Housing First Minnesota Advocacy Update - Q3 2018

Q3

PAGE 1 | ADVOC ACY UPDATE

Q3 • 2018

2018

LETTER FROM THE DIRECTOR OF ADVOCACY JAMES VAGLE :: DIRECTOR OF ADVOCACY BATC-HOUSING FIRST MINNESOTA

Q3

ADVOCACY UPDATE

A Flurry of Industry Activity A landmark supreme court decision, a

that utilizes all elements of our industry

Governor’s task force recommendation

and organization. This requires a long-term

reflecting the industry platform, a balanced

commitment from the board of directors,

stormwater permit, legislative awards, deep

professional staff, and legions of volunteers that

media coverage, and the 2018 elections —

make up our committees.

it’s been a busy third quarter!

The homeownership and housing affordability debate is entering a new phase, and BATCHousing First Minnesota is driving the discussion. Our role as the leading voice has never been more important, as local, regional, and state policymakers wrestle with the housing challenges facing our state. We do this with a modern, comprehensive advocacy program

In the Q3 update you will see highlights from all areas of advocacy program, please visit our social media channels for breaking news as it happens. As always, we welcome your feedback and participation to join the movement as the homebuilding and remodeling industry’s leading voice.

Onward,

JAMES VAGLE :: DIRECTOR OF ADVOCACY BATC-HOUSING FIRST MINNESOTA

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LEGISLATIVE ADVOCACY BATC-Housing First Minnesota seeks to share the impact of current and proposed legislation with elected officials at the local, state and federal levels. We work to influence the process to ensure that our builders and remodelers can continue to build safe, durable homes at a price families can afford. Through data, testimony, one-on-one conversations, grassroots engagement, position statements and by providing background materials, we gain elected officials’ support for legislation that promotes housing, homeownership, homebuilding and remodeling.

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LEGISLATIVE ADVOCACY

Gov. Mark Dayton’s Housing Task Force Since January, a task force established by Gov. Mark Dayton has been examining the high cost of housing in Minnesota. Staff has been present at all Task Force meetings and meetings of its Homeownership Work Group.

This summer, BATC-Housing First Minnesota sent a letter to the Task Force, saying its initial recommendations did little to address the lack of inventory and the inability to build at lower price points in the state. BATC-Housing First Minnesota heard from Task Force members that our outreach helped to change the direction of the final report.

The Task Force’s Final Report The Governor’s Task Force on Housing Affordability released its report titled “More Places to Call Home: Investing in Minnesota’s Future” on Aug. 21. Among the recommendations included in the report is a call to build 300,000 new homes by 2030, the creation of a regulatory review panel and addressing the industry-wide labor crisis.

Throughout the Task Force process, BATC-Housing First Minnesota advocated for solving our housing supply challenges by increasing affordability across the housing market. We are pleased to see the Task Force embrace the core of this approach, which begins with evaluating regulations and land policies to directly address affordability.

View the full report: https://mnhousingtaskforce.com

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Gearing up for Session As we look toward the 2019 legislative session we expect this report to have an impact on the housing affordability discussion. BATC-Housing First Minnesota worked during the past legislative biennium to advance the Minnesota Homeownership Initiative, a collection of common sense proposals aimed at increasing homeownership and housing affordability for all Minnesotans. We look forward to continuing our work with local, regional and state policy makers.

The hard work of addressing the cost drivers impacting housing affordability now enters a new phase. As the leading voice for homebuilding and remodeling, BATC-Housing First Minnesota is pleased to see other stakeholders ready to join us in addressing this critical challenge facing all Minnesotans.

More Places to Call Home: Investing in Minnesota’s Future

Goals and Recommendations

COMMIT TO HOMES AS A PRIORITY Create a broader and stronger public commitment to the urgent need for more homes that are more affordable to more Minnesotans.

Like roads and bridges, homes are building blocks—assets that will be around for decades. By investing in our homes, we improve outcomes in education, health, and economic opportunity. Homes are our starting place.

PRESERVE THE HOMES WE HAVE

BUILD MORE HOMES

INCREASE HOME STABILITY

LINK HOMES AND SERVICES

Keep the homes we already have, especially those that are most affordable.

