Welcome to today’s roundup of real estate news, where we delve into the pressing housing challenges and developments across Minnesota. From the troubling rent spikes making housing unaffordable for many Minnesotans, to innovative investments by Standard Communities aimed at preserving affordable housing, our coverage spans significant policy updates and intriguing new projects. Whether it’s the state’s response to increasing homelessness or groundbreaking new developments in urban housing, stay informed with our detailed reports and expert insights into how these changes could affect communities and the real estate market.
Minnesotans struggle to find secure housing due to rent spike, new report shows – CBS Minnesota
Too many Minnesota families are struggling to put a roof over their heads. A new report from the State of the State Housing found that median rent jumped by 8% in the last year.
“Housing is a basic human need, everyone needs a place to lay their head at night,” said Minnesota Housing Partnership Executive Director Anne Mavity.
According to the report, half of all renting families pay more than they can afford for housing. It also showed that evictions were up 8% over the previous year. That only adds to this tragic number: Close to 20,000 Minnesotans struggling with homelessness on any given night.
“Across Minnesota, we are actually 114,000 units short that are available and affordable to our lowest income community members,” Mavity said.
Mavity says affordable housing means no more than 30% of your household income.
“For the folks who are serving us our coffee in the morning for the folks who are taking care of our kids taking care of my mom right now those essential jobs don’t pay enough to afford an average two-bedroom apartment,” Mavity said.
She says it’s not their fault, the state’s housing system is broken and work is underway to repair it.
“There is a broad spectrum of need and people who are looking for housing and sometimes that supportive housing and you need case management you need support for addiction and sometimes we just need affordable units,” said the Executive Director of the PERIS Foundation Carla Godwin.
Lydia Apartments and Anishinaabe Apartments are examples of how organizations are working to fix the problem.
“The price to build in terms of development is often standing in the way and so we have public and private partners trying to figure out the way forward in those types of situations and try to figure out how to get enough units built,” Godwin said.
Reg Chapman joined WCCO-TV in May of 2009. He came to WCCO from WNBC-TV in New York City where he covered an array of stories for the station including the Coney Island plane crash, the crane collapse on the city’s east side, 50 shots fired at motorist Sean Bell by New York Police, and a lacrosse team assault at Fairfield High School in Connecticut.
Standard Communities Makes Second Minnesota Housing Investment – Connect CRE
Standard Communities, a national multifamily housing investor and developer, has made its second investment in Minnesota in a month, acquiring a 100% affordable community in Duluth.
Standard led a public-private partnership in acquiring the 152-unit Lenox Place Apartments at 701 W. Superior Street in Duluth. Built in 1980, Lenox Place has 143 one-bedroom units and nine two-bedroom units for seniors and individuals with disabilities. The transaction is capitalized at $37.14 million.
Funding for the Lenox Place Apartments transaction included Low Income Housing Tax Credits secured through the Minnesota Housing Finance Agency and the Housing Redevelopment Authority of Duluth issued tax exempt bonds. Huntington Bank provided the Tax Credit equity. Standard will significantly renovate the 14-story property at a cost of approximately $12 million.
Standard recently made its first investment in Minnesota, acquiring Rivertown Commons, a 96-unit 100% affordable senior community in Stillwater, in a transaction capitalized at $27.7 million.
Jasmine Kilman is Content Director of Connect Commercial Real Estate, covering Chicago and greater Chicagoland, the Midwest, Seattle, and the Pacific Northwest. She covers industry trends, transaction deals, market research, and produces daily news stories. With experience in marketing and communications for academic nonprofits and corporate clients, including Hearst Media, Hilton, and Coldwell Banker, Kilman has written about commercial real estate, environmental, social, and corporate governance (ESG), technology, healthcare, and philanthropy. She was born and raised in California and graduated with a degree in public relations. In her spare time, Kilman enjoys hiking and traveling to new locations with her family.
Standard Communities Makes Second Affordable Housing Investment in Minnesota in a Month with Lenox Place | Yield PRO
Standard Communities, a leading national multifamily housing investor and developer, has made its second investment in Minnesota in a month, acquiring a 100% affordable community, Lenox Place, in Duluth. The transaction is capitalized at $37.14 million.
Standard will extend the affordability of Lenox Place Apartments for 30 years, with resident income restricted to 60% of the Area Medium Income.
Standard recently made its first investment in Minnesota, acquiring Rivertown Commons, a 96-unit 100% affordable senior community in Stillwater, in a transaction capitalized at $27.7 million.
