Housing Industry News Vol. 4 Issue 3 - July 2020 by Housing First Minnesota

VOL. 4 ISSUE 3, JULY 2020

THE MINNESOTA HOUSING INDUSTRY NEWS SOURCE BY HOUSING FIRST MINNESOTA • HOUSINGINDUSTRYNEWS.ORG

New home under construction in Cottage Grove, Minn.

Housing expected to lead in economic recovery Q&A with national housing expert Dr. Elliot Eisenberg The sudden impacts of COVID-19 brought historic disruption to the housing market and the broader economy in the relative blink of an eye. With the state shuttered for an eight-week period stretching from mid-March through mid-May, large sectors of the economy were sent into a freefall of unfamiliarity with no model from which to gauge a recovery. As the initial COVID-19 surge has moderated and the economy is now in the early stages of reopening, some clarity is emerging. Housing has been one of the early sectors of strength. But unemployment remains high and will be the key data point to measure the velocity of the recovery. National housing expert Dr. Elliot Eisenberg recently sat for an interview with James Vagle, vice president of advocacy at Housing First Minnesota,

to discuss the COVID-19 impacts on housing and the broader economy. The interview was conducted on June 4 and has been edited for length. JV: How would you describe the phenomenon of COVID-19’s impacts on the economy and on housing? EE: Economically, this was like having a car accident without seat belts and air bags. This is the biggest recession we have faced in 90 years, since the Great Depression. The single thing we had (consumer spending) was gone. There is only so much you can spend on toilet paper. We couldn’t do anything as consumers, and our economy collapsed. The 10% decline in GDP is five years of economic growth up in flames. The Great Recession decline was 5%, this will double that loss in three months time. The good news is that if this ends by June, I really think the recession ends by then.

JV: Was the federal CARES Act the right decision? EE: It was a good move, a great move. I give Congress a good grade. Given the speed at which they had to produce it and the quality of the outcome, I give it a B+. Were their mistakes made? Sure. But compromise, speed and amount of money involved, almost all of the boxes were checked. It saved the day. Had the government been as delayed as it was in the Great Recession, by even two more weeks this spring, we would have seen the stock market meltdown. They staved off the worst possible outcomes. The key thing now, is we are going to need more. JV: Is housing beginning to form a V-shaped recovery? EE: Yes! I rate housing and autos both in a V. This is going to be very short. CONTINUED >> PAGE 12

INSIDE THIS ISSUE

Continued COVID-19 Coverage

Coronavirus delays energy, electrical code hearings PAGE 4

State budget turns from surplus to deficit PAGE 9

Will COVID-19 change buying habits? PAGE 11

Land development goes digital Virtual meetings and digital applications replace counter visits and in-person meetings With city halls closed and public meetings going virtual, the land development process has increasingly moved to digital platforms over the past 2 ½ months. Under Minnesota law, local government bodies, city councils, and county and township boards have 60 days to take action on a development application, with the possibility of a

60-day extension if needed. After the 60-day window, any application not voted up or down is considered approved. In the early days of the COVID-19 pandemic, land market experts were worried about a prolonged period without processing CONTINUED >> PAGE 7 HOUSING INDUSTRY NEWS

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2960 Centre Pointe Drive Roseville, MN 55113 HousingFirstMN.org

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PRESIDENT’S NOTE

Homeownership opportunity for everyone, everywhere As the COVID-19 crisis continued throughout late spring, we all witnessed tragedy in late May with the death of George Floyd. We were outraged by the actions that caused his death and saddened by the violence that erupted in the aftermath. We emerge from this in support of our friends, family and community in the fight against violence and for lasting change and unity. We will use our collective voices to advocate and lift barriers to remove racial inequities in our state. We know that housing is central to the lives and economic vitality of Minnesotans and the communities across our state. Homeownership is desired by 90% of Minnesotans, yet we have failed to provide a housing market that can adequately and equitably supply affordable homes to our residents across all price points

and locations. Owning a home is connected to a multitude of positive outcomes, including physical and mental health, community engagement, positive education outcomes, safety and security, and the long-term creation of wealth. There are three measure that speak to the challenge of this moment for housing in our state. The Twin Cities has the highest homeownership gap between white residents and communities of color in the country. Minnesota has the highest construction and development costs in the Midwest and lowest housing affordability in newly built homes. Our state consistently ranks among the lowest in available forsale housing in the nation, which increases rent and existing home prices. These challenges are all interconnected, complex and will require a commitment from all to

HOUSING INDUSTRY NEWS July 2020, Volume 4, Issue 3 PUBLISHER David Siegel David@HousingFirstMN.org EDITOR Katie Elfstrom Katie@HousingFirstMN.org

Gary Kraemer 2020 President, Housing First Minnesota

fix them. We can begin to solve these by listening and engaging, and by advocating to lift roadblocks that hold back the construction of homes that create a healthy housing market for all of us. The housing industry will be a leader in the effort to increase opportunities for homeownership for everyone, everywhere. Onward,

GRAPHIC DESIGN Hannah Swan ACCOUNTING Janice Meyer ADVERTISING SALES Brad Meewes Kori Meewes CONTRIBUTING WRITERS Katie Elfstrom Katie@HousingFirstMN.org

Nick Erickson

Nick@HousingFirstMN.org

Gary Kraemer

Mark Foster

Mark@HousingFirstMN.org

Kristen Ober

Kristen@HousingFirstMN.org

Kate Wigley Kate@HousingFirstMN.org

HousingIndustryNews.org

David Siegel

Stay up to date on the latest housing news. Subscribe to our blog at HousingIndustryNews.org

David@HousingFirstMN.org

James Vagle

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James@HousingFirstMN.org

For advertising information, rates, editorial calendar and production specifications, contact: Brad Meewes at 651-269-2399 (Brad@HousingFirstMN.org) or Kori Meewes at 612-801-9874 (Kori@HousingFirstMN.org)

Housing First Minnesota David Siegel, Executive Director Gary Kraemer, President

News Tips Have an idea for a story for our next issue? Contact Editor Katie Elfstrom at Katie@HousingFirstMN.org or send your story to Info@HousingIndustryNews.com

Be a part of the growing housing movement in Minnesota. Twitter: Follow us @HousingFirstMN Facebook: Facebook.com/HousingFirstMinnesota

Housing Industry News is a publication of Housing First Minnesota. Housing Industry News is published and distributed six times per year to housing industry professionals and others associated with the homebuilding industry. Neither the advertisers, nor Housing First Minnesota, will be responsible or liable for misinformation, misprints, typographical errors, etc., herein contained. For address change information, contact Housing First Minnesota. Suggestions, ideas and letters are welcome. HOUSING INDUSTRY NEWS 2960 Centre Pointe Drive Roseville, MN 55113 info@housingfirstmn.org www.HousingFirstMN.org Housing Industry News is published by Housing First Minnesota Entire contents copyright 2020 All rights reserved

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Housing First Minnesota is the voice for home builders, remodelers and all who are dedicated to building safe, durable homes at a price Minnesotans can afford. Housing First Minnesota is dedicated to advancing the American dream of homeownership for Minnesotans and is the leading resource for housing-related issues in Minnesota. This advocacy work has never been more important. The housing industry remains under intense regulatory and political pressures that impact Minnesota homeowners’ ability to buy, build, and remodel their dream home. Housing First Minnesota supports reasonable policies, regulations and protections, but our call for affordability for families is a voice that must be heard. Learn more at HousingFirstMN.org.

