- Building Affordable Housing From the Ground
Up:Developing a Community Land Trust in Minneapolis. (
pdf article)
By Cara Letofsky, Project Coordinator
Minneapolis Community Land Trusts Initiative
- NPRC Findings
The
CLCLT is taking a current picture of the housing costs per Minneapolis
neighborhoods through the work of Daren Nyquist, a
Research Assistant from the U of M Neighborhood Planning for Community
Revitalization (NPCR). Annually, the Minneapolis Area Association
of Realtors (MAAR) reports
on the previous year’s median home sales by Minneapolis community
(there are 11 larger MLS-defined neighborhoods in Minneapolis). While
informative,
the figures don’t detail the median home prices on a Minneapolis
neighborhood by neighborhood basis. The study takes a look at over
12,500 sales in Minneapolis
over the past two years. Through research of in the 82 Minneapolis
neighborhoods, the CLCLT is able to share the following:
- There is not a single (0) neighborhood
in Minneapolis (out of 82) where the median home price is low enough for
a household earning less than 50% MMI (or $39,250 for a household of 4)
would be able to purchase without affordability subsidy. In fact the lowest
median priced neighborhood would require $21,204 to create affordable homeownership
to a household earning $39,250.
- There are only five (5)
neighborhoods where the median home price is low enough for a household
earning less
than 60% MMI (or $47,100 for a household of 4) would be able to purchase
without affordability subsidy.
- Thirty-three (33) neighborhoods
have median home prices low enough for a household earning less than
80% MMI (or $62,800 for a household of 4) would be able to purchase
without
affordability subsidy.
- The median sales price (based
on median price by neighborhood) of homes in Minneapolis is $185,900.
- If granted $50,000 in affordability
investment to assist in buying a home in Minneapolis, and given
a household earning 50% of MMI (or $39,250) AND neighborhood based
on median home prices,
they would only be able to purchase a home in one of 16 (of 81
total) neighborhoods. The number jumps to 38 neighborhoods if the
household earns 60% of MMI
(or $47,100) and 54 neighborhoods if the household earns 80% MMI (or
$62,800).
- There are 15 neighborhoods in
Minneapolis where it would take more than $100,000 in affordability subsidy
to create affordable homeownership available to a household earning $57,500!
Preliminary figures are currently
available. The CLCLT
plans on presenting this information to interested Minneapolis neighborhood
groups following it’s completion.
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