> customer service agents, s ,� � `' However, rigid zon- poses fees on rental housing lease agreements in these
<br /> teachers,firefighters,police of- 4 g g
<br /> ficers and others.In fact,earn
<br /> ' ing restrictions often that far exceed the actual cost planned communities, you
<br /> � can handcuff develop- of providing a particular ser- would be hard-pressed to iden-
<br /> ers in the $15,000-to-$50,000 ment. Certain local re- vice and look to rental housing tify the"affordable"housing.
<br /> range represent the vast major- a "
<br /> ' quirements — such as in effect as a profit center. The numbers don't lie. In a
<br /> ity of Minnesota workers.Lim- large minimum lot and Legislation passed last ses- study of affordable rental
<br /> ited housing for workers � � g g p
<br /> -' unit sizes, setbacks and sion gives local government yet housing developments built in
<br /> means limited opportunity for � '
<br /> f Y street widths—reduce den- 11 Twin Cities suburbs during
<br /> growth. ., and increase the cost of the 1990s, rchers found
<br /> In some ways,Mi o is little or no ence that con-
<br /> _ • � and.To cover those costs, �,
<br /> a victim of its own suit The more-expensive housing must The author struction of affordable rental
<br /> robust period of the past seven ' be built.Another hurdle is that
<br /> years pushed up housing de- Doug 1;' housing eroded property val-
<br /> mand and the cost to supply Illustration by Jim Freitag/Star Tribune some cities'zoning regulations ues or brut home sales.To the
<br /> are inconsistent with their
<br /> Strandness is contrary:
<br /> affordable housing. Hi her in d-use plans = making it chairman of the .
<br /> comes, a growing lion p g > Prices omes located
<br /> g g p ssible to achieve required Minnesota Multi
<br /> q near affotreda is housing
<br /> and lower interest r d to long-term availability of af- While new is nice,we also must sities. Housing As- : °` grew at lea quickly after
<br /> higher housing prices. fordable rental housing in Min- look at existing housing to sociation.He the rental housing was built as
<br /> Meanwhile, the strong nesota? make certain that it is used to p also is owner of before.
<br /> Strand-
<br /> economy tightened the labor Many have tried to answer its fullest extent. Vetter cooperation Dunbar Strand A Prices of homes located
<br /> market and increased con- that question during the past The wrecking ball has elimi- As the Affordable Rental ness Inc.,which helps manage near affordable housing were
<br /> struction and land costs.These several years.Some of the most nated too much affordable Housing and Mayors' Task more than 1,50 apartment at least as high as those located
<br /> forces have dealt a serious intensive analysis has come housing in neighborhoods Forces have recommended, units in the Cities.He was farther from rental housing in
<br /> blow to new construction of af- from two task forces:the Min- throughout the Twin Cities. In communities should collabo- an apartment renter for 24 98 percent of cases.
<br /> fordable rental housing in Min- nesota Affordable Rental fact, more housing has been rate more closely with the Met- years. > Homes sold at least as
<br /> nesota. Permits for new apart- Housing Task Force, a broad- destroyed than built in Minne- ropolitan Council to ensure quickly after the construction
<br /> ment construction in the Twin based group of developers, . apolis and.St..PauL..during-the. that affordable.housing_and__ of nearby rental housing as
<br /> Cities fell from about 61,600 public officials, financiers and past decade.Between 1990 and density goals set forth in land- another opportunity to con- they did before the rental
<br /> units per decade in the 1970s nonprofit housing advocates; 2000, Minneapolis lost more use plans are met. ' tribute to the affordable hous- housing was built.
<br /> and 1980s to about 30,000 in and the Mayors' Regional than 4,000 net units and St. The council has the state- ing solution by imposing fees Local governments, busi-
<br /> the 1990s. dousing Task Force, compris Paul nearly 2,000. While some tort'responsibility to review to in the fairest manner possible. nesses,schools,the faith coin-
<br /> Z`
<br /> Rehabilitation of older ing Twin Cities area mayors. housing no longer was livable, 'cal land-use plans to deter- We must hold the line on munity and others must help
<br /> housing stock also has become Through the work of these much more could have been mine their consistency with re- property taxes. For the past educate and remove the unfair
<br /> more difficult because of strin- task forces and others, a road spared. gional plans. However, it does two decades, apartments have stigma of affordable rental
<br /> gent building codes. map is evolving for overcoming Regulations and codes not have authority to monitor been taxed at substantially housing.
<br /> While apartment vacancy hurdles to affordable housing. make rehabilitation of housing zoning implementation.By re- higher levels than have home- By holding the line on prop-
<br /> rates have risen in the Twin Last year, Gov. Jesse Ventura a losing proposition in some porting land-use progress to steads — sometimes by four erty taxes,finding ways to save
<br /> Cities in the past few months, and the Legislature addressed communities. Re-examining the council and citizens, there times as much. Under the existing housing from destruc-
<br /> it's important to remember a long-standing roadblock to and in some cases relaxing re- would be more accountability property-tax changes passed tion, re-examining policies re-
<br /> that this results primarily from construction and renovation of habilitation regulations could to ensure that communities' last year, those disparities will lated to housing costs and dif-
<br /> a sluggish economy— a time apartments — high rental restore existing affordable land-use plans lead to more- decrease over the next three ferentiating facts from myths
<br /> when many renters double-up property taxes. That tax relief housing without compromis- affordable housing. years,freeing up much-needed regarding rental housing,Min-
<br /> with friends or move back in was an important achieve- ing quality. Promoting uniform inter- capital to renovate existing nesota can significantly ease
<br /> with parents.This relief is only ment. But more changes are Also,additional units can be pretation of building codes is units and build new apart- the affordable housing crunch.
<br /> temporary. needed. made available through zoning another important goal.Build- ments. It won't be easy. But lowering
<br /> For example, we must bet- changes by local government. ing codes can be interpreted in We already are seeing area property taxes wasn't easy,and
<br /> Seeking the answer ter utilize existing housing. And economic incentives of- a variety of ways.As developers apartment owners who are do- we did it.
<br /> Much of the affordable hous- fered by state government also build apartment complexes, ing their first extensive renova- The keys are in hand to
<br /> ing discussion focuses on the can go a long way to ensure their construction plans are Lions in more than a decade open the door to more afford-
<br /> So how do we increase the need for new construction. that rents on existing rental sometimes subject to one in- because of the tax cuts. Mu- able housing.Let's use them.
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