HOUSING INDUSTRY NEWS

THE HOUSING BEAT

Across the country, there is much talk about housing HERE ARE SOME OF THE LATEST QUOTES ON THE STATE OF THE INDUSTRY:

The question for local governments shouldn’t be about what new rules to impose, but instead what are existing rules and regulations doing to make matters worse for families seeking a better home and a better life.”

In many places, land-use regulations play an important role. For example, single-family zoning and minimum lot sizes make housing more expensive. Geographic constraints and the availability of buildable land are also factors.”

African American families that were prohibited from buying homes in the suburbs in the 1940s and ’50s, and even into the 1960s, by the Federal Housing Administration gained none of the equity appreciation that whites gained.”

ROGER VALDEZ FORBES

SHOMON SHAMSUDDIN DEPARTMENT OF URBAN AND ENVIRONMENTAL POLICY AND PLANNING

RICHARD ROTHSTEIN ECONOMIC POLICY INSTITUTE

With affordable housing in extraordinarily short supply, the house price declines will be limited...” MARK ZANDI CHIEF ECONOMIST, MOODY’S ANALYTICS

Housing is destiny in America; it determines every single facet of our lives. So why is it surprising that Minneapolis is rich with inequality when all of the necessary ingredients for structural racism have been present for so long?”

It tells us that there’s racism baked in to the housing market.” ANDRE PERRY BROOKINGS INSTITUTION

JUSTIN ELLIS THE ATLANTIC

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HOUSING INDUSTRY NEWS

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REGULATORY AFFAIRS

Tree fees trimmed in Roseville

The Department of Labor and Industry’s public meetings were placed on hold due to the pandemic.

Regulatory update: Electrical and energy code hearings delayed, air gap update Baseball, graduation ceremonies, religious services and dining out aren’t the only public gatherings put on hold due to COVID-19. Two important meetings affecting construction in Minnesota have been delayed due to the pandemic and Minnesota’s stay-at-home order and subsequent “Stay Safe MN” order. A May 4 Administrative Law Hearing on the new Minnesota Electrical Code has been rescheduled for Aug. 18. The delay began due to more than 25 requests for a formal hearing from Housing First Minnesota and its members. The adoption of a new electrical code and its implementation date are dependent on the outcome of the Aug. 18 hearing. Similarly, a May 18 hearing on the adoption of a new residential energy code (Chapter 1322 of the Minnesota Building Code) has been postponed without a rescheduled date. This hearing, required under federal law, is only to review the proposed new code and is not a hearing in which adoption of changes to Chapter 1322 would be voted upon. Plumbing Code: Dishwasher air gap to be optional In the proposed changes to the Minnesota Plumbing Code issued on March 31 by the Minnesota Plumbing Board, the Uniform

HOUSING INDUSTRY NEWS

Plumbing Code would be amended to make the dishwasher air gap for domestic appliances optional. The proposed code was approved by the Plumbing Board during its March 16 meeting. The proposed code language would allow the option of an air gap or the running the discharge line under the counter: 807.3 Domestic Dishwashing Machine. No domestic dishwashing machine shall be directly connected to a drainage system or food waste disposer without the use of an approved dishwasher air gap fitting on the discharge side of the dishwashing machine or run the discharge line as high as possible under the countertop, securely fastened. Listed air gaps shall be installed with the flood level (FL) marking at or above the flood level of the sink or drainboard, whichever is higher. (emphasis added) Multiple requests for the removal of the air gap were submitted, including those from Housing First Minnesota, the Northwest Chapter of Building Officials, Kitchens By Design and M&D Plumbing and Heating. As with other rulemaking bodies housed within the Minnesota Department of Labor and Industry, public meetings have been placed on pause for now. An April 21 meeting of the board was postponed. The next scheduled meeting is July 21.

The city of Roseville has modified its tree fees after receiving complaints over high penalties instituted for inability to replant the required number of trees. Under the new ordinance, the penalty for unplanted trees was capped at 10% of the assessed land value of the development site, except for single-family lots, which is capped at 5% of the assessed land value. Previously, the cap was 10% of the fair market value of the land for all property classifications. These tree ordinances have begun to draw criticism in recent years. Last year, the Senate Select Committee on Homeownership, Affordability and Availability heard testimony from one developer who said that all too often, these requirements add thousands of dollars to the price of every new home. Many tree ordinances require a 1:1 replacement in caliper inches of the trees removed. As saplings are much smaller than full-grown

trees, the net result of these polices can often be a requirement to plant more trees than possible on a lot. If unable to achieve this level of planting, homebuyers instead are required to make in-lieu payments of cash, leaving homebuyers with stiff financial penalties. These fees, which are added to the final lot prices, are to be used to plant trees elsewhere in the city. One example, cited by the Star Tribune, said that a builder removing 17 trees on a 2/3-acre lot in Roseville would have been required to replant nearly 50 trees, which was not feasible for the site. In lieu of the trees that could not be replanted, the homeowner would be required to pay $17,000 in penalty fees. “Developers and builders want to retain older trees and do so whenever they can,” said Nick Erickson, director of research and regulatory affairs for Housing First Minnesota. “Trees help make lots and communities more attractive.”

There is no target date yet for adoption of the new plumbing code. Education, certification and licensure updates On May 14, the Minnesota Department of Labor and Industry said that it was unable to resume scheduling license exams due to COVID-19 and will resume exams once the agency can ensure health and safety in the process. DLI is making preparations for rapid exam offerings as soon as it has been granted permission to safely begin testing again. Deadlines have been extended 90 days for licenses that expire in March, April, May and June 2020. DLI license renewals must still be submitted prior to the current expiration date. Late fees will apply to renewals submitted after the expiration date. Similarly, the Minnesota Department of Health has granted an extension to complete the required and approved refresher course to become recertified or relicensed in Minnesota for its lead and asbestos programs.

All updates and information related to COVID-19 were current at the time of publishing. As this is a fluid situation, some information may have changed.

Excelsior considers state’s most stringent design requirements

Proposed “Good Neighborhood Guidelines” are under discussion in Excelsior, Minn.

