Homes for All!
The MHP Bulletin
August 4, 2006
Volume 5, Issue 16

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News/Announcements

Federal Update

Affordable Housing by Any Other Name…

Since 1999 when HousingMinnesota kicked off its media blitz, housing and homeless advocates across the country have been working to better frame their messages to build broader support for affordable housing, writes David Holtzman in Shelterforce. Now, perhaps, more than ever, Holtzman explains, activists and advocates need to be mindful of their messaging because more and more people are affected by inflated housing prices, making them more receptive to calls for affordable housing resources. “[B]y reframing the way low-income people are perceived, advocates may be able to accomplish more for their cause than merely capturing more dollars for housing,” says Holtzman. Go to for the full article.

Minneapolis High Rise Council Helps Kick Off Voterization 2006

On July 27, the Minneapolis High Rise Council was one of 30 local housing and social service providers around the country to participate in National Homeless and Low Income Voter Registration Day, registering voters at seven high-rise buildings across the city. National Homeless and Low Income Voter Registration Day was co-sponsored by NLIHC, the National Coalition for the Homeless, and the NationalLawCenter on Homelessness & Poverty. National Homeless and Low Income Voter Registration Week will be held September 25-29. More information is available at [Source: National Low Income Housing Coalition]

State Update

July Minnesota Housing (formerly MHFA) Board Report

The July board meeting was relatively uneventful. The most significant agenda item, the pilot grant to Brooklyn Park, never materialized because of a rift between the agency and the city over a replacement housing policy.The pilot grants are intended to demonstrate the viability of Minnesota Housing awarding flexible, multiyear funding based on past performance of the participating agencies and on the housing need in the recipient community.Brooklyn Park would have been the third agency approved to participate in the program.

While Minnesota Housing and Brooklyn Park had agreed to a $2.1 million funding commitment from the Challenge and Housing Trust Funds, the agreement stalled based on the agency’s disagreement with the city’s replacement housing policy on four counts. First, the city counted rehab of existing units as replacement units; second, the city allowed replacement of units affordable to low income households with higher cost units if rental are replaced by owner occupied units; third, the 5% vacancy threshold the city set for requiring replacement was a bit too low for the agency; and finally, the replacement would only be triggered by financial assistance coming from the city not other action such as a zoning change.

Brooklyn Park countered that their policy was already stronger than that found in any other suburban community and was endorsed by affordable housing advocates. The city officials added that the only rehab units counted as replacement are those that had not been habitable. At this time, it appears that Brooklyn Park and the agency will chose to proceed with the pilot program with the newly adopted replacement policy being monitored by the agency for its ability to preserve affordable housing in the community.

The agency board did approve what could be characterized as a bailout of a failed condo conversion project just south of the MinneapolisConvention Center in the Stevens Squareneighborhood of Minneapolis. The developer, Credit Dauphine, LLCheaded by Seth Rowley, purchased a 21 unit Section 8 property in 2005 hoping to cash in on rising property values in the area by converting the building to condos. After the sale, however, the declining condo market and the complexity of the deal led Rowleyto want to unload the property.

Because of the building’s occupancy by extremely low income residents, Plymouth Congregational Church and Westminster Presbyterian Church formed a corporation to acquire and preserve the building as project-based Section 8 housingandagreed to purchase the property for $1.6 million, the amount Rowley bought the building for. While agency board members questioned whether this project “passed the smell test,” they acknowledged the importance of preservation and the lack of available options for retaining the federal subsidy and protecting the residents.

The new owners will renew the 20 year term of Section 8 and agreed to extend for another 13 years should the federal government provide continue funding. The agency will finance the purchase by providing a $1.6 million preservation (PARIF) loan. Usually PARIF loans are deferred, but because of the size of this loan, equaling $76,000 per unit, the agency will require that it be amortized at an interest rate not to exceed 2.5% and over a term of 33 years.–Chip Halbach

Minnesota Housing’s 2008-09 Budget Plans

At the August meeting of the agency’s Housing Resource Advisory Committee, Commissioner Tim Marx updated attendees on the agency’s thinking regarding the 2008-09 biennium budget recommendations that it will present to the governor.

The agency will focus its recommendations along its four strategic initiatives: ending long term homelessness, providing housing opportunities for lower income workers, reducing the gap in homeownership rates among communities of color, and preserving existing affordable housing.

