VOL. 4 ISSUE 1, FEB. 2020
THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG
As the debate over how to fix Minnesota’s housing issues heats up, the problem becomes more urgent.
The great housing debate expected in 2020 session With several Minnesota lawmakers already stating that housing will be a top issue during this year’s legislative session and housing issues heating up at the local level of government, it’s clear the growing national conversation over housing affordability will blanket Minnesota in 2020. “The statewide housing conversation will really elevate in 2020,” said David Siegel, executive director of Housing First Minnesota. “It’s time—the urgency of the problem is no longer debated.” Industry calls for action have focused on the affordability challenges facing buyers at all levels, as well as the inventory challenges, which according to U.S. Census figures in Minnesota, are the worst in the nation. This major policy discussion in Minnesota will join the surge of housing affordability debates across the country in states like California, Nebraska and Virginia. In California, housing has become a toptier issue, and Minnesota industry leaders
believe that issues and solutions raised there can provide a road map of what is to come in Minnesota. “When we look across the country, we see a pattern focused on lifting affordability roadblocks that are holding back the housing market and limiting homeownership access,” said James Vagle, vice president of advocacy at Housing First Minnesota. While there is often consistency in approaches to fix housing, there are also common challenges in the effort to advance housing legislation. Solutions that propose needed changes have been met with strong opposition. “The challenge in fixing housing is complex; it will require substantial compromise from all sides. The depth of the problem requires this,” added Vagle. Several areas of housing will draw debate in 2020. Clearly, funding is one. “I know that there will be a big push to include a substantial amount of funding for affordable housing in the
bonding bill this year,” said Rep. Steve Elkins (DFL-Bloomington). Gov. Tim Walz included $276 million in his opening bonding proposal, which represents a substantial increase in housing funding when compared to historic investments. While the figure is noted for its increase, some legislators would like to see even more. The bonding proposals will be the centerpiece of the legislative session and are expected to be packaged into a large omnibus bill as the session concludes sometime in May. On the policy front, legislative leaders have pegged housing policy changes as a priority. Sen. Rich Draheim (R-Madison Lake) as chair of the Senate Select Committee on Homeownership has housing as one of his priorities. “This session I’ll be looking to hold down, if not lower, the cost of homeownership,” said Draheim. “There are so many CONTINUED >> PAGE 6
INSIDE THIS ISSUE
Balancing new development, a city council member’s perspective PAGE 5
Years of underbuilding have set the stage for needed action PAGE 9
Students showcase their skills PAGE 13
Dayton impact fees ruled “illegal, null, void and unenforceable” Housing First Minnesota v. City of Dayton is latest victory for homeowners The city of Dayton’s off-site impact fees, known as “off-site transportation charges,” were declared “illegal, null, void and unenforceable” by Hennepin County District Judge Susan Robiner last month
in Housing First Minnesota v. City of Dayton. In the decision granting summary judgment to Housing First Minnesota, Robiner permanently barred the city of Dayton from enforcing its city ordinances CONTINUED >> PAGE 4
HOUSING INDUSTRY NEWS
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