The city of Excelsior on Lake Minnetonka is looking to enact the most stringent design requirements in the state. Earlier this year, the Planning Commission and the City Council discussed the proposed “Good Neighbor Guidelines.” Among the items being considered are limitations on a home’s size based on lot size and standards to ensure the homes fit in with nearby properties. Also on the table is a review board that could approve or reject designs. This measure has less support than the increased standards as this process has the potential to become subjective. The Good Neighbor Guidelines move isn’t the first time the city has

looked to add restrictions on new home construction or renovations. In 2018, Excelsior placed a moratorium on teardowns. When the moratorium was lifted, the city had added more limitations on building setbacks and heights. Prices for smaller homes in Excelsior are based predominantly on the value of the land, and housing experts say that restrictions could have an adverse effect on property values. “We’ve seen this before with moratoriums and limits on teardowns,” said David Siegel, executive director of Housing First Minnesota. “Depending on the direction taken by the city, residents looking

to sell may find themselves feeling shortchanged.” Design requirements enacted under zoning authority gained attention at the State Capitol this year as legislators looked to lower the cost of housing in the state. Bipartisan bills were introduced in both chambers earlier during the legislative session. A measure banning these requirements was passed by the Minnesota State Senate as part of a comprehensive housing policy and bonding bill on the final day of the 2020 legislative session, but the House of Representatives did not take up the measure before the end of session.

Citing crime and potential disrepair, Maple Grove enacts one-year multifamily construction ban Housing industry group issues call for apology The city of Maple Grove enacted a one-year interim ordinance on the construction of new apartment and condo buildings effective May 4. This moratorium does not affect the construction of single-family homes, two-family homes or townhomes. The moratorium was enacted over concerns about the number of new multifamily units being added to the city. The city will use this one-year halt to multifamily development to study if there is a saturation of multifamily units in the northwest metro, if the city infrastructure can handle more multifamily dwellings, and

if an overabundance of multifamily units will lead to potential property maintenance and crime issues in the future. At least one housing group took issue with the language used by the city, stating tying apartment dwellers to crime perpetuates negative stereotypes. “We were astonished to see the city had the audacity to tie those who live in apartments to being criminals,” said David Siegel, executive director of Housing First Minnesota, which sent a letter demanding the city apologize to its residents

and apartment owners. “Sadly, these racial tropes are all too common with land use applications, mostly limited to verbal comments. To see the city put this statement in writing is quite shocking.” The city of Maple Grove responded to Housing First Minnesota saying it would “be happy to hear and consider any constructive input about its planning and zoning processes, and will continue to do so for the duration of Ordinance No. 2006 and after its expiration.” Maple Grove’s one-year multifamily construction ban went into effect May 4.

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HOUSING INDUSTRY NEWS

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REGULATORY AFFAIRS

Safety signage and a handwashing station at a Lennar model home.

Keeping workers and customers safe and healthy Housing First Minnesota provides answers to these common COVID-19 safety questions for residential construction and remodeling. Q. What are the most important precautions to put into place to protect employees and trade partners?

A. First and foremost, any employee, subcontractor, or trade partner that is feeling ill or exhibiting signs or symptoms of COVID-19 must stay home. Properly wearing and using personal protective equipment (PPE) is paramount. Everyone on the job site should wash hands frequently or use a hand sanitizer that is at least 60% alcohol. Without impeding worker safety, social distancing should be practiced, and workers should maintain 6 feet of separation. When possible, each home should have a limit of one trade at one time.

Q. What is the best way to communicate safety measures to employees and trade partners?

A. Clear and open communication with anyone coming to a job site is key. Set clear expectations and inform all employees, trade partners and subcontractors to ensure everyone is informed. Display posters of all safety measures and expectations throughout the job site to remind everyone of safety measures.

Q. What can be done about limited available tools on a job site?

A. Clean and frequently disinfect any shared tools, and ensure those using any of these tools are using proper PPE and following all safety and prevention measures.

Q. As model homes and sales centers reopen and open houses resume, what steps should be taken to ensure customers are protected? A. Limit access to model homes and sales centers to 10 people at one time. Reduce contact with shared surfaces and frequently clean surfaces that staff and customers do use. Instruct different groups touring a model home or sales center to practice social distancing. Signage and clear communication can help ensure customer and staff safety in this instance as well.

Q. What can we do about the shortage of N-95 masks?

A. With access to N-95 masks limited, alternative practices may need to be implemented to control or reduce dust, such as a wet method or use of a portable local exhaust system.

Find additional COVID-19 housing industry resources, including a safety webinar, at HousingFirstMN.org.

HOUSING INDUSTRY NEWS

CONTINUED FROM PAGE 1

Land development goes digital development applications and the effect that would have on land prices. Without new applications coming online, builders and developers were concerned about a serious lot shortage in the coming years. This shortage would have increased the value of the reduced number of lots. This statewide cessation in processes development applications did not materialize, quickly transitioning to online platforms within weeks of COVID-19 hitting Minnesota. “Several growing cities quickly transitioned to virtual meetings, and that was a welcome sign to the housing industry,” said Nick Erickson, director of research and regulatory affairs for Housing First Minnesota. “Without this quick response, we would have seen significant disruptions to the land market in 2021 and 2022.” The brief interlude in applications didn’t just give the cities time to reconfigure their processes, the pause also provided developers a bit of time to assess market conditions. Minnesota currently ranks among the bottom in the United States in terms of housing inventory and it became clear to builders

that demand for new housing was strong, and the need for new lots would continue. Digital applications Development applications have become increasingly digital as community development staff have transitioned to a work-from-home environment, as have developers. Counter visits are impossible with city halls shuttered. While the move away from hard copy applications has increased over the past few years, COVID-19 has made digital applications a necessity. “Digital submissions are a benefit,” said Steve Behnke of Donnay Homes. Paul Robinson, a developer for BANCOR with projects in Minnetonka and Cottage Grove, says relationships with staff and city councils have helped throughout this process. “[Staff and council members] have been very responsive and at least for us it has been working to keep things going,” said Robinson. “We have relationships in both cities. I think this could be harder if we were meeting the players for the first time.”

Virtual meetings, real development Since mid-March, city council meetings and planning commission meetings have gone virtual in many fast-growing communities. Lakeville, the state’s top city for new, single-family homes, moved quickly in March to shift to virtual meetings. “A lot of credit goes to our staff,” said Luke Hellier, city council member for the city of Lakeville. “Overnight we changed the way we do business to ensure that building and development could continue. We knew that keeping this activity going would be crucial to Lakeville rebounding after this crisis passes.”

Moving to a digital platform for meetings is not without its challenges. A critical component to any development application is hearing from the public, something that is a bit more complex when there is no in-person meeting. Some cities are allowing citizens to submit comments during an extended timeframe. Some cities, like Lakeville, allow the public to comment through the virtual meeting plat. Whatever the platform or process, the public comment period is critical for openness and transparency. The ability to innovate and adapt

on behalf of local governments enables developments and new developments to proceed. “We cannot add new homes without lots on which they can be built,” said Erickson. “A stable supply of new lots has given the industry one less thing to worry about and one less hurdle to overcome during this unprecedented time. Quickly taking action stopped the land market from collapsing.” Several cities shifting to virtual meetings are already moving to reinstate in-person meetings, but allowing virtual participation for now, including Lakeville and Woodbury.

