Editorial: A home for the holidays

While economics play a large role, the Twin Cities status of having the worst housing shortage in the nation is also a factor. There simply aren’t enough units at all levels, according to Minnesota Housing Commissioner Jennifer Ho.

Recent census numbers that documented the state’s housing shortage are nothing new to Minnesota legislators, real estate agents and housing advocates who have seen the gap between renters or buyers and housing inventory grow over the past years. Census data in 2021 revealed the Minneapolis-St. Paul-Bloomington Core Based Statistical Area (CBSA) has the lowest vacancy rate among the country’s largest CBSAs at just 4.6%. On average, less than 5% of the area’s total housing units are available for rental or purchase.

The Minneapolis-St. Paul-Bloomington CBSA includes Hennepin, Ramsey, Dakota, Washington, Chisago, Isanti, Anoka, Scott, Le Sueur, Carver, Wright, Sherburne, Mille Lacs, and Sibley counties in Minnesota and St. Croix and Pierce counties in Wisconsin.

Legislative support for housing in Minnesota has been strong. Dollars for housing channeled through the bonding program and budget bills since 2018 top $475 million. Also, philanthropic organizations have dedicated millions more to housing. Financial support is vital but money alone will not solve the housing shortage. The right policy is equally important. Policy changes at the local government level are necessary to increase the inventory of housing units. Reports have revealed city and county zoning ordinances that control density of developments and set fees attached to land improvement are curbing the number of units built and driving up the cost of construction.

“It doesn’t matter how much we appropriate to fund affordable housing if cities won’t allow that housing to be built,” wrote Rep. Steve Elkins, DFL-Bloomington, in a recent constituent letter revealing his priorities for spending the state’s current $17.6 billion surplus.

Rep. Elkins has proposed making cities and counties more housing friendly in a bill he authored in the 2021-22 legislative session. Titled the “Legalizing Affordable Housing Act,” Elkins’ bill would curtail local governments’ long-standing authority to set minimum buildable lot sizes and house square footage, require specific building materials for aesthetic reasons, prescribe garage and storage spaces, charge park set aside fees, and use Planned Unit Development ordinances to gain greater control over land development in their jurisdiction.

It is no surprise opposition to Elkins’ bill, which he intends to reintroduce in the next session, comes mostly from local governments and organizations that represent them. Over 90 Minnesota city councils passed resolutions, most using a template created by the League of Minnesota Cities, declaring their opposition to “legislation that restricts the ability for local elected officials to respond to the needs of their communities.”

The argument by housing advocates who favor the bill is local governments have misused the zoning authority given to them though legislative action by attracting developments with higher value homes and large lots and discouraging higher-density low and moderate housing developments.

It is also no surprise home builders are strong supporters of the bill. Builders and their trade representatives testified at legislative hearings that the stringent zoning ordinances in area cities have severely limited the number of houses being built due to burdensome and costly zoning regulations.

Attempting to lessen the “winners and losers” impact, Elkins included wording that would allow cities to charge builders for public service improvements resulting from developments, such as roads, sewer interceptors, schools and police and fire stations. Currently, cities are only allowed to charge developers fees for services provided directly to the development, such as for reviewing documents and inspections, and are left with few options other than raising local property taxes to fund other necessary and costly public service improvements.

While we are not interested in preventing local government officials from guiding the development of their communities, Elkins’ bill provides an excellent opportunity for a comprehensive review of local zoning ordinances and fees levied by Minnesota cities for housing construction and development.

We understand that major challenges and obstacles lie ahead. The interest demonstrated by legislators like Elkins brings necessary attention to seeking solutions. We don’t believe, however, the best solutions will come through legislative mandates. The better outcomes will result with collaboration and buy-in from city leaders who know their communities best and have the ultimate responsibility for planning. We encourage the governor to convene a task force of city and state leaders to investigate how housing strategies outlined in the 2018 Governor’s Housing Task Force can be implemented.

Continued legislative attention, review of the 2018 task force strategies, and collaboration between our leaders could mean solving the housing shortage, lower the state’s homelessness and unstable housing numbers, and relieve cost-burdened households.

We urge everyone involved to keep the picture of “home for the holiday” celebrations in mind.

- An opinion of the APG-East Central Minnesota Editorial Board. Reactions welcome: Send to editorial.board@apgecm.com.