Homeownership Work Group May 9, 2018 1
Agenda: Meeting #5 1:05 p.m. Review agenda 1:10 p.m. Panel: Alternative Forms of Homeownership and Expanding Housing Options 2:15 p.m. Break 2:30 p.m. DRAFT report framing Vision, Preamble and revised Elements 2:45 p.m. Discuss Recommendation ideas and language 3:30 p.m. Public Input and wrap up 3:45 p.m. Work Group update for May 29 th Task Force meeting 4:00 p.m. Adjourn 2
Panel: Alternative Forms of Homeownership Mark Fick, Shared Capital Cooperative Ben Andrews, Project for Pride in Living Shana Sether, City of Minneapolis Patrick Donahue, Carponentry 3
Affordable Home Ownership Limited Equity Cooperatives
Shared ownership of real estate by the residents Democratic structure : One person = One vote Removes property from the speculative market, value is determined by the residents Share value structure can provide long term affordability and/or modest wealth creation Provides standard tax benefits of other home ownership
Board of Directors Legal & Financial Responsibilities on behalf of members Hire & Review Manage Create Committees Prepare Budgets Property Management Daily Operations Resident Members Elect Resident Members Resident Members Own Cooperative Corporation Reside in Owns Real Estate
Image from Cooperative Housing Development Toolbox by Northcountry Foundation
The Share / Equity Formula defines the affordability Wealth Creation = allow for modest increase in share value over time Permanent Affordability = restrict increase in share value
Make housing cooperatives an eligible use for all existing affordable housing programs Provide subordinate debt or grants for cooperative purchase of real estate Provide financial or staff support for technical assistance to housing cooperatives Allow for tenant right-of-first-purchase of existing multifamily properties
Public Housing / Subsidized Housing Conversions LIPRHRA Section 8 preservation program Section 202, 221(d)3, 236 First Right of Refusal Legislation Most successful in Washington DC New York City Tenant Interim Lease program Program with UHAB Trial period with training and structural milestones Chicago Mutual Housing Network Tenant Organizing Project Attempt at purchasing and organizing
Mark Fick Shared Capital Cooperative mark@sharedcapital.coop 612-767-2125
PPL Greenbelt Homes Overview Recommendations
PPL Greenbelt Homes
Current Site Plan
Current Site Plan
Current Floor Plan
Current Renderings
Current Renderings
Current Renderings
Current Renderings
PPL Greenbelt Homes Recommendations
Panel: Alternative Forms of Homeownership Patrick Donahue, Carponentry Modular home construction video - https://www.youtube.com/watch?v=4jcq0glss_y 37
BREAK 15 minute break 38
Framing for Task Force Report (overview) VISION Overarching statement of aspiration and need that sets the frame for the report PREAMBLE / CASE STATEMENT for report PRINCIPLES ELEMENTS of a secure housing system Case Statement for each Element: - Background / Narrative - Who is Impacted? - What's Working? - Gaps? RECOMMENDATIONS for each Element RECOMMENDATION RECOMMENDATION RECOMMENDATION Strategy and Action Ideas for each Recommendation (identify actors and outcome?) Strategy or Action Idea Strategy or Action Idea Strategy or Action Idea Strategy or Action Idea Strategy or Action Idea Strategy or Action Idea Strategy or Action Idea Strategy or Action Idea Strategy or Action Idea 39
Report Vision Statement EXAMPLE We envision a Minnesota where every person, regardless of race, income, household type or size, age, or health status has the ability to choose a home they can afford, close to school, work, and community. We can achieve this vision by expanding what works, reducing barriers, collaborating and innovating in housing. 40
Report - DRAFTY Preamble / Case Statement Minnesota s quality of life and economic vitality is built on the foundation of a stable, resilient housing system. Housing is a foundation for economic growth and thriving communities. Historically, a strong housing base has provided Minnesota a competitive advantage of the affordability and opportunity in our state. We have successfully attracted new businesses and workers and continue to grow, with world-class educational and economic opportunities and by being a place where people can afford to buy or rent a home. To continue to grow, we need housing options to keep pace with employment opportunities for existing and new residents to our State. 41
Report DRAFTY Preamble / Case Statement (continued) Where you live is connected with every aspect of your life. Changing housing markets and needs have outpaced our ability to adapt. Now is the time to meet our housing needs and set the table for the next generation Meeting the varied and vital housing challenges of the future requires all of us to act. 42
Report - REVISED Elements to organize recommendations Improve Access Increase Stability Preserve What We Have Increase Supply 43
DRAFT Recommendation ideas Support and expand the reach of existing homebuyer and financial education and counseling programs. Address the homeownership disparity between households of color and white, non-hispanic households. Encourage local governments to evaluate and update local plans, zoning and land use policies to facilitate expansion of homeownership options in communities to keep pace with population changes and shifts in market need and demand. 44
DRAFT Recommendation ideas Identify and encourage ways in which to reduce development and construction costs. Expand the housing inventory by developing more homes and encouraging alternative forms of homeownership housing options that meet the local community need. Increase access to capital for homebuyers through expanding mortgage products, encouraging innovative methods for savings, and growing downpayment assistance resources. 45
DRAFT Recommendation ideas Expand and simplify construction financing products and underwriting for homeownership housing developers. Provide technical assistance and capacity building for smaller and newer developers to enable them to create more affordable homes. 46
Additional Potential Recommendations To Be Discussed Maintain and Preserve Existing Housing Encourage broad participation in homeownership housing opportunities by engaging a cross-sector of stakeholders in education, economic development, jobs, and housing. 47
Public Input In-person comments taken in order of sign-up Online comments will be read by the moderator 1-3 minutes per person for comments, depending on the number of people wishing to speak 48
Upcoming events - Forums Watch the website for updates and details on the Forums. https://www.mnhousingtaskforce.com/regional-forums 5/9/2018 49
Wrap Up Task Force Meeting Tuesday, May 29, 8:30 a.m. to 1:30 p.m. at Wilder Foundation on University Av W and Lexington Pkwy Next Homeownership Work Group meeting Monday, June 11, 1:00 to 4:00 p.m. at MN Housing Visit www.mnhousingtaskforce.com for: past and future meeting information background studies and materials public input opportunities sign-up for updates 50