TIPS

“Overnight we changed the way we do business to ensure that building and development could continue. We knew that keeping this activity going would be crucial to Lakeville rebounding after this crisis passes.” Luke Hellier

CITY COUNCIL MEMBER, CITY OF LAKEVILLE

Tips for virtual local government meetings

Find a quiet room with a stable internet connection.

Keep your audio muted and video off until called upon.

Dress as you would for an inperson meeting.

Be mindful of your background.

Anticipate public comments and address concerns head-on.

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HOUSING ON THE HILL

Legislative session 2020: Incremental housing progress, no final action The 2020 Minnesota legislative session began with the great housing debate. The early weeks included introductions of dozens of bipartisan housing policy bills and featured a press conference announcing a series of proposals aimed at “Legalizing the American Dream” of homeownership. Legislative committees heard these proposals and other housing-related bills throughout the key early session period from late

February through mid-March. Bills related to zoning reform, creating efficiencies and increased transparency within the housing regulatory structure were all poised to advance further. Then, COVID-19 froze the legislature in its tracks. Nearly all unrelated legislation was put on the sidelines. But, as the legislature turned the final corner, housing once again emerged as a key issue. From the many policy initiatives, such as

zoning to emergency rental assistance to bonding for the Minnesota Housing Finance Agency, the discussions were active in both bodies and all four caucuses. As the clock wound down on May 17, the Senate debated a bill that included a number of transformative housing provisions, including: • The Department of Labor and Industry could not adopt a new building code until 2026 unless approved by law

• New provisions to the energy code could not be adopted unless they have proven to have a payoff within 5 years • Single-family homes would be excluded from the mandated window fall protection • Changing building permit reporting from municipalities • Encouraging municipal plans to allow for more density • Preventing cities from conditioning approval of a project on the use of specific materials, design, amenities, or other aesthetic conditions • Establishing a time limit for issuance of a building permit The bill passed on a bipartisan vote of 35-32. The House of Representatives had previously approved a housing bill with bonding dollars and emergency rental assistance, but

no policy provisions. The House of Representatives declined to take up the Senate’s housing bill, and the bill died as the session adjourned. Gov. Walz called the legislature back in mid-June for a special session that lasted a week and focused primarily on criminal justice reform and funding for local governments and construction projects. Similar to the end of the regular session, no major reforms were passed, and the legislature adjourned while locked in a stalemate. Housing and the roadblocks to affordable, market-rate product received much attention this session and the industry did make incremental progress elevating these key issues. The stage is set for substantial reforms to address the growing affordability and inventory crisis in subsequent sessions.

Housing First Minnesota honors legislators Housing First Minnesota honors 30 state legislators with Housing Leadership Award 2020 HOUSING LEADERSHIP AWARD RECIPIENTS

Representative Kurt Daudt

Representative Steve Elkins

Representative Peter Fischer

Representative Pat Garofalo

Representative Barb Haley

Housing First Minnesota, the state’s leading voice for housing, has named 30 Minnesota legislators as recipients of the 2020 Housing Leadership Award. This honor recognizes legislators who worked to promote housing affordability and homeownership during the 2020 legislative session and 2020 special session. “At a time when the housing affordability crisis continues to grow, these leaders played key roles in advancing housing affordability and homeownership opportunities for all Minnesotans,” said David Siegel, executive director of Housing First Minnesota. “These legislators understand that we need to bring all stakeholders around the table to address the complex issues that are driving up the cost of housing.” Recipients of the Housing Leadership Award received a certificate and letter of appreciation. Minnesota House of Representatives

Representative Jerry Hertaus

Representative Mike Howard

Representative Tony Jurgens

Representative Jon Koznick

Representative Shane Mekeland

Representative Joe McDonald

Representative Jim Nash

Representative Zack Stephenson

Representative Tama Theis

Representative Bob Vogel

Representative Ryan Winkler

Representative Dan Wolgamott

Senator Rich Draheim

Senator Kari Dziedzic

Senator Paul Gazelka

• • • • • • • • • • • • • • • • •

Representative Kurt Daudt (Crown) Representative Steve Elkins (Bloomington) Representative Peter Fischer (Maplewood) Representative Pat Garofalo (Farmington) Representative Barb Haley (Red Wing) Representative Jerry Hertaus (Greenfield) Representative Mike Howard (Richfield) Representative Tony Jurgens (Cottage Grove) Representative Jon Koznick (Lakeville) Representative Shane Mekeland (Clear Lake) Representative Joe McDonald (Delano) Representative Jim Nash (Waconia) Representative Zach Stephenson (Coon Rapids) Representative Tama Theis (St. Cloud) Representative Bob Vogel (Elko New Market) Representative Ryan Winkler (Golden Valley) Representative Dan Wolgamott (St. Cloud)

Minnesota Senate

Senator Mike Goggin

Senator Dan Hall

Senator John Hoffman

Senator Karin Housley

Senator Jeff Howe

Senator Mark Koran

Senator Matt Little

Senator David Tomassoni

Senator Bill Weber

Senator Torrey Westrom

HOUSING INDUSTRY NEWS

• • • • • • • • • • • • •

Senator Rich Draheim (Madison Lake) Senator Kari Dziedzic (Minneapolis) Senator Paul Gazelka (Nisswa) Senator Mike Goggin (Red Wing) Senator Dan Hall (Burnsville) Senator John Hoffman (Champlin) Senator Karin Housley (St. Mary’s Point) Senator Jeff Howe (Rockville) Senator Mark Koran (North Branch) Senator Matt Little (Lakeville) Senator David Tomassoni (Chisholm) Senator Bill Weber (Luverne) Senator Torrey Westrom (Elbow Lake) SIGN UP TO BE A PART OF THE HOUSING MOVEMENT • HOUSINGINDUSTRYNEWS.ORG

State budget quickly turns from surplus to deficit The Department of Minnesota Management and Budget (MMB) released a full forecast in February projecting a $1.5 billion budget surplus. In the weeks following, legislators were discussing how best to utilize those extra dollars from possible tax cuts to program increases. Then the COVID-19 pandemic hit and the economic shutdowns that ensued guaranteed that fewer dollars would be collected from

income tax, sales taxes and more. Given the dramatic shift in the economy, Gov.Walz asked MMB to create a revised projection in May. In its forecast, MMB showed that the state now faces a nearly $2.43 billion deficit for the remainder of the current biennium, which ends June 30, 2021. “We’re in a difficult time, but we will get through this together,” said MMB Commissioner Myron Frans.

