Minneapolis, the economic core of the Minneapolis/St. Paul metropolitan area, is a thriving commercial/industrial center that has successfully expanded from its agricultural base into computer and medical technology with worldwide markets. It is also an important cultural center and home to the University of Minnesota.
This Consolidated Plan identifies 74 different projects for the coming year that will use $10 million in Community Development Block Grant (CDBG) funds, $3.1 million in HOME funds, $600,000 in Emergency Shelter Grant (ESG) funds, and $600,000 from Housing Opportunities for Persons With AIDS (HOPWA). Generally, the funds will be used to stabilize or rehabilitate old units, produce new housing units, acquire existing units for lower income use, and fund tenant-based rental assistance.
The lead agency for development of the Consolidated Plan was the Department of Grants and Special Projects in the Office of the City Coordinator. A citizen participation plan, designed by the Minneapolis Community Development Agency (MCDA), encouraged citizen participation in decisionmaking throughout the process. A mailing list of over 200 interested citizens and agencies was maintained, and public notices were published in On the Agenda, a city public affairs newsletter that goes to 32 cable, radio, and TV stations; 87 city and community newspapers; and 171 neighborhood organizations.
Informal public meetings in the community and public hearings in the city council chambers were key elements in the citizen participation plan. Housing, homeless, and community development needs were addressed in a public meeting on August 17, 1994, as well as in a public hearing on September 19. The 5-year strategic plan, the 1-year action plan, proposed activities, and funding were all addressed in a public meeting on October 19. A third public meeting on the entire plan was held on March 20, 1995. In order to maximize citizen participation, both the informal meetings and the hearings were held after usual working hours. The draft and final plan were available for review in 17 public locations.
MAP 1 depicts points of interest in the jurisdiction.
The population of the city of Minneapolis was 368,383 in 1990; the population of adjacent St. Paul was 272,235. While these two central cities have been decreasing slightly in population, the whole metropolitan area is growing and has a strong, diversified economic base. The manufacturing jobs that have traditionally provided economic opportunity to lower income persons are diminishing in the central cities and increasing in the second-ring suburbs and beyond. The service jobs that have replaced them in the central city economy are either high-skill positions less accessible to the lower income workforce, or low-skill jobs at such low wages as to severely limit economic opportunity for inner-city residents.
Median family income in Minneapolis is $43,251. Almost 20 percent of the city's 160,531 households have extremely low incomes (less than 30 percent of median family income). About 15 percent of the households are low-income (31 to 50 percent of median). Almost 20 percent of the city's households are considered moderate-income (51 to 80 percent of median), and 46 percent are middle-income and above (over 80 percent of median).
Minneapolis is 68 percent white. African Americans make up 20 percent of the population. They are concentrated in the Near North, Central, Powderhorn, and Phillips neighborhoods. American Indians are also a large minority presence, with 5.4 percent of the population--most are in the Phillips neighborhood. Asians, who make up 5 percent of the population, are most frequently found in the University neighborhood.
MAP 2 depicts points of interest and low-moderate income areas.
MAP 3 depicts points of interest, low-moderate income areas, and minority concentration levels.
MAP 4 depicts points of interest, low-moderate income areas, and unemployment levels.
Minneapolis has an ample supply of lower cost housing. However, most of these units are occupied by higher income households and thus unavailable to the lower income households who have few other options. Available low-cost units are typically in poorer condition or located in stressed neighborhoods. The city needs to address the lower cost housing imbalance relative to the regional housing supply, and to improve the livability of its neighborhoods while addressing the needs of households with very limited incomes.
Almost 18,000 housing units are considered below average or in need of rehabilitation and repairs. The majority of these are located near the center of the city, the same location where poverty is concentrated and a high proportion of assisted housing is currently located.
Ninety-five percent of the city's single-family homes were built before 1959, as were 61 percent of multifamily units. Although citywide owner-occupancy and vacancy rates have not changed significantly in recent years, property values, after adjustments for inflation, show a negative trend in some of the city's neighborhoods. The average home price during 1994 was $95,861, but the median price was only $77,150. Though much progress has been made in addressing housing needs, renewed and enhanced priority must be given to housing to prevent further decline.