Build 300,000 new homes by 2030, across all types, prices, and locations to stabilize prices and meet demand.

Assist twice as many people at risk of losing their homes because of rent increases, evictions, and heavy cost burdens.

Build stronger links between where we live and the services we may need to live stable lives.

Let’s begin by securing our existing assets. The most cost-effective way to provide homes that are affordable for Minnesotans is to maintain and preserve the homes and apartments we already have.

Minnesota has built a reputation of livability and opportunity, with homes people can afford as a key ingredient.

To ensure our neighborhoods and communities remain strong and healthy, we need to use all the tools and innovation at our disposal to enable the private sector to build to meet the demand.

1.1 Launch a public-private partnership to forecast demand, set goals and measure progress.

2.1 Expand and streamline existing rental rehabilitation programs to preserve critical rental assets.

3.1 Position Minnesota as a national leader in the advancement of housing innovation and technology.

1.2 Create dedicated, permanent funding sources for affordable homes in addition to current funding sources.

2.2 Incentivize private-market owners to keep rental units affordable to low-wage families by using targeted support from local and state government.

3.2 Grow the pool of talent in Minnesota’s building trades to enable the sector to meet current and future demand.

1.3 Invite all Minnesotans to recognize homes as a central and critical part of the economic and social well-being of all residents and communities in Minnesota.

2.3 Support and expand existing homerehabilitation tools and programs at the state and local levels to serve more homeowners who need to make improvements.

2.4 Substantially increase support for rehabilitation of public housing, much of which is experiencing notable deterioration.

3.3 Increase the capacity of local leaders to implement tools and solutions to address the home-affordability needs of their communities.

3.4 Expand the range of housing types across Minnesota communities.

3.5 Create a statewide review panel to evaluate regulations related to building standards, land use, and environmental stewardship for their impact on housing affordability.

When you lose your home, you lose your community—and the consequences of this major life disruption can last for decades. By doubling our investment in rental assistance, promoting voucher acceptance, preventing displacement, and improving protections for renters, we can reverse this trend, so kids learn, parents earn, and communities grow stronger.

4.1 Enhance and expand state and local rental assistance programs to complement federal programs that are too small to meet the need.

4.2 Define and crack down on predatory rental practices, including excessive evictions and poor condition of rental units.

4.3 Strengthen protections for renters in the private market.

4.4 Increase the speed and flexibility of emergency resources to prevent people from losing their homes.

4.5 Expand and enhance programs that help people navigate the systems to find homes and vital housing resources.

4.6 Incentivize the acceptance of rental assistance vouchers by the private market.

4.7 Prioritize investments needed to achieve the goals in Heading Home Together: Minnesota’s Action Plan to Prevent and End Homelessness.

At some point in our lives, most of us will need a helping hand. Many of us will be seniors who require assistance to stay in the place we’ve long called home. Other Minnesotans have experienced trauma or need health services. We can achieve better outcomes in a more cost-effective way when we coordinate services to meet people where they live.

5.1 Provide a dependable stream of funding for social services that help households maintain stable homes.

5.2 Provide access to a full range of services for families and individuals transitioning into stable homes before, during, and after the transition.

5.3 Improve health outcomes and reduce costs for tenants by developing better partnerships between health care and housing providers.

5.4 Advance the Housing Supports program for residents with disabilities by identifying gaps and potential program enhancements to ensure statewide coverage.

5.5 Expand programs and providers who assist individuals in finding, securing, and retaining affordable rental homes.

SUPPORT & STRENGTHEN HOMEOWNERSHIP Create pathways to sustainable homeownership, with a focus on removing barriers for households of color.

Our wealth and our retirement savings are concentrated in our homes.

Most Minnesotans want to own a home, and everyone who can sustain homeownership should be offered the tools, coaching, and access to financing they need to make this investment in their own future and in our communities.

6.1 Focus on increasing access to homeownership resources for the large number of income-ready households of color who want to buy.

6.2 Promote alternative models of building wealth through homeownership, such as community land trusts, cooperatively owned housing and manufactured home parks.