“Minnesota has managed our state budget well. We have made smart decisions in preparations for an economic downtown.” Fortunately, Minnesota has been adding dollars to a rainy day fund, the state’s budget reserve, for many years. This account has nearly $2.4 billion dollars. The state of Minnesota is constitutionally required to balance the budget and cannot run a deficit.

Stay up to date with the latest COVID-19 housing industry updates Blog.HousingFirstMN.org

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Southern Minnesota

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Central & Northern Minnesota

Wisconsin, North & South Dakota

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Plymouth, MN | 952-915-6080

Brainerd, MN | 701-404-0977

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HOUSING INDUSTRY NEWS

| 9

MARKET REPORT

Housing market report

State of Minnesota

Moorhead

Minnesota housing market responds to virus

3,475

Duluth

Year-to-Date Single-Family Construction Through April 2020

SOURCE: CITY OF MOORHEAD

SOURCE: U.S. CENSUS

St. Cloud

Minnesota homebuilding was poised to have a record year. However, as the COVID-19 pandemic rippled across the industry, many worried a slowdown was in store. According to the U.S. Census, the statewide number for single-family permits thus far in 2020 amounted to 3,475 new single-family units. This is a 5% increase from this time last year. Statewide and metro home prices continue to increase. Home prices in the Twin Cities and Minnesota have increased 8.9% and 7.3%, respectively. Home inventory remains tight for first-time buyers and downsizers.

through Jan. 20, 2020

Twin Cities

SOURCE: CITY OF ST. CLOUD

2,344

St. Cloud-area data not reported to U.S. Census

Mankato

SOURCE: U.S. CENSUS

Rochester

SOURCE: U.S. CENSUS

SOURCE: U.S. CENSUS. HOUSING FIRST MINNESOTA COLLECTED THE ABOVE PERMIT INFORMATION FROM AVAILABLE PUBLIC RESOURCES.

APR. 2020

+8.9%

APR. 2020

$305,000

$235,000

APR. 2019

+7.3%

$280,000

Y-Y Change

$219,000

Y-Y Change

2019

Minnesota Construction Employment Past 5 Months SOURCE: DEED

13,424

DEC. 2019

JAN. 2020

12,707

FEB. 2020

12,548

MAR. 2020

12,641

APR. 2020

12,452

2019

$280,000

$219,000

Twin Cities Median Sales Price

Minnesota Median Sales Price

SOURCE: MINNEAPOLIS REALTORS

SOURCE: MINNESOTA REALTORS

Twin Cities Construction Employment Past 5 Months United States

SOURCE: DEED

West - 50

South - 45

DEC. 2019

Midwest - 47

Northeast - 58

Regional Remodeling Market Indices, 2020 Q1 SOURCE: NAHB

The Overall Remodeling Market Index is calculated by averaging the Current Marketing Index and the Future Market Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as higher than the previous quarter. Results are seasonally adjusted.

10 |

HOUSING INDUSTRY NEWS

9,414

JAN. 2020

9,100

FEB. 2020

9,049

MAR. 2020

9,013

APR. 2020

9,074

Employment Update The employment data from April illustrates the economic effects throughout Minnesota stemming from the COVID-19 pandemic. The state lost 334,700 jobs on a seasonally adjusted basis since April 2019 according to the Minnesota Department of Employment and Economic Development (DEED). The state’s seasonally adjusted unemployment rate increased significantly to 8.1%. Construction, as an industry, recorded a 10.6% employment loss since April 2019. This marks a job loss of 12,464 year-over-year.

Will COVID-19 shift homebuying habits? Where people chose to live has always been tightly linked to where people chose to work. Most jobs are closely tied to major metropolitan areas, and many of those areas have been experiencing an increased shortage in affordable housing for years, leaving homeowners to choose between affordable housing with a long commute or overpaying for the necessity of housing but with a better work-life balance. But what if employees could work from anywhere? Within a few weeks, COVID-19 changed the way Americans work. Many companies went from requiring their employees to report to the office five days a week to all of their employees working exclusively from home. According to a recent Zillow survey conducted by The Harris Poll, 56% of Americans currently have the ability to work from home and a vast majority have expressed interest in continuing to maintain that to some extent after the pandemic is over. “Among Americans working from home because of the pandemic, 75% said they would prefer to continue to do so at least half the time, if given the option, after the pandemic subsides,” according to the survey. Two-thirds of the Zillow survey respondents said they would be at least somewhat likely to consider moving if they had the flexibility to work from home as often as they want.

Employees have demonstrated that they can be just as productive working from home as well as receive the added benefits of more time with their families, spending less money and no commute time. How will this affect the housing market? “If we do see the societal shift making working from home not only accepted but the new norm, the expectation is that may also effect housing, and where people work will have less of an effect on where people live,” said David Siegel, executive director of Housing First Minnesota. If it’s feasible for employees to work from wherever they want, it’s possible buyers may shift away from those more expensive major metropolitan areas and the market will see increased demand in the suburbs, exurbs or even rural areas where their money for a new home will stretch further. The implications of even a small shift in buying habits could be substantial. “For those who have jobs offering location flexibility and a major reduction in commute time, this could be a game-changer,” said James Vagle, vice president of advocacy for Housing First Minnesota. “From a housing location, size, cost and lifestyle standpoint, the options could expand exponentially.”

“For those who have jobs offering location flexibility and a major reduction in commute time, this could be a game-changer. From a housing location, size, cost and lifestyle standpoint, the options could expand exponentially.” James Vagle, VICE PRESIDENT OF ADVOCACY, HOUSING FIRST MINNESOTA

Lampert Lumber - Housing Industry News - April 2020_outlined.indd 1

ACCORDING TO A RECENT ZILLOW SURVEY CONDUCTED BY THE HARRIS POLL

56%

OF AMERICANS CURRENTLY HAVE THE ABILITY TO WORK FROM HOME.

75%

SAID THEY WOULD PREFER TO CONTINUE TO DO SO AT LEAST HALF THE TIME, IF GIVEN THE OPTION, AFTER THE PANDEMIC SUBSIDES.

2/3

RESPONDENTS SAID THEY WOULD BE AT LEAST SOMEWHAT LIKELY TO CONSIDER MOVING IF THEY HAD THE FLEXIBILITY TO WORK FROM HOME AS OFTEN AS THEY WANT.

3/25/2020 10:08:50 AM

HOUSING INDUSTRY NEWS

| 11

MARKET REPORT CONTINUED FROM PAGE 1

Housing expected to lead in economic recovery

New homes under construction in Apple Valley, Minn.