The number of low-income and extremely low-income households creates concern about the undue concentration of poverty populations and a lack of regional choice in housing options. For a number of reasons, assisted housing is more highly concentrated in inner-city than in outlying neighborhoods. At the same time, there are very few neighborhoods that do not contain some assisted rental housing. Scattered-site low-income public housing has achieved significant geographical dispersion throughout the city, but still has not avoided considerable concentration in some neighborhoods on the north and south sides of the city.
Extremely low-income households (annual income $12,975 or less). The demand for housing units affordable to extremely low-income households far exceeds supply; there is a shortage of 14,776 units in this category. Only about 20 percent of extremely low-income households are homeowners. Seventy-seven percent of renters and 61 percent of owners have some housing problems, including cost burdens of more than 30 percent of their income for housing, overcrowding, or substandard housing conditions.
Almost one-third of extremely low-income households are elderly, most of whom rent housing. Four household types in this income group have a disproportionately high need for housing assistance: black renter households, elderly black renters, elderly Hispanic renters, and elderly Hispanic owners. Extremely low-income households are concentrated spatially: 4 census tracts are comprised of 60 percent or more extremely low-income households, 16 tracts are made up of between 42 and 60 percent extremely low-income families. These same areas also have the oldest and most deteriorated housing stock.
The Alliance of the Streets reports that about half of the rooms and efficiencies in or near downtown were unavailable to people with extremely low incomes, either because the rent is too high or because the landlord refuses to rent to recipients of General Assistance. Increasingly, the group claims, landlords will not rent to someone who is not working full- time. Single nonelderly individuals must be disabled to qualify for public housing.
Low-income households (annual incomes of $12,975 to $21,625). Slightly over one-third of low-income households are homeowners. In 18 census tracts, 60 percent or more of the families have low incomes. Included in the low-income category are many single-parent families and working poor households with a combined wage of less than $10.40 per hour at full-time employment. Almost one-third of low-income households are elderly. Therefore, over three-fourths of low-income renters and one-third of low-income owners have some housing problems, and most must pay more than 30 percent of their income for housing.
Moderate-income households (annual income $21,625 to $34,601). Almost half of moderate-income households are homeowners; about one-fourth are elderly. Only about 30 percent of moderate-income households are experiencing housing problems, and even fewer pay more than 30 percent of their income for housing.
Middle-income households (annual income at or above $34,601). Of the 73,369 middle-income households in Minneapolis, 71 percent are homeowners. Only 7 percent are experiencing housing problems.
Emergency shelters in Minneapolis serve approximately 12,000 homeless persons annually. This includes approximately 7,000 single adults and 1,600 families. A 1992 survey showed the homeless population was about 76 percent male, with the largest group between 25 and 31 years of age. Two-thirds of the homeless were unemployed. Ethnicity was reported as 57 percent African-American, 24 percent white, 9 percent American Indian, and 5 percent Hispanic. United Way's First Call For Help program reported 10,975 housing requests in 1992.
Hennepin County is the primary provider of shelter and services for homeless populations. The county's data show an estimated daily capacity of 1,141 shelter beds. Some of the shelters also provide transitional beds. Completion is expected in mid-1995 of the Harriet Tubman Center that will include a 32-bed emergency crisis shelter and a 64-bed transitional housing program.
Minneapolis estimates that the characteristics of persons at risk of homelessness are similar to those of the sheltered and unsheltered homeless. Studies show that people are generally not permanently homeless but rather undergo episodes of homelessness. For those threatened with eviction because of unsafe housing, the city tries to balance shelter needs against unsafe housing conditions.
Every night about 650 extremely low-income single adults are forced to stay in the city's emergency shelters. Scores of others stay outside, many of them banned from all shelters because of chemical dependency. Some are now sheltered in one or two "wet" shelters in the city. The Alliance of the Streets says that housing affordable to single nonelderly individuals is completely full. There is an urgent need for 300-500 units of single-room-occupancy housing. Since at least half of the homeless single adult population suffers from either chemical dependency or mental illness, this housing would need 24-hour supervision and part-time alcohol and drug monitors. It would also need the legal capability to immediately evict tenants who use alcohol or drugs or fail to work on their program.
