Browsing by Subject "Affordability Gap Financing"

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    Creating Affordable Homes: An Evaluation of the Minneapolis Homes Create Strategy
    (2024-05-01) Goodrich , Dan; Yudelman, Beth
    This project was a qualitative analysis of the Create Strategy of the Minneapolis Homes Program. The project was designed to determine to what extent the strategy is meeting its goals. The Minneapolis Homes Program is managed by the Community Planning and Economic Development (CPED) housing division. The mission of the Minneapolis Homes Program (started in 2020) is to help people access, create, and sustain affordable homeownership to eliminate racial disparities in homeownership. This capstone project was specifically focused on the Create Strategy of the program - to what extent are the Minneapolis Homes: Financing and Property Sale Programs successfully creating opportunities to build new homes and rehabilitate existing homes to eliminate racial disparities in homeownership within the city of Minneapolis? Three key findings emerged from our research: 1) Minneapolis Homes is well led and viewed as a national leader, 2) Some developers experience significant “pain points” when working with the city. Further, the experiences that builders have with the city can vary significantly and can be inconsistent. For example, newer community developers need more support navigating the city’s process and receiving early financial support for construction, while larger developers want more consistency, and 3) The Create Strategy is underfunded. More funding is needed for the Minneapolis Homes Create Strategy to increase capacity within the city as well as for specific development projects. In addition, outside forces such as post-Covid inflation, labor shortages, and the Minneapolis 2040 plan lawsuit are adding time, costs, and stress for builders. On a macro level, we recommend that Minneapolis Homes work closely with city departments and divisions to advance the city’s identified primary goal. On a micro level, we recommend that Minneapolis Homes 1) clarify the primary goal within CPED in relation to equity and homeownership: what to incentivize and what to require, 2) seek additional funding to advance the identified goals of the Create Strategy, 3) continue to streamline the process for developers and customize support (including more financial and logistical support when needed), and 4) continue to strengthen communication with developers, city staff, and funders. In addition, Minneapolis Homes should examine whether more homeowner participation in evaluating the Create Strategy is beneficial.