Minnesota homebuilding slows in May The first months of spring brought encouraging single-family permit numbers in the Twin Cities. April saw double-digit gains with a 16% increase over April 2019. The 474 permits pulled by builders was the best April on record since 2006. However, builders were cautiously optimistic due to the ongoing uncertainty with the COVID-19 pandemic. As the economic effects rippled among consumers and businesses alike, many worried a slowdown was to come. This reality came in May when

single-family homebuilding slowed considerably. Single-family permits decreased 25% year-overyear since May 2019. Builders remain optimistic going into the summer and fall due to continuing strong interest from buyers and low interest rates. There has been a more consistent slowdown in the multifamily sector. Multifamily saw a considerable fall in activity in both April and May. In April, activity was down 50% compared to April 2019. Additionally, May multifamily projects were down 72% year-over-year.

Project delays or cancellations have sprung up across the multifamily industry. According to a survey done by the Federal Reserve Bank of Minneapolis, “56% of delays were attributed to the general concern of the owner regarding viability.” As construction begins to enter what would be the busy time of year, many builders across the industry are hopeful that things will begin to steady in the coming months as economic lockdowns are slowly lifted.

The recovery should begin in July, but it may take us years to fully recover. The declines were precipitous in housing. It will be a little longer for housing than for automobiles, but that’s because the previous December through February was so strong for homebuilding. Housing heads into the recovery with low interest rates, huge pent-up demand and inventory being low, all of which have caused a tremendous demand for housing. JV: Lower price points are moving—high-mid and high less so. What does this tell us? EE: Every market in the U.S. is unique, but every market has one segment doing pretty well. Minnesota needs entry-level and move-up housing, but builders struggle to deliver. Inventory is the real story here. JV: Our economy is premised on people consuming goods and services—is there any fundamental change here? EE: The relationship with our workplace has clearly changed. This is going to change the way we work. If I was the owner of commercial real estate, I would be very concerned. A CEO of an investment house recently commented that the work from home experiment was one that we didn’t have the gumption to try, for fear that it would fail. Well, the experiment has happened, and it works. I’m not sure it changes much of the economics of consumption beyond that. The change there is the shift to online purchasing for things like groceries and household items, and this recession has sped that transition to online. JV: Can you comment on your general view of some of the major industry sectors/institutions based upon their prospects for recovery? EE: Housing: I’m bullish on housing, especially new housing. New housing is most desirable right now. Space to do homework, work

from home and put in workout facilities. Tech: Tech is doing so well; it’s driving the stock market. Netflix, Amazon, Facebook, Google— they are winning in this era. These are resilient, big companies with large cash reserves. High tech is unscathed. Higher Ed: They need students to come back and they are spending a lot of time thinking about how to do that. Focus will be on bringing freshmen back for in-person classes. Staggered classes, alternate schedules and outdoors. I’m reasonably bullish on higher education. Hospitality: This sector is going to continue to struggle. Local Governments: State and local governments need help from Congress. They’re taking in less revenue from things like sales taxes and hospitality taxes, while simultaneously they are being asked to provide more services. JV: What will we be talking about in October? EE: Decline in the unemployment rate month-to-month. More importantly, I will be closely watching continuing claims for unemployment. This is the number we should all be watching. This will tell us how fast our economy is recovering. JV: What will be talking about a year from now? EE: It’s still going to be the labor market. We aren’t going to get corporate investment that soon. Government spending will be high and then we hope it comes down. But in the labor market, unemployment and labor market participation, these are the things to watch. If the labor market doesn’t improve, we’re in trouble. I’ll also be watching the development of a vaccine closely. If we get a vaccine that is easily and quickly accessible, that’s a game-changer. If it’s a longer, multiyear vaccine, we are going to have to learn to live with this.

Twin Cities Single-Family Permits SOURCE: KEYSTONE REPORT

Elliot Eisenberg, Ph.D. Elliot Eisenberg, Ph.D. is an internationally acclaimed economist and public speaker specializing in making economics fun, relevant and educational.

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HOUSING INDUSTRY NEWS

| 13

MARKET REPORT

REALTORS® take: Minnesota market sees pent-up demand As the COVID-19 pandemic rippled across all economic sectors in Minnesota, many worried the great year Minnesota’s housing market was having would soon come to a halt. After a considerable slowdown at the onset of state-wide economic shutdowns, the market began to show some signs of positivity later in the spring. According to recent data from the Minneapolis Area Association of REALTORS® and the Saint Paul Area Association of REALTORS®, activity in the housing market was mixed in April. While the number of showings across the metro met a record high for the year, overall buyer and seller activity was down. Home showings saw a sharp decline at the onset of COVID-19. Showings were not recommended at the onset of the pandemic to adhere to guidelines to slow the spread of the virus. However, motivated buyers remained in the race and home prices increased, surprisingly. “Showings are an excellent leading indicator of demand, as gains in showing activity typically correlate to gains in signed purchase agreements in the future,” said David Arbit, director of research and economics with the Minneapolis Area Association of REALTORS®. “Residential showing activity in the metro began declining mid-March and started to increase again in early April. By late May, showing activity had reached new highs for the year and is back on track with 2019 levels.” The median sale price of a home for April was $305,000, an increase of 8.9%. This is the first time that the median home sale price in the metro surpassed $300,000. For the month of April, 5,967 properties were listed for sale. This is a 22.9% decline in listings from April 2019. Changes in listing activity varied by price. More expensive homes ($1M+) and least expensive homes (<$120K) saw one of the largest declines in listings with a 44.9% and 45.3% drop, respectfully. However, homes

priced in the $250K- $500K price range saw the smallest decline of all price ranges with a 7.8% decline in listings. “We’re still seeing buyer activity outpace new listing activity, compounding our ongoing supply shortage. Record-low mortgage rates combined with a less competitive and less congested marketplace are motivating for buyers,” Arbit explained. Looking at the buyers in each of these brackets and how they may have been affected by the economic downturn may explain the activity and decline in sales and listings. For example, buyers and sellers in the under-$250,000 price brackets are more likely to be impacted by job losses in retail, hospitality, leisure or other hard-hit sectors. Consumers in the mid-market price range are often salaried professionals who can work remotely. Lastly, luxury buyers may be more impacted by swings in the stock and energy markets. Based on data from Minneapolis Area Association of REALTORS®, declines in new listings have also varied based on construction type. In May, new listings of previously owned homes were down 26.2% from last May. New construction listings were only down 0.5% over the same period. Signed purchase agreements for existing homes declined 14.3% for the month while new home listings were flat compared to last May.

STAY INFORMED WITH THE LATEST HOUSING NEWS

David Arbit David Arbit is the director of research and economics at the Minneapolis Area Association of REALTORS® with a background in housing research and market analysis.

