FINAL REPORT Twin Cities LISC

Transcription

1 FINAL REPORT 218 Twin Cities LISC The Big Picture Project helped the City of Saint Paul focus affordable housing investments along the Green Line in the years just before and after the train began operations, helping the City realize the community s vision for the line: a vibrant, mixed-income, racially diverse community that increased access to economic opportunity. Russ Stark, Chief Resilience Officer, City of Saint Paul, and previous Saint Paul City Council Member (Ward 4) and Big Picture Project co-chair

2 Dear friends of the Big Picture Project Affordable housing is a top priority for our cities. The 212 Central Corridor affordable housing coordinated plan helps align public and private investments, and mobilizes all sectors behind strategies and tools that strengthen affordable housing along the corridor. Key to the plan s success are collaboration, new and existing financial resources, and supportive public policies. The Big Picture Project has been instrumental in activating a coordinated affordable housing plan along the Green Line LRT corridor, achieving our 1-year stretch goals (4,5 units) for production and preservation by year seven. To mark the accomplishments of this collaboration, this summary report offers insights into what was learned and reflections on what could have been done differently to strengthen results for the communities along the corridor. With 4,82 new and preserved affordable units, we have exceeded our 1-year stretch goal of 4,5 units at year seven. Of the 23,25 new housing units built since 211, 3,55 units (15%) are designated affordable for households earning 3-6% of area median income. (217 Twin Cities median income was $94,3 for a family of four, and $63,3 for a single person.) In our efforts to provide resources to help stabilize lower income families in their homes, we re at 968 households served 84.5% of our 1-year goal by year 7. More than $5.1 billion has been invested in residential and commercial development along the Green Line (not including the public investments and sports stadiums). Half of that growth ($2.56 billion) has occurred outside downtown Minneapolis. Source: Metropolitan Council. Big Picture Project Objectives Objective l Invest in the production and preservation of long-term affordable housing Objective li Stabilize the neighborhood and invest in activities that help low-income people stay in their homes Objective lii Strengthen families through coordinated investments The Big Picture Project illustrates how we can dig deeper and go further through collaborative public/private partnerships that achieve more equitable results. Our work must continue to strive toward an economy in which everyone can participate, prosper, and reach their full potential. What will the next ten years bring? What goals should we be striving toward? What are the challenges we need to meet head on? We look to our continued collaboration with community partners to define the tracks ahead. Thanks to all that have brought us this far. Perhaps the best is yet to come. Stay tuned! Saint Paul Mayor Melvin Carter Minneapolis Mayor Jacob Frey Melvin Carter Saint Paul Mayor Jacob Frey Minneapolis Mayor Thanks to the Big Picture Oversight Team Members Staffing Co-Chair Russ Stark, Saint Paul City Councilmember, Ward 4 Co-Chair Cam Gordon, Minneapolis City Councilmember, Ward 2 Patty Lilledahl, Saint Paul Dept. of Planning and Economic Development Theresa Cunningham, Minneapolis Community Planning and Economic Development Margo Geffen, Hennepin County, Housing Development/Finance Kerri Pearce Ruch, Hennepin County Community Works Denise Beigbeder, Ramsey County HRA Margaret Kaplan, MN Housing Finance Agency Beth Reetz, Metropolitan Council Elizabeth Ryan, Family Housing Fund Eric Muschler, The McKnight Foundation Amy McCullough, Twin Cities LISC Vicki Shipley, U.S. Bank Trent Bowman, Klein Bank Jonathan Sage-Martinson, Central Corridor Funders Collaborative Mary Kay Bailey, Central Corridor Funders Collaborative Barbara McCormick, Project for Pride in Living Tim Thompson, Housing Justice Center Bill Lerman, Jewish Community Action Metric M. Giles, Community Stabilization Project Gretchen Nicholls, Twin Cities LISC Kate Speed, Twin Cities LISC