In 1994 the city had a total of 15,145 units of publicly assisted housing. The Minneapolis Public Housing Authority (MPHA) owns and manages 6,744 units of public housing in highrises, family rowhouse developments, and family scattered-site housing. The 8,401 subsidized rental units are privately owned structures in which public financial assistance is provided directly or indirectly to reduce costs for residents.
The condition of the 43 MPHA highrises is generally good. Nearly $25 million of renovation and updating work has taken place over the past year. Rowhouse developments of the near north side are being studied to determine their future. Progress is being made on upgrading the quality of scattered-site single-family housing, including lead-based paint abatement.
The MPHA is negotiating a settlement of litigation (Hollman, et al. vs. Cisneros, et al.) that would reduce minority poverty concentrations by disposing of public housing units within minority census tracts unless there is a compelling reason to preserve the unit, such as a large number of bedrooms, above-average unit features, and above-average amenities. Replacement housing opportunities would be targeted to nonconcentrated areas.
Following a needs assessment regarding accessibility concerns, MPHA is constructing three fully accessible homes in the coming year. As single-family homes are modernized, handicapped components are being addressed. Modifications are made to existing units where it is cost-effective to meet the needs of residents on a case-by-case basis.
MPHA is working to improve the living environment for public housing residents by enhancing security; updating and replacing building components such as elevators, mechanical systems, roofs, windows, and appliances; upgrading community spaces; and landscaping.
The Housing Authority administers Section 8 rental assistance programs. A total of 2,742 family units are provided through rent certificates and vouchers. Over half of the elderly/special needs units are located in larger, highrise buildings.
Many policies and factors add to the cost of producing affordable housing and/or contribute to concentrations of racial/ethnic minorities. Some are beyond the control of the city. The State property tax code assesses rental property at a rate three times that of owner-occupied homesteaded property. Combined with the effects of the Federal Tax Reform Act of 1986, tax concerns are leading to significant disinvestment in residential rental property. Inspection code compliance by the city also adds cost, but is needed to protect health and safety. Lack of transportation to parts of the city or suburbs also serves as a barrier to access to affordable housing. The city has developed strategies to address these concerns.
The city, MCDA, and MPHA have undertaken a number of activities to enhance housing choice and improve opportunities for residents and prospective residents. Section 8 certificate and voucher holders have access to a free, 24-hour telephone rental housing location service. Two scattered-site public housing projects have been developed outside areas of low-income concentration. To increase homeownership, an intensive counseling program has been established. Fair housing is a priority of the Minneapolis Department of Civil Rights, which has developed an educational program, a brochure, and a manual on the subject.
The Minneapolis Health and Family Support Department estimates that approximately 158,000 units of the city's housing stock contains lead-based paint. About 44 percent of them are rental units, and 18 percent are occupied by extremely low-income persons. Another estimate has suggested somewhat higher percentages of lead contamination.
Persons who require supportive housing. Minneapolis is currently home to almost one-third of the State's special needs populations. Historically, Minneapolis offers the best health facilities and has been on the leading edge of new community-based treatment programs. As a result, it has become home to a disproportionate share of special needs facilities and persons. It has 58 facilities that provide residential care or treatment for children, developmentally disabled, chemically dependent, mentally ill, and physically challenged persons. There are 47 other facilities that are classified as either emergency shelters, correctional facilities, board and lodging facilities, or hospice care.
Persons with HIV/AIDS and their families. The city's HOPWA allocation extends beyond Minneapolis to include the cities of St. Paul and Bloomington, 11 counties in Minnesota and 2 in Wisconsin. For this area an HIV Housing Needs Assessment and 5-Year Plan was prepared. Of the 3,000 infected persons in the State, 86 percent live in the 7-county Minneapolis-St. Paul metropolitan area. Most have very low incomes and receive some form of government assistance. Housing-related problems are a major concern--26 percent are on a waiting list for subsidized housing. Approximately 1,000 persons are estimated to be in need of more intensive support services.
