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<br /> NEWS W W W.TWINCITIES.COM • ST. PAUL PIONEER PRESS
<br /> 1700110 FROM PAGE lA
<br /> ' Affordable • s .I,' • li- �x „ . .
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<br /> home nowhomes . :. ,iF '. , :" . .
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<br /> deemed 4,0, •,----,2., :x : ::
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<br /> a home sold for less than r , .:"' i ,i r t:'.'...�;.• " "-'v ' .4 `Y ,.
<br /> affordable . • . 1 „ ,. ,: '�
<br /> $134,250 as affordable for the n•� � .•'',Iti •
<br /> Iif� P ` - 's"'• 'F, 7.%77, '-ij, - -r""'"""7"'''''''.4-- '.Ire -,':**":74.%,:,,.
<br /> past three years, but that num (-'",y„ . -^.a• I,i ,,,... . .,.. ,,, s ' + tF
<br /> «t.,;,.5▪ .,; .:t, "•rs..-' 'i ,E u',3., • .'':. IIS„ • . ?•-' 5�-- i ' •_, @V
<br /> Ver was artificially low. The 27 : '�'" '"' y .�� ,-:��,:. .. r
<br /> Council changes percent increase in the limit :,•,110.,-' ,•,'•"g'= -;' • rj■(- ',,--j -`, it y 1
<br /> 'livable'
<br /> approved Wednesday came C•5 '.---;;_-..4.4-' ;',-.-77:',,,..‘,•'‘', - +4 t,_ .' " i , j y.s,i.wr° '''•••;
<br /> i• `, �� 1
<br /> definition of y :k •• , µt „`"•��- ,r: U ` . °� •;q'F . v i`:
<br /> because of the rising median �pr,+..>..• • - =' »,r.'. .:,-,• i,,,A > --
<br /> income and inflation. ,�F;,y 40' E , - __ , ' : - rsy,� ,
<br /> BY MARA H. GOTTFRIED Buildin r `- ,.- ::',<;•
<br /> Building homes that would ',' na,,P.. - >, -,-- .•, 'E,r.
<br /> Pioneer Press labia ..> � ,". z,s 4 u. . .---";.;.• 04,
<br /> `'
<br /> be considered affordable was w ✓
<br /> nearly impossible — without 4` `' °
<br /> An affordable new home in subsidies for$134,250 or "." ., - !
<br /> Cities cost$134,250less, .«,-•�,r ,,..,�.,.. , . .. l : ; ` k,. . ?; r
<br /> the Twin on - d.`Phe new fi n w..��.: �M" " " .' ' :° ': 4
<br /> developers said. figure .,", r�r�, <,c•"'^.� -, :. .,. :1 , i; `t, �.-,.,,,,,. ,q,„,, .i. , . ;_
<br /> Wednesday. • *:. ;i-"°rT' �:r` _ s
<br /> closes the gap between the •x; _ ...• '_,.,:,„„A-+,,t'r, 4'5 .I "1•:n, . ' i -t . %i t,,'_ �.`4'-�r,`
<br /> Today, `affordable" means median'price of a new-construe- JIM GEHRZ,PIONEER PRESS
<br /> $170,000 or less. tion home in the Twin Cities— These town homes along Langford Lane in the Charleswood housing development in Farmington
<br /> "Really?" some have asked $245,000 — and what is now start at a base price of$168,900.
<br /> about this new definition of viewed as affordable.
<br /> affordability, approved by the said Mark Ulfers, executive for instance, is now considered moved in last May.
<br /> Metropolitan Council Wednes- HOUSING CRISIS director of the Dakota County affordable. "Finding something afford-
<br /> day. Community Development The median income in the able was very,very much on my
<br /> Really. A family of four mak ince 1995, when the Livable Agency. metro area is comparable with mind," said Damer, who's
<br /> ing $61,360, which is 80 percent 0Communities Act was "Think about that, five or 10 other large cities across the retired,has an income of$40,000
<br /> of the median income for the 'passed, the Met Council has set years ago we would have country.If the same formula for a year and lives alone."I'm on a
<br /> Twin Cities metro area, can housing affordability standards. thought $170,000 was absurd," calculating affordability were fixed income and I had some
<br /> afford to buy a $170,000 new The act aims to reduce the con- he said."Clearly,it's a sad situa- applied to those cities, their assets to put into it, but I had to
<br /> home without spending more centration of low-income hoes- tion to have affordable limits so affordable housing limits would make sure it was affordable."
