Housing 1000/Expanding the Pie
Partners: The Housing 1000/Expanding the Pie initiative is a collaborative effort of the Affordable Housing Coalition, the Citizen’s Community Action Committee to End Homelessness and the Duluth Indian Commission. Duluth LISC is helping to facilitate this process in partnership with these three organizations and the City of Duluth.
Goal: The goal of Duluth Housing 1000 is to create a net gain of 1,000 housing units in Duluth by the year 2010, with at least 33 percent of the units classified as affordable for low- to moderate-income households. The Housing 1000/Expanding the Pie proposal is also leveraging new resources to preserve and upgrade the Community’s housing stock to meet workforce housing needs and those of homeless and low-income households.
Why Housing 1000?
- Low construction rates - Duluth has averaged a net gain of 100 new units per year from 1997 to 2004, but actually had a net loss of (-48 units) in 2004. This low rate hinders housing options for households of all income levels and ages.
- Critical affordable housing needs - About 41 percent of Duluth renters spend over one-third of their income on rent. Of this group, 46 percent spend over half of their income on rent. About 25 percent of homeowners spend over one-third of their income on housing with the state median home sales prices increasing 50 percent since 1995.
- Aging housing stock – Almost half of Duluth’s housing structures are over 60 years old. Without significant maintenance, the average lifespan of a house is 40 to 50 years.
- Opportunity is now – Duluth LISC documents over 600 units in the pipeline with many in need of gap financing; $20 million HOPE VI funds need to be invested by 2010; “At Home in Duluth” has applied for the MHFA Performance Awards Program which will leverage new resources. With added City investment, substantial impact can occur.
Preliminary list of programs and projects to be funded:
- New Construction/Preservation Gap Financing for new units
- Citywide Rental Rehabilitation Revolving Loan
- Duluth American Indian Commission affordable housing and center.
- Historic Preservation Loan Pool (revolving exterior improvement fund matched by the National Trust for Historic Preservation)
- Homeless Initiatives Fund (priorities identified in Citizen’s Community Action Committee to End Homelessness Plan)
- Blight Removal/Site Clearance and Preparation for infill construction
- Neighborhood Stabilization Program (acquire non-homestead properties-especially former student rentals- and recycle for homeownership)
- Accessibility Improvements for single-family and multi-family units
Why make this investment?
- Working together we can meet the goal of over 200 units per year and leave a legacy of improved housing quality and choices for all income levels;
- Housing attracts and maintains businesses and employees;
- Housing is economic development and the investment creates jobs (an estimated 1,700 jobs by 2010);
- It creates homeownership and stabilizes neighborhoods;
- Every $1 in public funds invested will leverage more than $5 in private funds;
- Estimated $5.5 million in new tax base by 2010; and
- Over $160 million in total revenues by Housing 1000.
Financing Partners
Private financing partners include: Bush Foundation, Federal Home Loan Bank of Des Moines, Minnesota Power, North Shore Bank of Commerce, SMDC Health System, US Bank, Wells Fargo, Western Bank and owners equity (developer and homebuyers).
Public financing partners include: City of Duluth, Community Development Financial Institutions Fund, Duluth Economic Development Authority, Housing and Redevelopment Authority of Duluth, Minnesota Housing Finance Agency, St. Louis County, U.S. Department of Housing and Urban Development, U.S. Department of the Treasury
Philanthropic/Not for Profit financial partners include: Corporation for Supportive Housing, Greater Minnesota Housing Fund, Institute for Community Economics, Local Initiatives Support Corporation, National Equity Fund, National Trust for Historic Preservation, Neighborhood Reinvestment Corporation
For more information, visit http://www.housing1000.org/.