Housing Displacement: Minimize the involuntary displacement of people of color, indigenous people, and vulnerable populations such as low-income households, the elderly, and people with disabilities, from their communities as the city grows and changes.
THIS POLICY SUPPORTS GOALS:
THIS POLICY RELATES TO TOPICS:
As Minneapolis grows, communities within it will change. To achieve Minneapolis 2040 goals, everyone must benefit from this growth; historically, people of color and indigenous people have not experienced the same benefits of growth. Without an equitable and inclusive growth and development strategy, involuntary displacement and cultural displacement may occur.
Especially at risk are the many Minneapolis residents who are cost-burdened, meaning more than 30 percent of their income goes toward housing costs - mortgage or rental payments. New investment and increased housing demand results in rising housing costs, which has a greater impact on these cost-burdened households. These households are disproportionately households of color, and disproportionately renting versus owning households: Fifty-six percent of black or African-American renting households are cost-burdened, and 51 percent of American Indian, Hispanic and Asian renting households are cost-burdened.
It is especially challenging for cost-burdened residents to meet the challenge of rising housing costs – and costs are rising. A report from the Minnesota Housing Partnership found that the number of rental property sales increased rapidly between 2010 and 2015, with a disproportionate number of sales in moderate-income, racially diverse neighborhoods. These sales are almost always followed by rent increases. The homeownership market is also experiencing significant price increases that affect low- and moderate-income homebuyers and homeowners.
ACTION STEPS
The City will seek to accomplish the following action steps to minimize the involuntary displacement of people of color, indigenous people, and vulnerable populations such as low-income households, the elderly, and people with disabilities, from their communities as the city grows and changes.
- Look at early indicators of neighborhood change and rents to determine where programs should be targeted.
- Evaluate City investments to determine whether they will cause involuntary displacement and create strategies to prevent displacement when possible and mitigate it when prevention is not possible.
- Develop and implement policies and programs that support the preservation and rehabilitation of naturally occurring affordable housing to prevent the displacement of existing residents, for example an Advanced Notice of Sale Policy.
- Prioritize the rehabilitation and preservation of existing legally binding affordable housing.
- Expand programs that support existing homeowners in affording and maintaining their home, with a focus on people of color, indigenous people, and vulnerable populations, such as low-income households, the elderly, and people with disabilities.
- Prioritize the inclusion of affordable housing in development activity.
- Analyze impact of property tax trends on displacing homeowners, and evaluate strategies to reduce displacement.