3 BPP Dashboard The Big Picture Project has monitored and reported progress on the Central Corridor Affordable Housing Coordinated Plan through a dashboard of change indicators to track outcomes. Objective l Invest in the production and preservation of long-term affordable housing. Reaching the Expanded Goal Notes: Newly constructed and preserved housing units are officially counted at finance closing. Since 211, 4,82 (subsidized) affordable units have been built or preserved along the corridor. In , 1,247 new and preserved affordable housing units were added, surpassing the expanded goal of 4,5 new or preserved housing units by 22. Pipeline refers to active affordable housing development projects that are still seeking financing. 6, 5, 4, 3, 2, 1, Preserved Units 1,96 Additional Units 2, ,738 New Units 2,425 unit gap 2,76 units 1, ,738 Pipeline 2,125 unit gap 2,375 units 1,514 1, unit gap 1,613 1,775 3,573 units 2,34 3,45 Goal exceeded by 32 units 3 years early! Stretch Goal 4,5 Units Baseline Goal 2,54 Units 4,82 units Year Goal 213 Actual 214 Actual 215 Actual 217 Actual New and Preserved Affordable Units by Sub Area Comparing New Market-Rate to Affordable Housing Units * Minneapolis ,85 1,775 Market-Rate UMN / Environs ,83 1,186 West Central East Saint Paul ,549 4,199 5, , % of new units are subsidized affordable Affordable 1 out of every 6.5 units constructed are subsidized affordable. New Units ,2 Preserved Units 1,5 2, 4, 6, 8, 1, Market-Rate Affordable 12, *Does not include preserved affordable units. Long-term affordability at 6% AMI and below. Affordable Multifamily Housing / New Construction by AMI% % = 51 Units 6 8 % AMI Twin Cities Area Median Income / Rental for 2-Bedroom Apartment 218 Notes: Rent and income limits are required when public resources are utilized to achieve long-term affordable housing. In 218, the area median income (AMI) in the Twin Cities for a household of four is $94,3. in 218, a family of four would qualify for affordable housing with the following incomes (rents include tenant-paid utilities): 47 % = 11 Units <51 6 % AMI 19 % = 41 Units <3 % AMI 31 % = 652 Units 31 5 % AMI 3% AMI Annual Income Family of Four $28,3 Rent for 2-BdRm Apartment $636 5% AMI Annual Income Family of Four $47,15 Rent for 2-BdRm Apartment $1,61 6% AMI Annual Income Family of Four $56,58 Rent for 2-BdRm Apartment $1,273 8% AMI Annual Income Family of Four $71,9 Rent for 2-BdRm Apartment $1,697

4 Objective li Stabilize the neighborhood and invest in activities that help low-income people stay in their homes. Tracking Activities that Help Low and Moderate-Income People Stay in Their Homes Notes: The corridor continues to make progress towards the overall goal of 1,573 households served. The overall goal consists of a variety of programs and services provided for homeowners, each with their own ten year goals. Three of the five programmatic categories have exceeded their ten-year goal (mortgage foreclosure assistance, First-Lien Mortgage Loans, and Impact Fund Mortgage Loans). We found that lower-income homeowners were not willing to take on added debt by activating Home Improvement Loans Mortgage Foreclosure Assistance Home Improvement Loans First-Lien Mortgage Loan Total Households Served by Year 7 1,329 total 12 Impact Fund Mortgage Loan , % of goal served 15 Redevelop Vacant and Foreclosed Properties Total Jan. 211 Dec. 215 Added in Goal to reach by 22 Objective lii Strengthen families through coordinated investments. Tracking Change in Median Assessed Value for Single Family Homes (shown in aggregate) Six percent decrease across the Corridor compared to a City of Saint Paul increase of about 1% $2, $15, $159.8 $139.5 $134.7 $142.4 $ % $146.3 $15.5 Notes: Declining assessments of single family homes along the corridor indicate that homeowners are less likely to see property tax pressure from increased assessments and be displaced. Values in the Central Corridor have steadily increased since 213, but are still six percent below 211 levels, suggesting homeowners are facing little pressure to sell, either due to increased property taxes or from market demand. All values are in 216 dollars. $1, Median Property Value Tracking Change in Median Rental Rates for Available Two-Bedroom Housing Units (shown in aggregate) Fifty-eight percent increase across the Corridor compared to a Minneapolis Saint Paul increase of about 26% $2,5 $2, $1,5 $1, 58 % $2,32 $1,93 $1693 $1,755 $1,49 $1,468 $1,222 Median Rental Rates Notes: The rental rate data are comprised exclusively of advertised rental listings at a given point in time (here, third quarter of each year). Median rental rates for all corridor segment areas have increased, particularly within the Minneapolis/UMN area. Although median rents for available listings within the segment have risen over baseline to $1,275 per month, rents remain significantly lower than the corridor median ($2,32 per month). Please note these data do not include rental rates or rates of change for existing, occupied units; as such rising rents for advertised units do not necessarily indicate that renters along the corridor are being forced out of their current situations. The change in advertised listings largely reflects the increase in luxury apartments in the two downtowns, and new student housing located near the University of Minnesota. All values are in 216 dollars. Are Households Able to Afford Housing in the Corridor? Cost burdened households pay more than 3% of their income on housing costs 37% 51% 7% 73% % 2% 4% 6% 8% Mpls/St.Paul Central Corridor All Households Cost Burdened Low-Income Renters <$5, per year Cost Burdened Notes: Families who pay more than 3% of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care. Low income renters are more likely to be severely cost burdened, spending more than 5% of their income on rental housing.

