Advocacy in Action

Growing Homeownership Opportunities

Housing in the Minneapolis-St. Paul region is currently experiencing the lowest inventory of for-sale homes in record history, making the Twin Cities the worst in the nation for regional inventory. On top of this, additional challenges remain with supply chain constraints and inflation levels not seen in nearly four decades.

The good news is that demand remains incredibly strong—Minnesotans want to own homes.

Housing First Minnesota delivered this message to the legislature as it convened for the 2022 session in late January. The reception to increasing homeownership opportunities has been remarkably strong, but how we get there is more complex. Solving this issue has been the focus of many committees and task forces at Housing First Minnesota. The consensus of this work is that there are too many roadblocks that currently limit housing supply in this market. Some of them, like supply chain issues, are outside of the legislature’s reach. But others, like restrictive zoning, housing approval by PUD loophole, and overcharging of fees—on everything from parks to trees to permits—fit squarely into the legislature’s oversight role. To that end, there is a legislative initiative winding through the process that aims to lift these roadblocks titled “Legalizing Affordable Housing Act.” The goal is to modernize how we bring housing projects online and to return a healthier balance of choices for the homeowners of our state. We’ve been pleased to see a growing coalition of supporters for this effort, this truly is a pressing issue for all of Minnesota. This legislation also helps focus the challenges our industry faces daily. While we advocate to modernize housing, we are also working daily to fend off fee increases and the emergence of new regulatory roadblocks. Success on this issue helps all in the homebuilding and remodeling industry—more homeownership opportunities means more opportunity to serve your customers and grow your businesses. Onward,

JAMES VAGLE

VICE PRESIDENT OF ADVOCACY, HOUSING FIRST MINNESOTA The institutional barriers to the construction of affordable housing which are embedded in municipal zoning ordinances are recognized as nationwide issues, however, there are peculiarities in Minnesota zoning and property tax laws that pose unique challenges. These laws have not been scrutinized by the legislature for over 25 years, and it’s time for reform.”

REP. STEVE ELKINS

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LEGISLATIVE UPDATE

Local Government Division Begins Discussion on “Legalizing Affordable Housing Act”

Following months of conversation on exclusionary housing practices in the Twin Cities, Rep. Steve Elkins (DFL, Bloomington) officially introduced a first-of-its-kind “Legalizing Affordable Housing Act,” HF3256, in February. “The institutional barriers to the construction of affordable housing which are embedded in municipal zoning ordinances are recognized as nationwide issues, however, there are peculiarities in Minnesota zoning and property tax laws that pose unique challenges,” said Elkins when describing his bill. “These laws have not been scrutinized by the legislature for over 25 years, and it’s time for reform.” Elkins went on to describe the abuses that his bill is designed to address, including zoning provisions which: • Require large minimum lot sizes which limits many home types • Require large minimum home sizes • Require every new home to have a three-car garage

• Require every new home to be faced with upgraded exteriors • Require that excessive amounts of land be set aside as open space without compensation to the property owner • Require that excessive amounts of land be that set aside for wider-thannecessary roads • Prohibit market flexibility for duplexes or granny flats • Allow NIMBYs to block the construction of multifamily housing—even new senior housing and even when the city’s own comprehensive plan allows it The extensive bill calls for many positive changes in planning and zoning at the local level, limits on aesthetic mandates, caps dedication fees, makes changes to building permit structures and reporting, adjusts the disclosure of energy code paybacks, and also authorizes impact fees and street improvement districts. For years, the Housing First Minnesota advocacy team has been working with legislators from both parties and all four caucuses to address the ever-rising costs of land and municipal fees. This bill has sparked deep discussions at the Capitol and a renewed push to address housing issues in the 2022 legislative session. The legislation had its first hearing in the Housing Local Government Division on Feb. 25 where committee members heard from nearly a dozen testifiers including Paul Heuer, the director of land planning & entitlement at Pulte Homes and a member of the Advocacy Committee, and Peter Coyle, counsel for Housing First Minnesota. “I’ve worked for both cities and homebuilders. We are seeing a lot of strong demand for first-time homebuyers, and we are having a difficult time satisfying their demands,” said Heuer citing his lengthy experience from both sides. “The decreasing affordability in the Twin Cities can be tied to accumulating regulations in the housing industry.”

Housing Day at the Capitol Finds Bipartisan Support for Housing Solutions

Housing First Minnesota once again joined forces with the Minnesota Realtors® to host the annual Housing Day at the Capitol, attended by almost 200 builders, remodelers, trade partners, and Realtors. With physical access still limited at the Capitol, members instead went to the Intercontinental Hotel in St. Paul to hear from legislative leaders from all four caucuses in a panel hosted by Blois Olson of Fluence Media.

Along with the legislative panel and overview of issues, attendees and members were encouraged to contact their legislators by email or phone to share support for housing initiatives that address affordability and availability of homes. Following the event, advocacy teams and leadership from both the Minnesota Realtors and Housing First Minnesota met at the Capitol with all four caucus leaders to share the concerns and insight from the housing industry.

Thank You for Participating Thank You for Participating

Thank you to the 227 builders who participated Thank you to the 227 builders who participated in the CenterPoint Energy High Efficiency Homes® in the CenterPoint Energy High Efficiency Homes program in conjunction with Xcel Energy. ® program in conjunction with Xcel Energy. Together, we supported the construction of 4,690 Together, we supported the construction of 4,690 energy-efficient new homes and the program energy-efficient new homes and the program collectively saved 198,719 dekatherms and about collectively saved 198,719 dekatherms and about 5.25 million kilowatts. This is the equivalent 5.25 million kilowatts. This is the equivalent of powering nearly 3,096 passenger cars for an of powering nearly 3,096 passenger cars for an entire year! entire year! For more information about this program or to For more information about this program or to become a participating builder, please contact become a participating builder, please contact Dominique Boczek at 612-253-9976 or Dominique Boczek at 612-253-9976 or Dominique.Boczek@icf.com. Dominique.Boczek@icf.com.

The Housing First Minnesota members The Housing First Minnesota members honored as top performing 2021 program honored as top performing 2021 program participants include:

participants include: • Stinson Builders • Stinson Builders• Hedberg Homes • • Hedberg Homes Lennar • Lennar

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©2022 CenterPoint Energy 220218-01

©2022 CenterPoint Energy 220218-01