HousingFirstMinnesota

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HOUSING INDUSTRY NEWS

Mortgage rates continue to decline in response to COVID-19 The economic ripple effects of COVID-19 have resulted in the development of policies at the state and federal level to mitigate the overall economic impacts. The Federal Reserve stepped in early to back mortgage security by implementing a $1.25 trillion program to foster economic stability in the nation’s housing market and lower mortgage interest rates. Freddie Mac recorded the lowest rate in 50 years on 30-year fixedrate mortgages at 3.15%. Additionally, 15-year fixed-rate mortgage rates averaged at 2.62%. Mortgage applications nationwide continue to increase as many are eager and ready

to lock in record-low rates. “These unprecedented rates have certainly made an impact as purchase demand rebounded from a 35% year-over-year decline in mid-April to an 8% increase . . . a remarkable turnaround given the sharp contraction in economic activity,” said Sam Khater, chief economist at Freddie Mac. Freddie Mac, while currently optimistic, notes that the housing market is a very fluid economic sector. While no one can know the long-term economic implications of COVID-19, lower interest rates can keep the housing market on a steady path. SOURCE: FREDDIE MAC PRIMARY MORTGAGE MARKET SURVEY®

Employment data reflects economic situation since coronavirus

COMMITTED TO BUILDING GREEN. Our industry-leading community of Designated Green Path Builders are

The coronavirus pandemic caused a myriad of economic issues including the mass layoffs of millions of workers nationwide. By April, the U.S. had lost over 19.8 million jobs compared to April of last year. Minnesota had an 8.1% unemployment in April with a loss of 334,700 jobs year-over-year. There were multiple industries that experienced greater losses due to state and local mandates requiring the closures of certain businesses. For example, the hospitality sector in Minnesota reported a 55.5% job loss for the month of April. The construction industry statewide experienced a 10.6% employment loss. With a high unemployment rate and an overall soured economy, many expected a long summer

ahead. However, the data from the early summer months has been encouraging, so far. The Bureau of Labor Statistics recently released job numbers for the month of May which indicated that the unemployment rate had dropped. The U.S. unemployment rate in May was 13.3%, compared to the April rate of 14.7%. Construction saw a significant jump in employment numbers in May with 464,000 jobs added across the U.S. It is the hope that as state and local metro areas continue to lift restrictions and reopen their economies, employees will continue to be able to the workforce.

committed to helping homeowners understand energy efficiency of

Civilian unemployment rate, seasonally adjusted

their new home.

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Note: Shaded area represents recession, as determined by the national bureau of Economic Research. Persons whose ethnicity is identified as Hispanic or Latino may be of any race. SOURCE: U.S. BUREAU OF LABOR STATISTICS

HOUSING INDUSTRY NEWS

| 15

INDUSTRY IN ACTION

2020 Scholarship Recipients EMMETT BARTYZAL

Minnesota State University - Mankato, Construction Management

WILLARD BURGESS

Alexandria Technical & Community College, Residential Carpentry

DALTON BURNS

Dakota County Technical College, Construction Management

JACK FLAHERTY

Scholarships awarded to 16 students pursuing careers in the trades This spring, Housing First Minnesota and its Foundation awarded $16,000 in scholarships to 16 students pursuing the trades. The recipients are attending 12 different educational institutions and were selected from among a record 37 applications. The scholarships were awarded by the association’s Education and Workforce Development Committee with funds provided by the Housing First Minnesota Foundation. This marks the sixth year presenting scholarships to students with more than $100,000 awarded since 2014. “I absolutely fell in love with building things . . . and the pure joy of seeing the end results,” said scholarship recipient Delanie LaFave, who is attending Alexandria Technical & Community College for carpentry. In her submitted essay, LaFave shares her goal to work for a homebuilder after obtaining her degree, with an ultimate goal of owning her own homebuilding company. Another recipient, Dalton Burns, who will be attending Dakota County Technical College, said he is entering the trades because he realizes what he wants to be in life. “The diligence and pleasure I can gain from working with my mind and hands will always be the greatest thing I could do for myself,” Burns said. Burns also hopes to one day own a construction business. Some of these scholarship recipients went back to school for additional training after discovering their initial careers weren’t inspiring. One example is Olivia Svensson, who is taking carpentry at Hennepin Technical College. Olivia never thought 10 years ago when she graduated with a bachelor’s degree in software engineering that she would return to school to learn carpentry. After returning from a weeklong timber frame building

16 |

HOUSING INDUSTRY NEWS

class, she immediately applied to the carpentry program. “I have never been ‘handy’ . . . but I learned [from being in class] that this is what I was meant to do—create,” said Svensson. “And I love every second of it.” While some of the recipients have a family history with construction, others do not. Ryan Gray, attending Lake Superior College, plans to study commercial and residential wiring. Ryan developed an interest in the trades by working part-time for a local homebuilding contractor. “I will be the first in my family to pursue the trades . . . and plan to work towards becoming a master electrician,” said Gray. Many recipients shared how being involved in construction helps to make society better. Cindy Wuddah, studying construction project management at Minnesota State University - Mankato, gained her interest in construction after joining her dad at a volunteer project with Habitat for Humanity. “I saw the kind of change I could do with more construction experience, driving me to pursue a career in construction with plans to help even more people,” she said. She hopes with her education, she will be able to visit her native country of Ghana and help construct affordable residential projects to alleviate the overwhelming homelessness there. And for Nathan Galles, studying carpentry at Alexandria Technical and Community College, creating homes is vitally important. A two-time State Fair Blue Ribbon winner in woodworking, Galles said that “a ‘home’ is where people make and accomplish their dreams. I want to help people accomplish them by building homes . . . where they can have a place to start their dreams.”

University of Wisconsin-Stout, Construction Management

NATHAN GALLES

Alexandria Technical & Community College, General Carpentry

RYAN GRAY

Lake Superior College, Commercial & Residential Wiring

TANNER KLIMEK

Minnesota State and Community Technical College, Electrical Technology

DELANIE LAFAVE

Alexandria Technical & Community College, Carpentry

NICOLAS LANHAM

St. Cloud Technical College, Electrical Construction and Maintenance

MASON MOCK

Northland Community and Technical College, HVAC/Plumbing

ETHAN SCHARZROCK Ridgewater College, Carpentry Framing

JOSHUA SCHERT

Anoka Technical College, Construction Electrician

NOAH SCHLESKE

North Dakota State University, Construction Management

OLIVIA SVENSSON

Hennepin Technical College, Carpentry

CINDY WUDDAH

Minnesota State University – Mankato, Construction Project Management

JACOB ZANDER

Anoka Technical College

Parade of Homes pivots in response to pandemic Biannual tour of new homes launched virtually before reopening for in-person visits The Parade of Homes, Housing First Minnesota’s biannual tour of new homes, relaunched virtually on May 15 before reopening in-person visits for three weekends May 28. The original tour was put on pause in March due to the pandemic after two weekends of record traffic. The virtual preview included hundreds of homes from the Spring Parade of Homes available with expanded home profiles showcasing video walkthroughs, 3D tours and photo galleries. As homebuyers explored the homes, they were able to schedule virtual tours and private appointments with the builders. After two weeks of virtual tours, model homes safely reopened with access limited to 10 people at a time and additional safety precautions. More than 300 new homes across the Twin Cities metro were open during the relaunched tour from May 28 – June 14.

