Community Planning & Economic Development 2019 Budget As - PowerPoint PPT Presentation

Community Planning & Economic Development 2019 Budget As recommended by Mayor Frey on August 15, 2018 September 24, 2018

Department Overview City of Minneapolis

Who we are and what we do

2019 Change Items City of Minneapolis

Affordable Housing Trust Fund (AHTF) The recommendation is an 2019 2020 2021 2022 2023 2024 expansion of a well-established Revenue program that will double the historical AHTF target budget of Expense 14,581 236 236 236 236 236 $10,000,000 per year to Net Impact 14,581 236 236 236 236 236 $21,000,000 in 2019 (inclusive of Above Figures Shown in 000s of dollars the Family Housing Initiative), FTE 2 2 2 2 2 2 utilizing non-general funds. AHTF resources will be used to blend with other financial tools and to leverage other funding sources to increase the number of affordable housing units produced and preserved.

Housing Stabilization Program The recommendation is a new 2019 2020 2021 2022 2023 2024 pilot initiative that will initially Revenue impact an estimated 15 units of Expense 1,500 stabilized rental housing. Any Net Impact 1,500 property acquired will be resold Above Figures Shown in 000s of dollars and program income generated FTE could be used to support future projects. This program will promote tenant stability, affordable, sustainable homeownership and reduced racial disparities in housing.

Affordable Missing Middle The recommendation is a new pilot 2019 2020 2021 2022 2023 2024 initiative that will facilitate up to Revenue three pilot projects that result in an Expense 500 estimated 6-12 affordable housing Net Impact 500 units on City-owned property. Above Figures Shown in 000s of dollars Missing middle housing is the FTE primary type of development that can result in naturally occurring affordable housing (NOAH) and an increase in this development type is needed to meet population growth goals of the City .

Naturally Occurring Affordable Housing (NOAH) Preservation NOAH properties generally refer 2019 2020 2021 2022 2023 2024 to unsubsidized multifamily, Class Revenue C rental housing projects that Expense 3,300 have at least 20% of the units with rents affordable to Net Impact 3,300 households with incomes at or Above Figures Shown in 000s of dollars below 60% of the Area Median FTE Income (AMI). This recommendation expands access to affordable housing throughout the City, and is a continuation of one-time budget support of existing programs.

4d Expansion The 4d Pilot initiative utilizes the State 2019 2020 2021 2022 2023 2024 Low Income Rental Classification tax Revenue status to preserve NOAH properties that Expense 250 250 250 250 250 250 have at least 20% of the units with rents affordable to households with incomes Net Impact 250 250 250 250 250 250 at or below 60% of the Area Median Above Figures Shown in 000s of dollars Income (AMI). FTE Funds will be used to provide minimal financial assistance to property owners (payment of application fee to Minnesota Housing and $100/unit not to exceed $1,000 per building), as well as support data analysis on program outcomes and equity impacts and marketing materials.

Minneapolis Homes Minneapolis Homes provides financial 2019 2020 2021 2022 2023 2024 assistance to create homeownership Revenue housing opportunities, facilitate development of CPED-owned properties Expense 4,293 243 243 243 243 243 and provide long term affordability of Net Impact 4,293 243 243 243 243 243 ownership housing. Above Figures Shown in 000s of dollars The recommendation promotes inclusive FTE 2 2 2 2 2 2 and equitable development by expanding the existing program from $750,000 to $5M. This will facilitate development of approximately 80 of the approximately 400 vacant CPED-owned development properties through a request for proposals process in partnership and collaboration with key funders, including including Minnesota Housing, Hennepin County and the Met Council.

Homeownership Opportunity Minneapolis (HOM) The HOM program expansion 2019 2020 2021 2022 2023 2024 increases access to affordable and Revenue sustainable homeownership and Expense 196 196 196 196 196 196 reduces racial disparities in Net Impact 196 196 196 196 196 196 homeownership rates. Above Figures Shown in 000s of dollars This expansion is needed for entry FTE cost assistance to increase from $7,500 to $10,000 for households with incomes at or below 80% AMI to purchase homes. The program is targeted to households participating in financial capacity building programs.

