Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Minneapolis Perpetual Affordability Housing and Land Trust Program Limited Equity Home ownership Declaration and option to purchase agreement (RCA-2021-00646)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Business, Inspections, Housing & Zoning Committee | June 8, 2021 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Contract/Agreement | Passage of Resolution adopting form documents and delegating authority to make and execute Minneapolis Perpetual Affordability Housing Land Trust Program Limited Equity Home Ownership Declaration and Option to Purchase Agreements consistent with City Council approved requirements for the Minneapolis Homes and Inclusionary Zoning Requirements. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | All Wards |
Background Analysis
The City of Minneapolis’ Perpetually Affordable Ownership Land Trust Housing Model (City PAH) is a model for maintaining long-term affordable ownership housing that was approved by the council on July 31, 2020 (2020-00679). The City PAH model was created in collaboration with community members through a housing study completed in partnership with Grounded Solutions Network. Homebuyers who purchase units enrolled in the City PAH will agree to a shared-equity formula that restricts the re-sale price to 2% increases compounded annually. The City PAH model maintains affordability for a 30-year term that renews upon each property sale. The model has three income tiers: below 40% AMI, 41-60% AMI, and 61-80% AMI.
Affordable units can be enrolled in the City PAH model through two pathways, both pathways are citywide strategies:
- The Minneapolis Homes program, which provides financing and/or land sales for residential development of 1-20 unit homeownership projects
- Inclusionary Zoning, which requires affordable units in projects that are 20 units or more
To facilitate the enrollment and re-sale of units in the City PAH program without having to get each individual property approved by the Council, staff is seeking the adoption of the attached form of Minneapolis Perpetual Affordability Housing and Land Trust Program Limited Equity Home ownership Declaration. The document will be the City's recorded agreement with the property owner specifying the terms of the City PAH program. Staff worked with the City Attorney’s Office in developing the form.