6.3 Encourage employers and foundations to support home purchases.

6.4 Increase funding for financial education and counseling programs that expand the capacity of households to pursue homeownership.

6.5 Expand mortgage products and provide extra support to local community banks to expand financing options.

6.6 Expand available down-payment assistance programs.

BUILD MORE HOMES

Build 300,000 new homes by 2030, across all types, prices, and locations to stabilize prices and meet demand.

Minnesota has built a reputation of livability and opportunity, with homes people can afford as a key ingredient. To ensure our neighborhoods and communities remain strong and healthy, we need to use all the tools and innovation at our disposal to enable the private sector to build to meet the demand.

•

Position Minnesota as a national leader in the advancement of housing innovation and technology.

•

Grow the pool of talent in Minnesota’s building trades to enable the sector to meet current and future demand.

•

Increase the capacity of local leaders to implement tools and solutions to address the home-affordability needs of their communities.

•

Expand the range of housing types accross Minnesota communities.

•

Create a statewide review panel to evaluate regulations related to building standards, land use, and environmental stewardship for their impact on housing affordability.

EXERPT FROM: MORE PLACES TO CALL HOME: INVESTING IN MINNESOTA’S FUTURE

BATC-Housing First Minnesota has been leading the discussion on housing affordability, the need to address the labor crisis and the regulatory burden newhomebuyers face. With the call to add 300,000 new homes by 2030, the affordability challenges and the need for more youth to choose construction careers must be addressed. As leaders in the housing affordability discussion, our involvement in Project Build Minnesota, the work of the Housing Affordability Institute and our advocacy program will continue to take on greater visibility.

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REGULATORY ADVOCACY BATC-Housing First Minnesota strives to communicate the cumulative effect of regulations on homebuilding and remodeling.

This involves working with government agencies to ensure that regulations applied to our industry are common sense, necessary and based on sound science.

Q3 • 2018

REGULATORY ADVOCACY

Advocating For Affordability In The New Building Codes A report on the initial building code recommendations from the Construction Codes Advi­ sory Council (CCAC) of the Department of Labor & Industry (DLI) features comments made by BATC-Housing First Minnesota earlier this year.

Following the June 26 meeting of the CCAC, the Department of Labor & Industry released a report that included comments and concerns voiced by the CCAC members regarding the initial review of model code changes earlier this year. The report also included comments submitted by organizations following the release of the Technical Advisory Group reports in mid-May. Of the 10 organizations either submitting comments or co-

BATC-Housing First Minnesota Feedback Leads To Improved 2018 Construction Stormwater Permit The 2018 Construction Storm­water Permit, in effect since Aug. 1, features significant input from BATC-Housing First Minnesota. The Minnesota Pollution Control Agency released the initial draft permit in April 2018. We outlined several changes our members want­ed changed in the final permit, all of which were accepted.

According to the MPCA, while there

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was a consensus that the repair time frame should increase, concern over the term “next anticipated rain event” caused the improved repair time frame to be excluded from the final draft.

Our executive director, David Siegel, in a letter to the MPCA sent on July 31, asked the agency to increase the repair time frame should the MPCA modify the new permit.

signing letters, our comments stood out for several reasons.

In a memo submitted by Nick Erickson, BATC-Housing First Minnesota’s regulatory affairs manager, the organization outlined its longtime goal of housing affordability being given equal consideration to energy efficiency, safety and durability.

The memo also noted that homes built in Minnesota today already exceed the energy code and that further regulation threatens housing affordability.

BATC-Housing First Minnesota was the only group to submit comments on multiple TAG reports and to recommend not adopting the 2018 International Energy Conservation Code for residential construction.

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LEGAL ADVOCACY When an unfavorable or abusive law or rule must be challenged in court, BATC-Housing First Minnesota steps up via our Housing Affordability Institute. Legal advocacy is often the last line of defense for the industry.

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LEGAL ADVOCACY

Harstad v. Woodbury Victory BATC-Housing First Minnesota member Marty Harstad secured a major win from the Minnesota Supreme Court on Aug. 15, which ruled against a Woodbury traffic impact fee The ruling upholds BATC-Housing First Minnesota’s longheld belief that developers should not be coerced into paying otherwise unauthorized city fees through a city threatening to withhold the approval of a development.

