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How Will Affordable
Housing Materialize?
By Elaine Klaassen
Anybody who can live on the streets, or bounce
from shelter to shelter, and maintain their sanity is a genius and
a saint. Why does our society continue to demand genius and sainthood
of the lowest income segment of the population? This is never expected
of people who have homes to live in.
When there’s no place to live at a price you can pay, it’s
almost impossible to live a productive, sane and happy life. It
seems like society, instead of paying money to create living units
that the significant low-income population can afford, would rather
pay large sums of money to put the “non-productive, insane
and unhappy” people in jail or to beat them bloody. Maybe
the City of Minneapolis has just made a slight improvement in this
regard.
On January 10, City Council members attended the Hennepin County
Board meeting, which annually hears testimony from homeless people.
Not only were they moved by the intolerable conditions of homelessness
but by the fact that homelessness is much more widespread now than
10 years ago simply because there is very little housing available
for people whose incomes are less than 30 percent of the Metro Median
Income ($76,500)—-Housing in the Twin Cities has diminished
since 1990, wages have not kept up with the cost of housing, and
many communities do not want low-income people living amongst them.
Nevertheless, the City Council went to their meeting on January
31 and did some provocative voting. First they voted to approve
the $10 million Housing Trust Fund, which supporters such as Metropolitan
Interfaith Council on Affordable Housing (MICAH), Jewish Community
Action (JCA), ISAIAH, MN Senior Federation, Family & Children’s
Services, MN ACORN, Progressive MN and MPIRG have been working on
since 2001. (The HTF will be a part of the City budget earmarked
solely for housing; it will be made up of new or existing revenue
sources; and it will be administered by an independent commission
whose priority will be housing affordable to households earning
less than 30 percent and less than 50 percent of the MMI.)
Then at the same time, the City Council voted to divert a $4 million
line item—the HRA levy, half of which is committed to affordable
housing—to police and public works over the next five years
in an attempt to avoid raising property taxes. A fifth of the money
for the Trust Fund will be eliminated.
Ninth Ward Councilmember Gary Schiff, who voted to keep the levy,
said that although the two votes felt like one step forward and
two steps backward, he applauds positive developments made in approving
the Housing Trust Fund: The focus will now be on creating housing
affordable to households with incomes less than 30 percent of the
MMI and, an advisory commission, to search for revenue and determine
specific uses of funds, will be in place, composed partly of advocates
for affordable housing.
Rev. John Darlington, whose church, Minnehaha United Methodist,
is a MICAH member and has ardently supported the Trust Fund, calls
the HTF a “symbolic victory” in the sense that it will
bring City officials and community activists together to work on
affordable housing projects.
The HTF is a step in the right direction. Prioritizing affordable
housing will come about more and more as society sees that when
a segment of the population is without decent housing, everyone
is debilitated. Affordable housing benefits the whole society and
in the end is cost effective. Ultimately, aren’t taxpayers
willing to pay for things that will benefit them?
Los Angeles, in a time when California faces a $35 billion deficit,
approved plans for a $100 million annual Housing Trust Fund in January
2002. Leaders recognized that the housing crisis in the City of
L.A. would “remain intractable until we had major production—and
that a production program that began to meet L.A.’s needs
would have a ripple effect throughout the region.”
Minneapolis MICAH member Patricia Mack suggested that to make up
for the $2 million that will be lost from the levy, people buying
homes could add a certain amount to their mortgage payments per
month. The mortgage company could collect the contributions (tax
deductible), or the voluntary taxes, whatever you want to call them,
and save the expense of setting up an organization to collect the
money. This idea sounds perhaps overly generous, but it’s
not nearly as generous as inviting your homeless friends to come
and live with you (even if you like each other a lot).
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