Funding for the Lenox Place Apartments transaction included Low Income Housing Tax Credits (LIHTC) secured through the Minnesota Housing Finance Agency and the Housing Redevelopment Authority of Duluth issued tax exempt bonds. Huntington Bank provided the Tax Credit equity.
Standard will significantly renovate the 14-story property at a cost of approximately $12 million. Residents will not be relocated during renovations, which include extending the sprinkler system into units, installing new carpet and flooring, painting unit interiors, replacing bathroom vanity lighting, and installing new supply lines and low-flow toilets. Other unit interior upgrades include the addition of countertop microwaves in the kitchens and a pull cord system installation.
Standard will address building system deferred maintenance including new roofing, replacing a standby emergency generator, repairing railings, and replacing smoke and CO detectors.
New resident amenity spaces will be created, including a fitness center, a business center, and storage lockers. Common areas will be improved with new flooring, LED lighting, and paint. Façade upgrades, concrete and asphalt repairs, and improved exterior lighting will also be made. A resident services coordinator will be assigned to the property.
“Lenox Place, our second affordable housing investment in Minnesota, will continue to offer homes to seniors and individuals with disabilities in an appealing and engaging living environment,” said Jeffrey Jaeger, Co-Founder and Principal of Standard Communities. “Every community that we invest in revives and strengthens neighborhoods and provides new opportunities for residents to live affordably for years to come,” said Mr. Jaeger.
“It is critical that we invest in housing that allows residents to live independently with access to the life-enhancing resources and amenities they need to thrive,” said Robert Koerner, Standard’s Chief Investment Officer. “We will continue to seek additional affordable housing investments in Minnesota so we can provide more individuals with an affordable place to call home,” he added.
Based in New York and Los Angeles, Standard has a portfolio of over 20,000 apartment units and $4.4 billion in assets under management across 17 states and Washington, DC. With expertise in development, acquisitions, renovations, and construction, Standard Communities strives to cultivate long-term public and private partnerships to produce and preserve high-quality, affordable, and environmentally sustainable housing.
Where does Harris VP pick Tim Walz stand on housing issues? – HousingWire
A highly anticipated piece of political news arrived Tuesday morning as Vice President Kamala Harris chose Minnesota Gov. Tim Walz to be her running mate in November’s presidential election, with Harris having clinched the Democratic nomination to challenge Republican nominee and former President Donald Trump.
Walz hails from a state that Republicans have not taken in a presidential election since 1972, when Richard Nixon won in a popular and electoral landslide against Sen. George McGovern. But Walz also represents a plain-spoken approach to Democratic Party policy priorities, which has helped carry him to victory in every election he’s participated in since 2006.
While there are individual flourishes in the records of both members of the Democratic ticket, Harris also represents a degree of continuity with the housing policies of the current Biden-Harris administration. Walz could represent a departure, but his record as governor also illustrates some significant housing-related policies designed to address issues present in both his state and the country at large.
While Walz has no shortage of critics among Republicans, most of the consistent critiques that have been levied against him concern the use of the government at scale, tax increases to fund state projects, and the way that Walz is using his state’s budget surplus. Some of these criticisms have been levied at housing programs, but the most consistent criticisms have been levied at other statewide spending initiatives.
The largest housing policy event during his administration came in 2023, when Walz signed a $1 billion housing omnibus bill into law. It marked the largest single investment in housing in the state’s history and included $200 million for downpayment assistance programs, another $200 million for housing infrastructure investments, $95 million for a program to support workforce housing, and a permanent fund for other housing needs across the state.
More than half the total amount was geared toward investments in the state’s affordable housing infrastructure.
“Housing is central to growing our workforce and ensuring Minnesotans’ health, safety, and financial security,” Walz said upon signing the measure. “Whether it’s building new housing infrastructure, providing rental assistance, or ensuring homeownership is an option for all Minnesotans, this bill will have a historic impact on the quality of life in Minnesota and move us towards becoming the best state to raise a family.”
The move was lauded by the National Low Income Housing Coalition (NLIHC), and it included several other provisions. The package allocated $45 million to the state’s Family Homeless Prevention and Assistance Program, which is designed to provide “emergency rental and utility assistance to families experiencing or at risk of homelessness,” NLIHC explained.
Around the same time, Walz signed a measure into law that marked a comprehensive update to Minnesota’s landlord and tenant laws, which the NLIHC also said was the first of its kind in state history.
“Landlords will be required to provide 14 days’ written notice before filing an eviction for nonpayment of rent, and cities will be permitted to enact and enforce stronger pre-filing notice requirements,” NLIHC said of the measure. “The bill also makes eviction expungements more accessible in certain cases: when the tenant prevails, when the case is dismissed, when the parties agree to expungement, when the tenant requests expungement upon settlement of the case, or when the eviction was ordered at least three years ago.”
