Jacob Frey reveals plan for $50M boost to affordable housing in Minneapolis - Bring Me The News

Jacob Frey reveals plan for $50M boost to affordable housing in Minneapolis

The Mayor wants to quadruple the city's housing spending.
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With Minneapolis amidst a housing crisis that is pushing out lower-income families, Mayor Jacob Frey has proposed a plan to improve access to affordable accommodation.

The mayor wants to increase the city's existing housing budgets by $50 million, a figure he revealed on Monday as he presented a plan for how it would be spent.

The money would be used on a number of projects, including some already revealed – such as incentivizing landlords through tax breaks to keep their properties affordable for longer periods.

Frey's proposal would increase the production of affordable housing – including by accelerating construction on vacant lots – as well as protecting the affordable housing already in place, and improving the opportunities for lower income residents to buy a home.

He actually hasn't figured out how the funding would be found, other than to say he's seeking a "stable, dedicated source of funding," according to the Southwest Journal.

The city spent $12-13 million on housing last year, the newspaper adds.

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The mayor says "historic action" is needed to solve the city's housing problems, which is beset by a dearth of housing supply that is pushing up prices for those on the market.

Recent apartment construction meanwhile has erred towards high-end developments, limiting the options for those looking for a lower monthly rent.


Minneapolis housing prices increase

Good news for the housing market: The S&P/Case-Shiller home price index rose 2.2 percent in May, beating economists' forecasts, as all 20 of the nation's largest metropolitan areas posted gains from April. And 12 of the 20 cities had higher prices than they did a year ago, suggesting that the improvement is durable, the report said. In Minneapolis, housing prices were up 3.1 percent from April, and up 4.7 percent from last year.

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