Marx suggested fourthemes that the agency would bring to the governor and legislature:

  1. Build on the good track record that housing has in the state, but act to prevent the emergence of a housing crisis
  2. Introduce new targeted initiatives in key areas, like transit and housing
  3. Focus on increased appropriations as vital to leveraging other investments (Commissioner Marx noted this appears to be a better bet than a deed tax in raising revenues for housing – he added that none of the gubernatorial candidates are calling for new taxes)
  4. Demonstrate the relationship of housing to environmental initiatives, rural development, health care and education—that is, tie housing to the top issues Minnesotans convey to pollsters

Specific areas for new or increased investment are the Housing Trust Fund, which provides operating support for supportive housing; mortgage foreclosure assistance; downpayment assistance related to emerging markets; and linking rural rehab funds in a targeted way to other community initiatives, like code inspection efforts.

Marx said that by keeping housing off the radar screen a lot can be accomplished. The agency will develop the factual information and find partners to make the case to the public. They are particularly interested in working with Habitat for Humanity as an advocacy partner.

Also, the agency understands the immense funding challenge facing public housing. It will review the use of PARIF funds for preserving this resource. The agency will work with the National Association of Housing and Redevelopment Officials (NAHRO) to better understand the magnitude of the funding shortfall facing Minnesota public housing agencies.The commissioner is open to hearing ideas for targeted initiatives that the agency can advance and will need to bring its ideas to the department of finance in October. The governor’s budget, with agency initiatives, will be released in January. –Chip Halbach

StudyHighlightsHennepinCounty’s “Housing First” Approach to Family Homelessness

A report released by the National Alliance to End Homelessness includes HennepinCounty in a handful of communities recognized for having successful approaches to addressing family homelessness. Mary Cunningham and Sharon McDonald, the authors of “Promising Strategies to End Family Homelessness,” found that communities committed to a Housing First approach— which emphasizes moving families into interim housing with services and minimizing time spent in shelters—show positive outcomes in reducing the overall incidence and length of emergency shelter visits.

The study highlights HennepinCounty’s decision to focus on helping families leave shelters quickly, and its work with the Minnesota Housing Finance Agency to move them into permanent housing. The County offers some funding to help with payment of a security deposit or the first month’s rent, and follow-up services provided by local nonprofit agencies help families remain housed. Statistics show that between 2000 and 2004, the number of families in HennepinCounty shelters fell from 1,817 to 1,042, a 43 percent decrease. Authors of the report note that further evaluation and expansion of this, and other initiatives will be needed to bring about nationwide reductions in family homelessness.

In addition to HennepinCounty, the report discusses efforts to end family homelessness in Columbus, Ohio; New York City; Westchester County, New York; Massachusetts; and WashingtonDC. The report is available at

St. Paul Pioneer Press Reports that Despite Sales Slump, Housing is Still Out of Reach for Many

On August, 28th, Gita Sitaramiah wrote in the Pioneer Press that even though there are a record number of houses on the market in the Twin Cities area, sales are down as a result of the large gap between prices and incomes. "The prices have plateaued on home sales, but you don't have the huge number of lower-priced homes that were around five years ago,” Chip Halbach Executive Director of Minnesota Housing Partnership told the paper. To read the entire article, go to

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Reading/Resources

HUD Launches New Asset Management Website

Go to to view HUD’s web site on their new Operating Fund rule. Resources provided include PIH notices, training schedules and other guidance materials such as “Stop-Loss” information.

From Poverty, Opportunity: Putting the Market to Work for Lower Income Families

This Brookings report documents what the New York Times refers to as the “Ghetto Tax,” a label that reflects the reality of inflated essential goods and services prices in low-income urban areas. Go to to read the report.

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Upcoming Events

August 15

HousingLink’s Savvy Landlord Training,4:00 pm - 5:00 pm, Sumner Library, 611 Van White Memorial Blvd, Minneapolis. HousingLink’s landlord training assists rental owners and managers and can also help market vacancies. RSVP by emailing , or call (612) 520-9233.