<br /> than 30 percent of their gross ing in the inner cities by putting high, but given where we are be similar. It's a real stretch to find sin-
<br /> income, according to the new some of it into the suburbs. It today they represent a reason- Some affordable-housing gle-family, new-construction
<br /> Met Council standard. also provides tools for job cre- able standard for the people advocates take issue with using homes selling for$170,000 in the
<br /> The $170,000 figure matters ation,such as money to clean up with a moderate income." 80 percent and 50 percent of Twin Cities and suburbs. Even
<br /> mostly to cities because it's the polluted sites. Because of the The formula used by the median income as standards in Victoria, which is about 35
<br /> benchmark they'll use to judge act, some cities set goals for Met Council takes 80 percent of because, they say, people who miles from downtown St.Paul,a
<br /> how well they're reaching their how much affordable housing median income for a family of make far less money are left out new single-family home would
<br /> affordable-housing goals. But will be built in their communi- four — a common benchmark of the equation. start at $225,000, said Lynne
<br /> it's also a gauge of where the ties and use the Met Council's of spending power — and uses "Those numbers were set at Jensen, division sales manager
<br /> Twin Cities' housing market limit as a guide. a 7 percent interest rate to a time when the region really at Centex Homes.
<br /> stands. In 1995, the Met Council set determine how much they hadn't reached the housing cri- But buying a town house for
<br /> "When you hear that num- $118,000 as the upper end of could pay for a new home, pro- sis we're in now," said Russ $170,000 or less would be viable.
<br /> ber, it sounds pretty high," said "affordable" for a new home. viding they spend no more than Adams, director of the Alliance A standard$170,000 town house
<br /> Met Council Member Lee Pao Eighty percent of median 30 percent of their income on for Metropolitan Stability. "This would have about 1,500 square
<br /> Xiong. "I consider myself a mid- income for a family of four then housing. seems like the Met Council is feet, three bedrooms, 21/2 baths,
<br /> dle-income person,and it seems was$40,800. For rental housing,the Coun- only asking cities to meet hous- an unfinished basement and a
<br /> like it would be a lot for me.But The numbers this year are cin uses 50 percent of median ing needs for people at moder- two-car garage,Jensen said.
<br /> this number is reality." indicative of the dire housing income, which is $38,350. A ate incomes."
<br /> The Met Council considered market if$170,000 is affordable, three-bedroom rental for $996, Indeed, some Met Council AFFORDABILITY
<br /> members also have expressed FOR A L L
<br /> AFFORDABLE HOMES, 10A concern about whether the
<br /> affordability thresholds are tar- A /et Council Member Frank
<br /> geting those most in need. Dur- 1V1Hornstein said he and
<br /> ing Wednesday's meeting, the other council members worry
<br /> l0A C THURSDAY, MARCH 28, 2002 council voted to look into the about the people who are most
<br /> possibilities of lowering the vulnerable when it comes to
<br /> income and affordability limits finding housing they can afford.
<br /> used for affordable housing "Those people coming off
<br /> grants to cities. welfare and working jobs that
<br /> are below living wage,those are
<br /> AFFORDABILITY the most worrisome," he said.
<br /> MONTHLY PAYMENT IS CRITICAL "We need to redouble our
<br /> + efforts to funnel public
<br /> For a 30-year mortgage at a Interest: $892 -pm' Janet Darner, affordabili- resources to those at 30, 40 and
<br /> ty was critical when she 50 percent of median income."
<br /> 7 percent interest rate, Roger Taxes: $167 Harrington, a White Bear looked to move from her Eagan While the benchmarks set by
<br /> Lake mortgage consultant, Private mortgage insurance: townhouse to a larger one. She the council are reasonable, they
<br /> calculated the monthly pay- $66 knew she would have to move should be viewed as a ceiling for
<br /> ments for a $170,000 home, farther out of the Twin Cities to pricing affordable housing,
<br /> assuming the family makes a Homeowners insurance: $41 buy a home in her price range. Ulfers said.
<br /> 10 percent down payment. Total monthly payment: • What she found was a three- "With affordable housing,we
<br /> $1 292 bedroom townhouse in Rose- need to shoot for affordability
<br /> Principal: $126 mount for $169,600, and she levels well below those stan-
<br /> dards," he said."'There are a lot
<br /> of modest-income folks that
<br /> can't afford the levels of afford-
<br /> ability the Met Council set."
<br /> Developers and city officials
<br /> tend to support the new housing
<br /> affordability limits. The new
<br /> numbers "reflect the real
<br /> world," said Rick Packer, who
<br /> heads the Builders Association
<br /> of the Twin Cities public policy
<br /> committee.
<br /> "This is a builder issue
<br /> because we're asked by cities to
<br /> incorporate affordable housing
<br /> into our developments,"he said.
<br /> "The new numbers bring us
<br /> closer to the real cost of produc-
<br /> ing housing."
<br /> While the Met Council kept
<br /> the affordable housing bench-
<br /> mark artificially. low, cities
<br /> struggled with meeting their
<br /> affordable ,housing goals, said
<br /> Kris Wilson, government rela-
<br /> tions specialist for the Associa-
<br /> tion of Metropolitan Municipali-
<br /> ties. But the new guidelines are
<br /> closer to reality, which should
<br /> help cities,she said.
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