This return to the Parade of Homes came at an important time for homebuyers in the market. “With record low interest rates and the short supply of housing inventory, builders are still seeing strong demand from homebuyers across the metro,” said David Siegel, executive director of Housing First Minnesota. Shifting homebuyer priorities Throughout Minnesota’s stay-athome order, buyers have been thinking about the concept of home in a new light. According to a recent nationwide survey of brokers from the National Association of Realtors, 13% reported buyers have changed at least one home feature important to them due to COVID-19. “With all the extra time Minnesotans have been spending in their homes, many have new wants and

needs for their next home,” said Dawnita Parmely, vice president of marketing and creative of Housing First Minnesota. “Home offices, space to workout, outdoor living— the list of essential features is shifting for buyers, and new construction answers that need for spaces tailored to these priorities.” As the Parade of Homes wrapped up its relaunched event, preparations are underway to launch the fall tour opening Sept. 12. “All the virtual tour enhancements on the website will be invaluable for future tours,” added Parmely. “Virtual tours won’t replace the importance of visiting a home in person, but the changes allow homebuyers to connect with the builders in a new way and streamline the process of narrowing down what type of home will work for their lifestyle.”

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Parade of Homes holds its first virtual event.

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| 17

INDUSTRY GIVES BACK

Groundbreaking held for housing project for veteran families The Housing First Minnesota Foundation and build partner Lennar broke ground on transitional housing for homeless veterans and their families in North St. Paul on May 22. The home is being built in partnership with the Minnesota Assistance Council for Veterans (MACV) on a lot conveyed to the Foundation for charitable purposes by the city of North St. Paul. MACV will manage the four-bedroom residence, which will function as transitional housing for veterans and their families who are experiencing homelessness. The land for the project sits diagonal to North St. Paul’s Veterans Memorial Park. When construction is complete, two of the four corners that intersect at 12th Avenue and Margaret Street will pay homage to

Groundbreaking event held in North St. Paul on May 22.

veterans who served our country. Representatives of the Foundation, Lennar, the city of North St. Paul and MACV kicked off the build project that will provide much-needed housing for Minnesota veteran families. “We are very thankful that the relationship is there, and whoever lives in the house, who will be a veteran, can look across the street and see Veterans Park every day,” said North St. Paul Mayor Terry Furlong. Currently, there are 246 veterans on the state’s Homeless Veterans registry, with 175 located in Ramsey and Hennepin counties. Minnesota Gov. Tim Walz has made eradicating veteran homelessness in Minnesota one of his administration’s priorities.

“It is an amazing accomplishment when the housing industry, nonprofit organizations and local governments can work collaboratively to leverage our collective resources to ensure housing is available for our neighbors who are experiencing homelessness, especially during such unprecedented times,” said Donnie Brown, manager of the Housing First Minnesota Foundation. The Housing First Minnesota Foundation partners with local organizations to build new or renovate their existing transitional housing facilitates. This year, the 501c3 celebrates 25 years of building futures through housing. This is the fourth Housing for Heroes project in the metro area.

Industry member helps with Minneapolis cleanup Giving back to the community is a central theme for T. Scherber Demolition, Excavating, and Roll-Offs, so when Minneapolis businesses needed support following the protests that erupted in the wake of the murder of George Floyd, the team at T. Scherber was ready to answer the call. T. Scherber is supporting Urban Ventures, a Minneapolis nonprofit, by providing complimentary dumpsters and disposal services. Urban Ventures has become a central collection site for business owners, families, and individuals in need of assistance following the destruction in Minneapolis. The dumpsters will help the community stay ahead of the waste created by pallets and cardboard as donations are brought in.

“Now is the time for the construction community to come together and focus on restoring Minneapolis. Building structures is in our DNA—it’s what we do every day. Now we have the unique opportunity to build up people in the process,” said Missy Scherber, owner of T. Scherber Demolition, Excavating, and Roll-Offs. Missy and her team have also spent a lot of time in the affected neighborhoods, speaking to local residents and business owners to determine the best ways to support cleanup efforts. With the knowledge that many of these business owners won’t have access to insurance claims, Missy wants to connect with anyone who could utilize her background in fundraising to help pull together support from community and nonprofits.

“Now is the time for the construction community to come together and focus on restoring Minneapolis. Building structures is in our DNA—it’s what we do every day. Now we have the unique opportunity to build up people in the process.” Missy Scherber, OWNER, T. SCHERBER DEMOLITION, EXCAVATING, AND ROLL-OFFS T. Scherber Demolition, Excavating, and Roll-Offs offered complimentary dumpster and disposal services to Urban Ventures when Minneapolis businesses needed cleanup support.

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HOUSING INDUSTRY NEWS

IN THE DIRT

A quick recap of housing news and development updates

SOURCE: STAR TRIBUNE

SOURCE: OAK RIDGE HOTEL AND CONVENTION CENTER

SOURCE: DULUTH NEWS TRIBUNE

SOURCE: CANTERBURY PARK HOLDING CORP.

Affordable housing project burns in Minneapolis riots

Hundreds of units proposed in Chaska

Tiny home development approved

Row homes and townhomes planned near Canterbury Park

A six-story, 189-unit affordable housing project near the intersection of Lake Street and Minnehaha Avenue was under construction when it was destroyed during the recent unrest in Minneapolis. The complex was under development by Wellington Management and was originally scheduled to open in spring 2021.

Oakridge LLC is proposing 498 new multifamily and senior housing units in the city of Chaska. An additional 166,000 square feet of commercial and retail space is also part of the plans for the 64-acre development. The development is currently under environmental review.

A nine-home tiny home development near the University of Minnesota Duluth has received a special-use permit from the city of Duluth. In 2019, the City Council made changes to the city code to allow for this type of development. The houses, ranging from 400-600 square feet, would front the street, with 15 parking spaces, benches, a picnic area and a fire pit all tucked around the backside.

Pulte Homes of Minnesota and Lifestyle Communities, LLC are preparing to bring more than 160 units to market after purchasing approximately 14 acres from Canterbury Park Holding Corp. The project will include a combination of townhomes, row homes and cooperative-community living. Initial site work will begin later this year.

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LUXURY INTERIOR FINISHES At Schwieters Companies, we place a high value on our team's continuity and the advantage it provides to builders of luxury homes. All of our Master Carpenters and Quality Walk Supervisors have been part of our team for over 20 years. Our Millwork Shop Manager has been with us for 28 years, and our Labor Scheduler for 30 years. This continuity empowers us to serve you better.

FINISH CARPENTRY • WOOD DOORS • MILLWORK CABINETRY • HARDWARE • DESIGN STUDIO

To learn more, contact Carly Schwieters at 612.669.8844 or carly@schwieterscompanies.com

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HOUSING INDUSTRY NEWS

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HOUSING INDUSTRY NEWS

5/14/20 10:41 AM