M I N N E S O T A
HOUSING INDUSTRY NEWS VOL. 3 ISSUE 2, JUNE 2019
NEWS AND INFORMATION FOR HOME BUILDERS AND REMODELERS BY HOUSING FIRST MINNESOTA • HOUSINGFIRSTMN.ORG
The Minnesota Senate addressed the state’s growing housing affordability crisis with the creation of a select committee on homeownership affordability and availability
A new day for housing affordability Gov. Walz signs Legislative Commission on Housing Affordability, Senate Establishes Select Committee on Homeownership Affordability and Availability The Minnesota Legislature punctuated the 2019 legislative session by creating two forums focused on housing affordability and homeownership access. Gov. Walz signed the bill creating the Legislative Commission on Housing Affordability, which was joined by the Minnesota Senate’s creation of the Select Committee on Homeownership Affordability and Availability. Both entities will seat their respective members and begin work this summer. The creation of these bodies comes at a time when the region’s housing ecosystem is experiencing a myriad of
structural challenges. The chronic lack of supply of available homes for sale, dearth of affordable options and overall inability for the housing industry to construct affordably priced homes, highlight the many roadblocks impacting the market. “We are at a critical juncture with housing challenges impacting Minnesotans across the state and the Legislature and governor answered the call” said James Vagle, director of advocacy for Housing First Minnesota. For decades, housing policy has been largely created by agencies and local governments based on subject matter and delegation by the legislature. Requirements like the building and energy code are managed and updated by the Minnesota Department of Labor & Industry, while stormwater management is governed by the Minnesota Pollution Control Agency, along with a host of others. Additionally, regional entities like the
Metropolitan Council and the array of watershed districts maintain oversight, permitting and fee authority. Perhaps the largest single institution impacting housing remains local governments; the cities and townships which maintain zoning, permitting and inspection oversight. The sheer number of agencies overseeing housing development has presented a challenge for leaders seeking to achieve greater affordability for homeowners who pay for these regulatory requirements and fees in the final price of their home. This issue has been compounded by severe lack of coordination among the agencies. The result has been a growing — but ultimately disorganized — housing regulatory structure. Proponents of the Commission and Select Committee approach believe that these efforts will substantially increase the awareness and coordination around housing regulations. CONTINUED >> PAGE 6
INSIDE THIS ISSUE
New building codes taking shape Except for the residential energy code, DLI expects to release the proposed building codes in a two-week window. PAGE 4
Legislative wrap-up A full review of this year’s legislation affecting the housing industry. PAGE 11
Women in new construction As the construction industry struggles with an already dire labor shortage, how do we recruit more women to work in new construction? PAGE 17
Answering the call for action As the cost of a new home increases, two cities take proactive approaches
2960 Centre Pointe Drive Roseville, MN 55113 HousingFirstMN.org
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create jobs and expand the tax base of cities. According to a 2015 study from the National Association of Home Builders, for every 100 new homes built there is a one-year economic CONTINUED >> PAGE 7
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With the cost of housing increasing at a rate much faster than wages, two cities in Minnesota are working to reduce what new-home buyers pay. Why? Growth is good for Minnesota cities. New homes bring new residents which, in turn,
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