The city's short- and long-term development policy is described in a separate document, Direction's Framework. It focuses on neighborhood revitalization issues that include resident safety, full employment, increased resident involvement in neighborhood issues, more effective education, neighborhood-based services, affordable housing, increased environmental awareness, and stimulation of the city's downtown economic base.
Over 100 meetings were held to coordinate development of the Consolidated Plan internally and externally. The Department of Grants and Special Projects, the Minneapolis Planning Department, MCDA, and MPHA were key partners, but many other departments and entities were actively involved. Concurrently, coordination with external entities involved five meetings, plus coordination at U.S. Department of Housing and Urban Development (HUD) training sessions. Included in the external coordination were representatives of the cities of Minneapolis, St. Paul, and Plymouth; MCDA; Hennepin, Ramsey, and Anoka counties; the Metropolitan Council; HUD; the Washington, Dakota, and Bloomington housing and redevelopment authorities; State agencies; and profit and nonprofit organizations.
Housing priorities were assigned by income level, with extremely low-income receiving the highest priority. The city expects to assist:
The city will work through a variety of projects with the support of county and State government, homeless advocates, and service providers to:
The city will work with related groups to identify, document, and assist special needs populations and provide a better understanding of the needs of each.
Nonhousing community development plans are described by CDBG-eligible categories and include:
A Neighborhood Revitalization Program (NRP) has been developed whose mission is to make the city's residential areas better places to live, work, learn, and play through neighborhood-based planning and delivery of public services. The city has dedicated $20 million a year for 20 years to NRP. However, since physical revitalization alone may cost over $3 billion, NRP emphasizes helping neighborhoods identify human resources and other assets, increasing intergovernmental collaboration, and redirecting existing budgets to accomplish goals.
The city uses a multifaceted approach to address lead-based paint hazards. This includes use of CDBG money to reduce lead in housing and provide information and referrals for city residents. The city disseminates printed educational materials in several languages and is a participant in a $1.2 million Lead Reduction Research Grant.
The city will continue its efforts to reduce the number of poverty-level families through the allocation of funds to neighborhood, economic, industrial, housing, human development, and employment programs. It will use its Direction's Framework policy statement as a tool for developing its antipoverty strategy. Job creation and retention and housing are critical components. An important development in the provision of affordable housing is the settlement of the Hollman, et al. litigation. Under the proposed settlement, many units will be removed from their current concentration to elsewhere in the city and surrounding suburban communities.
The city's designation as an Enterprise Community will bring $3 million in Social Service Block Grant funds and future preference in all Federal grant applications benefiting selected city neighborhoods. In addition the State of Minnesota has earmarked $2 million in employee tax credits for expenditure in the city's enterprise area.
Other State and county program funds of $39.4 million are expected in the 1995 fiscal year. Tax increment financing will provide another $42.6 million.
The institutional structure through which the city carries out its housing and community development plan consists of public, private, and nonprofit entities. The main public entities are the city of Minneapolis, MCDA, MPHA, Hennepin County, and the Minnesota Housing Finance Agency. The nonprofit organizations include nonprofit developers and community housing development organization, the Family Housing Fund of Minneapolis and Saint Paul, and the Interagency Stabilization Group. The private sector is represented through financial institutions, foundations, and for-profit developers.
MAP 5 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 6 is a map, sectioned by neighborhood, which depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects.
MAP 7 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within one of the four neighborhoods indicated in MAP 6.
MAP 8 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded projects within another of the four neighborhoods indicated in MAP 6.
MAP 9 depicts points of interest, low-moderate income areas, unemployment levels, and proposed HUD funded project(s) from a street level vantage point; as well as, provides a table with information about the project(s).
Seventy-four housing and community development projects have been identified for action in the 1995 program year, including new housing construction, acquisition, and rehabilitation; replacement housing demolition; sale of publicly held property; community revitalization; planning; job retention and creation; and outreach. Examples are:
Minneapolis expects to direct its assistance citywide during the program year, except where certain programs have boundaries. Thirty-six neighborhoods with a majority or low- and moderate-income residents have been targeted for CDBG-funded projects.