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6B 2 FRIDAY, NOVEMBER 22, 2002 LOCAL NEWS FROM PAGE 1B &ffordable housing crisis called an income problem Analyst:Vouchers should close income,rent gap "Public housing is less Renters paying too expensive, and it works well much for housing BY MARA H.GOTTFRIED pits vouchers vs. subsidized when it's in the community," Pioneer Press rental housing, is a debate Gutzmann said. "Vouchers can In 2000, 36 percent of renters in that's been around for a long be a good thing too,but I think the 13-county metro area paid It's not the housing market, time,said Kit Hadley,Minneso- it's wrong to say vouchers are 30 percent of their income or stupid. to Housing Finance Agency the only solution." more for housing,which is It's the economy. commissioner. "Given the data we have,it's considered unaffordable. So argues a Federal Reserve "What his premise can't not even close,"countered Feld- 50% Bank of Minneapolis analyst explain is why rental housing man, who cited statistics from who suggests that the afford- production dropped off by two- the U.S. General Accounting 46 able housing problem is not thirds in the metro area in the Office. Total per-unit costs for 42 really a housing problem, but 1990s(compared with the 1970s housing production programs 38 rather an income problem. and 1980s) during a time when are 32 to 59 percent more than a In turn, the solution isn't we had increasing vouchers," housing vouchers in the first 34 producing more subsidized Hadley said. "You can't use a year and 12 to 27 percent more 1990 1993 1998 2000 housing or reducing local gov- voucher on housing that does- over 30 years,he said. ernment regulation.It's making n't exist." Feldman also gave a clearer Source:Census and American EHR PRESS upthe gapbetween people's Vouchers also are ultimate- Survey PIONEER PRESS p p picture Thursday of who is liv- incomes and the cost of rent ly more expensive than produc- ing in rental housing that is through government vouchers, ing subsidized housing, said unaffordable: In the 13-county said Ron Feldman,an assistant Jon Gutzmann, St. Paul Public metropolitan area, 36 percent FY vice president at the bank, on Housing Agency executive of renters were paying too Thursday during a media brief- director. much for housing in 2000. To read a summary of the ing. On average,Gutzmann said, People living below the policy paper,visit "Generally speaking, gov- renters in the housing voucher poverty line make up the www.mpls.frb.org/pubs/reg ernment policies that we have program the agency adminis- majority of people living in ion/02-09/feldman.cfm. 0 • response to low income ters can afford$300 a month for unaffordable rental housing, volve giving people income," rent — housing is deemed Feldman found. In 1998 in the Øldman said. "If people need affordable if a household metro area,about 65 percent of food,we give them food stamps. spends no more than 30 per- renters in unaffordable rental It would cost about$370 mil- We don't look to the food mar- cent of its gross income on it.If housing were below the pover- lion in the metro area to pro- ket and say we've got a food cri- a two-bedroom apartment ty line. The poverty line for a vide a voucher for every house- sis. ... But in the housing rents for $950, the voucher family of four in 1998 was about hold paying more than 30 debate, the issue has been would have to cover $650 a $17,000. percent of its income on rental largely focused on the housing month. Feldman said the federal housing, using 1998 statistics, market." But in the city's public hous- government could beef up the Feldman said. Yet many in the affordable ing program, average costs are existing rental voucher pro- housing realm find some fault $600 a month, which drops the gram— commonly called Sec- Mara H. Gottfried can be with Feldman's policy paper. cost that the government subsi- tion 8—by shifting funds from reached at mgottfried@pioneer The primary issue, which dizes to$300,Gutzmann said. subsidized housing production. press.com or(651)228-5262. Affordable-housingof owners who earn less than particularly downtown, Schiff plan half of the region's median said. income. The housing must "The people who are remain affordable for 15 years. opposed to this have specific, (continued) ers are likely to build are in the Council Member Gary complicated issues in their core "low-income neighbor- Schiff,one of the authors of the neighborhoods," Schiff said. One of Lilligren's con- hoods,where people don't corn- proposed change, calls it "a "But this is not about them. stituents, Al Kelly, co-founder plain." powerful new tool to put afford- Nobody is going to build multi- of the Heritage Neighborhood "People who live in Ken- able housing in neighborhoods family housing in Jordan. The Home Owners Association in wood or near Lake Calhoun that have no affordable hous- market isn't there." south-central Minneapolis, is have flexibility in their lives to ing,without spending a dime of The planned zoning deeply concerned with the pro- go to meetings to complain," public money." changes have the support of posed change. Kelly said. Schiff argues that the the Minneapolis Consortium of "I don't see any accommoda- Anne McCandless,who lives change will put affordable Community Developers, an 1110 n for the problems that come in the Jordan neighborhood housing in areas such as 50th association of nonprofit Ilkth increased density, such as just north of downtown, also is Street and Xerxes Avenue builders,according to executive graffiti,litter,crime,"Kelly said. concerned about the plan. South near the Edina border, director Jim Roth, executive "For most people in the core "Density is the history of the along the Hiawatha Avenue director. neighborhoods, their home is city," she said. "They were corridor where light rail will their biggest investment and called tenements and ghettos." run, or downtown. The plan Judith Yates Borger,who covers often their retirement." Housing is considered could mean that a developer Minneapolis,can be reached at Furthermore, he said, the affordable if it costs no more could mix affordable housing jborger@pioneerpress.com or majority of lots where develop- than 30 percent of the income with luxury condominiums, (612)338-8198.