During a recent government meeting, the Minneapolis Homes Program presented a comprehensive report highlighting its efforts to address affordable homeownership in the city, particularly for BIPOC communities. Roxanne Kimpel, who is concluding her decade-long tenure with the city, emphasized the program's commitment to eliminating racial disparities in homeownership through various strategies.

The presentation outlined the historical context of the program, which has evolved since the foreclosure crisis of 2008-2015. Kimpel noted that the Minneapolis Homes initiative aims to create and sustain affordable homeownership opportunities, focusing on the CREATE strategy to increase the availability of affordable housing units. She highlighted that neighborhoods like Near North Camden and Phillips remain the most affordable, while areas such as Central Calhoun Island and Southwest are among the least affordable.

A significant finding from the program's evaluation revealed that 70% of BIPOC renters in Minneapolis earn below 50% of the area median income, with a stark lack of available homes at this income level. To combat this, the city is exploring subsidy needs to create affordable homes for those earning below 60% of the area median income. Kimpel explained the financial dynamics involved in developing affordable housing, including the necessity for public funding to bridge the gap between construction costs and market values.

The report also indicated a shift in the program's focus from primarily market-rate units to a more inclusive approach that prioritizes affordability for lower-income households. From 2021 to 2024, the program aims to produce units specifically for households earning 80%, 60%, and 40% of the area median income.

Kimpel shared that the program has successfully achieved its goal of ensuring that 60% of the housing units created are perpetually affordable, surpassing the target with 61%. Additionally, 78% of the units have been developed by BIPOC-led developers, reflecting a commitment to inclusivity.

Despite these successes, challenges remain. The rising median home prices in Minneapolis continue to outpace income growth, exacerbating affordability issues. The report projected that if current trends persist, a majority of homes will be out of reach for many residents by 2040.

The meeting concluded with a call for ongoing evaluation and adaptation of the program to ensure it meets the needs of the community effectively, particularly as the inventory of city-owned properties diminishes. The Minneapolis Homes Program remains focused on fostering equitable access to homeownership, aiming to assist 390 BIPOC households by the end of 2024.