Homeowner Rehab Program The recommendation is for $750,000 2019 2020 2021 2022 2023 2024 in one-time CDBG program income Revenue to support the Homeowner Rehab Expense 750 Program. The City no longer Net Impact 750 outsources this work; it is Above Figures Shown in 000s of dollars administered by CPED staff. FTE The one-time funding will allow the City to secure additional resources from Minnesota Housing. This leverage will more than double the households served through our program in the coming year from 38 households in 2017 to approximately 80 in 2019.

Homeownership Counseling and Outreach The program provides administrative 2019 2020 2021 2022 2023 2024 support to the Minnesota Revenue Homeownership Center (HOC) and its Expense 50 network of homebuyer educators proving service to Minneapolis Net Impact 50 homeowners and prospective Above Figures Shown in 000s of dollars homebuyers. FTE Funds will be used to increase the capacity of homebuyer education programs in the City of Minneapolis to mitigate racial and economic disparities by stabilizing households in homeownership.

Stable Homes, Stable Schools This recommendation will 2019 2020 2021 2022 2023 2024 provide funding for 21 vouchers Revenue to be made available to each of Expense 3,350 the 15 schools that face the Net Impact 3,350 worst problems with Above Figures Shown in 000s of dollars homelessness, supporting up to FTE 320 families per year. The program will be administered by MPHA and will not require any additional City administrative or FTE capacity, equipment, supplies or IT support.

Tenant Stability: Tenant Legal Services This program provides free legal 2019 2020 2021 2022 2023 2024 services to low income renters Revenue who cannot afford traditional Expense 175 legal services and are living in Net Impact 175 housing in need of repairs to Above Figures Shown in 000s of dollars meet City code standards. FTE Low income renter households in need of this service are disproportionately women and people of color.

Tenant Hotline The Tenant Hotline focuses its 2019 2020 2021 2022 2023 2024 service towards low income renters Revenue who cannot afford traditional legal Expense 125 services and are more seriously Net Impact 125 affected by wrongly withheld Above Figures Shown in 000s of dollars security deposits, the prospect of eviction and serious repair issues. FTE Low income renter households in need of this service are disproportionately women and people of color. Somali and Spanish speaking tenant advocates work with these immigrant communities in their native languages.

Eviction Representation Pilot This is new program that will be 2019 2020 2021 2022 2023 2024 administered through a contract or Revenue contracts with non-profit legal Expense 150 service providers. Net Impact 150 It is estimated that this funding will Above Figures Shown in 000s of dollars support legal services for 100-125 FTE low income renter households facing eviction, while meeting the City’s goals of preventing displacement and resolving health and safety problems in homes.

Relocate Small Business Support Team This recommendation ties to the City 2019 2020 2021 2022 2023 2024 goal of City that Works and aligns Revenue 343 343 343 343 343 343 Small Business Support team’s Expense 343 343 343 343 343 343 mission and services to be impactful Net Impact 0 0 0 0 0 0 to the growing and diverse business Above Figures Shown in 000s of dollars community. FTE 3 3 3 3 3 3 The relocation of the team is expected to build off the continuous improvement work that has already been initiated to streamline and simplify processes for the business community.

Great Streets and B-TAP (Business Technical Assistance Program) Great Streets Gap loans address the 2019 2020 2021 2022 2023 2024 real estate funding needs in Revenue economically challenged Expense 547 neighborhood commercial districts Net Impact 547 with higher proportions of residents Above Figures Shown in 000s of dollars of color and the B-TAP program serves a high proportion of low FTE income and minority entrepreneurs. CPED seeks one-time funding of Community Development Block Grant (CDBG) program income to allow existing activities to continue.