Next Steps Immediately after the ruling was announced, we sent a letter to the state’s 25 fastest growing cities seeking information about their current traffic fee practices. By the time of printing, several cities had already responded, saying they no longer charge unauthorized fees or had never engaged in the practice.

The Housing Affordability Institute, formerly the BATC-Housing First Minnesota Legal Defense Fund, is currently in the field with research that will include an examination of local fees and regulations, including the fees at issue in this case.

HOUSING AFFORDABILITY I N S T I T U T E

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BATC-Housing First Minnesota played an essential role in the Harstad v. Woodbury case. Along with member Frank Kottschade and the National Association of Home Builders, we filed an amicus brief in support of Harstad. BATC-Housing First Minnesota provided additional support to Harstad in his multiyear battle, resulting in this landmark victory for our industry.

What The Harstad v.

Woodbury Ruling Means HOUSING AFFORDABILITY Like the Eagan v. Country Joe ruling from 20 years ago, the Minnesota Supreme Court said in Harstad v. Woodbury that cities cannot charge unauthorized fees.

The court’s opinion, written by Justice G. Barry Anderson, went further than the Country Joe case. Not only can cities not charge fees not authorized under

I N S T I law, T U cities T E also cannot Minnesota use development agreements to force unauthorized fees upon developers. The court also ruled that a development agreement does not open the door for negotiations of otherwise unauthorized fees, unless the developer is willing to pay these fees.

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ISSUE & LOCAL ADVOCACY The advent of social media, digital marketing and the internet have substantially elevated the opportunities for issue advocacy.

Issue advocacy refers to social media, digital and traditional advertising on broad political issues. The goal is to engage and persuade the public to support our advocacy agenda. Additional outreach and events with elected officials and the public help to share the good work of the housing industry.

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ISSUE & LOCAL ADVOCACY

Outreach Follows Harstad v.

Woodbury Landmark Ruling Immediately following the Minnesota Supreme Court’s decision in the Harstad v. Woodbury case, BATC-Housing First Minnesota sent a letter to 25 cities across Minnesota seeking information on how each city plans to comply with Court’s ruling.

In the weeks since the Aug. 15 ruling, BATC-Housing First Minnesota has heard from more than half of the top 25 cities for new home construction, with both Lakeville and Savage saying they no longer charge unauthorized fees.

With the exception of one city, Dayton, Minn., all have indicated they do not, never have or will now stop seeking these fees. The City of Dayton is looking to enact a one-year development moratorium as it reviews its fee structure. Our staff and members affected by the mortarium will be engaging in conversations with Dayton.

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Moving Forward With Cities On Sept. 11, BATC-Housing First Minnesota staff met with representatives from the League of Minnesota Cities and Metro Cities regarding the Harstad decision and discussed how we would like to see housing affordability given equal consideration to other priorities as local governments make policies that affect the housing industry struck down in Harstad v. Woodbury.

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ELECTORAL ADVOCACY Electoral Advocacy is critical to the success of our comprehensive advocacy program. It is essential to participate in the electoral process to help elect housing-friendly individuals to public office.

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ELECTORAL ADVOCACY

Elections Matter Elections have a major impact on the housing industry. That’s why BATCHousing First Minnesota is engaged in electoral advocacy. Throughout the year, BATC-Housing First Minnesota leaders have met with gubernatorial, legislative and local candidates.

“Our primary objective in the discussions is to ensure that our emphasis on housing affordability and homeownership are a meaningful part of Minnesota’s 2018 election conversation,” said David Siegel, executive director of BATC-Housing First Minnesota.

Through the efforts of the Housing First Political Action Committee and the Housing First Fund, your association is supporting leaders who will help us build safe, durable and affordable housing in beautiful communities. For a full list of legislative endorsements visit our social and blog.

For the latest industry news, visit

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“Our primary objective in the discussions is to ensure that our emphasis on housing affordability and homeownership are a meaningful part of Minnesota’s 2018 election conversation.”

David Siegel, Executive Director, BATC-Housing First Minnesota