These expungement-reform provisions prohibit evictions from being reported in public court records “until the court decides in favor of the landlord,” while also establishing the right to representation for public housing tenants facing breach-of-lease eviction cases.
Walz and his lieutenant governor, Peggy Flanagan, also pursued other affordable housing investments. In December 2023, the administration announced an investment of $350 million to preserve and build an estimated 4,700 affordable housing units across the state — including single-family, multifamily, and manufactured units.
“Minnesota Housing selected 28 rental properties this year, with 13 located in the Twin Cities metro and 15 in Greater Minnesota,” the governor’s office announced in December. “The multifamily rental selections support a total of 1,486 units. Most of the units will be new construction (875 units) and the rest are preservation of existing affordable properties (611 units).”
These investments came with the recognition of a need to build more units.
“The state needs to build more housing and invest in existing properties to both improve the properties for the current residents and to maintain the affordability of the rental units for decades to come,” Walz’s office said.
In his State of the State address earlier this year, Walz detailed some of the investments that Minnesota has sought to make to address housing issues.
“Our plan also invests in making sure every Minnesotan has a safe and affordable place to call home,” Walz said. “We’re backing the development of multifamily housing so that seniors, families, and anyone facing homelessness can find a place to be. And we want to update the Minneapolis Veterans Home to better serve those who have served us.”
As he wound the speech down, Walz opined that housing is an issue that everybody should be able to agree on regardless of political differences.
“[T]here’s no reason both parties can’t be part of getting it done this session,” Walz said. “I know we won’t agree on everything. But safe streets? Clean water? Affordable housing? Surely we can agree on that. So join me — and not just at the ribbon-cutting, but in the work to get it done.”
Redfin is in the same position as other brokerages dealing with fewer transactions and a frozen market, posting a net loss of $27.9 million in Q2 2024.
Little Mod Duplex, St Paul, Minnesota housing – e-architect
The Little Mod is an urban infill development located in the West 7th neighborhood of Saint Paul, Minnesota. Designed by Double Jack Design Workshop, this duplex features six co-living bedroom/bathroom suites per unit, totaling twelve suites. The Nordic aesthetic of the building, using wood and large format panels, blends harmoniously with its surroundings. The design prioritizes ample natural light and passive heating in the winter, while minimizing the impact on the site due to grade changes and bedrock near the surface.
The project aims to be a Zero Energy Building, combining a high-performing building envelope with intelligent mechanical systems. Energy modeling plays a significant role in the design, along with the quality of windows and doors, with the goal of producing more energy than the home’s annual energy use.
To secure funding, grant proposals, and city approvals, the project relied on stunning exterior renderings created by NOMINN, a visualization studio. The renderings captured the essence of Little Mod across the changing seasons, showcasing its potential as a smart and natural addition to the neighborhood. The project has secured significant funds, including from Statewide Affordable Housing Aid, 2023 HRA Levy funding, and American Rescue Plan Act funding, with construction planned to begin in late 2024.
Double Jack Design Workshop, the architect behind Little Mod, is a practice of crafters and makers who go beyond traditional roles to ensure a hands-on approach to their projects. NOMINN, the visualization studio, specializes in creating unique imagery for architects and designers, focusing on projects that demand realism and a highly focused design intent.
Work starts on White Tail Ridge lots | News, Sports, Jobs – Fairmont Sentinel
Work has begun on the development of several twin homes at White Tail Ridge in Fairmont. The project is a collaborative effort between the city of Fairmont and Fairmont Area Schools, with Southwest Minnesota Housing Partnership (SWMHP) as the developer.
The development is located near the intersection of Belle Vue Road and Redbird Lane. The city acquired the land from the school district for $1, with an agreement that the district would receive $20,000 for each lot sold. After initial sales stagnated, FEDA put out a Request for Proposal (RFP) in 2022 to develop eight of the lots.
SWMHP, a non-profit community development corporation specializing in housing, took on the project. The twin homes are being built to meet the housing needs of the community, including starter homes and rental options.
The homes, listed by REMAX, are priced at $380,000 per unit. The initial phase includes four units, each featuring two bedrooms, two baths, main floor laundry, and vaulted living, dining, and kitchen spaces. The exterior design allows for generous backyard and sideyard spaces for each unit.
The project is expected to be completed within a three-month timeframe, with interested buyers able to view the homes before the end of the year.