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• FORMATION ) •
<br /> PAGE D4•STAISBUNE 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 e-mail him at oslund@startribune.com.
<br /> Limited 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 /> By Doug Strandness terpretation at the beginning nicipalities will see further in-
<br /> .
<br /> ?:� and another later on.Such last- vestment in quality housing if
<br /> ong a moral imperative,L
<br /> M:> ,.�•r> t-
<br /> _ ; w minute changes can drive up they keep the benefits of prop
<br /> affordable housing in-
<br /> creasi •nglysignificant-is an econom-
<br /> ic ,''
<br /> ' _„`; : ? ly. consumed by local tax in-
<br /> issue that threatens ,
<br /> ; s,t ;t; Furthermore, interpreta- creases or excessive hikes in
<br /> our region's vitalityand ro= 1 x K'•
<br /> g �s` ;,? tions have varied widely from apartment assessed values.
<br /> growth. The numbers < f:, e<- �"
<br /> don't lie. Minnesota needs ~.;, A . - - ,�• ' community to community.
<br /> 194:i a3k :. Significantsdale legislation thatn was
<br /> more affordable housing. _.,.,,<=;1 'r,;- • •, g stereotypes
<br /> s, t, >, r` � ,,; passed last session should Overcoming �Jp
<br /> According to a recent Fam- -.� sr .< '' ` ' helpensure that municipalities Finally, we must continue
<br /> sly Housing Fund report — ""'.% • 11 *' " ;" `' -,4*-,` ` p
<br /> "Workforce Housing: The Key ' y interpret building codes in a to debunk outdated percep
<br /> s 14'li
<br /> , , �� ' uniform manner. It's time for tions of rental housing. While
<br /> to Ongoing Regional Prospers- Wt, ,Xy; ,:, ; q
<br /> " s. housing local government to cooperate some renegade landlords and
<br /> ty" — the Twin Cities metro Wt,
<br /> •; ; , ;•,
<br /> f'„x remain with the new law and remove tenants dogive apartments a
<br /> area loses out on$128 million a •« .. °. ` ? 1
<br /> year in consumer spending •1" :x :,= # ' :� afford- this barrier to affordable hoes bad name, the vast majority of
<br /> µ„ • i able. ing. rental housing in Minnesota is
<br /> and $137 million in annual �'3 We also Building and permit fees well-maintained and of the
<br /> business income because it4. '
<br /> ; , s must make must be fair.Fees are appropri highest quality.
<br /> lacks housing for households �� certain that ate as long as they serve to re- Higher-density, smart-
<br /> that earn $15,000 to $50,000 ;n,o -••'' " - ' &' land-use plans imburse government for pro- growth development projects
<br /> annually. s' ,f
<br /> • ,,� ,, vrt < succeed. Rental viding a service (for example, are integrating low-, middle-
<br /> Who are these wage earn
<br /> z g . •L.f01,1 y e, housing develop- sewer and water). Too often, and higher income housing
<br /> ers. They are retail workers, • : t
<br /> ,t:; s ers want to develop. however,local government im- units. Unless you viewed the
<br /> customer service agents, ` However, rigid zon- poses fees on rental housing lease agreements in these
<br /> teachers,firefighters,police of- t E' ing restrictions often that far exceed the actual cost planned communities, you
<br /> ficers and others.In fact,earn- ;' 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 /> major-
<br /> rangerepresent the vast s
<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 /> •'�•'' ,x
<br /> ited housing for workers
<br /> I unit sizes, setbacks and Siongiveslocalgovernmentyet housing developments built in
<br /> means limited opportunity for street widths—reduce den- 11 Twin Cities suburbs during
<br /> growth. sity and increase the cost of the 1990s, researchers found
<br /> In some ways, Minnesota isEthe land.To cover those costs,a victim of its own success.The ;r;<'. .: � >,7,. ' w'r,'>':-�!s:.: ;- , ,ti:==°'.e' The author little or no evidence that conmore-expensive housing must struction of affordable rental
<br /> robust period of the past seven _;- be built.Another hurdle is that ' I housing eroded property val-
<br /> years pushed up housing de- some cities'zoningregulations Doug .
<br /> nand and the cost to supply Illustration by Jim Freitag/Star Tribune Strandness is ties or hurt home sales.To the
<br /> PP y are inconsistent with their "~i, contrary:
<br /> affordable housing. Higher in- land-use plans — making it chairman of the . > Prices of homes located
<br /> comes, a growing population impossible to achieve required Minnesota Multi near affordable rental housing
<br /> and lower interest rates led to long-term availability of af- While new is nice,we also must densities. Housing As- grew at least as quickly after
<br /> higher housing prices. fordable rental housingin Min- look at existinghousingto sociation.He
<br /> the rental housing was built as
<br /> Meanwhile, the strong nesota? make certain that it is used to also is owner of • before.
<br /> economy tightened the labor Many have tried to answer its fullest extent. Better cooperation Dunbar Strand- > 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 1,500 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..Paut 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 1970$ 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 statu- ing solution by imposing fees Local governments, busi-
<br /> the 1990s. I-lousing Task Force, compris- Paul nearly 2,000. While some tory responsibility to review lo- in the fairest manner possible. nesses,schools, the faith corn-
<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 dil-
<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 tions 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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