5 Tracking Housing Investments along the Green Line

6 Between we ve seen investment in 4,82 new and preserved affordable housing units throughout all segments of the 11-mile LRT corridor. This map helps visualize where affordable housing investments (new and preservation) are occurring, compared with new market-rate housing investments in the same area. Median Property Values & Context Measures Along the Co Estimated Market Value Single Family Home Corridor Minneap Sin $2 Minneap 2BR Ren Rental Rents 2 Bedroom Unit Corridor Minneap

7 Population Trends & Median Rent Trends orridor Increase in Population Distributed by Sub Area r-wide Median: property values 6% since baseline. polis / Saint Paul Median: property values 1% since baseline. 9, 8, ngle Family EMV: 287,75 4% 7, 6, Single Family EMV: $146,7 6% n polis UMN Environs nt: $2,32 West 27.5% 8,734 Central East 5, 4, Single Family EMV: $8,4 4% 4,374 3, 2,571 2, Saint Paul 1,451 1, 1, BR Rent: $1, % UMN / Minneapolis Environs West 2BR Rent: $1, % Central East Saint Paul Households with Income Under $3, r-wide Median: rental listings 58% since baseline. polis / Saint Paul Median: rental listings 26% since baseline. The proportion of very low income residents is higher along the Corridor than across the Twin Cities 43% 7% 57% Central Corridor 3% Minneapolis /Saint Paul Very Low Income Residents All Other Residents Current Racial/Ethnic Mix along the Central Corridor No statisical change has occured between % American Indian 1 % American Indian % 13 13% 58% White 1 % American Indian 1 % American % 13 13% 24%58% White Black 13% 24% Black 1 % Other Race 55% White 55% 25% White Black 1 % Other Race % Black 1 % Other Race 3% Two or More Races3% Two or More Races % % O 5% Two or More Races5% Two

8 Getting the Big Picture Right Creating communities of choice and opportunity that are aligned with our growing regional transit system. The completion of the Green Line in 214 attracted billions of dollars of investment between downtown Saint Paul and Minneapolis, leading to changes in both the housing and economic markets. These changes continue to play out, mobilizing people to consider the larger implications of transit corridors on housing production and preservation, and offering a chance to reflect on broader issues that inform our efforts toward regional equity, prosperity, and growth. The Twin Cities Green Line has become a national model for getting transit right, pointing to: strategies that stabilize small businesses and strengthen cultural destinations, innovations around green energy and sustainable practices, hard-won battles over initiatives the create community benefits, and an effective approach to ramp up affordable housing production and preservation prior to and after the launch of the train. Exceeding Expectations The Big Picture Project s work has continued to meet and exceed many of its goals: 4,82 affordable housing units were newly constructed or preserved, surpassing the expanded goal of securing 4,5 affordable units by year 22. Three of the five programs that help low- and moderate-income households stay in their homes mortgage foreclosure assistance, First-Lien Mortgage Loans, and Impact Fund Mortgage Loans exceeded their 1-year goal. Moving Forward Now is the moment to step back, assess what has been accomplished, share what we have learned, and begin creating new priorities. Are more intensive efforts needed in subareas of the corridor? Could more focused strategies help mitigate displacement and strengthen housing options for households at or below 3% AMI? Should our collective efforts shift from housing to jobs? As more knowledge is gathered around changing markets and gentrification, collaborative tables like the Big Picture Project can help translate goals into action. Acknowledgements for data sources Scott A. Ehrenberg, City of Minneapolis Patty Lilledahl, City of Saint Paul Zong Vang, City of Saint Paul Bob Spaulding, City of Saint Paul Justine Beran, Twin Cities Community Land Bank Josh Dye, HousingLink Rental Revue Dan Hylton, HousingLink Rental Revue Kody Thurnau, Minnesota Housing Finance Agency Jason Peterson, NeighborWorks Home Partners Karen Pederson, Home Ownership Center of Minnesota Data Analysis Elllen Wolter, Research Scientist ellen.wolter@wilder.org Steven Aviles, Research Associate steven.aviles@wilder.org All data in this annual report was compiled by Wilder Research. Data source: U.S. Census Bureau, American Community Survey The Big Picture Project has been endorsed by: Corridors of Opportunity Policy Board Central Corridor Funders Collaborative City of Saint Paul Housing Redevelopment Authority (HRA) Twin Cities LISC Housing Justice Center (HJC) The Big Picture Project is hosted by the Cities of Minneapolis and Saint Paul and Twin Cities LISC, and supported by the Central Corridor Funders Collaborative. For more information please visit: affordable-housing or contact: Gretchen Nicholls, Program Officer Twin Cities LISC gnicholls@lisc.org Design: Kris LaFavor, Design Ahead