August 16

How to Help People with Housing Needs, 1:30 pm - 3:30 pm, Park Grove Branch Library, Cottage Grove

Join HousingLink for this summer's "HousingLink 101: How to Help People with Housing Needs." You will get an overview of major affordable rental housing programs and learn how to use HousingLink's resources to help your clients find rental housing. This includes a demonstration of how to find vacancies and property information using the Online Directory and how to get quick answers to housing questions using the Housing How-to Library. You'll also get a glimpse of HousingLink's new Directory of Affordable Rental Housing.To register for HousingLink 101, call 612-520-9234 or email . Please register by August 11, 2006. For more information visit

Through August
Join the Minneapolis Consortium of Community Developers and the St. Paul Consortium of Community Developers for their summer housing tour. Tours include both affordable and market rate ownership and rental projects developed by both nonprofit and for-profit developers. The tours provide community developers an opportunity to learn what others are doing and exchange information on best practices and lessons learned. Please RSVP for any or all of these tours to or call 612-789-7337 x13.

August 9, 1:00pm – 2:30pm, Midtown Exchange Condos, Apartments and Global Market, 2925 Chicago Ave S., Minneapolis. Join us as we tour the former SearsBuilding.

August 18, 11:00am – 12:00pm, Crane Ordway, Central Community Housing Trust, 281 E. 5th Street, St. Paul. Come see the renovation of the historic Crane Ordway Warehouse in St. Paul. The building, which has been vacant for 30 years, includes 70 units of affordable housing.

More fall dates to be announced!

September 13th – November 15th, Wednesdays

Leadership Skills Training, 5:30 - 7:30 pm at the Minnesota Council of Non-Profits, 2314 University Ave, 2nd floor, St. Paul. Sponsored by Civics Connection, this interactive ten-week seminar is designed for people in their 20s and 30s who want to be more effective leaders within organizations and communities. Some of the specific skills learned include running an effective meeting, expanding your base, and writing a personal work plan. The class is peer-taught by Space is limited! Contact Missy Frigaard at or visit our website at for more information.

September 19-20
Income Determination Training, Park Plaza Hotel, Bloomington, MN. Provided by Minnesota Housing Partnership, this training will teach attendees how to calculate a family’s eligibility for HOME-assisted housing units using annual income as defined by 24 CFR 5.609. Training will include: determining whose income to count; definitions of income, assets, and allowances; the methods to calculate them; and the necessary source documentation. For more information, please call Margaret Sines at 651-649-1710 ext. 119, or 800-728-8916 ext. 119.

September 27-29

2006 Minnesota NAHRO Annual Conference: "Planning Today for Tomorrow,"Breezy Point Resort, MN. Conference featuresinclude Section 8 HCV Update, HSQ Inspection Training, CDBG & HOME workshop, Asset Management training, and seven specialized tracks (including track for Small HRAs). For more information, contact NAHRO at or 651-675-4489.

October 3 – 6
2006 Age & Disabilities Odyssey, Minneapolis Hyatt. This one-time event will offer a diverse curriculum of training sessions and national speakers, and unique networking opportunities for professionals interested in aging and disabilities issues. Attendees will hear about federal initiatives, policy directions, and grant programs from a national and Minnesota perspective. If you have any questions, please contact the conference hotline at 800.882.6262 or email at . For more information, visit
October 11-12
Financial Management Training, Radisson Hotel, Roseville, MN. Provided by Minnesota Housing Partnership, this training will provide attendees with an overview of financial compliance rules for federal housing and community development programs. Participants will gain an understanding of the financial management reporting and audit requirements for funding received from federal departments like the U.S. Department of Housing and Urban Development. For more information, please call Margaret Sines at 651-649-1710 ext. 119, or 800-728-8916 ext. 119.

December 6-8
Building Communities, Celebrating Partnerships: HAC Rural Housing Conference 2006, Washington, D.C. HAC’s annual conference will provide the latest news and training, as well as celebrations of HACs 35th anniversary and SHOPs 10th. Registration information will be posted soon at

December 7
Homes for All 06 Convention St. Paul River Centre. MHP is convening the second Homes for All! convention to focus on solutions to proving decent, affordable housing for all Minnesotans. Look for more information in upcoming editions of The Bulletin.

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The Bulletin is published by the Minnesota Housing Partnership, distributed bi-weekly and includes affordable housing news, announcements, legislative updates, publications and upcoming events. For more information on affordable housing, back issues of The Bulletin, to submit news or events to include in future issues, or if you would like to unsubscribe, please contact Barb Jacobs at (651) 649-1710 ext. 117, email .

Minnesota Housing Partnership’s mission is to promote homes for all Minnesotans and to assist Minnesota communities in the creation and preservation of housing affordable to low- and moderate-income people.